Kuniko Finds Wider Sulphide Zones as Silica Hill Drilling Reaches Deeper Lode

Silica Hill Footprint Extends Beyond Existing Mineralisation

Kuniko Limited (ASX:KNI) is pushing its Silica Hill prospect beyond the known mineralised footprint, with Phase 2 diamond drilling extending the interpreted system by approximately 100 metres. The program has now advanced to 1,324 metres across five holes at the Commonwealth Gold-Silver Project in New South Wales.

The latest drilling has strengthened the company’s interpretation of two separate mineralised structures, known as the Northern and Southern Lodes. The Southern Lode remains the main focus of the step-out campaign, while hole CMKNI011 is testing the Northern Lode at depth in an area where historical drilling has been limited.

Broad Sulphide Zones Intersected in CMKNI010 and CMKNI011

CMKNI010 intersected an approximately 70-metre downhole zone containing disseminated sulphides and sulphide-bearing veining within altered rhyolite. The appendix records several sulphide-bearing intervals in the hole, including a 15-metre zone with estimated visual sulphide abundance of 5% to 10% and a further 39-metre interval estimated at 3% to 5%.

CMKNI011 has produced a different visual signal: prominent sulphide veins, including individual veins estimated at up to 50 centimetres thick. The hole is a significant depth step-out and was still in progress when Kuniko reported, meaning the final extent of the intersection remains unresolved.

Those observations are encouraging from an exploration perspective, but they are not assay results. The company says the sulphide percentages and mineral proportions are visual estimates only, while true widths cannot yet be determined because the geometry of the mineralised zones remains insufficiently constrained. Laboratory analysis will establish whether the visible sulphides translate into meaningful gold, silver and base-metal grades.

Assays Set the Next Test for Resource Growth

Kuniko expects assays from the current Phase 2 drilling over the next four to six weeks. Once drilling is complete and the outstanding results are received, the company plans to incorporate Phase 1 and Phase 2 data into an upgraded Mineral Resource Estimate targeted for December 2026.

The exploration model is also drawing on gravity data, with known Silica Hill mineralisation occurring along the margin of a prominent gravity low that extends for more than 500 metres to the south-east. That interpretation is being used to guide regional targeting, although the immediate investment question is narrower: whether the newly identified sulphide zones carry sufficient grade and continuity to expand the resource on more than a geological map.