Kuniko Expands Silica Hill Footprint 100m Ahead of December MRE Upgrade
Key Takeaways
- Phase 2 drilling has extended the Silica Hill mineralised system by approximately 100 metres beyond its existing footprint across five holes totalling 1,324 metres, with drilling still active on CMKNI011 at the time of reporting.
- Laboratory assay results from Phase 2 holes are expected within 4–6 weeks and will provide the first confirmed grade data across the newly intersected sulphide zones in both the Northern and Southern Lodes.
- The Phase 2 program is anchored by Phase 1's CMKNI004 intercept, which returned a 0.5-metre massive sulphide vein assaying 20,603 g/t Ag and 27 g/t Au — one of the highest-grade single intervals in recent Australian exploration.
- Kuniko is targeting its first JORC-compliant Mineral Resource Estimate for December 2026, incorporating Phase 1 and Phase 2 results — the company has not adopted prior Impact Minerals estimates from 2016–2019.
- A gravity low extending more than 500 metres to the south-east of known mineralisation, alongside multiple similar anomalies identified in a recent geophysical review, points to district-scale exploration potential beyond the current Silica Hill footprint.
Phase 2 drilling extends Silica Hill footprint ahead of December MRE upgrade
Kuniko Limited (ASX: KNI) has advanced its Phase 2 diamond drilling program at the Silica Hill prospect to 1,324 metres across five holes, with drilling actively expanding the mineralised system beyond its existing footprint. The program is building towards an upgraded Mineral Resource Estimate (MRE) targeted for December 2026, which would be the first MRE incorporating Kuniko’s own Phase 1 and Phase 2 drilling results.
Silica Hill sits within the Commonwealth Project in the Lachlan Fold Belt, a Tier-1 New South Wales jurisdiction along trend from Alkane Resources’ Boda-Kaiser porphyry copper-gold deposit, which contains over 10 million ounces of gold equivalent.
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What Phase 2 drilling has revealed so far
Phase 2 drilling has now extended the interpreted mineralised system by approximately 100 metres beyond the existing mineralised footprint. Three holes — CMKNI009, CMKNI010, and CMKNI011 — are at the centre of the latest update, with drilling continuing on CMKNI011 at the time of reporting.
The program was anchored by the Phase 1 intercept from CMKNI004, which previously returned 3.4m @ 4.1 g/t Au, 2,947 g/t Ag, 0.3% Pb, and 0.6% Zn from 227.5m (downhole width). That interval included a 0.5m massive sulphide vein returning 20,603 g/t Ag, 27 g/t Au, 1.5% Pb, and 3.3% Zn — the result that underpins the systematic step-out strategy now being executed in Phase 2.
The Phase 2 step-out strategy is anchored directly in the bonanza silver-gold discovery at Silica Hill, where CMKNI004 returned a massive sulphide vein assaying 20,603 g/t Ag and 27 g/t Au, establishing the high-grade nucleus that subsequent holes are now systematically testing at depth and along strike.
CMKNI010 intersected an approximately 70m downhole zone of disseminated sulphides and sulphide-bearing veining within the Southern Lode. CMKNI011, which is targeting the Northern Lode at depth where historical drilling has been limited, has intersected multiple sulphide veins with individual veins up to approximately 50cm thick in the upper part of the targeted system.
Critically, all widths reported are downhole widths and all observations are visual estimates only. Laboratory assays are pending and have not yet confirmed grades or tenors. Visual estimates of mineral abundance are not a substitute for laboratory analyses.
Maja McGuire, Managing Director
“Phase 2 drilling continues to build our confidence in the scale and continuity of the Silica Hill mineralised system… CMKNI010 intersected a particularly broad zone of disseminated sulphides and sulphide-bearing veining over approximately 70 metres downhole…”
Understanding the two-lode architecture: why system geometry matters for investors
Phase 2 drilling is supporting the interpretation of two distinct mineralised corridors at Silica Hill — a Northern Lode and a Southern Lode. A two-lode system, if confirmed by assay results, is significant because it implies a broader total resource inventory than a single-lode deposit would suggest.
The Northern Lode represents a new expansion opportunity. Historical drilling beneath it has been limited, meaning CMKNI011’s depth step-out is testing largely unexplored ground. The Southern Lode, where Phase 2 began, has now been systematically extended through multiple step-out holes building on the CMKNI004 anchor result.
Gravity data is also shaping the exploration model. Known mineralisation at Silica Hill occurs along the margin of a prominent gravity low — a geophysical feature that continues for more than 500 metres to the south-east. Kuniko’s recently completed integrated geophysical review identified a series of similar gravity lows across the broader project area, indicating potential for a district-scale mineral system extending beyond the current Commonwealth-Silica Hill footprint.
The gravity low extending more than 500 metres to the south-east of known mineralisation is one of several district-scale drill targets identified through Kuniko’s integrated geophysical review, with additional gravity anomalies mapped across the broader project area suggesting the Commonwealth-Silica Hill system may represent only a portion of a larger mineralised corridor.
The table below reproduces the preliminary visual estimates and geological observations from Phase 2 drilling, as disclosed in the announcement. These are visual estimates only and are not laboratory assay results.
| Hole ID | From (m) | To (m) | Est. Total Sulphide % | Sulphide Tenor | Preliminary Observations |
|---|---|---|---|---|---|
| CMKNI009 | 27 | 55 | 1–2 | asp > py ± sp/ga | Disseminated and stringer sulphides within altered rhyolite porphyry |
| CMKNI009 | 70 | 100 | 1–2 | py/sp > asp ± ga | Broad zone of disseminated and stringer sulphides with local sphalerite-galena stringer veining |
| CMKNI009 | 143 | 160 | 2–3 | asp > py > sp/ga | Increased disseminated and stringer sulphides with lesser sphalerite-galena veining |
| CMKNI009 | 165 | 180 | 1–2 | asp > py ± sp/ga | Disseminated sulphides and locally developed sulphide-bearing stringers |
| CMKNI009 | 182 | 190 | 3–5 | sp > ga > asp/py | Strong sulphide-bearing vein and stringer zone with increased sphalerite and galena |
| CMKNI009 | 200 | 220 | 1–2 | asp > py ± sp/ga | Disseminated and stringer sulphides continuing within altered rhyolite |
| CMKNI010 | 106 | 121 | 5–10 | asp > py ± pro | Strong arsenopyrite-rich sulphide zone with locally developed polymetallic sulphide veining |
| CMKNI010 | 121 | 160 | 3–5 | asp > py > pro | Broad disseminated and stringer-stockwork sulphide zone within altered rhyolite |
| CMKNI010 | 160 | 185 | 2–4 | asp > py ± pro | Continued disseminated and vein-hosted sulphides with local increases in sulphide abundance |
| CMKNI011 | 76 | 84 | ~30 | asp > py > pro | Strong sulphide-rich zone comprising abundant arsenopyrite-pyrite with subordinate pyrrhotite within silica-sericite altered rhyolite |
| CMKNI011 | 92 | 101 | 3–5 | sp > ga > asp/py | Disseminated and vein-hosted sulphides with increased sphalerite-galena veining |
| CMKNI011 | 109 | 116 | 3–5 | sp > ga > py/pro | Strong sulphide-bearing vein and stringer zone with sphalerite-galena-rich veining |
Sulphide tenor abbreviations: py = pyrite; sp = sphalerite; ga = galena; asp = arsenopyrite; pro = proustite. All figures are visual estimates only — not laboratory assay results.
On the MRE upgrade: Impact Minerals previously reported JORC (2012) Inferred Mineral Resource Estimates at both Commonwealth and Silica Hill between 2016 and 2019. Kuniko has noted it has not independently verified or adopted these estimates. The targeted December 2026 MRE would be Kuniko’s own first resource estimate incorporating the results of its Phase 1 and Phase 2 drilling programs.
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What’s next: assays, MRE upgrade, and regional targets
Kuniko has outlined a clear near-term program with several defined milestones:
- Assay results from Phase 2 holes are expected within 4–6 weeks and will provide the first laboratory confirmation of grade and continuity across the newly intersected sulphide zones
- Phase 2 drilling continues at Silica Hill, prioritising lateral and depth extensions of both the Northern and Southern Lodes
- Regional targeting is running in parallel, building on the integrated geophysical review and the gravity low that extends more than 500 metres to the south-east
- An upgraded JORC Mineral Resource Estimate is targeted for December 2026, incorporating results from both Phase 1 and Phase 2 drilling programs
The 4–6 week assay window is the immediate investor signpost. Visual sulphide development across an expanding footprint is encouraging, but it is the laboratory results that will determine whether the scale suggested by the geology translates into grade. That is the data point that will materially clarify the picture at Silica Hill.
Ready to Learn More About Kuniko’s Silica Hill Expansion?
Phase 2 drilling at Silica Hill is systematically extending a mineralised system that already hosts bonanza-grade silver-gold results, with assays from the latest holes due within 4–6 weeks and a maiden Kuniko MRE targeted for December 2026. The emerging two-lode architecture and a gravity low extending more than 500 metres to the south-east suggest the current footprint may represent only a fraction of a larger district-scale system.
To stay ahead of the upcoming assay results and track progress towards the December MRE upgrade, explore Kuniko Limited’s full project profile on Discovery Alert and set up real-time notifications for new announcements.