Ausquest Ltd
AusQuest Confirms Cangallo Porphyry System Extends Beyond 800 Metres in First Deep Diamond Hole
AusQuest Cangallo deep diamond drilling results in Peru have confirmed that the first deep diamond drill-hole in the current six-hole program at the 100%-owned Cangallo Porphyry Copper-Gold Project has extended well beyond the depths previously reached by reverse circulation (RC) drilling. Hole CANDD003 was completed to approximately 880 metres, with copper mineralisation logged visually from near surface down to around 550 metres.
According to the announcement, assay results from the hole are expected within 4 to 6 weeks, providing a near-term catalyst for a project that has steadily expanded in scale over successive drilling campaigns.
"The first deep diamond hole in the south has confirmed that the system extends to depths in excess of 550 metres below surface, with highly encouraging visual indications from the core. Deep diamond drilling is expected to continue at Cangallo for the next few months and is expected to provide critical information for assessing the scale and depth potential of the Cangallo system, as well as its economic potential." — Managing Director Graeme Drew
When big ASX news breaks, our subscribers know first
What CANDD003 Found: A System That Keeps Going Deeper
The visual observations reported from CANDD003 describe a geological pattern that porphyry copper explorers look for. Rather than weakening at depth, a common risk in this style of deposit, the mineralised system appears to persist across a substantial vertical interval.
The table below summarises the mineralised intervals visually logged in the hole, according to the company's announcement.
| Interval (From–To) | Length | Mineralisation style | Primary minerals |
|---|---|---|---|
| 35m to 250m | 215m | Fractures, veinlets, disseminated | Malachite, atacamite, chrysocolla (oxides) |
| 120m to 215m (including) | 95m | Veinlets, disseminated | Chalcocite (supergene) |
| 250m to 300m | 50m | Fractures, veinlets, disseminated | Chalcocite plus chalcopyrite, bornite, pyrite |
| 300m to 360m | 60m | Fractures, veinlets, disseminated | Chalcopyrite, bornite, pyrite |
| 325m to 345m (including) | 20m | Veinlets, disseminated | Chalcopyrite, pyrite, chalcocite |
| 360m to 400m | 40m | Fractures, veinlets, disseminated | Chalcopyrite, pyrite |
| 440m to 520m | 80m | Micro veinlets and veins | Chalcopyrite, molybdenite, pyrite |
| 600m to 660m | 60m | Veins and disseminated | Chalcopyrite, molybdenite, pyrite |
| 700m to 880m | 180m | Veinlets and disseminated | Chalcopyrite, molybdenite, pyrite |
All intervals shown are down-hole lengths, and true widths have not yet been determined. AusQuest has cautioned that visual estimates should not be treated as a substitute for laboratory assay results, which remain pending.
Several observations from the hole stand out in the company's reporting:
- Copper oxides were logged to depths exceeding 250 metres, consistent with a substantial weathered zone above a deeper sulphide system.
- A chalcocite zone was identified from approximately 250 metres to 280 metres, a feature the company has described as suggesting a supergene blanket, potentially developed above a larger sulphide body at depth.
- Below roughly 280 metres, chalcopyrite, bornite and molybdenite were logged in stockwork veins and disseminations, indicating the presence of primary, or hypogene, copper mineralisation at these depths.
- The hole finished at 880 metres still within mineralisation, meaning the system was not closed off by the base of the hole.
The host rock package comprises andesite and dacite volcanics intruded by quartz diorite and tonalite dykes, a setting consistent with large porphyry copper systems observed elsewhere. Furthermore, multiple hydrothermal breccia zones and extensive quartz-sericite-chlorite veining were also noted, which the company has said points to several intrusive and mineralising events — a characteristic often associated with larger, well-developed porphyry deposits.
Understanding the Geology: What Is a Porphyry Copper System?
For investors less familiar with the underlying geology, it helps to understand what a porphyry copper deposit is and why depth extent matters when assessing exploration potential.
What Is a Porphyry Copper Deposit?
A porphyry copper deposit forms when fluids released from cooling magma — carrying copper, gold and molybdenum — move into surrounding rock and deposit metals in networks of small veins known as stockworks, as well as scattered through the rock as disseminated grains. This process can produce a large body of lower-grade copper mineralisation extending hundreds of metres, and sometimes more than a kilometre, in depth.
Why Do They Matter to Investors?
Porphyry deposits account for a substantial share of global copper production and underpin some of the world's largest copper mines. Their scale and bulk-mineable nature make them significant targets within the exploration sector, though economic viability depends on grade, depth, and metallurgical characteristics established through further drilling and studies.
Why Does Depth Extent Matter at Cangallo?
A porphyry system that remains mineralised over a greater vertical interval may indicate potential for a larger overall resource, though this can only be confirmed through further drilling and assay results. The observation that Cangallo's system extends beyond 800 metres, and remained open at the base of CANDD003, is considered by the company to be a meaningful indicator of scale potential.
Key Terms Referenced in the Announcement
| Term | Definition |
|---|---|
| Hypogene mineralisation | Primary copper sulphide mineralisation formed at depth by hydrothermal fluids, typically chalcopyrite and bornite |
| Supergene mineralisation | Secondary copper enrichment formed near surface through weathering of primary sulphides, typically chalcocite and copper oxides |
| Chalcopyrite | The most common copper sulphide mineral and the main ore mineral in most porphyry deposits |
| Bornite | A copper-iron sulphide mineral often associated with higher-grade zones in porphyry systems |
| Molybdenite | A molybdenum sulphide mineral, typically linked to the core of the mineralising event in porphyry systems |
| Stockwork veins | Dense networks of small veins cutting through host rock, a defining feature of porphyry copper deposits |
| Chalcocite | A secondary copper sulphide formed through supergene enrichment, often forming a higher-grade zone above deeper primary mineralisation |
| RC drilling | Reverse circulation drilling, a faster and lower-cost method generally limited to shallower depths |
| Diamond drilling | Core drilling that recovers a continuous cylinder of rock, allowing detailed geological analysis at greater depths |
What Happens Next: A Busy Drilling Calendar Ahead
With CANDD003 completed, the diamond rig has been moved to the northern corridor of the project. According to the announcement, the program is progressing on the following timeline.
Immediate Next Steps
-
CANDD004 drilling is underway in the northern area, sited to test beneath high copper grades previously reported from RC drilling. Earlier drilling, including CANDD002, has indicated mineralisation to at least 600 metres down-hole in this corridor. Completion is expected within 2 to 3 weeks.
-
Assay results from CANDD003 are anticipated within 4 to 6 weeks and will provide the first laboratory-confirmed grades from deep drilling in the southern corridor.
-
The broader six-hole diamond program is expected to continue over the coming months, with future hole locations to be determined based on results and ongoing geological interpretation.
| Catalyst | Expected timing |
|---|---|
| CANDD004 drill completion | Within 2 to 3 weeks |
| CANDD003 assay results | 4 to 6 weeks |
| Further diamond hole results | Progressive, over coming months |
| Program assessment and geological update | Following receipt of assays |
The company has stated that the drilling program is intended to confirm mineralisation at depth while also generating structural and geological information to help identify higher-grade zones within the broader system.
The Investment Case: Scale, Depth and a Developing Discovery History
Cangallo has progressed through several stages of exploration since the initial discovery was reported in December 2024. According to AusQuest's series of ASX announcements, drilling through 2025 and into 2026 has progressively expanded the known extent of copper mineralisation, both along strike and at depth.
Consequently, the discovery has grown to over 1,500 metres in strike length by February 2026. The AusQuest Cangallo deep diamond drilling results in Peru mark the first confirmation that the system extends past 800 metres vertically, with the hole still in mineralisation at its base.
Key considerations for investors, based on the announcement:
- Full ownership – AusQuest holds the Cangallo project through its subsidiary Questdor, with no joint venture arrangements diluting exploration upside.
- Tenure and permitting in place – A drill permit (FTA) has been issued by INGEMMET following environmental and community approvals, allowing the current program to proceed.
- Geological features consistent with larger systems – Multiple intrusive events, extensive stockwork veining, a chalcocite zone, and molybdenite at depth are all features the company associates with substantial porphyry deposits, though economic significance can only be confirmed through assay results and further studies.
- Standard industry drilling protocols – The program uses oriented diamond core, hyperspectral analysis, and certified laboratory assaying through ALS del Peru, supported by quality assurance and quality control procedures.
- Multiple upcoming catalysts – Assay results from CANDD003 due in 4 to 6 weeks, combined with CANDD004 already underway, mean a period of frequent newsflow from a single exploration program.
The next major ASX story will hit our subscribers first
Why Cangallo Warrants Continued Investor Attention
AusQuest has now drilled its deepest hole yet at Cangallo, with visual results from CANDD003 showing mineralisation transitioning from oxide near surface, through a chalcocite-bearing interval, into primary chalcopyrite, bornite and molybdenite mineralisation at depth. The hole remained in mineralisation at 880 metres.
The presence of bornite at depth is noted by the company as an encouraging indicator, given its typical association with higher-grade core zones in porphyry systems. In addition, combined with molybdenite — often linked to the innermost part of a porphyry centre — these observations suggest the drilling program may be approaching more mineralised portions of the system, though this can only be confirmed through assay results.
The broader significance of the AusQuest Cangallo deep diamond drilling results in Peru lies in what they imply for the project's overall scale. However, investors should note that visual observations remain preliminary until laboratory assay results are received and reviewed.
Key takeaway: AusQuest has confirmed that the Cangallo porphyry system extends beyond 800 metres depth, with the first deep diamond hole still in mineralisation at its base. Assay results are expected within 4 to 6 weeks, while a second deep hole is already underway in the northern corridor. Investors following the copper exploration sector may wish to monitor further updates as results are released.
Want to Know More About AusQuest's Cangallo Discovery?
With the Cangallo porphyry system now confirmed to extend beyond 800 metres depth, assay results from the first deep diamond hole due within weeks, and a second hole already underway, AusQuest represents a compelling copper-gold exploration opportunity to keep on your watchlist. To learn more about the company, the Cangallo project, and its broader portfolio of exploration assets, visit www.ausquest.com.au.
