AusQuest Limited has significantly extended the copper-gold mineralised system at its Cangallo project in Peru through recent diamond and RC drilling, revealing depths beyond 800 metres and strike length exceeding one kilometre.
- Diamond drilling extends copper mineralisation depth beyond 800m
- RC drilling expands strike length over 1.0km southwards
- Visual copper oxides and sulphides confirmed in all recent drill holes
- Initial assay results expected in January 2026 to guide further drilling
- Project benefits from strong infrastructure and community support
Significant Growth at Cangallo
AusQuest Limited (ASX – AQD) has announced a substantial expansion of copper mineralisation at its 100%-owned Cangallo Porphyry Copper-Gold project in southern Peru. Recent diamond and reverse circulation (RC) drilling programs have extended the known mineralised system both vertically and laterally, highlighting the potential scale of this emerging copper discovery.
The diamond drilling campaign, comprising two holes totaling 1,630 metres, has confirmed hypogene copper sulphide mineralisation extending to depths exceeding 800 metres. This deep mineralisation suggests a potentially large porphyry system, with copper hosted in stockwork veins within volcanic host rocks. Meanwhile, the ongoing Stage 3 RC drilling has intersected visual copper oxides and sulphides, including chalcopyrite, more than 500 metres south of previous drilling, effectively extending the strike length of mineralisation to over one kilometre.
Geological Insights and Exploration Progress
Core logging and visual inspection of drill chips have revealed a complex mineral assemblage, with copper oxides such as malachite and chrysocolla near surface, and primary sulphides like chalcopyrite, chalcocite, and bornite at depth. The presence of supergene enrichment zones indicates natural upgrading of copper grades in parts of the system. Structural measurements on oriented drill core have identified multiple mineralised vein sets, which will assist in vectoring towards the causative porphyry intrusions.
AusQuest’s Managing Director, Graeme Drew, expressed optimism about the drilling results, noting the encouraging visual indications from RC drilling and the confirmation of deep mineralisation from diamond drilling. He highlighted that the company’s recent successful capital raising provides the financial capacity to expand drilling programs and further delineate the system’s full potential.
Strategic Location and Market Context
The Cangallo project is strategically located within Peru’s Arequipa District, a prolific copper-producing region with established large-scale operations nearby. Its proximity to infrastructure, including being just 25 kilometres from the town of Chala and within 10 kilometres of the coast, enhances its development prospects. Importantly, AusQuest reports no significant community or environmental impediments to exploration, supported by ongoing consultation and regulatory approvals.
Peru ranks as the world’s second-largest copper producer, and porphyry deposits like Cangallo are prized for their size and amenability to cost-effective open-pit mining and heap leach processing. The extension of mineralisation at Cangallo aligns with global demand trends for copper, driven by electrification and renewable energy technologies.
Next Steps and Market Implications
Initial assay results from the current RC drilling program are anticipated later this month and will be critical in confirming the grades and continuity of mineralisation. These results will inform the design of subsequent diamond drilling campaigns aimed at refining the geological model and advancing resource estimation. Investors will be watching closely as AusQuest progresses this potentially transformative copper discovery.
Bottom Line?
AusQuest’s expanding footprint at Cangallo sets the stage for a pivotal phase of assay results and resource definition.
Questions in the middle?
- What grades will the upcoming assay results confirm, and how consistent will they be across the expanded strike length?
- How will the structural data from oriented core influence targeting of higher-grade zones in future drilling?
- What timeline and capital expenditure will AusQuest require to advance Cangallo towards a maiden resource estimate?