Kuniko Launches Phase 2 Drilling After Bonanza Grades at Commonwealth

Phase 2 Drilling Begins to Expand High-Grade Gold-Silver Zones

Kuniko Limited (ASX:KNI) is about to kick off Phase 2 diamond drilling at its Commonwealth Gold-Silver Project in the Lachlan Fold Belt, New South Wales, following a highly successful Phase 1 campaign. The initial Phase 2 program comprises approximately 1,350 metres across six holes, targeting extensions of the bonanza-grade mineralisation discovered last February, including a standout new zone at Silica Hill located roughly 100 metres outside the existing resource envelope.

The Phase 1 drilling achieved a 100% success rate, intersecting mineralisation in all six holes with impressive results such as 0.5 metres grading 347 g/t gold equivalent (AuEq) at Silica Hill, alongside significant silver and base metal credits. Other notable intercepts included 7.1 metres at 9.7 g/t AuEq at Commonwealth South and 8 metres at 8.6 g/t AuEq at Commonwealth Main Shaft, underscoring the project's polymetallic potential.

Scalable Program Targets Resource Growth and Exploration Upside

Kuniko has engaged Titeline Drilling, the contractor responsible for the successful Phase 1 program, with the rig now on site and drilling expected to commence imminently. The Phase 2 campaign is designed to be flexible, allowing for expansion up to 14 holes and approximately 3,340 metres depending on geological outcomes and operational factors.

This scalability reflects Kuniko's strategy to aggressively follow up high-impact results, aiming for a material upgrade to the project's Mineral Resource Estimate (MRE) planned for December 2026. The company is also focusing on testing extensions at Commonwealth Main Shaft and Commonwealth South, alongside the new Silica Hill discovery.

New Targets Along 4km Conductive Corridor Near Historic Shafts

Beyond the immediate drilling targets, Kuniko is advancing exploration across a 4-kilometre conductive corridor close to Commonwealth-Silica Hill, where independent reviews integrating geology, geochemistry, gravity, and MobileMT datasets have identified additional drill targets. This corridor includes historic shafts at Walls and Stringers, which have seen limited or no modern drilling despite historic assays indicating gold and silver mineralisation.

Walls, for instance, has historic intercepts up to 2.9 g/t gold and 144 g/t silver at shallow depths of around 55 metres, with significant potential at depth yet to be tested. Stringers hosts old mine workings but remains undrilled. Assay results from these targets are expected alongside Phase 2 drilling results in early September 2026, potentially adding meaningful upside to the project.

Strategic Location in Tier-1 Lachlan Fold Belt

The Commonwealth Project benefits from its location in the prolific Lachlan Fold Belt, a Tier-1 mining jurisdiction hosting major operations such as Newmont's Cadia-Ridgeway and Evolution Mining's Northparkes and Cowal mines. The project lies immediately along trend from Alkane Resources' Boda-Kaiser porphyry copper-gold deposit, which contains over 10 million ounces of gold equivalent.

Kuniko's polymetallic system combines volcanogenic massive sulphide (VMS) and epithermal styles, with the Commonwealth Main and South deposits featuring high-grade gold, silver, and base metals, and Silica Hill hosting high-grade silver-rich epithermal veins. This geological setting offers a compelling target with analogies to globally significant deposits like Eskay Creek in Canada.