Kuniko Limited (ASX: KNI) is set to begin a second phase of diamond drilling at its Commonwealth project in New South Wales. The company has confirmed that the drilling contractor, Titeline, has mobilized a rig to the site with operations expected to commence imminently. This new program follows a successful initial campaign where every hole drilled intersected mineralization, including significant intercepts at both the Silica Hill discovery zone and the Commonwealth Main Shaft.

The Phase 2 drill program consists of an initial 1,350 meters across six holes. The primary objectives include following up on the high-grade results observed in the first phase, specifically testing the extent of mineralization at Silica Hill, which currently sits about 100 meters outside the established resource envelope. The program is designed with scalability in mind, allowing the technical team to potentially expand the scope by an additional eight holes depending on geological findings and operational progress as the work unfolds.

In parallel with the drilling, the company is preparing for upcoming catalysts that will shape the project’s trajectory for the remainder of the year. Results from an independent regional targeting review—which incorporates geochemical, gravity, and MobileMT datasets across a four-kilometer conductive corridor—are expected by mid-July. This review aims to identify further drill targets near the primary project area, including potential at historical mine shafts known as Walls and Stringers.

Investors should watch for assay results from the current Phase 2 drilling program, which are anticipated in early September. This data will be instrumental in the company’s efforts to finalize an updated Mineral Resource Estimate for the Commonwealth-Silica Hill area, currently scheduled for release in the fourth quarter of 2026. The results from this expansion will also inform the planning for subsequent exploration phases.

Read the full announcement: Drilling to Commence at Commonwealth Gold Silver Project