Kuniko Limited has started Phase 2 diamond drilling at its Commonwealth-Silica Hill Gold-Silver Project in NSW, aiming to extend high-grade mineralisation and explore a broader 5km² mineralised system. Assay results are due in September, with a resource update planned for late 2026.
- Phase 2 drilling commenced targeting Silica Hill and priority high-grade zones
- Phase 1 delivered bonanza grades including 0.5m at 347 g/t AuEq
- Exploration upside identified along a 4km conductive corridor including Walls and Stringers
- Assay results expected early September 2026
- Updated Mineral Resource Estimate targeted for second half of 2026
Phase 2 Drilling Launches After Stellar Phase 1 Results
Kuniko Limited (ASX:KNI) has commenced its Phase 2 diamond drilling campaign at the Commonwealth-Silica Hill Gold-Silver Project in New South Wales, following a highly successful Phase 1 that delivered a 100% hit rate across six holes. The standout intercept from Phase 1 was a bonanza-grade 0.5 metres at 347 g/t gold equivalent (AuEq) within a broader 84 metres at 2.6 g/t AuEq at the newly discovered Silica Hill zone, located about 100 metres outside the previously defined mineral envelope.
The Phase 2 program aims to build on this momentum by targeting priority high-grade areas at Commonwealth Main Shaft, Commonwealth South, and Silica Hill. Initially planned for six holes totalling approximately 1,350 metres, the drilling may expand to 14 holes (around 3,340 metres) depending on geological results and operational factors.
Exploration Upside Along a 4km Mineralised Corridor
Beyond near-resource growth, Kuniko is focusing on a broader exploration opportunity along a roughly 4-kilometre conductive corridor that hosts historic shafts at Walls and Stringers, less than 1 kilometre from current mineralisation. These targets, alongside the Welcome Jack Prospect; where historical drilling intercepted up to 8 g/t gold; form part of an interpreted mineralised system extending across about 5 square kilometres.
Recent sampling at Walls and Stringers has returned encouraging gold-silver equivalent grades up to 4.7 g/t and 2.7 g/t respectively, with historical drilling at Walls showing significant intercepts but limited follow-up. The Stringers area remains untested by drilling, presenting a fresh opportunity to assess mineralisation continuity at depth.
Assay Results and Resource Update on the Horizon
Assay results from Phase 2 drilling are expected in early September 2026, with a Mineral Resource Estimate update planned for the second half of the year. Kuniko is also conducting a regional targeting review integrating geology, geochemistry, gravity, and MobileMT datasets to refine drill targets along the conductive corridor.
The company emphasises the polymetallic nature of the deposits, which include significant gold, silver, zinc, and base metals. The Commonwealth Main and South deposits exhibit volcanogenic massive sulphide (VMS) characteristics, while Silica Hill hosts an epithermal stockwork vein system rich in silver sulphosalts.
Strategic Location in Tier-1 Lachlan Fold Belt
The Commonwealth-Silica Hill Project sits within the prolific Lachlan Fold Belt, a Tier-1 mining region that hosts major operations such as Newmont’s Cadia-Ridgeway and Evolution Mining’s Northparkes and Cowal mines. The project lies along trend from Alkane’s Boda-Kaiser porphyry copper-gold deposit, which contains over 10 million ounces of gold equivalent.
Kuniko’s Managing Director, Maja McGuire, highlighted the significance of the Phase 2 launch: "The commencement of Phase 2 drilling represents the next step in advancing the Commonwealth–Silica Hill Project following the successful Phase 1 campaign which delivered bonanza-grade results." She also acknowledged the local landowners and drilling teams for their support in safely initiating the program.
Bottom Line?
The upcoming September assay results will be pivotal in confirming whether Kuniko can extend its bonanza-grade footprint and unlock the broader 5km² mineralised system, setting the stage for a potential resource upgrade later this year.
Questions in the middle?
- Will Phase 2 drilling confirm continuity and scale of the Silica Hill bonanza-grade mineralisation?
- How significant is the exploration upside along the 4km conductive corridor, including Walls and Stringers?
- What impact will the updated Mineral Resource Estimate have on Kuniko’s valuation and development plans?