AusQuest Expands Cangallo Copper Corridor with High-Grade Intervals

Cangallo Project Delivers Expansive Copper-Gold Mineralisation

AusQuest Limited (ASX:AQD) has revealed that its March quarter drilling at the Cangallo Porphyry Copper-Gold Project in Peru has outlined a substantial mineralised corridor stretching over 1,500 metres along strike, 250 to 500 metres wide, and extending beyond 400 metres in depth. This broad-spaced Reverse Circulation (RC) drilling campaign has not only confirmed the system’s scale but also highlighted multiple thick intervals where copper grades exceed 0.5%, a promising sign of the deposit’s grade potential.

Key intersections from the southern drill section include 172 metres at 0.33% copper and 0.07 grams per tonne gold from 154 metres, featuring narrower zones up to 36 metres at 0.54% copper. Another hole returned 164 metres at 0.33% copper from 304 metres depth, including 54 metres at 0.42% copper. These results reinforce continuity of mineralisation and the presence of higher-grade zones within the oxide and hypogene sulphide domains.

The ongoing RC drilling program, exceeding 5,000 metres, aims to extend mineralisation laterally and locate higher-grade hypogene copper sulphides beneath the oxide zone. This phase is expected to complete by early May, with assays due by month-end. Diamond drilling, targeting deeper sulphide mineralisation, is scheduled to commence in late May following RC results assessment. Permitting for an ambitious Stage 4 drilling expansion, involving 20 additional drill pads and over 50,000 metres of combined RC and diamond drilling, is progressing with final government approvals anticipated in the third quarter of 2026.

These developments build on previous drilling that has substantially expanded the known footprint of the Cangallo system, confirming near-surface copper oxide mineralisation amenable to heap leach processing and the potential for higher-grade hypogene mineralisation at depth. The project benefits from a strategic location close to the Peruvian coast and key infrastructure, enhancing its development prospects. The extensive assay data and geological modelling underway are expected to refine targeting and resource estimation in the coming months.

AusQuest’s recent drilling updates echo its prior announcements that have steadily increased the scale and confidence in Cangallo’s potential, including broad mineralisation over 1,500m strike and ongoing RC drilling expansion.

New Peru Projects Set for Maiden Drilling

Beyond Cangallo, AusQuest secured drill permits for the Playa Kali and Lantana copper-gold projects, both situated near the Cangallo discovery. Maiden RC drilling programs, each exceeding 4,000 metres, are planned to test iron-oxide copper-gold (IOCG) manto-style targets at Playa Kali and a large-scale, high-grade porphyry copper target at Lantana. These programs are scheduled to commence in the second quarter of 2026, pending rig availability and operational factors.

At Lantana, geological mapping and rock-chip sampling have identified extensive advanced argillic alteration and high-grade copper values exceeding 1% in surface samples, suggesting proximity to a significant porphyry system. Playa Kali’s targets include manto deposits with copper grades up to 1.9%, supported by ground magnetic anomalies and geological similarities to nearby world-class deposits. These maiden drill campaigns represent a critical step in expanding AusQuest’s footprint in Peru’s prolific copper belt.

These plans follow the company’s recent permit grants and exploration preparations, as outlined in the drill permits granted for Playa Kali and Lantana announcement.

Australian Exploration Advances Under South32 Alliance

Meanwhile, AusQuest’s Australian base metal projects continue to progress under the Strategic Alliance Agreement (SAA) with South32 Limited. Native Title Heritage Surveys have been completed at Balladonia (WA) and Coober Pedy (SA), clearing the way for RC drilling programs targeting lead-zinc, copper-gold, and IOCG mineralisation. Planned drilling at Balladonia is expected to cover approximately 8,000 metres, focusing on structurally complex Fraser Range Terrane targets with potential for nickel, copper, and rare earth elements.

At Coober Pedy, a 4,500-metre RC program aims to test geophysical targets near the Elizabeth Creek Fault zone, a structure associated with IOCG deposits. Drilling is anticipated to commence in the second quarter of 2026, following final approvals. Ground geophysical surveys are also planned at Mt Davis (WA) to delineate targets for sediment-hosted base metals. These Australian activities benefit from funding and technical support from South32, underscoring the strategic partnership’s value.

AusQuest ended the quarter with a cash position of approximately AUD 10.2 million, including South32 contributions, after investing AUD 3.2 million in exploration. This financial footing supports the company’s aggressive drilling and exploration agenda across Peru and Australia.

These Australian initiatives complement the company’s Peru focus and reflect a diversified approach to base metal exploration, as detailed in the recent South32 alliance funding and exploration progress update.