Kuniko Uncovers New High-Grade Zone at Commonwealth-Silica Hill

Breakthrough Discovery at Silica Hill Extends Resource Envelope

Kuniko Limited (ASX:KNI) has delivered a standout first phase of drilling at its Commonwealth-Silica Hill project in New South Wales, revealing a new high-grade mineralised zone that lies approximately 100 metres beyond the existing resource boundary. The maiden hole into this area returned an impressive 84 metres at 2.6 grams per tonne gold equivalent (AuEq), including a bonanza-grade 0.5 metres intercept boasting 347 g/t AuEq, driven by an extraordinary 20,603 g/t silver and 27 g/t gold. This discovery not only confirms the potential for resource expansion but also sets a high bar for the ongoing Phase 2 program.

Consistent High-Grade Mineralisation Across Multiple Targets

Phase 1 drilling achieved a 100% success rate across six holes, intersecting mineralisation in every attempt. Notable results include 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, both featuring significant gold and silver grades. These results reinforce the continuity and quality of the polymetallic system hosted within the Lachlan Fold Belt, a Tier-1 jurisdiction known for prolific deposits.

Phase 2 Drilling Targets Resource Growth and New Discoveries

Building on the Phase 1 momentum, Kuniko has commenced a Phase 2 diamond drilling campaign initially comprising six holes for approximately 1,350 metres. This program aims to follow up the Silica Hill discovery and test extensions at Commonwealth Main and South. The drilling is designed to be scalable, with the potential to expand to 14 holes and over 3,300 metres depending on results and operational factors. Assay results from this phase are anticipated in September 2026, with an upgraded Mineral Resource Estimate (MRE) targeted for December.

Expanding Exploration Pipeline and District-Scale Potential

Kuniko is advancing an integrated targeting review led by Resource Potentials, combining MobileMT geophysical data with geological and geochemical datasets to refine drill targets across a 4-kilometre conductive corridor. This corridor, largely untested by drilling, extends the mineralised system beyond the current footprint and includes historic prospects such as Walls and Stringers. Reconnaissance sampling at these sites returned encouraging assays up to 4.7 g/t AuEq, underscoring near-term exploration upside within 1 kilometre of the existing resource.

Corporate Position Strengthened by Capital Raise and Debt Repayment

On the corporate front, Kuniko strengthened its balance sheet with a $3.75 million placement completed during the quarter, supporting accelerated exploration activities. The company also eliminated all outstanding debt facilities, including a $500,000 loan repaid in late July, leaving it debt-free with approximately $1.87 million cash on hand as of 30 June 2026. Exploration expenditure for the quarter totalled about $527,000, primarily directed at the Commonwealth project.

Strategic Battery Metals Portfolio Maintained in Norway

Beyond Australia, Kuniko continues to hold a strategic portfolio of nickel, copper, and cobalt projects in Southern Norway, including the Ertelien deposit with a 40 million tonne JORC resource at 0.25% nickel equivalent. While exploration activity was limited this quarter to licence maintenance and technical reviews, the company is actively evaluating partnerships and joint ventures to unlock value from these assets aligned with the European energy transition.