Cangallo’s Copper Potential Grows, But Economic Viability Still Unclear

AusQuest’s Cangallo Project Breakthrough

AusQuest Limited (ASX, AQD) has announced a significant expansion in the scale of copper mineralisation at its 100%-owned Cangallo Porphyry Copper-Gold project in Peru. Recent diamond drilling has extended the known depth of copper mineralisation to beyond 800 metres, more than doubling previous estimates based on earlier drilling methods.

The first diamond drill hole (CANDD01) revealed stockwork veins rich in chalcopyrite and bornite; copper sulphide minerals; at depths around 800 metres. This hypogene mineralisation is a strong indicator of a substantial, mineralised porphyry system nearby, which is the type of large-scale deposit that can support long-lived mining operations.

Supergene Enrichment and Near-Surface Potential

The second diamond drill hole (CANDD02), still in progress, has intersected a broad zone of copper oxide mineralisation extending from surface to depths exceeding 300 metres. This zone includes minerals such as malachite and chrysocolla, which suggest supergene enrichment processes are active. Such enrichment can significantly increase copper grades near the surface, potentially improving the economics of future mining.

AusQuest’s Managing Director, Graeme Drew, highlighted the importance of these findings, noting that the visible copper sulphides at depth and the extensive oxide zone near surface point to a robust porphyry system capable of delivering substantial copper volumes.

Next Steps in Exploration

The diamond drilling program is expected to conclude in the second half of November, with final assay results anticipated by the end of December 2025. These assays will provide critical data to confirm the grades and extent of mineralisation.

Following this, AusQuest plans to commence a Stage 3 Reverse Circulation (RC) drilling program targeting the southern extent of the porphyry system. Geological and geochemical data suggest this area is the most likely location of the porphyry centre, which could further enhance the project’s scale and value.

Strategic Location and Market Context

Cangallo is strategically located in Peru’s Arequipa District, close to infrastructure and within 10 kilometres of the coast. Peru is the world’s second-largest copper producer, and the region hosts several large, profitable porphyry copper mines. AusQuest’s project benefits from proximity to these established operations and a supportive government environment.

While the project shows strong geological promise, its economic viability will depend on forthcoming assay results, further drilling, and metallurgical studies. AusQuest’s ongoing community engagement and environmental approvals also position the project well for future development.