Wide Copper Intercepts Up to 324m at Cangallo Signal Growing Porphyry Discovery

Expanding Porphyry Discovery at Cangallo

AusQuest Limited (ASX, AQD) has delivered a promising update from its 100%-owned Cangallo Project in southern Peru, revealing that Stage 2 reverse circulation (RC) drilling continues to expand the footprint of a significant porphyry copper-gold system. The first four of 13 planned drill holes have returned multiple wide intercepts of copper mineralisation, with some intervals exceeding 300 metres in length and starting from near surface.

These results reinforce the notion that the mineralised system is both extensive laterally and at depth, with many holes ending in mineralisation, indicating the deposit remains open for further expansion. Notably, the drilling has yet to intersect the causative porphyry intrusion itself, with copper mineralisation currently hosted within volcanic rocks and narrow tonalite dykes. This suggests the potential for encountering higher-grade copper zones once the porphyry centre is located.

Encouraging Metallurgical Insights and Infrastructure Advantage

Preliminary metallurgical test work on RC samples indicates that copper oxides at Cangallo are generally amenable to heap leaching, with copper recoveries ranging mostly between 60% and 80%. While these early results are not definitive, they provide a positive early indication of potential processing pathways that could support economic extraction.

The project benefits from proximity to infrastructure, situated just 25 kilometres east of the town of Chala and within 10 kilometres of the coast, which could facilitate future development logistics. AusQuest has secured drill permits from the Peruvian authorities, including environmental and community approvals, enabling ongoing and planned drilling activities.

Next Steps, Deep Drilling and Expanded Exploration

AusQuest plans to complete the remaining Stage 2 RC holes by the end of July, with assay results expected by late August. Following this, a deep diamond drilling program is scheduled to commence in the second half of August to test the depth extent of mineralisation and to help pinpoint the causative porphyry intrusion.

Additionally, the company is pursuing permits for an expanded Stage 3 RC drilling program aimed at testing the southern extensions of the prospect, where rock chip sampling has identified strong surface copper and gold anomalies. The possibility of multiple porphyry centres within the Cangallo area remains open, a common feature in porphyry districts, which could significantly enhance the project's scale and value.

Management Perspective

AusQuest’s Managing Director, Graeme Drew, expressed cautious optimism, highlighting that while it is still early days, the results support the view of a significant copper-gold discovery. He emphasised that the company has only tested a small portion of the target area and is encouraged by the shallow and extensive nature of the mineralisation encountered so far. The presence of tonalite dykes with higher copper grades is seen as a positive vector towards the main porphyry source.

With further drilling and metallurgical work underway, AusQuest is positioning itself to better define the size, grade, and economic potential of the Cangallo porphyry system.