Kuniko Locks In Phase 2 Drilling at Commonwealth–Silica Hill for MRE Upgrade

Kuniko Drills Deeper: Phase 2 Campaign Locked In as Commonwealth–Silica Hill Targets an MRE Upgrade

Kuniko Limited (ASX: KNI) has confirmed a drill rig is secured and Phase 2 diamond drilling is set to commence in early July 2026 at its Commonwealth–Silica Hill Gold-Silver Project in New South Wales. The Kuniko Commonwealth Silica Hill Phase 2 drilling for MRE upgrade announcement comes on the back of a Phase 1 campaign that delivered a 100% hit rate across six holes, including a significant new mineral discovery at Silica Hill located approximately 100 metres beyond the existing mineralisation footprint.

The Phase 2 program is designed to capitalise directly on those results, targeting step-out extensions across three priority areas — Commonwealth Main Shaft, Commonwealth South, and the newly discovered Silica Hill zone — with the stated goal of progressing towards a Project Mineral Resource Estimate (MRE) upgrade in H2 2026.

Phase 1 Set the Stage — Phase 2 Moves to Expand It

The foundation for this campaign was built during Phase 1, which ran through April and May 2026. Every single drill hole intersected mineralisation, a result that validated the geological model and opened new lines of inquiry across the broader mineral system.

The standout result came from hole CMKNI004 at Silica Hill, which cut a new mineralised zone well outside the previously known footprint:

The breadth of mineralisation across all three target zones — and the presence of bonanza-grade intercepts within broader mineralised envelopes — signals a system with both high-grade cores and substantial bulk tonnage potential.

"The Phase 1 drilling program exceeded expectations, with mineralisation intersected in all six drill holes and delivering new priority high-grade targets, including a significant new discovery at Silica Hill. Importantly, results validated the continuity of the known mineralised system and also identified a new mineralised zone approximately 100 metres beyond the existing footprint, demonstrating the substantial growth potential of the Project." — Managing Director Maja McGuire

What Phase 2 Is Targeting — And Why Does It Matter?

The Phase 2 program comprises an initial six diamond drill holes for approximately 1,340 metres, with scope to scale materially subject to geological review and operational conditions. Furthermore, the program is structured around three priority targets, each with distinct geological characteristics and growth potential.

Silica Hill — New Discovery, Open in All Directions

The newly discovered zone from CMKNI004 remains open up-dip, down-dip, and along strike. This represents the most compelling expansion opportunity in the current program. Phase 2 will test the lateral and vertical continuity of this zone beyond the current single-hole discovery, including extensions to the deeper high-grade gold zone that returned 21m @ 1.5 g/t Au from 244m, including 1m @ 15 g/t Au.

Commonwealth Main Shaft — Testing Depth Extensions to Massive Sulphide

Drilling here will pursue down-plunge and down-dip extensions beneath the existing drilling footprint. The mineralisation at Commonwealth Main Shaft is characterised by massive sulphide lenses with strong base metal credits and, consequently, remains open at depth — a key growth vector for the project.

Commonwealth South — Confirming Scale of a High-Grade Gold Shoot

Following the Phase 1 intercepts in CMKNI006, Phase 2 step-out holes will evaluate whether the high-grade gold shoot continues down-plunge and assess its potential contribution to a future resource estimate.

Understanding the Geology: What Makes This System Distinctive?

What is a VMS–Epithermal System?

The Commonwealth–Silica Hill Project hosts two genetically related but mineralogically distinct deposit types sitting within approximately 200 metres of each other — an unusual and commercially significant configuration.

VMS (Volcanogenic Massive Sulphide): A deposit type formed at or below ancient seafloors through volcanic hydrothermal activity. VMS systems are typically characterised by high-grade lenses of gold, silver, zinc, lead, and copper packed into compact, well-defined mineralised zones. Commonwealth Main Shaft and Commonwealth South are VMS-style deposits.

Epithermal stockwork vein system: A shallower deposit type formed by hot fluids circulating through fractures in volcanic rocks. These systems often carry high-grade silver and gold in vein networks, as seen at Silica Hill.

The co-location of both styles in a single project area is geologically significant. It provides multiple mineralisation mechanisms operating within the same system, which can translate to both high-grade zones and broader bulk mineralisation targets — potentially offering flexibility in how the project is eventually developed.

Quick Glossary

Where the Project Sits — Location Carries Strategic Weight

The Commonwealth–Silica Hill Project is located approximately 100 kilometres north of Orange, NSW, within the Lachlan Fold Belt — one of Australia's most productive mineral corridors. The region hosts some of the country's most significant gold and copper operations, including Cadia–Ridgeway (Newmont), Northparkes, and Cowal (both Evolution Mining).

The project sits immediately along trend from Alkane Resources' Boda-Kaiser porphyry copper-gold deposit, which contains over 10 million ounces of gold equivalent. This regional context underscores the prospectivity of the broader mineral system Kuniko is working within.

The project covers five granted exploration licences (EL8212, EL8252, EL8504, and EL8505), encompassing multiple gold-silver-base-metal prospects including Commonwealth, Silica Hill, Gladstone, Geenobby, and Pine Hill.

Beyond the three priority Phase 2 targets, the project retains additional exploration upside at Silica Hill East, Geenobbys, and Gladstone, where geophysical and geochemical anomalies remain untested by drilling.

A Sharper Eye on the Ground: Resource Potentials Engaged

Alongside the Kuniko Commonwealth Silica Hill Phase 2 drilling for MRE upgrade campaign, Kuniko has engaged specialist firm Resource Potentials to undertake a regional targeting review. This work will integrate:

• Historical geophysical datasets
• Kuniko's own MobileMT survey results
• Geochemical and geological data

The objective is to define and prioritise additional new drill targets across the broader project area. Results from this review are expected to be completed by early July 2026, aligning with the Phase 2 drilling commencement.

This parallel workstream means Kuniko will be simultaneously drilling its highest-priority targets while building an expanded pipeline of future drill opportunities — a disciplined approach to exploration capital allocation.

Milestones Ahead: A Clear H2 2026 Roadmap

The near-term newsflow calendar is well-defined and provides multiple potential catalysts for investors to monitor:

The progressive reporting of assay results from Phase 2 drilling means there are multiple potential news events between July and September, with the MRE upgrade representing the culmination of the combined Phase 1 and Phase 2 programs.

Why Investors Should Be Watching Kuniko

Several factors combine to make this a material moment in Kuniko's exploration story:

• 100% Phase 1 success rate across six drill holes validates the geological model and demonstrates continuity of the mineral system
• New discovery at Silica Hill — intersected approximately 100m beyond the existing footprint and open in multiple directions — materially expands the footprint of the project
• Bonanza-grade intercepts (including 347 g/t AuEq and 20,603 g/t Ag over 0.5m) confirm the presence of ultra-high-grade cores within broader mineralised envelopes
• Established contractor Titeline Drilling re-engaged, providing operational continuity and de-risking program execution
• Tier-1 address within the Lachlan Fold Belt, a proven region for world-class gold-copper discoveries
• Clear MRE upgrade pathway with a defined target of December 2026

Beyond Commonwealth–Silica Hill, Kuniko also holds a portfolio of battery and base metals projects in Southern Norway, including the Ertelien Nickel-Copper-Cobalt Project with a JORC (2012) Mineral Resource Estimate of 40Mt @ 0.25% NiEq (including 22Mt Indicated and 18Mt Inferred). This provides the company with exposure to both precious metals and energy transition commodities.

Key Takeaway: Kuniko has positioned itself as an active and disciplined gold-silver explorer in one of Australia's most proven mineral belts. With the Kuniko Commonwealth Silica Hill Phase 2 drilling for MRE upgrade commencing in early July, a string of assay results expected through to September, and a formal MRE upgrade targeted for December 2026, there are multiple near-term catalysts on the horizon. The Phase 1 success — particularly the new Silica Hill discovery — has materially raised the stakes for what Phase 2 could deliver.

Ready to Find Out More About Kuniko's Commonwealth–Silica Hill Project?

With Phase 2 diamond drilling set to commence in early July 2026, a new discovery already confirmed at Silica Hill, and a formal Mineral Resource Estimate upgrade targeted for December 2026, Kuniko Limited (ASX: KNI) has a clearly defined newsflow calendar that investors will want to follow closely. To learn more about the company, its Commonwealth–Silica Hill Gold-Silver Project, and its broader portfolio of assets, visit kuniko.eu.