AusQuest Commences Maiden Playa Kali Drilling Targeting IOCG Copper-Gold

• Maiden +4,000m RC drilling started at Playa Kali IOCG copper-gold project
• Drill rig to move to Lantana for high-grade porphyry copper testing
• Cangallo RC drilling completed, assays expected late May 2026
• Deep diamond drilling planned at Cangallo for hypogene sulphides
• Targets supported by ground magnetic surveys and manto outcrops

Maiden Drilling Begins at Playa Kali Targeting IOCG Mineralisation

AusQuest Limited (ASX:AQD) has initiated its first-ever Reverse Circulation (RC) drilling campaign at the Playa Kali Copper-Gold Project in southern Peru, marking a significant step in advancing its exploration portfolio. The program, comprising approximately 12 holes and over 4,000 metres, is designed to test a suite of Iron-Oxide Copper-Gold (IOCG) targets, which share geological similarities with the nearby Mina Justa deposit, a major copper resource estimated at around 400 million tonnes grading 0.77% copper.

The Playa Kali project hosts multiple copper-bearing manto outcrops along the coast, with surface samples showing copper grades ranging from 0.14% to nearly 2%. These visual indicators, while not substitutes for assay data, underscore the potential for substantial mineralisation. Ground magnetic surveys have delineated anomalies both at surface and beneath cover, guiding the placement of drill pads and highlighting the project's exploration promise.

Drilling is expected to span roughly four weeks, with assay results anticipated about four weeks post-completion. The maiden program will provide critical data to evaluate the extent of copper-gold mineralisation in this underexplored part of the Peruvian coastal belt, a region renowned for hosting large IOCG systems. The drill rig is scheduled to relocate to the Lantana project upon completion of Playa Kali drilling.

Lantana Project Set for Follow-Up Porphyry Copper Drilling

Following Playa Kali, AusQuest will deploy the RC rig to the Lantana prospect to test a large-scale, high-grade porphyry copper target. The target spans approximately 2,000 by 800 metres and is defined by widespread anomalous rock-chip samples exceeding 1% copper, alongside molybdenum and bismuth anomalies. Geological mapping has identified extensive advanced argillic alteration zones, typical indicators of porphyry systems, with high-grade copper associated with dyke-like features adjacent to these altered zones.

The planned Lantana drilling program mirrors Playa Kali in scale, with about 12 holes and over 4,000 metres targeted. This follow-up reflects AusQuest's strategy to systematically evaluate multiple high-priority targets within its Peruvian landholdings, building on the momentum from its flagship Cangallo discovery. The permit approvals and drill pad preparations for Lantana were confirmed in earlier announcements, setting the stage for a sustained exploration push.

Cangallo Drilling Advances with RC Completion and Upcoming Diamond Program

Meanwhile, at the Cangallo Copper-Gold Project, AusQuest has wrapped up its current RC drilling phase, completing 13 holes totaling 5,585 metres. Assay results are expected by late May 2026, which will shed light on the extent and grade continuity of the copper mineralisation. Cangallo has revealed a broad copper-gold system with mineralisation hosted in stockwork veins, volcanic host rocks, and notably, intrusive quartz diorite dykes that may represent part of a porphyry system.

Plans are underway to commence a deep diamond drilling program exceeding 6,000 metres in late May, targeting hypogene sulphide mineralisation at depth. Permits for a Stage 4 drilling program focusing on the southern extensions of the prospect are anticipated by the third quarter of 2026. This ongoing work aligns with AusQuest’s broader strategy to expand and define its copper-gold footprint in Peru's prolific coastal belt, as detailed in the company’s recent Cangallo drilling updates and drilling permit announcements.

Technical Rigor and Exploration Methodology

AusQuest’s drilling programs adhere to industry-standard sampling and assay protocols compliant with the JORC Code (2012). RC drilling employs a face sampling bit with approximately 132mm diameter holes, and samples are composited on a two-metre basis. Quality assurance measures include the insertion of certified blanks and standards, as well as duplicate sampling to ensure data integrity.

Assays are conducted by ALS del Peru, a certified laboratory, using four-acid digestion and Inductively Coupled Plasma Mass Spectrometry (ICPMS) for multi-element analysis, complemented by 30g fire assays for gold. Hyperspectral analyses supplement geochemical data to refine mineral identification. Drill hole collar locations are surveyed with handheld GPS to an accuracy of about five metres, and downhole surveys are recorded at 10-metre intervals.

While no assay results from Playa Kali or the latest Cangallo RC program are available yet, the comprehensive exploration framework and prior surface sampling provide a strong foundation for potential resource expansion. The company remains cautious, highlighting that visual mineral estimates are not substitutes for laboratory analyses and that drilling is currently reconnaissance in nature.

Bottom Line?

AusQuest’s sequential drilling at Playa Kali, Lantana, and Cangallo sets a busy exploration calendar through 2026, with assay results and deep drilling poised to clarify the scale of copper-gold mineralisation in Peru’s coastal belt.

Questions in the middle?

• Will Playa Kali drilling confirm mineralisation akin to Mina Justa’s scale and grade?
• How will assay results from current Cangallo drilling influence the planned deep diamond program?
• Can the Lantana porphyry target deliver high-grade copper to complement AusQuest’s growing resource base?