Kuniko Limited (ASX:KNI) secures A$1.30m placement to advance Commonwealth-Silica Hill Gold-Silver Project

Kuniko Limited has secured firm commitments for a A$1.30 million placement to advance exploration, expansion and discovery opportunities at the Commonwealth-Silica Hill Gold-Silver Project in the Lachlan Fold Belt, New South Wales.

The placement follows Phase 1 drilling results, including the discovery of the Silica Hill Zone and reported intersections at Commonwealth Main Shaft and Commonwealth South, with the company progressing its Phase 2 drilling program.

Highlights

The proceeds of the placement will provide funding to execute the next phase of exploration at the Commonwealth-Silica Hill Gold-Silver Project.

The funding will be used to advance the Phase 2 drilling campaign, expand and upgrade the current Project MRE, systematically test exploration potential across the broader district-scale landholding, and pursue strategic growth opportunities.

The Commonwealth-Silica Hill Project is located in the Lachlan Fold Belt in New South Wales and comprises two genetically related deposits located within 200m of each other.

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 strong base metal credits.

Silica Hill is described as an epithermal stockwork vein system hosting high-grade silver mineralisation, with abundant silver sulphosalts and broad zones of disseminated and stringer sulphides.

Phase 1 drilling achieved a 100% drill success rate, with every hole intersecting mineralisation.

Results included 84m @ 2.6g/t AuEq from the first and only drill hole completed at Silica Hill, including 3.4m @ 50g/t AuEq and 0.5m @ 347g/t AuEq, alongside intersections of 8.0m @ 8.6g/t AuEq at Commonwealth Main Shaft and 7.1m @ 9.7g/t AuEq at Commonwealth South.

Kuniko Managing Director Maja McGuire said the placement will support the next phase of work at the Commonwealth-Silica Hill Gold-Silver Project.

“The funds raised provide the financial flexibility to continue advancing the Commonwealth–Silica Hill Gold-Silver Project, including the Phase 2 drilling program, resource growth initiatives and systematic testing of the broader exploration potential across the Project area.”

The project sits within an approximately 5km² gold-silver mineralised system, with targets identified across the Commonwealth-Silica Hill-Welcome Jack trend, a largely untested 4km conductive corridor and historic shafts including Walls and Stringers.

The company’s exploration licences include EL8212, EL8252, EL8504 and EL8505, encompassing multiple gold-silver-base-metal prospects including Commonwealth, Silica Hill, Gladstone, Geenobby and Pine Hill.

Kuniko has commenced its Phase 2 diamond drilling program, with an initial ~1,350m program comprising six priority holes.

The program is targeting extensions to the Silica Hill Zone, which remains open in all directions, together with growth at Commonwealth Main Shaft and Commonwealth South. First assay results are expected from September 2026, with an updated Project MRE targeted for December 2026.

The placement comprises commitments from institutional and sophisticated investors at an issue price of $0.02 per share and will be undertaken in two tranches.

Tranche 1 is expected to raise approximately A$1.02 million through the issue of 51,153,455 new shares, while Tranche 2 is expected to raise approximately A$277,000 through the issue of 13,846,545 new shares, subject to shareholder approval.

The company’s announced activities include Phase 2 drilling, expected assay results from September 2026 and a targeted Project MRE update in December 2026.