Kuniko Commonwealth Silica Hill Phase 1 Drilling Delivers High-Grade Gold Results

Kuniko's Phase 1 Drilling Delivers High-Grade Gold and Silver Results with Phase 2 Set for July

Kuniko Limited (ASX: KNI) has released final assay results from its maiden Kuniko Commonwealth Silica Hill Phase 1 drilling results and Phase 2 drilling in July programme at the Commonwealth–Silica Hill Project in New South Wales, with results confirming high-grade polymetallic mineralisation across three distinct zones. Drilling across all six holes has intersected sulphide mineralisation whilst simultaneously identifying extensions to the system well beyond the existing mineralisation envelope. With a diamond rig secured and Phase 2 drilling scheduled to commence in early July, Kuniko is entering an active catalyst window.

What the Drills Found: A System That Keeps Delivering

The Phase 1 programme comprised six HQ3 diamond drill holes totalling 1,239 metres, designed to test known mineralisation and probe step-out positions. Every single hole intersected sulphide mineralisation, reinforcing the continuity and robustness of the hydrothermal system linking Commonwealth and Silica Hill.

Note: Reported intercepts are downhole lengths. True widths are not yet determined.

The standout result from the newly announced holes is CMKNI006 at Commonwealth South, which returned 7.1 metres at 8.4 g/t gold and 42 g/t silver, including a high-grade core of 3.1 metres at 18.6 g/t gold, 76 g/t silver, 3.4% zinc, 1.5% lead, and 0.4% copper. This intercept sits approximately 20 metres down-dip from historical hole CMIPT017, which had previously returned 7 metres at 25.5 g/t gold, 62 g/t silver, 3.8% zinc, and 1.6% lead.

The fact that CMKNI006 confirmed continuity of the high-grade lode at this down-dip position whilst deviating shallower than planned suggests the mineralised structure may extend further at depth than current models indicate.

The second newly announced hole, CMKNI005, was designed to test a deeper IP geophysical anomaly. It returned a broad zone of 16 metres at 0.6 g/t gold, 0.15% zinc, and 804 ppm copper from 89 metres. Whilst the grade profile differs from the high-grade lode style seen in CMKNI006, the strong alteration intensity and geochemical signature confirm the fertility of the underlying hydrothermal system.

Managing Director Maja McGuire commented:
"The Phase 1 programme successfully intersected high-grade gold and silver mineralisation at Commonwealth Main and Commonwealth South, whilst also extending mineralisation beyond the existing envelope at Silica Hill. These results continue to demonstrate the scale potential of the Commonwealth–Silica Hill corridor and provide increasing confidence in the opportunity for expansion of the known mineralisation."

The Silica Hill Discovery: A 100-Metre Step-Out That Changes the Scale Conversation

Among all Phase 1 results, the Silica Hill step-out deserves particular attention from a geological significance standpoint. CMKNI004 intersected mineralisation approximately 100 metres outside the current mineralisation envelope, returning 3.4 metres at 4.1 g/t gold and 2,947 g/t silver. Within this interval, a 0.5-metre massive sulphide vein graded an extraordinary 27 g/t gold and 20,603 g/t silver (2.1% Ag), along with 1.5% lead and 3.3% zinc.

This type of intersection is interpreted by the geological team as a "feeder vein", representing a conduit structure feeding broader mineralisation above. The discovery of this new offset zone, sitting 100 metres outside the modelled boundary, indicates that the Commonwealth–Silica Hill system may be larger and more complex than previously mapped.

Understanding the Geology: What Is a VMS-Epithermal System and Why Does It Matter?

Volcanic Massive Sulphide (VMS) and Epithermal Mineralisation

Volcanic Massive Sulphide (VMS) deposits form on the seafloor or near-surface when superheated, metal-rich fluids vented from volcanically active zones mix with cooler seawater and precipitate dense concentrations of sulphide minerals. These deposits often contain multiple economically valuable metals in a relatively compact footprint.

Epithermal deposits form at shallower crustal depths from lower-temperature hydrothermal fluids and are characterised by high-grade gold and silver mineralisation in veins and stockworks.

The Commonwealth–Silica Hill Project hosts elements of both styles, where deeper VMS-style base metal mineralisation at Commonwealth connects to high-grade precious metal mineralisation at Silica Hill. Furthermore, this hybrid mineralisation profile can translate to higher revenue per tonne of ore if the system is developed.

Glossary of Key Terms

• g/t Au / Ag: Grams per tonne of gold or silver — the standard measure of precious metal grade
• ppm Cu: Parts per million copper — equivalent to g/t for copper concentration reporting
• Massive sulphide: Dense, concentrated accumulation of sulphide minerals typically indicative of high metal content
• Step-out drilling: Holes drilled beyond the known boundaries of a deposit to test for extensions
• IP anomaly: Induced polarisation geophysical signature often associated with sulphide mineralisation at depth
• HQ3: A specific diamond drill core size (63.5mm diameter) used to recover high-quality rock samples
• Down-dip: The direction a geological structure descends into the earth
• Feeder vein: A structurally controlled high-grade vein interpreted to act as a conduit supplying metals to broader mineralisation above

Phase 2: Bigger Holes, Bolder Targets

With a diamond rig secured and Phase 2 drilling set to commence in early July, Kuniko is moving to capitalise on Phase 1's momentum. The upcoming programme is designed with three clear objectives:

1. Larger step-out extensions — Testing the along-strike and down-dip extent of the high-grade lode at Commonwealth South
2. Deeper high-grade targets — CMKNI006's deviation shallower than planned means the high-grade down-dip extension at Commonwealth South was not fully tested
3. Silica Hill discovery follow-up — The exceptional 100-metre step-out result from CMKNI004 has generated a new priority target

In parallel, geophysical consultants Resource Potentials are undertaking a regional targeting review integrating MobileMT data with historical geophysical datasets across the broader Commonwealth–Silica Hill corridor. This work is designed to refine additional drill targets beyond the known deposits.

Project Location and Strategic Context: A Tier-1 Address

The Commonwealth–Silica Hill Project sits approximately 100 kilometres north of Orange, New South Wales, within the Lachlan Fold Belt — one of the most productive gold and copper belts on the continent. The same geological province hosts:

• Cadia-Ridgeway (Newmont) — one of the world's largest gold-copper mines
• Northparkes (Evolution Mining) — a major copper-gold operation
• Cowal (Evolution Mining) — a significant open-cut gold mine
• Boda-Kaiser (Alkane Resources) — a porphyry copper-gold deposit containing over 10 million ounces of gold equivalent, located immediately along trend from Commonwealth

The project comprises two genetically related deposits within 200 metres of each other:

• Commonwealth Main and Commonwealth South — a polymetallic VMS-style system with high-grade gold, silver, and zinc in massive sulphide lenses
• Silica Hill — an epithermal stockwork vein system hosting high-grade silver with abundant silver sulphosalts

The project is held under a binding earn-in and joint venture agreement with Impact Minerals (ASX: IPT), under which Kuniko can earn up to a 70% interest through staged exploration expenditure commitments and cash/share payments.

Beyond Commonwealth, the project has five granted exploration licences covering approximately 315 square kilometres with multiple untested targets including Silica Hill East, Geenobbys, and Gladstone where geophysical and geochemical anomalies remain undrilled.

The Investment Thesis: Why This Project Is Gaining Momentum

Several factors combine to make Kuniko's current position particularly noteworthy from an investment standpoint.

Does the Drilling Record Support Confidence in Phase 2?

1. A 6-from-6 drilling record

Every hole in the Phase 1 programme intersected sulphide mineralisation. This is not guaranteed in early-stage exploration and speaks to the robustness of the underlying hydrothermal system whilst significantly de-risking the Kuniko Commonwealth Silica Hill Phase 1 drilling results and Phase 2 drilling in July programme going forward.

2. High grades with a polymetallic revenue kicker

Results like 18.6 g/t gold with 76 g/t silver, 3.4% zinc, 1.5% lead, and 0.4% copper over 3.1 metres are not modest intercepts. The polymetallic nature of the mineralisation means that a future development scenario could benefit from multiple revenue streams across gold, silver, zinc, lead, and copper.

3. System remains open

Phase 1 was explicitly designed as an infill and initial step-out programme. The fact that CMKNI004 hit high-grade silver mineralisation 100 metres outside the modelled envelope at Silica Hill, and that CMKNI006 suggests the lode continues further down-dip than modelled, indicates the known boundaries of this system may be materially underrepresented by current models.

4. Geological analogy adds interpretive context

Impact Minerals has previously noted geological characteristics at Commonwealth that share similarities with globally recognised VMS-epithermal systems such as Eskay Creek in Canada — a deposit historically known for exceptional precious metal grades. Whilst analogies do not guarantee outcomes, they provide useful geological framing for the exploration strategy.

5. Multiple exploration fronts

With regional targeting work underway and scout drilling planned at Gladstone West and Geenobby, Kuniko is not relying solely on the known deposit zones.

6. Diversified asset base

Kuniko's portfolio extends beyond New South Wales. Consequently, the company also holds copper, nickel, and cobalt projects in Southern Norway, including the Ertelien Nickel-Copper-Cobalt Project hosting a JORC (2012) Mineral Resource Estimate of 40Mt at 0.25% NiEq (including 22Mt Indicated and 18Mt Inferred), providing exposure to multiple commodity themes within a single listed vehicle.

Why Investors Should Keep Watching

Kuniko has arrived at an inflection point. Phase 1 has validated existing mineralisation, identified extensions, and generated higher-priority targets for the next phase. The quality of results — particularly the exceptional silver grades at Silica Hill and the high-grade gold continuity at Commonwealth South — places this project in the category of systems worth following closely.

The Kuniko Commonwealth Silica Hill Phase 1 drilling results and Phase 2 drilling in July represents the next material catalyst for the company. With a rig secured and drilling commencing in early July, new assay results are likely to flow through the second half of 2026.

Key Takeaway:
Kuniko Limited (ASX: KNI) has delivered a high-quality maiden drill programme at Commonwealth–Silica Hill, with every hole intersecting sulphide mineralisation and multiple high-grade intercepts — including 18.6 g/t gold over 3.1 metres and 20,603 g/t silver over 0.5 metres — confirming both grade and extensional potential. With Phase 2 drilling commencing in early July targeting deeper and larger step-outs across an open, multi-metal system in one of Australia's premier gold belts, Kuniko enters a high-activity period.

Ready to Follow Kuniko's Phase 2 Drilling Programme at Commonwealth–Silica Hill?

With every Phase 1 hole intersecting sulphide mineralisation, exceptional high-grade intercepts confirmed across multiple zones, and a diamond rig secured for Phase 2 drilling commencing in early July, Kuniko Limited (ASX: KNI) is entering one of its most active exploration periods to date. Investors seeking to learn more about the Commonwealth–Silica Hill Project, Kuniko's broader asset portfolio, and the company's ongoing exploration activities can visit the official website at kuniko.eu.