Kuniko Confirms Gold-Silver Mineralisation at Walls and Stringers

Kuniko Confirms Mineralisation at Walls and Stringers, Expanding District-Scale Potential at Commonwealth–Silica Hill

Kuniko Ltd (ASX: KNI) has reported reconnaissance rock chip assays that confirm gold-silver-base metal mineralisation at the historic Walls and Stringers shaft prospects, located less than 1 km east of the Commonwealth–Silica Hill Gold-Silver Project in New South Wales. The Kuniko Commonwealth-Silica Hill gold silver mineralisation at Walls and Stringers represents a meaningful step forward in defining the district's broader potential.

The company's update highlights assay grades of up to 4.7 g/t AuEq at Walls and 2.7 g/t AuEq at Stringers, together with historical drilling, mine workings and recent geophysics. Collectively, these point to further district-scale exploration upside around the existing project area.

"These results are significant because they confirm mineralisation at two largely untested prospects located less than one kilometre from our existing Commonwealth-Silica Hill gold-silver project. There is clear, growing evidence that Commonwealth-Silica Hill, Welcome Jack, Walls and Stringers may all form part of a much larger mineralised system," said Maja McGuire, Managing Director, Kuniko Ltd.

New Assay Results Put Walls and Stringers Back in Focus

Kuniko Ltd's reconnaissance field programme collected seven selective rock chip samples from outcrop and historical workings at the Walls and Stringers prospects. The results confirm that gold-silver mineralisation with base metal credits occurs beyond the known Commonwealth–Silica Hill deposits.

Key Rock Chip Results (New Kuniko Sampling)

According to Kuniko Ltd, the assays demonstrate that mineralisation extends beyond the current Commonwealth–Silica Hill footprint and support the potential for additional mineralised centres within the broader district.

Both prospects host historic shafts and adits, indicating that early miners identified mineralised structures at surface. However, the ASX announcement makes clear that modern drill testing has been minimal or absent:

• Walls

  • Historical drilling by Impact Minerals intersected:
    • 20 m at 0.5 g/t Au and 27 g/t Ag from 55 m, including
    • 1 m at 2.9 g/t Au and 144 g/t Ag (hole CMIPT027)

  • Kuniko Ltd notes that this intercept has not been meaningfully followed up with recent drilling.

• Stringers

  • Hosts multiple historic shafts and adits along a mineralised structural corridor.
  • Historical rock chips reported up to 6.3 g/t Au and 120 g/t Ag.
  • The prospect has never been drill tested.

Taken together, Walls and Stringers are described by Kuniko Ltd as near-resource exploration targets with the potential to contribute additional mineral resources in proximity to the existing project.

Understanding Rock Chip Sampling and Gold Equivalents

What Is Rock Chip Sampling and Why Is It Used?

Rock chip sampling is an early-stage exploration method where geologists collect small pieces of rock from:

• Exposed outcrops
• Old mine workings, such as shafts and adits
• Areas showing visible sulphides, veining or alteration

These samples are then sent to an accredited laboratory for geochemical analysis.

Key points for investors:

• Rock chip samples are selective, not random. Geologists typically target the most visibly mineralised or altered areas.
• Results are therefore not representative averages of an entire deposit.
• Instead, they confirm whether mineralisation is present, its metal association (for example, gold with silver and lead), and help define priority areas for follow-up work, such as drilling.

At Walls and Stringers, rock chip sampling has been used to validate historical sampling and workings reported by Impact Minerals. Furthermore, the sampling confirms that gold, silver, lead, zinc and copper are present at surface in meaningful combinations, providing further support for Kuniko Ltd's decision to progress these prospects towards drill-ready status.

What Is AuEq (Gold Equivalent) and How Is It Calculated?

Gold equivalent (AuEq) is a way of combining several metals into a single grade figure expressed as an equivalent amount of gold. This is particularly useful in polymetallic deposits, where gold, silver and base metals may all add value.

In this ASX announcement, Kuniko Ltd reports that AuEq was calculated using:

• Long-term consensus prices (discounted to 2026) for gold, silver, copper, lead and zinc
• Specific recovery rates (how much of each metal might be recoverable in processing), based on similar deposits in the Lachlan Fold Belt

The formula converts the grades of silver, copper, lead and zinc into a gold-equivalent contribution, then adds them to the gold grade. Kuniko Ltd also notes that all metals included are considered to have a reasonable potential to be recovered and sold, subject to future testwork.

For investors, AuEq provides a single, comparable measure of grade across different samples or prospects. However, it is important to understand that it is based on assumptions about future metal prices and recoveries, which may change.

Key Geological Terms in This Update

• VMS (volcanogenic massive sulphide): A deposit type formed from metal-rich fluids on or near the ancient seafloor, producing lenses of sulphide minerals containing gold, silver, copper, zinc and lead. Commonwealth Main and South are described as gold-rich VMS-style deposits.

• Epithermal: Mineralisation formed from relatively low-temperature fluids at shallow depths in the crust. These systems can host high-grade gold and silver in vein networks, as described at the Silica Hill deposit.

• Intrusive-related hydrothermal system: A mineralising system where heat from an igneous intrusion (for example, a diorite body) drives hot fluids through surrounding rocks. Metals may then be deposited along structures and contacts around the intrusion.

Understanding these concepts helps contextualise Kuniko Ltd's interpretation that Commonwealth, Silica Hill, Welcome Jack, Walls and Stringers may all form parts of a single, larger mineralised system.

Geophysics Adds Depth to the Story

Kuniko Ltd's announcement emphasises that the rock chip results are part of a broader dataset that includes historical gravity surveys and recent MobileMT (mobile magnetotellurics) geophysics.

What Do Gravity and MobileMT Surveys Indicate?

• Historical gravity surveys (Impact Minerals) identified a series of gravity highs along the Welcome Jack Trend. These anomalies were interpreted as buried intrusive bodies that could be linked to mineralisation. The largest gravity high coincides with the mapped Devonian diorite intrusion at Walls and Stringers.

• MobileMT survey (Kuniko Ltd) is a passive geophysical technique that measures natural electromagnetic fields to map subsurface resistivity contrasts. At Walls and Stringers, MobileMT has identified a large resistive body at depth. In this geological setting, resistive bodies can correspond to intrusive or silicified rocks, both of which may be associated with mineralising fluid pathways.

The ASX report highlights a strong spatial correlation between:

1. The gravity high
2. The mapped surface diorite
3. The MobileMT resistive body

This correlation is interpreted by Kuniko Ltd as evidence for a significant intrusive complex beneath Walls and Stringers. Importantly, both historical drill intercepts and recent rock chip results are located along the upper margins of this interpreted intrusive body, consistent with intrusive-related hydrothermal systems.

The Welcome Jack Corridor: Evolving District-Scale Model

Walls and Stringers lie within the Welcome Jack mineralised corridor, a trend extending east of the three known Commonwealth–Silica Hill deposits. In the context of the Kuniko Commonwealth-Silica Hill gold silver mineralisation at Walls and Stringers, this corridor is increasingly central to the company's geological thesis.

According to the announcement, mineralisation at Walls and Stringers is closely associated with a mapped Devonian-aged diorite intrusion, with extensive silicification, alteration and historical workings occurring along this corridor.

Consultant geologist Gregg Morrison has developed a geological interpretation suggesting that the wider Commonwealth–Silica Hill district may represent an intrusive-related hydrothermal system linked to Devonian magmatism. Under this interpretation:

• Commonwealth Main and South represent a gold-rich VMS-style component.
• Silica Hill represents an epithermal stockwork vein system.
• Welcome Jack, Walls and Stringers may be additional expressions of the same broader system around one or more intrusive centres.

This model supports the idea that mineralisation is not confined to the currently defined resource areas and that multiple mineralised centres may exist within the project's 315 km² landholding.

Project Context: Commonwealth–Silica Hill in a Tier 1 Belt

Kuniko Ltd's Commonwealth Project is located about 100 km north of Orange, NSW, within the Lachlan Fold Belt, a recognised Australian gold-copper province that hosts:

• Cadia–Ridgeway (Newmont)
• Northparkes and Cowal (Evolution Mining)
• Alkane Resources' Boda–Kaiser porphyry copper-gold deposit, reported to contain over 10 million ounces of gold equivalent

The Commonwealth Project sits along trend from Boda–Kaiser and comprises two closely spaced deposits:

• Commonwealth Main and South: Described as a polymetallic VMS-style system with high-grade gold, silver and zinc, including massive sulphide lenses.
• Silica Hill: An epithermal stockwork vein system with high-grade silver sulphosalt mineralisation and broader zones of disseminated and stringer sulphides.

Impact Minerals has previously reported JORC (2012) Inferred Mineral Resource Estimates at both Commonwealth and Silica Hill. Kuniko Ltd notes that it has not independently verified or adopted these estimates and intends, during its Stage 1 earn-in, to undertake technical work that may lead to validation and updating of these estimates via its own Competent Person.

The project area includes five granted exploration licences (approximately 315 km²) covering Commonwealth, Silica Hill and additional prospects such as Welcome Jack, Walls, Stringers, Geenobbys, Gladstone and Pine Hill. Kuniko Ltd is earning up to 70% in the Commonwealth Gold-Silver Project under a binding earn-in and joint venture with Impact Minerals.

Near-Term Catalysts and Planned Work Programme

The ASX release outlines several near-term milestones for the Commonwealth–Silica Hill district:

The targeting review will integrate geological mapping, geochemical datasets, historical gravity data and recent MobileMT resistivity results. Walls and Stringers are expected to feature in this regional framework as potential high-priority targets, with future drill testing dependent on target ranking and permitting outcomes.

Investment Context: Why This Matters for Investors

For investors following Kuniko Ltd, several points from the announcement may be of particular interest regarding the Kuniko Commonwealth-Silica Hill gold silver mineralisation at Walls and Stringers:

1. Confirmed mineralisation near existing deposits: Rock chip assays and historical data confirm gold-silver-base metal mineralisation at Walls and Stringers, both located within 1 km of Commonwealth–Silica Hill.

2. Limited modern drilling: Walls has a single encouraging historical intercept that has not been systematically followed up, while Stringers has no drilling to date, despite historical high-grade rock chip results and numerous historical workings.

3. Converging datasets: Geological mapping, historical gravity and MobileMT geophysics all indicate a substantial intrusive complex beneath Walls and Stringers, with mineralisation along its margins.

4. District-scale model: The emerging intrusive-related hydrothermal model, if supported by further drilling, suggests the Commonwealth–Silica Hill area may host multiple mineralised centres, rather than isolated deposits.

5. Pipeline of catalysts: Phase 2 drilling, geophysical interpretation and a targeted MRE update in H2 2026 provide a sequence of data-driven inflection points over the coming quarters.

Alongside the Commonwealth–Silica Hill Project, Kuniko Ltd also retains a portfolio of battery metals assets in Southern Norway, including the Ertelien Nickel-Copper-Cobalt Project, which has a JORC (2012) Mineral Resource Estimate of 40 Mt at 0.25% NiEq (22 Mt Indicated, 18 Mt Inferred, as per the company's 12 December 2024 release). This provides additional commodity and geographic diversification for the company's broader investor base.

Key takeaway for investors: Kuniko Ltd's latest ASX update indicates that Walls and Stringers have confirmed gold-silver-base metal mineralisation, are supported by multiple geophysical datasets and sit within the Welcome Jack Corridor, less than 1 km from existing deposits at Commonwealth–Silica Hill. With Phase 2 drilling imminent and geophysical interpretation underway across a 4 km corridor, the company is positioning the Commonwealth–Silica Hill district as a multi-centre gold-silver system with scope for further resource growth subject to future drilling results and technical studies.

Want to Know More About Kuniko's Growing Gold-Silver District?

With confirmed mineralisation at Walls and Stringers, Phase 2 diamond drilling imminent, and a geophysical interpretation programme underway across a 4 km corridor, Kuniko Ltd (ASX: KNI) is advancing what may prove to be a multi-centre gold-silver system in one of Australia's most prolific mineral belts. For investors seeking to learn more about the Commonwealth–Silica Hill Project, the company's earn-in strategy, and its broader asset portfolio, visit the Kuniko Ltd website at kuniko.eu.