AusQuest Limited has initiated a significant Stage 2 drilling campaign at its Cangallo copper-gold project in Peru, aiming to expand promising mineralisation and pinpoint the porphyry system’s core. Initial assay results are anticipated within two months.
- Stage 2 Reverse Circulation drilling commenced, targeting ~5,000m
- Drilling aims to extend copper-gold intersections and locate porphyry centre
- Initial assay results expected within 6-8 weeks
- Potential for high-grade copper zones and supergene blanket identified
- Further deep diamond and Stage 3 RC drilling planned pending permits
AusQuest Advances Cangallo Exploration
AusQuest Limited has officially begun its Stage 2 Reverse Circulation (RC) drilling program at the Cangallo copper-gold porphyry project in Peru, marking a pivotal step in advancing this promising discovery. The program, designed to drill approximately 5,000 metres over 4 to 6 weeks, seeks to build upon encouraging results from the maiden drilling campaign by extending known copper-gold mineralisation and targeting the elusive centre of the porphyry system.
Initial assay results from this phase are expected within 6 to 8 weeks, offering the market an early glimpse into the potential scale and grade of the deposit. The drilling strategy involves reorienting holes from previous pads and stepping out in multiple directions; west, south, and north; to better define the system’s core, which is believed to host higher copper grades.
Geological Context and Potential
The Cangallo project lies within a large caldera-like structure, where early-stage drilling has intersected broad zones of copper mineralisation, including both oxide and sulphide forms. Notably, copper grades up to 0.30% over extensive intervals have been recorded near surface, with mineralisation continuing to the end of holes in several instances. The presence of tonalite dykes and associated hydrothermal alteration suggests a larger intrusive system nearby, which could significantly enhance the deposit’s size and grade.
Of particular interest is the evidence for supergene processes, with oxidation depths exceeding 200 metres in some drill holes. This raises the possibility of an enriched supergene blanket; a zone of higher-grade copper mineralisation formed by secondary enrichment; that could materially improve the project’s economics.
Strategic Location and Future Plans
Situated in Peru’s Arequipa District, a region known for major copper operations, Cangallo benefits from proximity to key infrastructure, including being just 25 kilometres from the town of Chala and within 10 kilometres of the coast. This advantageous location reduces logistical challenges and supports potential future development.
AusQuest’s Managing Director, Graeme Drew, highlighted the transformative potential of the ongoing drilling campaign, emphasizing plans for deep diamond drilling and a third stage of RC drilling later in the year, contingent on permit approvals. The company’s proactive community engagement and Peru’s stable mining environment further underpin the project’s prospects.
As AusQuest continues to unlock the potential of Cangallo, the market will be watching closely for assay results that could redefine the scale and value of this copper-gold discovery.
Bottom Line?
AusQuest’s next assay results could be a defining moment for Cangallo’s future and shareholder value.
Questions in the middle?
- Will the Stage 2 drilling confirm higher-grade copper zones near the porphyry centre?
- How soon will permits be granted for the planned deep diamond and Stage 3 RC drilling?
- What impact will the potential supergene blanket have on the project’s economic viability?