Source : THE AGE NEWS
Kuniko Limited has deployed the downhole electromagnetic (DHEM) probe at its Commonwealth-Silica Hill project in New South Wales, hunting for deep, off-hole extensions to its recent high-grade discovery of 20,603 grams per tonne (g/t) silver and 27g/t gold.
The geophysical survey aims to pinpoint deeper extensions to the gold-silver system by dropping the probe into three recently completed deep diamond drill holes to highlight potential sulphide mineralisation.
The company has been actively exploring its majority-owned NSW groundholding within the prolific Lachlan Fold Belt, as the region enjoys a fresh wave of copper and precious metals exploration investment.
Soaring copper prices and a renewed appetite for gold have brought the mineral-rich province back into the spotlight. Home to giants such as Cadia-Ridgeway, Cowal and Northparkes, the ancient belt hosts everything from enormous porphyry systems to high-grade epithermal/massive sulphide deposits such as Kuniko’s.
‘By surveying three deep Phase 2 drill holes, including beneath (the hole), which delivered 0.5 metres at 27g/t gold and 20,603 g/t silver.’
Kuniko managing director Maja McGuire
While vast tracts of the region remain underexplored beneath cover, modern geophysics and deeper drilling are giving juniors and major miners alike fresh reasons to believe more major discoveries are lurking at depth.
Kuniko’s DHEM survey involves deploying a sensitive electromagnetic receiver down its cased drill holes, while a transmitter loop on the surface generates a controlled electromagnetic field. The technique is designed to detect conductive bodies, such as massive sulphide accumulations, that may lie adjacent to but were not intersected by the original drill hole.
The survey will test three of the deepest holes completed at Silica Hill during the company’s phase two campaign and provide new geophysical access points into the system.
The company plans to integrate the DHEM results with geological interpretations and existing geophysical datasets to refine targets for a separate round of deep diamond drilling, slated for next year.
The DHEM technique has a solid track record at the project, with previous surveys run by earn-in partner Impact Minerals successfully identifying conductive targets resulting in sulphide mineralisation.
Follow-up drilling of those historical targets hit paydirt, with notable intersections including 74.5m at 1.2g/t gold and 106g/t silver from just 61m downhole. Another hole returned a 75.3m section grading 0.4g/t gold and 72g/t silver from 75m.
Historical results linking conductors and mineralisation give Kuniko a confirmed method for future targeting, having already seemingly nicked its latest high-grade discovery at depth.
Kuniko Limited managing director Maja McGuire said: “The commencement of the DHEM survey is another important step in advancing our understanding of the Silica Hill mineralised system and testing its potential at depth. By surveying three deep Phase 2 drill holes, including beneath CMKNI004, which delivered 0.5 metres at 27g/t gold and 20,603 g/t silver, we are testing for further sulphide targets that could extend the known mineralisation.”
Kuniko says with its phase two drilling wrapped up at the project, assays are expected shortly to feed into an updated resource estimate for the project, targeted for the fourth quarter of this year.
The Commonwealth project sits 100 kilometres north of Orange in what is considered elephant country for mineral explorers and the region is home to numerous active majors pursuing earn-in and joint venture programs. Kuniko is undertaking a similar arrangement with Impact Minerals to secure up to a 90 per cent interest in the project, which already hosts JORC-inferred mineral resource estimates at the Commonwealth and Silica Hill deposits.
Beyond its immediate deposits, the company is preparing a proposed regional drilling campaign for the first quarter of the new year to test priority targets across the broader Commonwealth-Silica Hill project and assess its wider district-scale discovery potential.
With downhole surveys now set to shine a light on deeper, high-grade targets beneath a system that has already shown its polymetallic credentials, Kuniko could be on the cusp of an exciting new phase at Commonwealth-Silica Hill. The big question is whether the latest exploration push can illuminate fresh extensions to the known mineralisation and turn up more high-grade riches in one of NSW’s most prospective mineral provinces.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
