Kuniko (ASX:KNI) has released a company update detailing its Commonwealth-Silica Hill project in New South Wales, disclosing results from two completed diamond drilling campaigns totalling more than 2,700 metres, with high-grade intercepts including 20,603 g/t silver and 27 g/t gold within a single 0.5-metre interval, and outlining four identified drill targets across an approximately 5 square kilometre prospective system.

Key Points

  • Phase 1 drilling completed 6 holes for 1,239 metres; all holes intersected mineralisation, including a bonanza intercept of 84m at 2.6 g/t AuEq from 226 metres at Silica Hill.
  • Phase 2 drilling completed 5 diamond holes for 1,492 metres, all focused on Silica Hill and all intersecting mineralisation, extending the system beyond the existing resource envelope.
  • Four follow-on drill targets identified for Q1 2027, including Walls (up to 144 g/t silver from 55 metres depth) and Welcome Jack (up to 8 g/t gold from 29 metres depth), with land access and permitting secured.
  • A Mineral Resource Estimate update is scheduled for December 2026, to incorporate 2026 drilling tonnage, with ownership of the project at 51% and moving toward 70% as drilling continues under an earn-in agreement with Impact Minerals (ASX: IPT).
  • Cash position stood at A$1.43 million as at 30 September, with a share price of A$0.017 and enterprise value of A$3.2 million as at 6 November 2026.

Phase 1 and Phase 2 Drilling Results at Silica Hill

The Phase 1 campaign comprised six holes for 1,239 metres, the first drilling at the project since 2019, designed to test extensions to known mineralisation at Commonwealth Main, Commonwealth South, and Silica Hill. The first hole at Silica Hill returned 84 metres at 2.6 g/t AuEq from 226 metres, including 0.5 metres at 347 g/t AuEq, comprising 20,603 g/t silver and 27 g/t gold. Phase 2 followed with five diamond holes for 1,492 metres, all targeting Silica Hill. Hole 11 intersected 11.95 metres at 1.92 g/t AuEq and 1.1 metres at 5.17 g/t AuEq, while Hole 10 intersected 30 metres at 0.45 g/t AuEq, including up to 2 metres at 2.29 g/t AuEq.

Four Regional Drill Targets Identified for Q1 2027

The company disclosed four priority follow-on drill targets, all within one kilometre of the existing project area, with land access and permitting described as secured. The Walls and Stringers target returned up to 2.9 g/t gold and 144 g/t silver from 55 metres depth from one historical drill hole. Welcome Jack returned up to 8 g/t gold from a shallow depth of 29 metres, also from a single historical hole. A Silica Hill Extension target, located 200 metres to the south-east, features recent intercepts exceeding 20,000 g/t silver. A fourth target comprises multiple new Silica Hill-style buried intrusive bodies identified across the system.

Corporate Structure and Upcoming Milestones

According to the filing, Kuniko holds 51% ownership of the Commonwealth-Silica Hill project under an earn-in agreement with Impact Minerals signed in October 2025, with the 51% stake acquired 12 months ahead of schedule. The project spans a 575 square kilometre tenement package in the Lachlan Fold Belt, New South Wales. The company had 271.7 million shares on issue, 124.8 million options, and 18.6 million performance rights as at the filing date. Total funding directed to the project reached approximately A$5 million across two fundraising rounds. A Mineral Resource Estimate update is scheduled for December 2026, with follow-on drilling across Walls and Welcome Jack targets planned for Q1 2027.