How far has phase-two drilling extended Kuniko's (ASX:KNI) Silica Hill gold-silver zone in New South Wales?

Sonal Goyal

12 November 2026 06:01 PM AEDT

How far has phase-two drilling extended Kuniko's (ASX:KNI) Silica Hill gold-silver zone in New South Wales?

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Key Highlights

All five phase-two holes at Silica Hill intersected mineralisation.
The new results extend mineralisation about 100 metres beyond the historical footprint.
The phase-two holes totalled 1,492 metres, bringing 2026 campaigns to 11 diamond holes for 2,731 metres.
Phase-three drilling is planned for the March 2027 quarter, funded by a Placement announced on 11 November.

Kuniko (ASX:KNI) reported that all five holes in its phase-two drilling programme at Silica Hill intersected mineralisation. Silica Hill forms part of the Commonwealth-Silica Hill Project in central-west New South Wales. The phase-two holes totalled 1,492 metres, bringing the 2026 campaigns to 11 diamond holes for 2,731 metres.

On 11 November, Kuniko announced a placement to fund phase-three drilling at the project.

The intercepts

Holes CMKNI007 and CMKNI008 hit broad zones about 60 metres down-dip and 40 metres up-dip of phase-one hole CMKNI004. That earlier hole returned 84 metres at 0.60 grams per tonne gold and 123g/t silver.

Kuniko says the new results extend mineralisation about 100 metres beyond the historical footprint, with the zone open to the north-west and south-east.

CMKNI011 returned 16.3 metres at 1.56g/t gold equivalent from 75.7 metres, and CMKNI008 returned 10 metres at 1.33g/t gold equivalent from 312 metres. The intervals are downhole lengths, and true widths have not been established.

Reading the grades

The Silica Hill mineralisation combines modest gold grades with significant silver. In CMKNI004, silver at 123g/t contributes materially to the value of the interval. Gold-equivalent figures depend on assumed prices and recoveries for each metal, and investors should check those assumptions when comparing results.

Broad, lower-grade zones can be suited to bulk Mining if they are close to surface and continuous, but the Economics depend heavily on strip ratios and metallurgical recovery.

Geophysical leads

Geophysics indicates a trend extending more than 500 metres south-east of Silica Hill and untested induced polarisation anomalies to the north-east. A deeper conductor lies about 100 metres from CMKNI004, and Kuniko says CMKNI011 may have been drilled sub-parallel to it, which would mean the conductor has not been properly tested.

Managing Director Maja McGuire said the geophysics provided a framework for prioritising future exploration.

Phase three and the resource

Kuniko is targeting an updated mineral resource estimate in December. Phase-three drilling is planned for the March 2027 quarter at the Welcome Jack, Walls and Stringers targets, all within 1 kilometre of the existing resource. Historical drilling at Walls returned 20 metres at 0.50g/t gold and 27g/t silver.

The 11 November placement is intended to fund that phase-three work.

Ownership

Kuniko holds 51% of the project under an earn-in and joint venture with Impact Minerals (ASX:IPT) and can earn up to 70%. That means the value of any resource growth is shared with Impact, and Kuniko must continue spending to increase its interest.

The wider company

Kuniko also holds battery metals interests in Norway. Its focus on Commonwealth reflects high precious metals prices, which have encouraged many explorers to prioritise gold and silver projects.

Qualifications

The drilling is relatively sparse, with 11 holes in 2026, and continuity between holes is still being tested. The relationship between the conductor and mineralisation is unproven.

The Lachlan Fold Belt in central-west New South Wales hosts a wide variety of gold, silver and base metals deposits, including epithermal and porphyry systems. The project's proximity to infrastructure and existing resource gives it a potential development path if resource growth continues. Kuniko's earn-in with Impact Minerals also means that Impact, through its 49% interest, has direct exposure to the same drilling results. The phase-three targets were chosen using geophysics and historical drilling, so their results will help test the targeting model.

What comes next

The December resource update, completion of the placement and phase-three drilling in the March 2027 quarter are the next milestones.

FAQs

Q: How much was drilled in phase two?

A: Five holes totalling 1,492 metres, bringing the 2026 campaigns to 11 diamond holes for 2,731 metres.

Q: What did the best holes return?

A: CMKNI011 returned 16.3 metres at 1.56g/t gold equivalent from 75.7 metres, and CMKNI008 returned 10 metres at 1.33g/t gold equivalent from 312 metres.

Q: Who owns the project?

A: Kuniko holds 51% under an earn-in and joint venture with Impact Minerals, and can earn up to 70%.

Q: When is the next resource update?

A: Kuniko is targeting an updated mineral resource estimate in December.

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