Kuniko Limited (ASX:KNI) extends Silica Hill mineralised system with Phase 2 drilling

Kuniko has completed the first 2 diamond holes of its Phase 2 drilling program at the Silica Hill prospect, part of the Commonwealth Project in the Lachlan Fold Belt, New South Wales.

CMKNI007 and CMKNI008 were completed for a combined 724 m, intersecting the targeted zones of alteration, disseminated sulphides and stringer vein mineralisation up dip and down dip of previously reported hole CMKNI004.

Highlights

The Phase 2 holes were designed to test continuity of the mineralisation intersected in Phase 1 hole CMKNI004, which returned 3.4 m @ 50 g/t AuEq, comprising 4.1 g/t Au, 2,947 g/t Ag, 0.3% Pb and 0.6% Zn from 227.5 m.

The result included a 0.5 m massive sulphide vein returning 347 g/t AuEq, 20,603 g/t Ag, 27 g/t Au, 1.5% Pb and 3.3% Zn.

CMKNI007 intersected an initial zone of sulphide bearing veining at approximately 205 m to 215 m downhole, followed by a broader zone of sulphide bearing stringer and stockwork veining from approximately 260 m to 315 m within silica sericite altered rhyolite porphyry.

The zone transitioned into increasingly sphalerite rich veining between approximately 295 m and 345 m downhole.

CMKNI008 intersected patchy sulphide mineralisation in the upper portions of the hole before entering a broader zone of sulphide bearing stringer and stockwork veining from approximately 280 m to 325 m downhole.

This interval was also hosted within silica sericite altered rhyolite porphyry and included zones of increased sphalerite and galena veining.

Both holes crossed the interpreted fault, supporting the geological interpretation that mineralisation has been displaced downwards across the reverse fault.

The mineralised system remains open up dip, down dip and laterally, while CMKNI007 will be PVC cased to enable future downhole electromagnetic surveying aimed at identifying potential conductive sulphide mineralisation beyond the immediate drill intercepts.

Kuniko Managing Director Maja McGuire said:

“With assays pending, the potential for these extensions to add scale and high-grade mineralisation to the Silica Hill system is an important near-term catalyst for Kuniko as we progress towards an updated Project MRE.”

The Commonwealth Project lies approximately 100 km north of Orange within the Lachlan Fold Belt.

Commonwealth Main and Commonwealth South are described as a polymetallic VMS style system characterised by high grade gold, silver and zinc mineralisation, including massive sulphide lenses with base metal credits, while Silica Hill is described as an epithermal stockwork vein system hosting high grade silver mineralisation, abundant silver sulphosalts and broad zones of disseminated and stringer sulphides.

The project comprises 5 Exploration Licences covering approximately 315 km² and is subject to a binding earn in and joint venture agreement between Kuniko and Impact Minerals (ASX).

Under the agreement, Kuniko may earn up to a 70% interest by meeting staged exploration expenditure commitments and cash and share payments to Impact Minerals.

During the earn in period, Kuniko funds and manages the current exploration programs in coordination with Impact Minerals.

Drilling is continuing at Silica Hill, with a further hole being drilled to provide infill coverage across the upper portions of the mineralised system.

The program will also test down dip continuity at Main Shaft, where CMKNI001 returned 8.0 m @ 8.6 g/t AuEq from 94.7 m, and extensions at Commonwealth South, where CMKNI006 returned 7.1 m @ 9.7 g/t AuEq.

Regional targeting is also underway within approximately 1 km to 2 km of Commonwealth and Silica Hill, and following completion of drilling and receipt of all outstanding assays, Kuniko plans to complete an updated Project MRE.