Kuniko Limited has extended the high-grade mineralised system at its Silica Hill prospect by approximately 100 metres through Phase 2 diamond drilling, highlighting significant resource growth potential ahead of a planned update.
- Phase 2 drilling extends mineralisation by 100m
- Two new holes confirm continuity beyond existing resource
- High-grade sulphide zones intersected with assays pending
- Downhole electromagnetic surveys planned for further targeting
- Resource update scheduled following assay results
Phase 2 Drilling Demonstrates Mineralised Continuity
Kuniko Limited (ASX:KNI) has successfully extended the known high-grade mineralised system at its Silica Hill prospect within the Commonwealth Project, NSW, by approximately 100 metres. The company completed two diamond drill holes, CMKNI007 and CMKNI008, totaling 724 metres, which intersected alteration zones, disseminated sulphides, and sulphide-bearing stringer and stockwork veining consistent with the bonanza-grade mineralisation reported in Phase 1 hole CMKNI004. These three holes collectively demonstrate mineralised continuity both up-dip and down-dip outside the existing mineral resource block model, signaling meaningful potential to expand the resource footprint ahead of Kuniko’s planned Mineral Resource Estimate (MRE) update.
High-Grade Mineralisation Confirmed, Assays Pending
While assay results for the two new holes remain pending, visual logging identified significant sulphide mineralisation, including zones rich in sphalerite and galena within silica-sericite altered rhyolite porphyry. CMKNI007, drilled about 60 metres down-dip from CMKNI004, intersected multiple sulphide-bearing veins and stockworks between 205 and 350 metres downhole. CMKNI008, approximately 40 metres up-dip, also encountered broad sulphide zones from 280 to 325 metres. The previous CMKNI004 hole had returned a standout intercept of 0.5 metres grading 347 g/t gold equivalent (AuEq), including 20,603 g/t silver and 27 g/t gold, underscoring the prospect’s bonanza potential. Kuniko’s Managing Director Maja McGuire emphasised the importance of these extensions, noting the opportunity to add scale and high-grade mineralisation to Silica Hill as a key near-term catalyst.
Targeting Conductive Sulphides with Downhole EM Surveys
To further delineate the mineralised system, Kuniko plans to PVC-case hole CMKNI007 to facilitate downhole electromagnetic (DHEM) surveys. These surveys aim to detect conductive sulphide mineralisation beyond the immediate drill intercepts, potentially identifying new targets for follow-up drilling. The mineralised system remains open in multiple directions, up-dip, down-dip, and laterally, suggesting that the current drilling is just scratching the surface of a broader high-grade system.
Broader Exploration and Resource Update Plans
Phase 2 drilling continues at Silica Hill, with additional holes underway to provide infill coverage and test extensions at nearby prospects such as Main Shaft and Commonwealth South, where previous drilling has also returned encouraging high-grade intercepts. Kuniko is advancing regional targeting within a 1–2 kilometre radius of the Commonwealth-Silica Hill corridor, aiming to define further drill targets. The company expects assay results from CMKNI007 and CMKNI008 in September, with an updated Project MRE to follow once all data is received. This update will be pivotal in quantifying the resource growth potential hinted at by the recent drilling.
Strategic Position in a Tier-1 Mining Jurisdiction
The Commonwealth Project sits in the highly prospective Lachlan Fold Belt of New South Wales, a region hosting major operations like Newmont’s Cadia-Ridgeway and Evolution Mining’s Northparkes and Cowal mines. Kuniko’s project benefits from proximity to Alkane’s Boda-Kaiser porphyry copper-gold deposit, which contains over 10 million ounces of gold equivalent. The Silica Hill prospect itself is an epithermal stockwork vein system rich in silver sulphosalts, complementing the polymetallic volcanogenic massive sulphide (VMS) style mineralisation at Commonwealth Main and South deposits. Kuniko’s exploration approach is informed by geological analogies to globally significant VMS-epithermal deposits such as Eskay Creek in Canada, reinforcing the potential scale and value of the system.
Bottom Line?
Pending assays and further drilling will be critical to confirm the scale and grade extensions at Silica Hill, setting the stage for a meaningful resource upgrade later this year.
Questions in the middle?
- Will the pending assays confirm bonanza-grade mineralisation beyond the existing resource model?
- How effective will downhole electromagnetic surveys be in identifying new sulphide targets?
- Can regional exploration unlock additional high-grade zones within the broader Commonwealth-Silica Hill corridor?