Kuniko (ASX:KNI) has extended the mineralised system at Silica Hill by around 100m up-dip to down-dip, with the first two holes of its Phase 2 program both hitting the targeted alteration and sulphide zones.
That matters because all three holes defining the system sit outside the existing Mineral Resource block model.
Assays are still pending, but the geometry is starting to look more interesting.
Building around the bonanza hit
Phase 1 hole CMKNI004 put Silica Hill on the radar with:
- 3.4m @ 50g/t AuEq from 227.5m
- Including 0.5m @ 347g/t AuEq
- That high-grade core carried 20,603g/t Ag and 27g/t Au
Phase 2 was designed to test whether that mineralised position continues.
So far, it does.
CMKNI007 was drilled around 60m down-dip and CMKNI008 around 40m up-dip, with both holes intersecting alteration, disseminated sulphides and sulphide-bearing stringer and stockwork veining.
Together with CMKNI004, that gives Kuniko around 100m of mineralised continuity outside the current resource model.
Figure 1: Figure 1: Main Shaft and Silica Hill section, showing location of two diamond holes completed in phase 2.
Resource growth is the prize
This is the part investors should watch.
The new drilling isn’t simply infilling known ounces. It is stepping beyond the current block model ahead of a planned MRE update.
If assays confirm meaningful grades across the extensions, Silica Hill could add both scale and higher-grade material to the broader Commonwealth Project.
Managing Director Maja McGuire said the new holes provide a compelling opportunity to expand the known Silica Hill footprint.
More targets still to come
Phase 2 drilling isn’t stopping at Silica Hill.
Kuniko will also test down-dip extensions at Main Shaft, where previous drilling returned 8m @ 8.6g/t AuEq, and Commonwealth South, which previously delivered 7.1m @ 9.7g/t AuEq.
Regional targeting is also underway within 1–2km of the project, adding another layer of discovery potential around the existing system.
Figure 2: Diamond drill core (HQ) from hole CMKNI008 showing stockwork style arsenopyrite–pyrite–proustite stringer veins within sericite-altered rhyolite porphyry.
What’s next
Assays from CMKNI007 and CMKNI008 are expected in September.
A further Silica Hill hole is already underway, while DHEM will be used to test for conductive sulphide mineralisation around CMKNI007.
The first question was whether the bonanza hit had continuity.
So far, the drilling says yes.
Now the assays need to show how much grade comes with it.
