Template Calls List of Variables to Build Config

I’m trying to simplify a DNS sinkhole configuration with Ansible. Ultimately what I’d like is a file full of domains (potentially hundreds). I’d then like a template that has one line that iterates through the list of domains build a config file. The config file is essentially multiple similar lines where the only thing that changes is the domain. I’m not quite sure how to get Ansible/Jinja to do this for me though. Thoughts?

something like:

vars:
  sinkhole:
     - host1
     - fqdn2.exmaple.com
  ....

- template: src=sinkhole.j2 ....