AusQuest has reported significant near-surface copper-gold mineralisation from its latest RC drilling at the Cangallo project in Peru, setting the stage for a substantial diamond drilling campaign targeting deeper, higher-grade zones.
- Final four RC drill-holes show broad copper-gold intercepts
- Three drill-holes end in mineralisation, extending depth potential beyond 400m
- Major +5,000m diamond drilling program to test hypogene mineralisation begins late May
- Priority targets in southern Cangallo show continuity of higher copper grades
- Strategic location near infrastructure supports potential early open-cut mining
Strong Copper-Gold Intercepts Extend Cangallo Porphyry
AusQuest Limited (ASX:AQD) has delivered further proof of the scale and continuity of its Cangallo porphyry copper-gold discovery in Peru with the release of final assay results from four reverse circulation (RC) drill-holes. These holes, drilled in the northern part of the prospect, returned broad copper intervals starting near surface, including standout intersections like 176 metres at 0.38% copper and 0.07 g/t gold from 40 metres (CANRC052) and 342 metres at 0.27% copper from 30 metres (CANRC053). Three of the four holes ended in mineralisation, confirming the porphyry system extends beyond 400 metres depth and remains open for expansion.
The results reinforce the project's potential to host a large-scale copper system with both oxide and hypogene mineralisation. Notably, the near-surface copper oxide zones, with oxidation depths reaching 200 to 250 metres, could support early open-cut mining and heap leach processing, a low-cost extraction method. This aspect enhances the economic appeal of the project given its proximity to key infrastructure and the Pacific coast.
Major Diamond Drilling Campaign Targets Deeper Hypogene Zones
Building on these encouraging RC results, AusQuest is poised to commence a substantial +5,000-metre diamond drilling program at the end of May. This phase aims to test for higher-grade hypogene copper mineralisation below the current RC drilling depth of approximately 350 metres. The initial diamond drill-hole, CANDD003, is designed to penetrate to around 800 metres and will focus on priority targets in the southern Cangallo area, where strong chalcopyrite mineralisation and continuity of copper grades suggest the presence of at least one hypogene core.
The southern drill sections have revealed multiple intervals exceeding 0.3% copper over 20 metres and 0.5% copper over 10 metres, with some intrusive dykes showing values above 1.0% copper. These findings indicate a compelling target for deeper, higher-grade mineralisation. AusQuest’s Managing Director Graeme Drew highlighted the significance of this next step, noting that the diamond drilling should provide critical insights into the scale and grade potential of the Cangallo system.
Strategic Location and Permitting Progress
The Cangallo project benefits from a strategic location approximately 25 kilometres east of Chala town in southern Peru, situated at low altitude and close to the coast. These factors mitigate some common challenges faced by Peruvian copper projects, such as high altitude and complex community relations. AusQuest has engaged in community consultation with no critical issues identified to date, and permitting for Stage 4 drill pads is advancing, with government approvals expected by the end of June.
Peru ranks as the world’s second-largest copper producer, with many profitable porphyry copper mines in the Arequipa District employing head grades between 0.20% and 0.40% copper. AusQuest’s ongoing exploration at Cangallo aligns with this regional profile, suggesting the project could become a meaningful contributor to Peru’s copper sector.
The timing of this diamond drilling campaign follows a series of successful RC drilling stages that have progressively expanded the known mineralised footprint at Cangallo. Earlier in May, AusQuest reported the discovery of a 1.5-kilometre copper-gold corridor with emerging higher-grade zones, underpinning the rationale for the deeper drilling push. This continuity of mineralisation is a critical factor in the company’s strategy to delineate a resource with both scale and grade potential continuous copper-gold mineralisation.
Meanwhile, AusQuest is also advancing exploration at other Peruvian projects, including the recent start of maiden RC drilling at Playa Kali, further demonstrating its commitment to building a diversified copper-gold portfolio in the region maiden reverse circulation drilling.
Bottom Line?
The upcoming diamond drilling at Cangallo will be pivotal in confirming higher-grade copper sulphides at depth, a key determinant of the project’s economic potential and future development trajectory.
Questions in the middle?
- Will the diamond drilling confirm the presence of a substantial hypogene core beneath southern Cangallo?
- How will assay results from the initial diamond holes influence the prioritisation of further deep drilling targets?
- What impact will permitting timelines and community engagement have on the pace of project advancement?