AusQuest Limited has significantly expanded the copper mineralisation at its Cangallo Project in Peru, extending the porphyry system to over 1,500 metres with promising assay results. Further drilling is planned to explore depth and lateral extensions, highlighting the project's growing potential.
- Porphyry copper-gold system extended to over 1,500 metres strike length
- Broad copper intersections starting near surface, grades up to 0.6% Cu
- Copper mineralisation remains open at depth and along strike
- Further RC drilling (+5,000m) planned for March, diamond drilling in April
- Project benefits from excellent location near infrastructure and coast
AusQuest Expands Cangallo Porphyry System
AusQuest Limited (ASX, AQD) has announced a significant extension of copper mineralisation at its 100%-owned Cangallo Porphyry Copper-Gold Project in Peru. Recent Stage 3 reverse circulation (RC) drilling has extended the known strike length of the porphyry system to more than 1,500 metres, substantially increasing the scale of this promising discovery.
The initial results from 10 drill holes reveal broad intervals of copper mineralisation starting near surface and continuing to the end of the holes, which often exceed 400 metres in depth. Notably, copper grades reach up to 0.6% in some sections, accompanied by gold values, underscoring the economic potential of the deposit.
Open Mineralisation and Next Drilling Phases
The copper mineralisation remains open to the north, south, east, and at depth, suggesting the system could be even larger than currently defined. AusQuest plans to recommence further RC drilling of more than 5,000 metres in early March to expand the mineralised zones. This will be followed by deep diamond drilling in April, targeting sulphide mineralisation at depth, particularly where strong mineralisation was encountered near the end of previous holes.
These drilling programs aim to delineate the outer limits of the porphyry system and identify higher-grade zones, which are critical for assessing the project's economic viability. Early interpretations also suggest potential supergene enrichment near the base of oxidation zones, which could enhance recoveries and reduce processing costs.
Strategic Location and Stable Jurisdiction
The Cangallo Project is strategically located within the Arequipa District, a prolific copper mining region in Peru, the world's second-largest copper producer. Situated just 25 kilometres east of the town of Chala and within 10 kilometres of the coast, the project benefits from proximity to key infrastructure, including transport and port facilities.
Community engagement has been positive so far, with no critical issues identified, and the Peruvian government remains supportive of mining developments that contribute to the local economy. This favourable context enhances the project's attractiveness compared to other deposits that may face logistical or social challenges.
Outlook and Market Implications
AusQuest’s Managing Director, Graeme Drew, emphasised the encouraging nature of the results and the potential for a new porphyry centre to the south of the current drilling area. The company’s methodical approach, first defining the system's scale before focusing on grade improvement, aligns with best practices in porphyry exploration.
As assay results for the remaining drill holes are awaited, the market will be watching closely for further confirmation of the deposit’s size and grade. The combination of scale, grade, and location positions Cangallo as a compelling copper-gold project in a globally significant mining jurisdiction.
Bottom Line?
AusQuest’s expanding Cangallo discovery is shaping up as a major copper-gold prospect, but the next drilling phase will be critical to unlock its full potential.
Questions in the middle?
- How will the pending assay results influence the overall resource model?
- What are the timelines and challenges for Stage 4 drilling permits and execution?
- Can diamond drilling confirm higher-grade zones at depth to improve project economics?