The first two Phase 2 holes extended the mineralised footprint roughly 100m outside the block model. Assays are pending ahead of a planned MRE update.
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Kuniko (ASX:KNI) has struck encouraging results from the first two holes of its Phase 2 diamond drilling program at the Silica Hill prospect, extending the known mineralised footprint roughly 100 metres outside the existing block model. The company plans to use the data for a resource update at the Commonwealth project in New South Wales' Lachlan Fold Belt.
The two completed holes, CMKNI007 and CMKNI008, ran a combined 724 metres and hit targeted zones of alteration, disseminated sulphides and stringer-vein mineralisation both up-dip and down-dip of the earlier CMKNI004 hole. Together the three holes show about 100 metres of continuity outside the current modelled envelope, Managing Director Maja McGuire said.
"Drilling has now demonstrated approximately 100m of continuity across CMKNI007, CMKNI004 and CMKNI008, with all three holes located outside the existing mineralised block model," McGuire said. She called it a compelling opportunity to expand the known Silica Hill footprint.
Assays remain pending. McGuire told shareholders the potential for these extensions to add scale and high-grade mineralisation to the system is an important near-term catalyst.
The mineralised system stays open up-dip, down-dip and laterally, leaving room for further expansion with more drilling. Regional targeting is also underway to define additional drill targets within roughly one to two kilometres of Commonwealth and Silica Hill, with selected prospects lined up for drill testing soon.
Once drilling wraps up and all assays come in, Kuniko plans to complete an updated project mineral resources estimate.
KNI shares traded at 2.1¢ on the day, giving the company a market cap of A$4.3 million.
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