AusQuest Expands Cangallo Copper Corridor with High-Grade Intervals and Plans Deeper Drilling

Broad Mineralised Corridor Confirmed at Cangallo

AusQuest Limited (ASX:AQD) has delivered further evidence that its Cangallo Porphyry Copper-Gold Project in Peru hosts a substantial and continuous mineralised system. The recently completed Stage 3 Reverse Circulation (RC) drilling campaign has defined a mineralised corridor exceeding 1,500 metres in length, with broad intercepts of copper and gold confirming the large-scale nature of the porphyry system. Notably, assay results from nine of the thirteen drill holes, predominantly from the southern sections, reveal extensive copper mineralisation within stockwork veined volcanic host rocks.

These results build on the company’s ongoing exploration momentum, following earlier phases that outlined the system’s scale and continuity. The broad-spaced RC drilling has been effective in delineating the lateral extent of the mineralisation, although the true thickness and orientation of key mineralised dykes remain to be established due to the reconnaissance nature of the drilling.

Emerging Higher-Grade Zones in Southern Sector

Perhaps the most compelling development is the emergence of higher-grade copper intervals, particularly within mineralised intrusive dykes and stockwork veins concentrated in the southern portion of the prospect. Significant intercepts include 12 metres grading 1.09% Cu and 12 metres at 0.77% Cu, both from drill holes CANRC048 and CANRC047 respectively. Additional +0.5% Cu intervals over 10 metres thick have been recorded, underscoring the potential for at least one higher-grade porphyry centre in this area.

Gold grades also show an encouraging upward trend to the south, with drill hole CANRC044 returning multiple intercepts exceeding 0.15 g/t Au and peaking at 0.43 g/t Au over 12 metres. This pattern aligns with earlier surface sampling that suggested increased gold potential in the southern sector, adding another dimension to the project’s value proposition.

Near-Surface Oxide Mineralisation and Heap Leach Potential

Most high-grade copper intercepts occur within the oxide zone, extending to depths of approximately 200 to 250 metres. The presence of copper oxides such as malachite and chrysocolla, alongside secondary copper sulphides like chalcocite and bornite, indicates a near-surface mineralisation profile that could be amenable to heap leaching. This low-cost processing method offers a potentially attractive early-stage development pathway, enhancing the project’s economic appeal.

Upcoming Diamond Drilling Targets Deeper Sulphides

With the RC drilling phase now complete, AusQuest is preparing for a substantial +5,000 metre diamond drilling program scheduled to commence in late May. This phase aims to test deeper hypogene copper sulphide mineralisation associated with multi-phase vein systems containing chalcopyrite and bornite, which could represent the higher-grade core of the porphyry system. The final selection of diamond drill sites will be guided by a comprehensive assessment of the full RC assay dataset and multi-element geochemical vectors.

Permitting for the Stage 4 drill pads, focused on the highly prospective southern portion of Cangallo, has been prioritised and is expected to be secured by Q3 2026. This will enable follow-up drilling to continue without delay, maintaining the project’s exploration momentum.

Strategic Location Enhances Project Viability

Cangallo’s location within the Arequipa District of southern Peru offers several strategic advantages. 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 and low altitudes, factors that often challenge other Andean porphyry developments. AusQuest has also engaged in community consultations with no critical issues reported to date, and the Peruvian government remains supportive of new mining ventures given their economic benefits.

These locational benefits complement Cangallo’s geological promise and align with the operational considerations that underpin the viability of large-scale porphyry copper projects, which typically feature multi-decade mine lives and open-cuttable ore bodies with favourable waste-to-ore ratios.

AusQuest’s Managing Director Graeme Drew emphasised the significance of the results, stating, “We are now seeing higher-grade copper emerging within the system, including results exceeding 1% Cu, which supports our view that we are vectoring towards a higher-grade core.” This optimism is tempered by the recognition that drilling remains wide-spaced and that true thicknesses are yet to be determined.

The company’s approach reflects a methodical progression from broad-scale reconnaissance drilling to targeted diamond drilling, aiming to unlock the full potential of the Cangallo system. This strategy parallels recent developments at other AusQuest projects in Peru, such as the maiden drilling at Playa Kali, which also targets IOCG and porphyry copper-gold systems and is expected to complement the broader portfolio’s growth prospects maiden Reverse Circulation drilling.

Further assay results from the remaining Stage 3 drill holes are awaited and will be critical in refining the geological model and prioritising drill targets. The company’s steady progress and upcoming diamond drilling program continue to position Cangallo as a project to watch within the competitive copper exploration landscape of Peru expands Cangallo copper corridor.