What Does Kuniko's (ASX:KNI) Phase 2 Drilling at Silica Hill Reveal About Its Gold-Silver Mineralisation Potential?

Sonal Goyal

05 November 2026 06:37 PM AEDT

What Does Kuniko's (ASX:KNI) Phase 2 Drilling at Silica Hill Reveal About Its Gold-Silver Mineralisation Potential?

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Key Highlights

• All five Phase 2 holes at Silica Hill intersected mineralisation, including 16.3m at 1.56 g/t AuEq from 75.7m in CMKNI011

• Two drilling campaigns in 2026 completed 11 diamond holes for 2,731m across the Commonwealth-Silica Hill system

• Geophysics interpretation highlights a prospective trend extending more than 500m southeast of known mineralisation

• Updated Mineral Resource Estimate targeted for December 2026

Kuniko Ltd (ASX:KNI) announced results on 5 November 2026 from its Phase 2 drilling campaign at the Silica Hill prospect within the Commonwealth project in New South Wales. The exploration-stage company reported that all five holes drilled in the second phase intersected mineralisation, extending the interpreted mineralised system and providing additional data for an updated Mineral Resource Estimate (MRE) targeted for completion by December 2026.

Phase 2 Drilling Results

The Phase 2 campaign at Silica Hill comprised five diamond drill holes totalling 1,492 metres. The results demonstrate continuity of gold-silver mineralisation beneath Silica Hill and provide linkage between the Silica Hill discovery and the existing resource at Commonwealth. Hole CMKNI011 returned 16.3 metres at 1.56 g/t gold equivalent (0.44 g/t gold and 68.1 g/t silver) from 75.7 metres, including 11.95 metres at 1.95 g/t AuEq from 75.7 metres. Within this interval, a 65-centimetre vein graded 6.23 g/t AuEq (393 g/t silver, 0.4 g/t gold, 1.12% zinc and 0.65% lead) from 87 metres. Hole CMKNI008 intersected 43 metres at 0.31 g/t AuEq from 219 metres and 10 metres at 1.33 g/t AuEq from 312 metres. CMKNI007 returned 30 metres at 0.36 g/t AuEq from 282 metres, while CMKNI010 delivered 30 metres at 0.45 g/t AuEq from 139 metres.

Broader Drilling Campaign and Mineralisation Continuity

Across both Phase 1 and Phase 2 campaigns in 2026, Kuniko completed 11 diamond holes for 2,731 metres, with mineralisation intersected in all 11 holes across the Commonwealth-Silica Hill system. Phase 1 had previously delivered notable intersections at Main Shaft, Commonwealth South and Silica Hill, including 84 metres at 0.6 g/t gold and 123 g/t silver in CMKNI004, which contained a 0.5-metre massive sulphide vein grading 27 g/t gold and 20,603 g/t silver approximately 100 metres beyond the previously defined mineralised footprint. The Phase 2 results, particularly from CMKNI007 and CMKNI008, intersected broad mineralised zones approximately 60 metres down-dip and 40 metres up-dip of CMKNI004, demonstrating mineralisation across approximately 100 metres of vertical extent.

Geophysical Targets and Exploration Upside

Integrated gravity, induced polarisation (IP) and down-hole electromagnetic (DHEM) interpretation has highlighted a prospective geophysical trend extending more than 500 metres southeast of known Silica Hill mineralisation. The company noted untested IP chargeability anomalies and prospective gravity-low margins that provide additional targets for follow-up exploration. Mineralisation remains open along strike and at depth. Planning is advancing for regional drilling at Welcome Jack, Walls and Stringers, all located within approximately one kilometre of the existing resource, with drilling targeted for the first quarter of 2027.

About Kuniko

Kuniko Ltd is an ASX-listed exploration company focused on developing the Commonwealth gold-silver-base metal project in the Lachlan Fold Belt of New South Wales, Australia. The project encompasses the Commonwealth deposit and the Silica Hill discovery within a broader mineralised system. The company is focused on growing its resource base through systematic exploration and drilling.

Sector Context

Gold exploration activity in New South Wales continues to attract investment, with the Lachlan Fold Belt recognised as a prospective geological province hosting several operating mines and advanced projects. Companies reporting consistent mineralisation across multiple drill holes and expanding known mineralised systems are progressing toward resource definition milestones that can underpin development studies.

Risks to Consider

Kuniko is a pre-revenue exploration company, and its financial viability depends on continued access to Capital for drilling and development activities. Exploration results, while encouraging, do not guarantee the definition of an economic resource. The updated MRE, while targeted for December 2026, is subject to geological modelling outcomes. Commodity price fluctuations in gold, silver and base metals directly affect the economic viability of any future development.

Catalysts on Watch

The updated Mineral Resource Estimate, targeted for December 2026, represents the most immediate catalyst. Regional drilling at Welcome Jack, Walls and Stringers planned for Q1 2027 could identify additional mineralised zones near the existing resource. Follow-up drilling on the geophysical targets southeast of Silica Hill may extend the known mineralised footprint further. Any scoping or pre-feasibility study announcements would also mark a progression toward development.

What It All Means

Kuniko's Phase 2 results at Silica Hill add to a growing body of evidence supporting mineralisation continuity and extension across the Commonwealth-Silica Hill system. With all 11 holes from the 2026 campaigns intersecting mineralisation and geophysical data pointing to additional untested targets, the project is advancing toward an updated resource estimate. The December 2026 MRE and planned 2027 regional drilling will be pivotal in determining the scale and development potential of the project.

FAQs

Q: Where is Kuniko's Commonwealth project located?

A: The Commonwealth project is located in the Lachlan Fold Belt of New South Wales, Australia.

Q: What was the best intersection from Phase 2 drilling?

A: Hole CMKNI011 returned 16.3 metres at 1.56 g/t gold equivalent (0.44 g/t gold and 68.1 g/t silver) from 75.7 metres.

Q: When is the updated Mineral Resource Estimate expected?

A: The updated MRE is targeted for December 2026.

Q: What exploration is planned for 2027?

A: Regional drilling at Welcome Jack, Walls and Stringers, located within approximately one kilometre of the existing resource, is planned for Q1 2027.

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