AusQuest Confirms IOCG Potential with Initial Drilling Results at Playa Kali, Peru

Initial Drilling Highlights IOCG Prospectivity at Playa Kali

AusQuest Limited (ASX:AQD) has taken a significant first step in unlocking the potential of its Playa Kali Copper-Gold Project in southern Peru. The company’s maiden Reverse Circulation (RC) drilling program, comprising 12 wide-spaced holes totalling 3,733 metres, has intersected anomalous copper and molybdenum values that confirm the presence of iron-oxide copper-gold (IOCG) mineralisation beneath shallow cover.

Notable assay results include 12 metres at 0.2% copper and 0.05 grams per tonne gold in hole PKRC007, 10 metres at 0.37% copper in PKRC009, and molybdenum grades peaking at 617 parts per million in PKRC004. These hits are particularly encouraging given the reconnaissance nature of the drilling and the fact that this is the first program ever completed in this area.

Magnetic Complexes Guide Exploration Strategy

The drilling targeted a roughly 8-kilometre east-west trending magnetic complex interpreted to represent a manto-style iron oxide system, similar in style to the nearby Mina Justa deposit located about 100 kilometres north. AusQuest’s ground magnetic surveys revealed extensive magnetite and hematite alteration over many kilometres, and the anomalous copper zones appear spatially associated with these magnetic highs.

Hole PKRC004, situated near a major regional fault with strong alteration minerals like jarosite and hematite, returned molybdenum values as high as 747 ppm alongside narrow copper intercepts. This structural setting may be a key control on mineralisation, underscoring the value of integrating geological and geophysical data.

Next Steps Focus on Refining Targets for Follow-Up

AusQuest’s Managing Director Graeme Drew emphasised that the company is now reassessing multi-element geochemical data and magnetic modelling to sharpen targeting ahead of potential geophysical surveys and further drilling. The plan is to move from wide reconnaissance holes to more focused diamond drilling aimed at delineating higher-grade mineralisation.

“The fact we have intersected copper in several drill holes on this maiden program is very encouraging,” Drew said. “We look forward to providing further updates once we complete a detailed assessment of the drilling data.”

Given the wide spacing of the current drill lines (over 200 metres apart) and the extensive cover over the project area, AusQuest’s approach of layering geochemical, magnetic, and structural data is critical to unlocking the true scale and grade potential of Playa Kali.

Playa Kali Adds to AusQuest’s Growing Peruvian Portfolio

The Playa Kali results complement AusQuest’s ongoing exploration momentum in Peru, where the company is advancing other copper-gold projects such as Cangallo and Lantana. While Playa Kali is at an earlier stage, the confirmation of IOCG-style mineralisation adds a promising new dimension to the company’s portfolio in a region known for large-scale copper deposits.

With follow-up work now underway, investors will be watching how AusQuest leverages its geophysical insights to refine drill targets and potentially unlock a significant IOCG discovery beneath the coastal cover near Chala, Peru.