AusQuest Ltd Cangallo mineral discovery represents one of the most significant porphyry copper exploration breakthroughs in Peru this year. The company has successfully extended known mineralisation beyond 800 metres depth, more than doubling the previously understood vertical extent of this promising system.
Major Breakthrough Doubles Known Mineralisation Depth
AusQuest Limited (ASX: AQD) has delivered impressive results from its diamond drilling program at the 100%-owned Cangallo Porphyry Copper-Gold project in Peru. Furthermore, mineralisation is now confirmed to extend beyond 800 metres depth, representing a substantial expansion of the known system.
The preliminary visual assessment of core from diamond hole CANDD01 reveals chalcopyrite (copper sulphide) mineralisation within stockwork veins at approximately 800m down-hole depth. This provides strong evidence of a large-scale porphyry system. Meanwhile, CANDD02 has intersected a broad zone of copper oxide mineralisation extending over 300m from surface.
However, the most encouraging aspect is the clear evidence of supergene enrichment processes. These could deliver significantly higher copper grades in the upper profile, enhancing the project's economic potential.
Key highlights from the diamond drilling include:
• Mineralised stockwork veins containing hypogene copper (chalcopyrite and bornite)
• Visual copper sulphide estimates ranging from 0.1% to 0.5% in core samples
• Extensive copper oxide zones with visual estimates of 0.2% to 1.0% copper
• Strong porphyry indicators suggesting a mineralised porphyry centre nearby
Management Commentary:
"The presence of visible copper sulphides within veins at depths around 800m suggests a very large, robust porphyry system capable of injecting significant amounts of copper into the host rocks," said Managing Director Graeme Drew.
Understanding Porphyry Copper Systems: Why Size Matters for Investors
Porphyry copper deposits represent some of the world's most valuable mineral assets. They are characterised by their enormous scale and consistent grades. These deposits form when copper-rich magmatic fluids create extensive networks of mineralised veins throughout large volumes of host rock.
What makes porphyry systems attractive to investors:
• Scale: Typically contain over 1 billion tonnes of ore reserves
• Open-pit potential: Low waste-to-ore ratios enable cost-effective mining
• Processing advantages: Upper oxide zones can be processed via heap leach methods
• Long mine life: Multi-decade operations providing stable cash flows
The presence of hypogene copper mineralisation at Cangallo indicates the system remains robust at depth. Where copper sulphides occur in their primary form within stockwork veins, the system hasn't been significantly weathered or depleted.
Technical Definition: Hypogene mineralisation refers to copper minerals formed directly from hot, mineral-rich fluids deep within the Earth. This contrasts with supergene mineralisation, where surface weathering processes concentrate existing copper into richer zones near the surface.
Drilling Progress and Upcoming Milestones
The current diamond drilling program follows a systematic approach to define the scale and grade potential. Consequently, the AusQuest Ltd Cangallo mineral discovery continues to reveal impressive dimensions and grade continuity.
Current Program Status:
• CANDD01: Completed to 830m depth with extensive sulphide mineralisation
• CANDD02: In progress, intersecting 300m+ of copper oxides from surface
• Final assays: Expected by end of December 2025
Upcoming Catalysts:
• Stage 3 RC drilling: Commencing end of November 2025
• Southern extension testing: Targeting the interpreted porphyry centre
• Systematic step-out drilling: Expanding the known mineralised footprint
| Drilling Phase | Status | Target | Expected Completion |
|---|---|---|---|
| Diamond Drilling | In Progress | Depth extent confirmation | November 2025 |
| Assay Results | Pending | Grade confirmation | December 2025 |
| Stage 3 RC Program | Upcoming | Southern extensions | Q1 2026 |
The Stage 3 RC program will be particularly significant. Surface geological and geochemical data indicates the porphyry centre is likely positioned to the south of current drilling. This is where the highest grades typically occur.
Strategic Investment Case: Peru's Copper Opportunity
The discovery is strategically positioned within Peru's premier copper province. 2.8 million tonnes of copper are produced annually, making Peru the world's second-largest copper producer behind Chile.
Competitive Advantages:
| Factor | Cangallo Advantage | Industry Benchmark |
|---|---|---|
| Location | 25km from Chala town | Remote locations common |
| Infrastructure | Within 10km of coast | Often >100km inland |
| Elevation | Sea level proximity | High-altitude challenges |
| Community Relations | No critical issues identified | Frequent conflicts |
Regional Context:
The Arequipa District hosts several major operations including Cerro Verde, Cuajone, Toquepala, and Quellaveco. These operate profitably with head grades between 0.20% and 0.40% copper. Furthermore, these mines demonstrate multi-decade operational sustainability in the region.
Previous significant intersections from RC drilling include:
• 324m @ 0.30% Cu including 160m @ 0.45% Cu
• 330m @ 0.30% Cu including 178m @ 0.40% Cu
These broad, consistent zones of mineralisation suggest excellent potential. In addition, they indicate a large-scale, open-pittable resource that could support heap leach processing methods.
Technical Significance: Supergene Enrichment Potential
The diamond drilling has revealed strong evidence for supergene processes at Cangallo. These could substantially enhance the project's economic potential. Supergene enrichment occurs when surface weathering processes concentrate existing copper into much richer zones near the surface.
How Does Supergene Enrichment Work?
Surface water and oxygen interact with copper minerals, dissolving them and redepositing concentrated copper compounds. This occurs in zones below the water table. This natural process can increase copper grades from less than 0.5% to over 2% in enriched zones.
Evidence at Cangallo:
• Extensive copper oxide zones from surface to over 300m depth
• Multiple copper minerals including malachite, atacamite, chrysocolla
• Transition zones between oxides and sulphides indicating active enrichment
The broad zones of copper mineralisation intersected at Cangallo occur within the oxide zone. Consequently, they could be recoverable by heap leach methods, providing potential for lower capital and operational costs.
Why Investors Should Follow AusQuest Limited
The AusQuest Ltd Cangallo mineral discovery represents a rare combination of scale, location, and timing. This positions AusQuest as a compelling copper exploration story. With global copper demand projected to surge due to electrification and renewable energy infrastructure, large-scale discoveries in stable jurisdictions are increasingly valuable.
Key Investment Drivers
• Scale potential: Mineralisation now confirmed beyond 800m depth across a broad system
• Processing advantages: Extensive oxide zones suitable for low-cost heap leach methods
• Strategic location: Excellent infrastructure access in a proven mining district
• Systematic approach: Methodical drilling program progressively defining resource potential
• Timing: Results during a period of strong copper market fundamentals
The presence of supergene enrichment processes at surface level adds an additional value driver. These zones often contain significantly higher copper grades that can enhance early mine economics and cash flow generation.
Furthermore, the recognition of sericite alteration and highly anomalous copper and molybdenum values suggests significant expansion potential. In surface sampling, the porphyry system extends at least 1,200 metres south of current drilling.
Key Takeaway:
AusQuest has positioned itself to potentially define a major copper resource in one of the world's premier mining jurisdictions. With mineralisation extending beyond 800m depth and upcoming drilling targeting the interpreted porphyry centre, the next six months could be transformational for the company's valuation and strategic positioning.
The company's 100% ownership of the Cangallo project provides complete exposure to any discovery upside. The systematic drilling approach reduces exploration risk by methodically testing the most prospective targets. These have been identified through surface work and geochemical analysis.
Ready to Explore AusQuest's Copper Discovery Potential?
AusQuest Limited's systematic approach to unlocking the Cangallo porphyry system presents a compelling investment opportunity in Peru's premier copper district. With mineralisation now confirmed beyond 800 metres depth and upcoming drilling targeting the interpreted porphyry centre, the next phase of exploration could significantly expand this discovery. To access detailed technical reports, explore AusQuest's full project portfolio, and stay updated on drilling progress and assay results, visit www.ausquest.com.au and discover why institutional investors are closely monitoring this 100%-owned copper-gold project.
