Koonenberry Gold Sunnyside Discovery Delivers Spectacular High-Grade Results

Koonenberry Gold Strikes Gold: High-Grade Shallow Zones Transform Sunnyside Discovery

Koonenberry Gold (ASX:KNB) has delivered exceptional drilling results from its flagship Sunnyside Prospect at the Enmore Gold Project in NSW, revealing both high-grade shallow gold intersections and significant extensions to the established mineralised system. The latest Phase II diamond drilling has returned impressive intervals including 31m @ 1.11g/t Au from 41m with a spectacular 0.5m @ 62.3g/t Au from 71.5m, marking a pivotal development in the company's exploration strategy.

The results demonstrate remarkable continuity across the Sunnyside system, with mineralisation now confirmed from surface to 415m vertical depth across a 260m strike extent and up to 75m true width. This comprehensive drilling campaign has successfully extended mineralisation along strike to the east and up-dip from previous work, significantly improving confidence in what appears to be a substantial bulk tonnage gold opportunity.

Phase II Results Deliver Multiple High-Grade Zones

The Phase II diamond drilling programme has produced consistently strong results across 12 diamond holes for 4,780.1m, with 10 out of 12 holes intersecting visible gold. This brings the total visible gold intersections to 17 out of 22 holes drilled by KNB at Sunnyside, demonstrating the robust nature of the mineralised system.

Furthermore, every hole in the Phase II programme has returned gold mineralisation exceeding 2g/t x m over broad intervals, reinforcing the consistent nature of the Koonenberry Gold Sunnyside discovery. The shallow high-grade intersection of 0.5m @ 62.3g/t Au from 71.5m in hole 26ENDD018 is particularly significant, suggesting that high-grade zones previously encountered at depth may continue toward surface.

Key Intersections from Latest Results:

"The Sunnyside gold system continues to grow with shallow high-grade gold as well as extensions to the broad zones of potential bulk tonnage gold mineralisation confirmed in these latest drill results. Previously, high-grade zones were intersected at depth, the confirmation that these zones may continue towards surface is extremely encouraging," commented Dan Power, Managing Director.

Understanding Orogenic Gold Systems: The Sunnyside Advantage

What is an Orogenic Gold System?

Orogenic gold deposits form during mountain-building processes where tectonic forces create structural controls that channel gold-bearing fluids through rock formations. These systems are characterised by their large size potential, structural complexity, and ability to host both broad zones of bulk tonnage mineralisation and high-grade shoots.

At Sunnyside, gold mineralisation is structurally controlled along the Sunnyside Shear Zone and intersecting NE-trending cross structures. This geological setting is similar to the nearby 1.7Moz Hillgrove Au-Sb deposit located just 20km northeast, where mineralisation occurs within conjugate vein arrays between major fault systems.

Key Characteristics of Orogenic Gold Systems

These geological formations offer several distinct advantages for exploration companies and investors alike:

• Large-scale structural controls creating extensive mineralised zones
• Multiple generations of gold-bearing fluids over extended periods
• Both bulk tonnage and high-grade shoot potential within the same system
• Strong correlation between structural intersections and grade enhancement
• Proven longevity in producing districts worldwide

Why This Matters for Investors

The orogenic gold model provides compelling investment characteristics that differentiate the Koonenberry Gold Sunnyside discovery from other exploration opportunities:

• Large tonnage potential with multiple structural controls
• Proven geological model with nearby producing mines
• Multiple target styles from bulk tonnage to high-grade shoots
• Extensive strike length providing numerous drill targets

District-Scale Opportunity Accelerates

KNB has strategically pivoted to test the district-scale potential at Enmore, moving the drill rig to the Postman's Gully Prospect on the parallel Borah Fault. This systematic approach aims to demonstrate that the Koonenberry Gold Sunnyside discovery represents just one part of a much larger mineralised system.

In addition, the company has accelerated geochemical sampling along prospective structures including the Borah, Sheba and Chandler Faults. Along the Borah Fault, the company has defined over 4km strike of gold-arsenic soil anomalism highlighting the potential for high-grade gold mineralisation on a parallel structure to Sunnyside.

District Exploration Highlights:

• 4km mineralised trend identified from Borah to Postman's Gully
• Historical mullock samples at Postman's Gully returned 14.05g/t Au and 11.90g/t Au
• Geochemical sampling underway across 6 priority targets along multiple fault systems
• 30km cumulative prospective strike length across the project

The company's systematic approach involves surface geochemical sampling along multiple parallel structures before drill testing, ensuring a strong pipeline of targets. This methodical strategy maximises the probability of additional discoveries whilst efficiently utilising drilling resources.

"Along the Borah Fault, we have defined over 4km strike of gold-arsenic soil anomalism highlighting the potential for high-grade gold mineralisation on a parallel structure to Sunnyside that could demonstrate the true district scale we think exists at Enmore," noted Dan Power, Managing Director.

Expanding Beyond Enmore: Lachlan Project Portfolio

While Enmore captures immediate attention, KNB's diversified portfolio across NSW positions the company for multiple discovery opportunities. The company has recently completed an IP geophysical survey at Dunedoo, which is prospective for gold-silver-copper mineralisation.

Lachlan Project Activities:

• IP geophysical survey completed at Dunedoo, 65km north of the 491Moz Ag Eq Bowdens Silver Mine
• IP survey planned at Wilga Flats, 20km north of the 13Moz Cowal Gold Mine
• 3,500m RC drilling programme scheduled for June at Junee JV with Newmont

Results and drill targeting from this work will be reported following interpretation. An IP geophysical survey will also be conducted at Wilga Flats, covering a 4.2km long gold and pathfinder element soil anomaly which is of similar scale and nature to the Cowal deposits.

Financial Position:

• $6.3M cash as of 31 December 2025
• Well-funded exploration programmes across multiple projects
• Strong pipeline of newsflow anticipated through 2026

Future Catalysts and Timeline

Immediate Term (April 2026)

The next few months promise significant newsflow as the company advances multiple fronts simultaneously:

• Assays from holes 26ENDD020 and 021 (visible gold observed)
• First results from district exploration targets
• Continued drilling at Postman's Gully

Mid-Term (June 2026)

Several major milestones are planned for the middle of 2026:

• 3,500m Newmont-managed drilling at Junee JV
• IP geophysical survey results from Wilga Flats
• Potential resource estimation work at Sunnyside

Longer-Term Strategic Goals

The company's strategic vision extends beyond immediate drilling programmes:

• Systematic testing of 30km prospective strike length
• Definition of district-scale gold system
• Advanced studies on bulk tonnage potential

The company anticipates strong newsflow from results awaited from ongoing drilling and geochemical sampling at the Enmore Project, geophysical programmes and planned drilling at several 100% owned Lachlan Projects, and planned drilling at the Newmont managed Junee JV.

Investment Thesis: Why KNB Deserves Attention

The Koonenberry Gold Sunnyside discovery presents a compelling investment opportunity combining immediate high-grade discoveries with district-scale exploration potential. The company's systematic approach to exploration, strong cash position, and strategic location in proven NSW gold districts positions it for sustained value creation.

Key Investment Drivers:

1. Proven High-Grade System: Consistent visible gold intersections and spectacular grades demonstrate robust mineralisation
2. Bulk Tonnage Potential: Broad mineralised zones across 415m vertical extent suggest significant tonnage opportunity
3. District-Scale Opportunity: 30km of prospective strike length provides extensive exploration upside
4. Experienced Management: Systematic exploration approach maximising discovery probability
5. Strategic Location: Proximity to major producers in proven NSW gold districts

Competitive Advantages:

• 17 of 22 holes with visible gold demonstrates exceptional hit rate
• Multiple structural controls providing various target styles
• Well-funded exploration programmes ensuring continued progress
• Diversified project portfolio reducing single-asset risk

Geological Context and Significance

The Sunnyside Prospect occurs along the Sunnyside Shear Zone, associated with a strongly foliated fabric near the contact between a granite intrusion and sedimentary rocks. Gold mineralisation is orogenic in character and structurally controlled along the NE-SW trending shear zone and in later quartz and iron carbonate veins.

This structural setting and geological characteristics may be similar to the 1.7Moz Hillgrove Au-Sb deposit located just 20km to the north, where main mineralisation is hosted within conjugate vein arrays between major fault systems. At Hillgrove, gold mineralisation has been intersected from surface to over 900m depth extent.

Why Investors Should Track This Story

KNB has positioned itself at an inflection point where technical success meets strategic opportunity. The combination of high-grade shallow intersections, extensive mineralised system definition, and district-scale exploration potential creates multiple pathways to value creation.

The company's methodical approach to exploration, evidenced by the systematic testing of parallel structures and comprehensive geochemical programmes, demonstrates management's understanding of orogenic gold systems. With strong financial backing, experienced leadership, and a proven geological model, KNB offers investors exposure to a potentially significant NSW gold discovery.

The Koonenberry Gold Sunnyside discovery has established mineralisation from surface to 415m vertical depth across 260m strike extent, with the system remaining open in multiple directions. Drilling has confirmed that mineralisation extends away from the granite-sediment contact for approximately 75m in true width.

The discovery represents a substantial gold system with high-grade zones extending from surface to 415m depth. The district-scale opportunity across 30km of prospective strike length, combined with strong financial backing and systematic exploration approach, positions KNB as a compelling growth story in the NSW gold sector.

Consequently, with multiple catalysts planned through 2026, investors should monitor this emerging discovery closely as KNB continues to unlock the full potential of its extensive project portfolio.

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