Kuniko to Kick Off Phase 2 Drilling at Commonwealth-Silica Hill in July

Phase 2 Drilling Set to Expand High-Grade Zones

Kuniko Limited (ASX:KNI), the joint venture partner in the Commonwealth–Silica Hill Gold–Silver Project, has secured a drill rig and will commence Phase 2 diamond drilling in early July 2026. The program aims to extend mineralisation at key targets including Silica Hill, Commonwealth Main Shaft, and Commonwealth South, building on a highly successful Phase 1 campaign that uncovered a new high-grade mineralised zone at Silica Hill.

The initial Phase 2 program comprises six diamond drill holes totalling approximately 1,340 metres, with the potential to scale up depending on geological findings and operational factors. Titeline Drilling has been engaged to execute the program following the successful completion of Phase 1.

Strong Phase 1 Results Bolster Exploration Thesis

Phase 1 drilling achieved a 100% success rate, intersecting mineralisation in all six holes. Highlights include a standout intercept at Silica Hill with 84 metres grading 2.6 grams per tonne gold equivalent (g/t goldEq), featuring a bonanza-grade 0.5 metre interval with 347 g/t goldEq, including 27 g/t gold and an extraordinary 20,603 g/t silver. Commonwealth South also delivered high-grade results, such as 7.1 metres at 9.7 g/t goldEq, confirming the presence of robust polymetallic mineralisation.

Impact Minerals Managing Director Dr Michael Jones emphasised the significance of the Silica Hill discovery, noting the very high-grade vein opens new drilling opportunities below the existing deposit. He reiterated the belief that the Commonwealth and Silica Hill deposits are part of a larger mineral system, which Phase 2 drilling will seek to test.

Strategic JV Terms and Project Upside

Under the earn-in and joint venture agreement, Kuniko can earn up to 70% of the project by funding exploration, with Impact Minerals retaining a 30% free-carried interest to a Decision to Mine. Beyond this point, Impact may choose to contribute or dilute to a 10% interest with a 2% net smelter return royalty.

In parallel with drilling, Kuniko is commissioning Resource Potentials to integrate historical geophysical and geochemical data, including a MobileMT survey, to refine existing targets and identify new drill prospects across the broader project area. This regional targeting review is expected to complete by early July, coinciding with the drilling commencement.

Project Positioned in a Tier-1 Mining District

The Commonwealth–Silica Hill Project lies within the Lachlan Fold Belt, a prolific mining region in central New South Wales, hosting major operations such as Newmont’s Cadia-Ridgeway and Evolution Mining’s Cowal. The project’s proximity to Alkane’s Boda-Kaiser porphyry copper-gold deposit, which contains over 10 million ounces of gold equivalent, underscores its potential.

The deposits comprise a polymetallic volcanogenic massive sulphide (VMS) system at Commonwealth Main and South, alongside an epithermal stockwork vein system at Silica Hill rich in silver sulphosalts. Historical inferred mineral resource estimates have been reported, but the recent drilling success and new discoveries provide a compelling case for resource growth.

Key Milestones and Forward Schedule

Assay results from Phase 2 drilling are anticipated by September 2026, with a project mineral resource estimate upgrade targeted for December 2026. These milestones will be critical in assessing the scale and economics of the mineralisation and guiding future development decisions.