Kuniko Secures Majority Control of Commonwealth-Silica Hill Gold-Silver-Copper Project

Kuniko Secures Majority Control of High-Grade Gold-Silver Project 12 Months Ahead of Schedule

Kuniko Limited (ASX: KNI) has reported completion of a 51% majority interest and operational control of the Commonwealth-Silica Hill Gold-Silver-Copper Project in New South Wales, satisfying its Stage 1 earn-in commitment more than 12 months ahead of the original schedule. Kuniko majority control of the Commonwealth-Silica Hill gold-silver-copper project reflects both the pace of the company's exploration programme and its stated conviction in a mineralised system that could extend across a wider district than previously recognised.

Majority Control Secured Ahead of Expectations

Under the Earn-in and Joint Venture Agreement with Impact Minerals Limited (ASX: IPT), Kuniko was required to deploy $1.5 million in exploration expenditure to earn its initial 51% stake. The company has confirmed satisfaction of that commitment well in advance of the original timeline, transitioning from earn-in participant to majority owner and project operator.

The early completion is presented by the company as more than a contractual formality. Furthermore, exploration carried out during the earn-in period has advanced the technical understanding of the project and delivered a discovery at what is now known as the Silica Hill mineralised zone.

Managing Director Commentary

"The speed at which we have deployed capital into exploration, including through the current drilling campaign, to reach the 51% ownership milestone is a clear demonstration of our confidence in the Project and its significant growth potential," said Maja McGuire, Managing Director of Kuniko Limited.

What Has Been Achieved Since September 2025?

Since entering the earn-in agreement in September 2025, Kuniko has run a compressed exploration programme across multiple work streams. The company reports the following activities and outcomes:

The standout figure from Phase 1 drilling, 0.5m at 347 g/t gold equivalent (AuEq), was returned from the first and only drill hole into the Silica Hill zone. While representing a single narrow intercept, the result indicates the presence of high-grade silver-gold mineralisation and, according to the company, supports the geological model being developed for the project.

Understanding VMS-Epithermal Gold-Silver Systems

What Is a VMS-Epithermal Gold-Silver System, and Why Does It Matter to Explorers?

The Commonwealth Project hosts two related but distinct styles of mineralisation:

• Volcanogenic Massive Sulphide (VMS): These deposits form on ancient seafloors from volcanic activity and typically contain gold, silver, zinc, copper and lead within dense, high-grade sulphide bodies. The Commonwealth Main and South deposits are classified in this category.
• Epithermal stockwork vein systems: These form when mineral-rich fluids move through rock at shallower depths in the Earth's crust, often creating high-grade veins and interconnected fracture zones enriched in silver and gold. This style is present at Silica Hill.

When both systems occur within the same project area, as reported at Commonwealth, the combined mineralised footprint can be larger and more varied than either system would produce alone, consequently offering multiple targets for exploration across a single tenement package.

Why Does This Matter to Investors?

Deposits combining VMS and epithermal characteristics can host high-grade precious metals close to surface, which supports early-stage drill targeting, while also carrying the potential for deeper, larger-tonnage mineralisation. This dual architecture is a factor the company points to when discussing resource growth potential at Commonwealth.

Glossary of Key Terms

• AuEq (Gold Equivalent): A method of expressing the combined value of multiple metals, such as gold, silver, copper and zinc, as a single gold grade using commodity price assumptions and estimated metallurgical recoveries.
• MRE (Mineral Resource Estimate): A formal estimate of the quantity and grade of mineralisation based on drilling and sampling data, reported under the JORC Code.
• JORC (2012): The Joint Ore Reserves Committee Code, the Australian standard governing the reporting of mineral resources and ore reserves.
• MobileMT: A mobile magnetotelluric geophysical survey method used to detect subsurface conductive zones that may indicate the presence of sulphide mineralisation.
• Earn-in: A deal structure in which one party acquires an interest in a project by spending a defined amount on exploration over a defined period.

Location Within the Lachlan Fold Belt

The Commonwealth Project sits approximately 100km north of Orange, New South Wales, within the Lachlan Fold Belt, a geological province associated with several established Australian gold and copper operations.

The project is described as sitting immediately along trend from Alkane Resources' Boda-Kaiser porphyry copper-gold deposit. While Commonwealth is understood to be a geologically distinct system from porphyry-style deposits, its regional setting is cited as evidence of the broader area's mineral potential.

Impact Minerals has previously noted geological similarities between the Commonwealth mineral system and Eskay Creek in Canada, a recognised high-grade VMS-epithermal deposit. This comparison is offered as context for the type of system under exploration, rather than as a direct equivalence claim.

Pathway to 70% Ownership

Securing 51% represents the first step in the earn-in structure. Kuniko retains the right to increase its interest to 70% by completing a Stage 2 earn-in, which requires a further $1.5 million in exploration expenditure over the next two years.

With Phase 2 drilling already underway, the company has indicated it expects this additional expenditure threshold to be met through its ongoing drilling and exploration activities.

On reaching 70%, the project would transition into a formal joint venture, with Impact Minerals retaining a 30% interest that is free carried through to a Decision to Mine. Following a Decision to Mine, Impact would have the option to contribute its pro-rata share of costs or dilute its interest.

Factors Relevant to the Ownership Structure for Kuniko Shareholders

• No additional payment required beyond the exploration expenditure already committed
• A free-carried joint venture partner reduces financial exposure ahead of any production decision
• Kuniko retains operational control throughout the earn-in period
• A defined pathway to increased project ownership through exploration spend already budgeted for

Upcoming Catalysts for the Second Half of 2026

Kuniko has outlined a series of near-term milestones for investors to monitor:

The updated MRE, targeted for H2 2026, is likely to be a significant event for the project. Impact Minerals had previously reported JORC (2012) Inferred Mineral Resource Estimates at Commonwealth and Silica Hill. However, Kuniko has stated it has not independently verified or adopted these historical estimates and is working toward its own resource statement through its Competent Person process.

Assessing the Project's Exploration Profile

Several factors are relevant when assessing the Commonwealth Project against the broader gold and silver exploration landscape.

High-Grade Results Near Surface

The first drill hole at Silica Hill returned 0.5m at 347 g/t AuEq, a result that, while limited to a single narrow intercept, points to a high-grade precious metals system accessible from shallow depths. Epithermal systems of this type are known in some global settings to host similarly high-grade intervals, though further drilling would be required to establish continuity.

Broader Exploration Corridor

The definition of an approximately 5km prospective mineralised corridor, incorporating Commonwealth Main, Commonwealth South, Silica Hill, Welcome Jack, Walls & Stringers and other targets, extends the exploration narrative beyond a single deposit. In addition, the 4km MobileMT conductive corridor identified in October 2025 adds further targets for future testing.

Pace of Earn-In Completion

Completion of the Stage 1 earn-in 12 months ahead of schedule reflects, according to the company, a disciplined approach to capital deployment. For investors, faster project advancement can reduce the typical time lag between exploration spend and material news flow.

Joint Venture Terms

The earn-in structure allows Kuniko to build its ownership position through exploration expenditure rather than direct cash payments to Impact Minerals. The pathway to 70% follows the same approach, with Impact's free-carried interest reducing financial complexity at the project level pre-production.

Regional Geological Setting

The Lachlan Fold Belt address and proximity to Alkane Resources' Boda-Kaiser deposit provide a regional reference point, though each deposit's specific characteristics and economic potential remain subject to independent assessment.

Company Outlook

Kuniko has moved from earn-in participant to majority owner and project operator within 12 months, reported a high-grade intercept at Silica Hill, defined an extended exploration corridor, and has Phase 2 drilling underway with assay results pending.

Key Takeaway

Kuniko majority control of the Commonwealth-Silica Hill gold-silver-copper project has been established ahead of its original schedule, with a defined pathway to 70% ownership. Phase 2 drilling assays are expected in September 2026, alongside an updated Mineral Resource Estimate targeted for H2 2026. The approximately 5km mineralised corridor and the reported bonanza-grade intercept at Silica Hill form the basis of the company's near-term exploration narrative.

Beyond Commonwealth, Kuniko also holds a portfolio of copper, nickel and cobalt projects in Southern Norway, including the Ertelien Nickel-Copper-Cobalt Project, which carries a JORC (2012) Mineral Resource Estimate of 40Mt at 0.25% NiEq, providing the company with additional exposure to battery metals alongside its gold-silver exploration focus.

Want to Know More About Kuniko's High-Grade Gold-Silver Discovery?

With majority control of the Commonwealth-Silica Hill Project secured ahead of schedule, Phase 2 drilling underway, and a defined pathway to 70% ownership, Kuniko Limited (ASX: KNI) is entering a period of significant near-term news flow. Investors looking to explore the company's project portfolio, upcoming milestones, and broader strategy can find further information at kuniko.eu.