Kuniko Limited is set to kick off Phase 2 diamond drilling at its Commonwealth–Silica Hill Project in early July 2026, aiming to extend mineralisation and deliver a resource upgrade by year-end. The move follows a successful Phase 1 campaign that intersected mineralisation in all holes and unveiled a significant new zone at Silica Hill.
- Phase 2 drilling to start early July 2026
- Six diamond holes planned for 1,340m initially
- Targets include Silica Hill, Commonwealth Main Shaft and South
- Phase 1 drilling hit mineralisation in all holes
- Resource upgrade targeted for H2 2026
Phase 2 Drilling Set to Build on Breakthrough Phase 1 Results
Kuniko Limited (ASX:KNI) is gearing up to expand its Commonwealth–Silica Hill gold-silver project with a Phase 2 diamond drilling campaign slated to begin in early July 2026. This next stage aims to extend mineralisation at three key zones: Silica Hill, Commonwealth Main Shaft, and Commonwealth South, with the ultimate goal of upgrading the project's Mineral Resource Estimate (MRE) by the second half of the year.
The Phase 1 drilling campaign, completed earlier this year, delivered mineralisation in all six holes, including a standout new discovery at Silica Hill approximately 100 metres beyond the previously known mineral footprint. Highlights include an 84-metre intercept grading 2.6 g/t gold equivalent (AuEq), featuring bonanza-grade silver and gold assays, such as 0.5 metres at 347 g/t AuEq. These results confirm the continuity of the polymetallic system and reveal substantial growth potential.
Strategic Focus on High-Grade Extensions and New Discoveries
The initial Phase 2 program comprises six diamond drill holes totalling approximately 1,340 metres, with scope to scale up depending on ongoing geological insights and operational factors. The drilling will focus on down-dip, down-plunge, and along-strike extensions to mineralisation, testing significant step-outs beyond existing intercepts.
At Silica Hill, drilling will target the newly discovered mineralised zone revealed in hole CMKNI004, which remains open in multiple directions. The programme also aims to test a deeper high-grade gold zone that returned 21 metres at 1.5 g/t gold, including a 1-metre interval grading 15 g/t gold. Meanwhile, Commonwealth Main Shaft drilling will probe extensions beneath previous high-grade massive sulphide intercepts, including an 8-metre intercept at 8.6 g/t AuEq with strong base metal credits. At Commonwealth South, the focus is on down-plunge extensions to a confirmed high-grade gold shoot, with Phase 1 hole CMKNI006 returning 7.1 metres at 9.7 g/t AuEq.
Drill Contractor Secured and Regional Targeting Underway
Kuniko has re-engaged Titeline Drilling, the contractor behind the successful Phase 1 campaign, to execute Phase 2. Titeline brings extensive experience in the Lachlan Fold Belt, underpinning Kuniko's commitment to safe, efficient, and high-quality drilling operations.
Parallel to drilling, Kuniko has commissioned Resource Potentials to conduct a regional targeting review. This work integrates historical geophysical data, including Kuniko’s own MobileMT survey, with geochemical and geological datasets to refine existing targets and identify new high-priority drill sites near the current project area.
Pathway to Resource Upgrade and Broader Exploration Upside
Assay results from Phase 2 are expected by September 2026 and will feed into updated geological and resource modelling. Subject to successful drilling outcomes, Kuniko plans to deliver an upgraded MRE for the Commonwealth–Silica Hill Project by December 2026. This milestone could significantly enhance the project's valuation and development prospects.
The Commonwealth Project sits within the prolific Lachlan Fold Belt, a Tier 1 mining jurisdiction hosting major operations like Newmont’s Cadia-Ridgeway. Kuniko’s polymetallic system shares geological characteristics with world-class deposits such as Canada’s Eskay Creek, reinforcing the project’s exploration potential.
While historical JORC Inferred Mineral Resource Estimates exist for Commonwealth and Silica Hill, Kuniko has not yet independently verified these figures and intends to validate and update them through its ongoing work.
Bottom Line?
Phase 2 drilling at Commonwealth–Silica Hill could unlock significant resource growth, but investors should watch assay results closely to gauge the project's trajectory towards a resource upgrade in late 2026.
Questions in the middle?
- Will Phase 2 drilling confirm the continuity and scale of the new Silica Hill mineralised zone?
- How might the regional targeting review reshape Kuniko’s exploration priorities beyond the current drill plan?
- What impact will the December 2026 MRE upgrade have on Kuniko’s valuation and development timeline?