Cangallo Porphyry Grows: 330m at 0.30% Copper Near Surface in Latest Drilling

• Stage 2 RC drilling expands mineralised system to over 800m by 500m
• Multiple broad copper intercepts including 330m at 0.30% Cu from near surface
• Deep diamond drilling scheduled for mid-September to test depth extensions
• Stage 3 RC drilling planned for October targeting southern extensions
• Project located near infrastructure with potential heap-leachable oxide copper zones

Expanding Footprint of a Copper Discovery

AusQuest Limited has announced encouraging results from its Stage 2 reverse circulation (RC) drilling program at the Cangallo Project in southern Peru. The latest assays reveal that the porphyry copper system continues to grow both laterally and at depth, now covering an area exceeding 800 metres by 500 metres. Notably, broad zones of copper mineralisation have been intersected from near surface to depths beyond 300 metres, with some drill holes ending in mineralisation, underscoring the system’s potential scale.

Significant intercepts include a standout 330 metres grading 0.30% copper starting just 32 metres below surface, and other substantial intervals such as 234 metres at 0.30% copper from 110 metres depth. These results suggest a robust mineralised envelope, with higher copper grades often associated with oxide zones near surface and within narrow tonalite dykes, which are typical indicators of porphyry systems.

Strategic Drilling Plans to Unlock Depth and Extensions

Looking ahead, AusQuest is preparing to commence a deep diamond drilling program in mid-September. This phase aims to test the vertical extent of the copper mineralisation and provide critical geological data to help vector towards the causative porphyry source. Following this, a Stage 3 RC drilling campaign is slated for October, focusing on southern extensions of the system where surface sampling has highlighted additional copper and gold targets.

The company’s Managing Director, Graeme Drew, expressed optimism about the discovery’s trajectory, highlighting the increasing prevalence of higher-grade copper near surface and the geological signs pointing to multiple porphyry centres. This bodes well for the prospect’s potential size and grade continuity, key factors for future resource development.

Favourable Location and Geological Context

Cangallo’s location is particularly advantageous, situated just 25 kilometres east of the town of Chala and within 10 kilometres of the Peruvian coast, close to significant infrastructure. This proximity could translate into lower development costs and logistical efficiencies if the project advances to production. The presence of oxide copper mineralisation near surface also raises the possibility of heap leach processing, a cost-effective extraction method.

Peru’s status as the world’s second-largest copper producer, with a well-established mining sector and government support for new developments, further enhances the project’s appeal. The Cangallo discovery sits within the prolific Arequipa District, home to several large, long-life copper mines, underscoring the region’s mineral potential.

Early Stage but Promising Outlook

While the drilling results are promising, it is important to note that the project remains at an early exploration stage. True widths of mineralisation are yet to be determined, and further drilling and assay results will be critical to defining a maiden resource. AusQuest’s ongoing community engagement and permitting progress also play a vital role in advancing the project.

Overall, the expanding footprint of copper mineralisation at Cangallo, combined with upcoming deeper drilling and southern extension testing, positions AusQuest to potentially unlock a significant new copper discovery in a globally important mining jurisdiction.

Bottom Line?

As AusQuest prepares to drill deeper and wider, the next results could redefine the scale of Cangallo’s copper potential.

Questions in the middle?

• Will the upcoming diamond drilling confirm higher-grade copper at depth?
• How extensive are the southern extensions indicated by surface sampling?
• What impact will the oxide copper zones have on potential processing methods and project economics?