KNI days away from drilling NSW Gold-Silver & base metals project
Kuniko (ASX: KNI) is now days away from drilling its gold-silver and base metals project in NSW.
KNI has 6 diamond holes planned over 1,200m on its project, testing in and around the known ~89koz gold and ~3.3Moz of silver resource on the project.
With this round of drilling we will be looking for extensions to previously known high grade gold and silver mineralisation across the following areas:
(source)
KNI currently earning into a 70% interest in the project which has a current resource of ~89koz gold and ~3.3Moz of silver. (source)
(source)
As per the farm-in agreement, KNI gets to 51% ownership of the project by spending $1.5M on exploration within 2 years and this can be increased to 70% with a further $1.5M in exploration spend.
This project is located in the prolific Lachlan Fold Belt , which is home to several tier 1 gold operations.
The project sits on the same geological volcanic belt as Copper Hill with 1.3Moz gold and 0.5Mt copper and Cadia Ridgeway which hosts a few mines with the main resource of 23Moz gold and 4Mt copper:
(source)
KNI mentioned that drilling is scheduled to begin on February 14 (later this week). Here is a picture of the drilling mobilisation at the project included in today's announcement:
(source)
What’s next for KNI?
🔄 Drilling at the company’s NSW gold-silver-base metals project
KNI has officially mobilised the rig to the Commonwealth Project.
KNI’s 1,200m maiden diamond drilling program is targeting high grade VMS style mineralisation.
We want to see if the drill bit can replicate historical hits like 7m @ 6.3 g/t gold and 496 g/t silver.
Based on the results from the current 6-hole program, KNI may look to step out the drilling further.
A phase 2 program plan already has approvals in place, so likely could be mobiles quickly if the results from phase 1 are positive
🔲 Norwegian assets
While the rig is in Australia, don't forget the Ertelien Nickel-Copper-Cobalt Project in Norway.
With nickel prices hitting 3-year highs, KNI is sitting on a 40Mt JORC resource that is effectively "banked" for when the EU supply chain demand picks up.
