Kuniko Confirms High-Grade Gold-Silver Extensions at Commonwealth-Silica Hill

Phase 1 Drilling Validates High-Grade Extensions

Kuniko Limited (ASX:KNI) has delivered robust assay results from its maiden Phase 1 diamond drilling campaign at the Commonwealth-Silica Hill Project in New South Wales, confirming high-grade gold, silver, and base metal mineralisation across multiple zones. The standout intercept came from drillhole CMKNI006 at Commonwealth South, which intersected 7.1 metres grading 8.4 g/t gold, 42 g/t silver, 1.5% zinc, and 0.7% lead from 79.9 metres, including a higher-grade core of 3.1 metres at 18.6 g/t gold and 76 g/t silver. This confirms continuity of a polymetallic lode previously identified and suggests potential for further down-dip extensions, as the hole deviated shallower than planned.

The Phase 1 program also successfully extended mineralisation outside the existing envelopes at Silica Hill, with a 100-metre step-out hole returning 3.4 metres at 4.1 g/t gold and an extraordinary 2,947 g/t silver, highlighted by a 0.5-metre massive sulphide vein grading 27 g/t gold and a staggering 20,603 g/t silver. This intercept underscores the presence of high-grade feeder veins in the epithermal stockwork system, adding a new dimension to the project’s exploration potential. These findings build on earlier discoveries, including the bonanza-grade intercepts at Silica Hill that extended the known system beyond previous limits.

Broader System Confirmed with Polymetallic Mineralisation

Drillhole CMKNI005 targeted a deeper induced polarisation (IP) anomaly at Commonwealth South and intersected a broad mineralised zone of 16 metres grading 0.6 g/t gold, 0.15% zinc, and 804 ppm copper. Although lower grade than CMKNI006, the strong alteration and sulphide presence validate the hydrothermal system’s fertility and highlight a large open target area north of the hole, which remains untested. This suggests the mineralised system is more extensive than currently modelled and supports the structural interpretation of a corridor linking Commonwealth and Silica Hill.

All six Phase 1 drill holes intersected sulphide mineralisation, including massive, semi-massive, disseminated, and stringer sulphides, confirming strong continuity of the volcanic massive sulphide (VMS)-style system. The polymetallic nature of the mineralisation, combining gold, silver, zinc, lead, and copper credits, aligns with globally recognised analogues such as Eskay Creek in Canada, providing a geological framework for ongoing exploration. The project’s location within the prolific Lachlan Fold Belt, near major operations like Cadia-Ridgeway, further enhances its strategic appeal.

Phase 2 Drilling and Regional Targeting to Accelerate

With a diamond drill rig secured, Kuniko plans to commence Phase 2 drilling in early July. This next stage will focus on larger step-out extensions along strike and down dip, targeting potential higher-grade zones at depth and following up on the newly identified Silica Hill discovery. The company aims to expand the mineralisation footprint and advance towards an updated resource estimate, although it has yet to independently verify historical JORC inferred resources reported by Impact Minerals.

In parallel, geophysical consultants Resource Potentials are integrating MobileMT data with historical datasets to refine additional regional drill targets along the Commonwealth-Silica Hill corridor. This targeting exercise is expected to identify new prospects for scout drilling, including at Gladstone West and Geenobby, where geochemical and geophysical anomalies remain untested. This complements Kuniko’s broader strategy to leverage multiple untested targets within its 315 km² licence package along the Lachlan Fold Belt.

These developments follow Kuniko’s earlier high-grade massive sulphides confirmation at Commonwealth Main Shaft and the discovery of a new sulphide zone at Silica Hill, both of which have contributed to building momentum ahead of the upcoming drilling campaign.