AusQuest Unveils Expanding Copper-Gold Corridor at Cangallo with High-Grade Zones

Expanding Footprint at Cangallo

AusQuest Limited (ASX:AQD) has delivered another encouraging update from its Cangallo Porphyry Copper-Gold Project in southern Peru. The latest Stage 3 reverse circulation (RC) drilling results confirm a large, continuous mineralised corridor extending over 1,500 metres along strike, between 250 and 500 metres wide, and reaching depths beyond 400 metres. This footprint remains open in multiple directions, suggesting significant upside potential as drilling progresses.

Notably, the drilling has intersected multiple broad zones of copper mineralisation with copper grades exceeding 0.5% over substantial widths. Among the standout results is hole CANRC034, which returned 164 metres at 0.33% copper and 0.07 grams per tonne gold from 304 metres to the end of the hole, including higher-grade intervals such as 54 metres at 0.42% copper. These results reinforce the project's capacity to host economically meaningful copper grades.

Near-Surface Oxide Mineralisation and Processing Potential

Importantly, copper mineralisation at Cangallo occurs as oxides from surface down to approximately 200 to 250 metres, transitioning to mixed oxides and secondary sulphides to depths exceeding 300 metres. This vertical zonation supports the potential for low-cost heap leach processing of the oxide copper near surface, a method that could enable early-stage, cost-effective production. The presence of supergene enrichment and hypogene sulphide mineralisation at depth further enhances the project's long-term value proposition.

Upcoming Drilling Programs to Target Depth and Grade

Building on these results, AusQuest is preparing for a substantial +5,000 metre RC drilling campaign scheduled to commence in mid-March, aimed at expanding the known mineralised corridor and testing southern extensions where higher copper and gold grades have been indicated. Following this, a diamond drilling program is planned for April to target deeper, higher-grade hypogene sulphide mineralisation, with previous diamond holes indicating mineralisation extending beyond 800 metres depth.

These drilling programs are critical for refining the geological model, improving resource confidence, and identifying zones with the potential for higher-grade copper mineralisation that could underpin a robust mining operation.

Strategic Location and Community Engagement

The Cangallo Project benefits from a favourable location approximately 25 kilometres east of the town of Chala, close to the Peruvian coast and key infrastructure. Situated at relatively low altitudes within the Arequipa District, the project avoids many of the logistical challenges faced by higher-altitude Andean mines. AusQuest has engaged with local communities as part of its exploration process, with no critical social or environmental issues identified to date. Peru’s stable political environment and government support for mining developments further underpin the project's prospects.

Outlook and Market Context

Peru is the world’s second-largest copper producer, with large-scale porphyry copper deposits forming the backbone of its mining industry. Cangallo’s scale and grade metrics align well with other profitable operations in the region, which typically feature head grades between 0.20% and 0.40% copper and multi-decade mine lives. AusQuest’s ongoing drilling success and strategic approach position the company to potentially add a significant new copper-gold resource to Peru’s mining landscape.