Mineral exploration company Kuniko (ASX:KNI) announced this week that diamond drilling is about to begin at its Commonwealth-Silica Hill Gold–Silver Project in the Lachlan Fold Belt, New South Wales.
This is phase two of the exploration program after phase one was completed in May. The company sees ‘significant’ exploration upside within 1km of the existing project as well. Kuniko expects to have assay results by September and an update to the mineral resource estimate in the second half of 2026.
Managing Director Maja McGuire told the market, in part:
“The program will test priority targets across Commonwealth Main Shaft, Commonwealth South, and importantly, the new discovery at Silica Hill where the first and only hole from phase one drilling returned 84m @ 2.6g/t AuEq, including 3.4m @ 50g/t AuEq and 0.5m @ 347g/t AuEq.
“Beyond the current resource footprint, the company has identified significant exploration upside across the broader Commonwealth-Silica Hill-Welcome Jack trend.
“The ~4km conductive corridor and historic shaft areas at Walls and Stringers, located within 1km of existing project mineralisation, provide additional near-resource targets for follow-up drilling.
“Together with the Welcome Jack prospect, which historically hit intercepts up to 8.0 g/t Au, these areas may represent part of a much larger connected mineralised system extending across an area of at least 5km², highlighting significant exploration upside beyond the current mineralised footprint.”
Phase one of drilling at Commonwealth-Silica Hill successfully hit mineralisation with all six drill holes. Phase two is designed to build upon these results and target additional growth.
The Commonwealth-Silica Hill Project is 100km north of Orange, NSW. It’s also located in the prolific Lachlan Fold Belt that hosts multiple operating mines. It’s immediately along trend of Alkane’s Boda-Kaiser copper-gold deposit that contains more than 10 million ounces of gold equivalent.
The project is a joint venture with Impact Minerals (ASX:IPT). Kuniko is funding the exploration to earn into the project after it and IPT formed the JV last year. Kuniko has the right to earn up to 70%.
Impact described it at the time as a way to monetise a non-core portfolio asset. Kuniko needs to spend $1.5 million within two years to earn a 51% interest, and a further $1.5 million within another two years to earn 70%.
IPT retains 30% to participate in any decision to mine. Meanwhile, IPT can focus on its core development: high-purity alumina in Western Australia at its Lake Hope Project.
Write to Callum Newman at Mining.com.au
Images: Kuniko
