AusQuest has secured permits to launch a major drilling campaign at its Cangallo copper-gold project in Peru, aiming to pinpoint the porphyry system’s core and potentially double resource size.
- Stage 3 RC drilling approved for +6000m at Cangallo
- Focus on expanding copper-gold mineralisation southwards
- Surface geochemistry and magnetics indicate porphyry core location
- Drilling to follow completion of diamond drilling program
- Final assay results expected approximately 10 weeks from start
AusQuest Advances Cangallo Exploration
AusQuest Limited (ASX – AQD) is poised to deepen its exploration footprint at the Cangallo Porphyry Copper Gold project in Peru, having received final permits for an extensive Stage 3 Reverse Circulation (RC) drilling program. This next phase, comprising around 14 holes totaling over 6000 meters, is set to commence shortly after the completion of an ongoing diamond drilling campaign.
The strategic focus of this drilling is to extend the known copper and gold mineralisation further south, targeting the heart of the porphyry system where higher-grade copper deposits are anticipated. Previous surface sampling has revealed anomalous copper concentrations exceeding 0.5%, gold levels above 1 gram per tonne, and elevated molybdenum, all coupled with significant sericite alteration; a hallmark of porphyry systems.
Geophysical and Geochemical Clues
Complementing the geochemical data, recent ground magnetic surveys have identified zones of magnetite destruction, which typically correspond to intense alteration zones near porphyry cores. These magnetic lows align with the southern area beyond current drilling, reinforcing the hypothesis that the system’s core lies there. The planned drill pads are spaced at 300-meter intervals along traverses approximately 300 meters apart, with holes designed to reach depths of around 400 meters.
Should the drilling confirm the extension of mineralisation by an additional 1,000 meters to the south, it could effectively double the potential resource size, marking a significant milestone for AusQuest and its shareholders.
Management’s Optimism and Next Steps
AusQuest’s Managing Director, Graeme Drew, expressed enthusiasm about the upcoming drilling phase, highlighting the opportunity to substantially grow the discovery and unlock higher-grade copper zones. He emphasized that successful drilling results would be transformative for the company’s valuation and future prospects.
The drilling program is expected to take four to six weeks, with assay results anticipated roughly four weeks thereafter. Investors and market watchers will be keenly awaiting these results, which will provide critical insights into the project’s scale and grade potential.
Bottom Line?
AusQuest’s next drilling results could redefine Cangallo’s resource potential and reshape its market narrative.
Questions in the middle?
- Will the Stage 3 drilling confirm the location of the porphyry core with higher copper grades?
- How might the new assay results impact AusQuest’s resource estimates and valuation?
- What are the potential timelines and capital requirements for advancing Cangallo towards development?