Kuniko Unlocks District-Scale Gold-Silver Drill Targets at Commonwealth-Silica Hill

Kuniko Expands Gold-Silver Footprint as Geophysical Review Unlocks Pipeline of Drill Targets

Kuniko Limited (ASX: KNI) has completed a comprehensive integrated geophysical review at its Commonwealth-Silica Hill Gold-Silver Project in New South Wales, and the Kuniko Commonwealth-Silica Hill gold-silver drill targets geophysical review has identified multiple new high-priority drill targets across ground with little to no previous drilling history. The review, conducted in partnership with specialist firm Resource Potentials, combined recent MobileMT data with historical gravity, magnetic, and induced polarisation (IP) datasets into a single targeting framework.

According to the announcement, what was previously understood as three isolated mineralised deposits — Commonwealth Main Shaft, Commonwealth South, and Silica Hill — now appears to sit within a larger, interconnected mineral system spanning a 5 square kilometre area considered highly prospective for gold and silver. Furthermore, all identified drill targets sit within 1 kilometre of the existing project, with land access reported to be available and permit approval expected shortly.

"The completion of the integrated geophysical review marks an important milestone for the company. By combining recent Mobile MT work by us, and historic gravity, magnetic and IP datasets, we have significantly enhanced our understanding of the geological architecture of the broader area surrounding the existing Commonwealth-Silica Hill Project and generated a pipeline of compelling new exploration targets" — Managing Director Maja McGuire.

From Three Deposits to a District-Scale System

The geophysical review has reframed how Kuniko views its project footprint. Rather than three known mineralised occurrences, the integrated interpretation suggests the Commonwealth-Silica Hill area may host multiple concealed intrusive and hydrothermal centres, many of which remain untested by historical drilling.

Key findings from the review include the following:

• A prospective corridor extending approximately 4 kilometres across the broader project area, identified through MobileMT interpretation
• Multiple discrete gravity lows interpreted as potentially representing concealed intrusive bodies, consistent with the geological signature associated with known mineralisation at Silica Hill
• Several gravity anomalies coinciding with MobileMT conductivity anomalies, magnetic features, and IP responses, providing independent geophysical support across multiple datasets
• Repetition of these geophysical signatures across the broader project area, particularly within a large cluster south of the existing deposits, strengthening the case for a multi-deposit mineral system

Known mineralisation at Silica Hill occurs along the margin of a prominent gravity low. This provides a calibration point that geologists can apply when interpreting similar geophysical signatures elsewhere across the project area. Consequently, where gravity, magnetic, IP, and MobileMT datasets converge on the same location, confidence in a target's geological significance is considered to increase.

Three Priority Targets Identified by the Review

Silica Hill South-East Extension

The Silica Hill South-East Extension has been identified as the most compelling near-term target. Known high-grade mineralisation at Silica Hill sits at the margin of a gravity low that continues for more than 500 metres to the southeast beyond existing drill coverage. This ground has never been drilled.

Phase 1 drilling at Silica Hill previously returned the following results:

Subsequent Phase 2 drilling has extended the interpreted mineralised system by approximately 100 metres up-dip and down-dip, with mineralisation reported to remain open. In addition, a strong chargeability anomaly east of Silica Hill also remains untested and has been flagged as an additional high-priority target.

Drill core observations and multi-element geochemistry suggest mineralisation at Silica Hill is associated with at least two intrusive phases, providing a geological basis for targeting the continuation of the gravity gradient to the southeast. According to the announcement, previous drilling tested parts of the broader area, however, drill orientation did not optimally test the geometry now defined by the integrated interpretation.

The Walls Mine Corridor

The Walls Mine and Stringers Mine corridor has been identified as a regional-scale target. Historical drilling at Walls has previously returned 20m at 0.5 g/t Au and 27 g/t Ag, with mineralisation reported to remain open along strike in both directions, and up to 2.9 g/t Au and 144 g/t Ag from 55m in a single drill hole. Welcome Jack, located 800 metres from Walls, returned up to 8 g/t Au from 29m in a single hole.

Recent reconnaissance mapping and rock chip sampling by Kuniko returned the following results:

The strongest dipole-dipole induced polarisation (DDIP) chargeability anomaly identified across the entire project sits approximately 400 metres northeast of Walls Mine, on the same fault structure as Welcome Jack, and has not been tested by drilling. This anomaly coincides with a MobileMT conductivity anomaly and occurs adjacent to the interpreted gravity-low corridor, meaning three independent geophysical datasets point to the same untested ground.

Buried Intrusive Bodies

Beyond the near-resource targets, the review identified additional gravity lows interpreted as potential concealed intrusive bodies within the cluster south of the existing deposits. These are interpreted to potentially host hydrothermal alteration and skarn development along intrusive contacts, a style of mineralisation recognised in porphyry-skarn systems.

The interpreted intrusive and hydrothermal centres may be genetically linked to Devonian magmatism recognised in the Walls-Stringers area, according to the announcement.

Understanding Induced Polarisation

What Is It?

Induced Polarisation (IP) is a geophysical technique used to detect electrically chargeable materials in the subsurface, most commonly sulphide minerals such as pyrite, chalcopyrite, and sphalerite, which are often associated with gold and silver mineralisation.

How Does It Work?

An electrical current is passed into the ground, and the way the ground retains that charge (its chargeability) is measured once the current is switched off. Rocks containing disseminated sulphides tend to hold charge longer, producing a measurable response.

Why Does It Matter for Investors?

The strongest DDIP chargeability anomaly identified across the project, located 400 metres northeast of Walls Mine, is interpreted as a potential indicator of a sulphide-rich body underground. Where this IP anomaly coincides with gravity lows and MobileMT conductivity responses, multiple independent lines of geophysical evidence point to the same target, which can increase the geological credibility of that target ahead of drill testing.

What Comes Next

The Kuniko Commonwealth-Silica Hill gold-silver drill targets geophysical review has established a work program that Kuniko intends to progress in the following sequence:

Management has indicated the December 2026 Mineral Resource Estimate update as a near-term catalyst, given that Phase 2 drilling has already extended the interpreted Silica Hill mineralised system by approximately 100 metres beyond Phase 1 results.

Project Context and Investment Considerations

The Commonwealth-Silica Hill Project is located within the Lachlan Fold Belt of New South Wales, approximately 100 kilometres north of Orange. This region hosts several established operations, as summarised below.

Kuniko's project lies along trend from Alkane Resources' Boda-Kaiser deposit, a comparison the company has used to illustrate the broader geological setting of the district.

Several factors from the review are considered relevant to the investment case:

1. Scale uplift — the project framework has moved from three known mineralised occurrences to a district-scale system spanning 5 square kilometres
2. High-grade results — existing intercepts include 347 g/t AuEq over 0.5 metres and 8 g/t Au over 29 metres
3. Untested targets — a pipeline of drill-ready targets has been generated, many without any prior drilling
4. Convergent geophysical evidence — priority targets are supported by multiple independent datasets rather than a single anomaly
5. Near-term catalyst — an updated JORC Mineral Resource Estimate is expected in December 2026
6. Earn-in structure — Kuniko can earn up to 70% of the project through staged expenditure commitments under its agreement with Impact Minerals (ASX: IPT)
7. Jurisdiction — exploration is conducted under New South Wales mining law

Broader Portfolio Context

Kuniko also holds a portfolio of battery metals assets in Southern Norway, including the Ertelien Nickel-Copper-Cobalt Project (reported at 40Mt at 0.25% NiEq, including 22Mt Indicated), the Ringerike Battery Metals Project, the Skuterud Cobalt Project, and the Vågå Copper Project. This provides the company with exposure to gold-silver exploration in Australia alongside battery metals exploration in Europe.

At Commonwealth-Silica Hill, the completion of this geophysical review represents a shift from a deposit-level focus toward a district-level exploration approach. With permitting for new targets expected shortly, Phase 2 drilling underway, and a JORC Mineral Resource Estimate update anticipated in December 2026, several newsflow events are anticipated over the coming months.

Key takeaway: The Kuniko Commonwealth-Silica Hill gold-silver drill targets geophysical review has reframed the project from a three-deposit story into a potential district-scale gold-silver system. With multiple untested targets identified, Phase 2 drilling underway, and an updated JORC Mineral Resource Estimate expected in December 2026, the company has outlined an exploration pipeline that investors focused on gold and silver exploration in New South Wales may wish to monitor closely.

Want to Learn More About Kuniko's District-Scale Gold-Silver Exploration?

With a pipeline of untested drill targets now identified across a 5 square kilometre system, Phase 2 drilling underway, and a JORC Mineral Resource Estimate update expected in December 2026, Kuniko Limited (ASX: KNI) has outlined a compelling exploration pathway at its Commonwealth-Silica Hill Project. Investors seeking to learn more about the company, its projects, and the broader investment case can visit the official Kuniko website at kuniko.eu.