AusQuest Uncovers Large-Scale Copper-Gold System at Cangallo Project

Significant Discovery at Cangallo

AusQuest Limited (ASX: AQD) has delivered a promising start to 2025 with the announcement of a significant new porphyry copper-gold discovery at its 100%-owned Cangallo Project in southern Peru. The maiden reverse circulation (RC) drilling program has confirmed broad zones of copper and gold mineralisation, highlighting the potential for a large-scale resource.

The first two drill holes, CANRC001 and CANRC002, returned multiple wide intercepts of copper mineralisation, including 348 metres at 0.26% copper and 0.06 ppm gold from near surface in CANRC001, and 188 metres at 0.28% copper and 0.07 ppm gold from 214 metres in CANRC002. Notably, higher-grade intervals within these holes reached up to 0.53% copper and 0.27 ppm gold, underscoring the quality of the mineralisation.

Geological Context and Potential

The mineralisation occurs both as copper oxides near surface and deeper sulphides, associated with sericite and potassic alteration zones typical of porphyry systems. The discovery lies within a large caldera-like structure measuring approximately 3km by 2km, with mineralisation remaining open in all directions, suggesting significant upside potential.

Importantly, the Cangallo Project benefits from excellent infrastructure proximity, situated just 25 kilometres east of the town of Chala and within 10 kilometres of the Pacific coast. This strategic location could facilitate a low capital intensity development, particularly given the potential for near-surface copper oxide resources amenable to heap leach processing.

Exploration Progress and Next Steps

The initial drilling campaign comprised eight holes totaling approximately 3,000 metres, but only five platforms were used, spaced 300 to 400 metres apart. The first two holes have yielded encouraging assay results, while assays from the remaining six holes are expected by early February 2025. These pending results will be critical in defining the extent and grade continuity of the mineralisation.

AusQuest’s Managing Director, Graeme Drew, emphasised the significance of the breakthrough, noting that the maiden program has only tested a small fraction of the prospective target area. The company’s upcoming investor webinar aims to provide further insights and answer questions from stakeholders.

Broader Market and Regional Implications

Peru is the world’s second-largest copper producer, with major porphyry copper deposits driving the industry. The Cangallo discovery aligns with the region’s prolific copper belt and could join the ranks of long-lived, large-scale operations in the Arequipa District. Given the stable political environment and government support for mining, AusQuest’s project is well positioned to advance through exploration and development stages.

While the initial results are promising, further drilling and resource definition will be essential to confirm the project's economic viability and potential scale. The market will be watching closely as AusQuest progresses its exploration program and releases additional assay data.