Kuniko Completes Phase 2 Drilling at Silica Hill Ahead of Q4 MRE Update
Key Takeaways
- Kuniko has completed Phase 2 diamond drilling at Silica Hill — 5 holes for 1,492.4 metres — bringing the total program since October 2025 to 11 holes for 2,731 metres across the Commonwealth-Silica Hill system.
- Phase 2 assay results are expected in October 2026, feeding directly into an updated Mineral Resource Estimate targeted for Q4 2026.
- Downhole electromagnetic (DHEM) surveys of selected Phase 2 holes will test for off-hole conductors at depths beyond historical drilling, creating a meaningful upside scenario before the MRE is finalised.
- The Commonwealth Project sits 100km north of Orange in the Lachlan Fold Belt — the same geological corridor as Cadia-Ridgeway, Northparkes, and Cowal — and along trend from Alkane Resources' Boda-Kaiser deposit containing over 10 million ounces of gold equivalent.
- Four untested regional prospects — Silica Hill East, Geenobbys, Gladstone, and Welcome Jack — are being advanced towards drilling in parallel with the resource update, extending the exploration runway beyond the current Silica Hill system.
Phase 2 drilling complete as Kuniko advances Commonwealth-Silica Hill towards MRE update
Kuniko Limited (ASX: KNI) has completed its Phase 2 diamond drilling program at the Silica Hill prospect, with five holes drilled for a total of 1,492.4 metres. The program builds on Phase 1 results and extends the geological understanding of the mineralised system, including deeper testing beyond much of the historical drilling.
Phase 1 drilling results at Commonwealth-Silica Hill established the high-grade intercepts that gave Kuniko the confidence to design and fund the Phase 2 program, with multiple holes returning elevated silver and gold values across both the Northern and Southern Lodes.
Since acquiring its interest in the Commonwealth Project in October 2025, Kuniko has now drilled 11 diamond holes for a combined 2,731 metres at Commonwealth-Silica Hill. With Phase 2 complete and assays expected in October 2026, the company is targeting an updated Mineral Resource Estimate (MRE) for Q4 2026.
Managing Director Maja McGuire
“Completing Phase 2 drilling is an important milestone for Kuniko, with 11 diamond holes now completed for 2,731 metres across the Commonwealth–Silica Hill system. The program has significantly advanced our understanding of the mineralised system, with assays expected in October and planned DHEM surveys to provide further insight into potential extensions.
Our immediate focus is on integrating these results and progressing an updated MRE in Q4 2026. At the same time, we are advancing a pipeline of regional targets across the broader district-scale system. With land access in place and permitting underway, we are progressing those targets towards drilling as we test the wider discovery potential of Commonwealth–Silica Hill.”
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Q4 2026 MRE update: what’s coming next
The pathway from here to a resource update follows a clear, defined sequence. Investors watching for the near-term catalyst should understand what sits between now and the Q4 2026 MRE.
- Core processing and sampling nearing completion, with Phase 2 assay results expected October 2026
- Downhole electromagnetic (DHEM) surveying of selected PVC-cased Phase 2 holes to identify conductive responses associated with sulphide mineralisation — testing for deeper off-hole conductors and potential extensions to the Northern and Southern Lodes
- Results integrated with drilling, geological and assay data to refine the three-dimensional interpretation of the Silica Hill mineralised system
- Updated MRE incorporating Phase 1 and Phase 2 results, targeted for Q4 2026
The DHEM program adds meaningful optionality to the near-term story. Prior DHEM surveying at Silica Hill — completed historically by Impact Minerals — identified discrete conductive plates associated with the interpreted mineralised system, demonstrating the technique as a reliable vector towards sulphide mineralisation. Kuniko’s Phase 2 holes extend significantly deeper than much of that historical drilling, which means the upcoming surveys have the opportunity to test for conductors at depths that were previously untested.
Any off-hole conductors identified could expand the known mineralised footprint before the resource is updated — a meaningful upside scenario to hold alongside the base-case MRE timeline.
Understanding the Commonwealth-Silica Hill system
For investors less familiar with NSW exploration geology, understanding why this project sits where it does matters for context.
A Tier-1 address in NSW’s gold and silver belt
The Commonwealth Project is located approximately 100km north of Orange, New South Wales, within the Lachlan Fold Belt. This is one of Australia’s most proven base and precious metals regions, hosting major operations including Cadia-Ridgeway (owned by Newmont), Northparkes and Cowal (both owned by Evolution Mining). The project sits along trend from Alkane Resources’ Boda-Kaiser porphyry copper-gold deposit, which contains over 10 million ounces of gold equivalent.
That address matters because it places Commonwealth-Silica Hill within a geological corridor that has already produced world-class mines.
Two related deposits, one growing dataset
The Commonwealth Project comprises two genetically related deposits sitting within 200 metres of each other. They share a mineralised system but exhibit distinct styles of mineralisation.
| Deposit | Style | Key Metals | Status |
|---|---|---|---|
| Commonwealth Main & Commonwealth South | Polymetallic VMS-style | High-grade gold, silver, zinc | Prior JORC (2012) Inferred MRE reported by Impact Minerals — not independently verified or adopted by Kuniko |
| Silica Hill | Epithermal stockwork vein system | High-grade silver with silver sulphosalts | Prior JORC (2012) Inferred MRE reported by Impact Minerals — not independently verified or adopted by Kuniko |
It is worth noting clearly that while Impact Minerals previously reported JORC (2012) Inferred MRE estimates at both Commonwealth and Silica Hill, Kuniko has not independently verified or adopted these estimates. They should not be relied upon as Kuniko’s own figures. The updated MRE Kuniko is targeting for Q4 2026 will incorporate the company’s own Phase 1 and Phase 2 drilling data.
VMS stands for volcanogenic massive sulphide — a deposit type where metals precipitate from hydrothermal fluids on or near the seafloor, often forming concentrated sulphide lenses. Epithermal systems are shallower, lower-temperature deposits associated with volcanic activity, typically hosting precious metals in veins or stockworks.
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District-scale potential keeps the exploration story open
The immediate focus is the MRE update, but the broader Commonwealth-Silica Hill district carries a longer exploration runway that gives the investment thesis additional depth.
Kuniko is advancing regional targets across the district in parallel with the resource work. Land access is in place and permitting is underway, with priority targets being progressed towards future drilling. A previously reported integrated geophysical review (announced 20 August 2026) identified a prominent magnetic intrusive complex southeast of Silica Hill, coincident with gravity, IP and MobileMT anomalies. This is interpreted as a potential buried intrusive system and provides a target for porphyry-style mineralisation.
Untested regional prospects being advanced include:
- Silica Hill East
- Geenobbys
- Gladstone
- Welcome Jack trend
The MRE update is the catalyst on the immediate horizon. The district-scale pipeline is what sits behind it — a set of additional targets that, if systematically tested, could extend the exploration story well beyond the current Silica Hill system.
For investors exploring the regional pipeline in more depth, our full explainer on the district-scale geophysical review covers the integrated gravity, IP and MobileMT findings that identified the magnetic intrusive complex southeast of Silica Hill, including the interpreted target geometry and what a porphyry-style system at that location would mean for the broader project.
Ready to Learn More About Kuniko’s Commonwealth-Silica Hill Project?
With Phase 2 drilling now complete and assays expected in October 2026, Kuniko is on a defined pathway to an updated Mineral Resource Estimate targeting Q4 2026 — with DHEM surveying poised to test for deeper conductors that could expand the known mineralised footprint before the resource is finalised.
Explore the full project details, district-scale pipeline and investment case by visiting the Kuniko Limited profile on Discovery Alert, where you can stay across all upcoming catalysts as the company advances towards its Q4 2026 MRE.