- 01Phase 2 drill starts next month.
- 02Six holes, ~1,340m; target extensions.
- 03Kuniko earn-in: 51% after $1.5m; up to 70%.
- 04Impact free-carried 30% to mine; 2% NSR.
Impact Minerals’ (ASX: IPT) joint venture partner Kuniko (ASX: KNI) is preparing to start Phase 2 diamond drilling at the Commonwealth-Silica Hill gold-silver project in central New South Wales, with the first hole scheduled for next month.
The company has engaged Victorian contractor Titeline Drilling for the campaign that will target extensions to mineralisation at Silica Hill, Commonwealth Main Shaft, and Commonwealth South, initially focusing on six holes for a total 1,340m with scope to materially scale.
A targeting review is currently underway with Perth-based consultant Resource Potentials to integrate historical geophysical and geochemical datasets and define new drill targets across the broader Commonwealth-Silica Hill project area.
Under the terms of a binding earn-in and joint venture agreement with Impact, Kuniko can secure a 51% interest in Commonwealth-Silica Hill by spending $1.5 million within two years and increase its interest to 70% by spending the same amount again over the following two years.
Impact will retain a 30% free-carried interest until a decision to mine, after which it may elect to contribute or dilute its interest to 10% and convert to a 2% net smelter royalty.
Phase 1 Intersections
The new campaign follows Phase 1 diamond drilling earlier this year that intersected massive and vein sulphide mineralisation in the first three holes and identified a significant new zone approximately 100m beyond Silica Hill’s existing footprint.
A comprehensive MobileMT airborne geophysical survey and soil and rock chip geochemistry expanded the Commonwealth-Silica Hill exploration footprint across a 4 kilometre-long conductive corridor extending beyond currently defined resources.
Phase 1 delivered a best assay at Silica Hill of 84m at 2.6 grams per tonne gold equivalent (0.6g/t gold, 123g/t silver, 0.08% lead, and 0.16% zinc) from 226m including 3.4m at 50g/t AuEq and 0.5m at 347g/t AuEq (20,603g/t silver and 27g/t gold), with a best result at Commonwealth South of 7.1m at 9.7g/t AuEq (8.4g/t gold and 42g/t silver) including 3.1m at 21.6g/t AuEq (18.6g/t gold and 76g/t silver).
The campaign had a 100% success rate, with all six holes intersecting mineralisation.
Accelerated Commonwealth Drilling
Impact managing director Dr Michael Jones said the company was looking forward to the results of Kuniko’s work.
“We are pleased to see Kuniko accelerating exploration drilling at Commonwealth following the successful Phase 1 program that identified significant step-outs to mineralisation, particularly at Silica Hill, and has opened a new area for drilling below the existing deposit,” he said.
“We have always believed Commonwealth and Silica Hill sit atop a much larger system, and this next program will test that thesis.”
Kuniko managing director Maja McGuire said the Phase 2 drilling was designed to capitalise on the success of Phase 1.
“With Titeline Drilling secured and drilling scheduled to commence in early July, we are excited to continue unlocking the value of our highly prospective gold-silver project,” Ms McGuire added.
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