AusQuest Ltd Unveils Major Cangallo Copper Discovery in Peru

AusQuest Limited has positioned itself as a leading player in the global copper exploration sector following the remarkable Cangallo copper discovery by AusQuest Ltd in Peru. The company’s recent investor presentation revealed impressive drilling results that could establish Cangallo as a world-class porphyry copper system. Furthermore, the presentation outlined extensive drilling intersections, strategic positioning advantages, and a robust pipeline of targets across both Peru and Australia.

The company maintains a strong financial position with $10 million cash as of December 2025, providing adequate funding for its aggressive exploration timeline spanning the next six months across multiple high-priority targets.

Cangallo Discovery Delivers World-Class Intersections

The centrepiece of AusQuest’s presentation was the remarkable drilling results from Cangallo, where Stages 1 and 2 drilling have delivered some of the most impressive copper intersections seen in recent Peru exploration campaigns. These results demonstrate the significant scale of the Cangallo copper discovery by AusQuest Ltd.

Outstanding Drill Results Include:

• • 324m @ 0.30% Cu, 0.07g/t Au (CANRC012), including 160m @ 0.45% Cu

• • 330m @ 0.30% Cu, 0.06g/t Au (CANRC014), including 178m @ 0.40% Cu

• • 234m @ 0.30% Cu, 0.06g/t Au (CANRC013), including 142m @ 0.39% Cu

• • 555m @ 0.26% Cu, 0.06g/t Au (CANDD002) from diamond drilling

These intersections demonstrate the presence of a large-scale porphyry system with copper mineralisation extending from surface to depths exceeding 800 metres. In addition, grades up to 1.1% copper in tonalite dykes suggest the potential for higher-grade zones near the system’s centre.

Key Insight: The diamond drilling programme has confirmed that copper mineralisation remains open at depth and in multiple directions, indicating significant expansion potential for the resource.

Strategic Location Advantages Set Cangallo Apart

What makes the Cangallo copper discovery by AusQuest Ltd particularly compelling from an investment perspective is its exceptional location within Peru’s mining landscape. However, these advantages extend far beyond simple geographic positioning.

These location advantages could translate into significantly lower development costs compared to typical Peru copper projects, potentially improving project economics. Consequently, this could reduce capital requirements for any future development of the discovery.

Aggressive Near-Term Drilling Campaign

AusQuest has outlined an ambitious six-month programme designed to rapidly expand the Cangallo resource and test additional high-priority targets. Furthermore, this comprehensive approach reflects the company’s commitment to unlocking the full potential of its Peru copper projects.

Stage 3 & 4 Drilling Programme:

• • Stage 3 RC Drilling: 12,000+ metres targeting southward expansion

• • Stage 3 Diamond Drilling: 5,000+ metres testing depth extensions

• • Stage 4 Permits: Expected Q3 2026 for resource definition drilling

• • Early-Stage Leach Tests: Evaluating processing potential

Additional Peru Targets:

• • Lantana: Large-scale porphyry target (2km x 1km) with surface grades >1.0% Cu

• • Playa Kali: Copper-gold targets 15km from Cangallo, permits imminent

Understanding Porphyry Copper Systems

For investors new to copper exploration, understanding porphyry systems is crucial when evaluating the Cangallo copper discovery by AusQuest Ltd. These are large, low-to-moderate grade copper deposits formed by magmatic-hydrothermal processes. Consequently, they can contain hundreds of millions to billions of tonnes of copper.

The key characteristics that make them attractive include:

• • Scale: Often contain massive tonnages suitable for open-pit mining

• • Consistency: Generally uniform grade distribution

• • Longevity: Can support decades of mining operations

• • By-products: Often contain gold, molybdenum, and silver credits

Cangallo’s characteristics—broad zones of consistent copper grades, extensive depth continuity, and hypogene (primary) mineralisation—are textbook indicators of a substantial porphyry system. In addition, these features suggest the potential for a commercially viable mining operation.

South32 Partnership Validates Australian Portfolio

Beyond Peru, AusQuest’s Strategic Alliance Agreement with South32 provides significant validation and funding for its Australian projects. The partnership, recently extended to December 2027, demonstrates confidence in the company’s exploration capabilities following success with mining partnerships.

• • US$4.5 million spend earns South32 70% equity in each project

• • 15% management fee to AusQuest during earn-in period

• • Four active projects across multiple commodity types

Key Australian Projects Ready for Drilling:

The magnetite results at Morrisey are particularly noteworthy, with DTR tests producing >70% iron with low impurities. However, this potentially indicates a new magnetite district in Western Australia’s infrastructure-rich Midwest region.

Investment Thesis: Multi-Jurisdiction Exploration Leader

AusQuest’s investment case rests on several compelling pillars that extend beyond the Cangallo copper discovery by AusQuest Ltd. Furthermore, these factors combine to create a multi-faceted opportunity for investors seeking copper exposure.

1. World-Class Discovery Potential

Cangallo represents one of the most significant copper discoveries in Peru in recent years. For instance, drilling results are comparable to major porphyry systems globally.

2. Strategic Location Advantages

The combination of infrastructure access, low altitude, and coastal proximity provides Cangallo with inherent economic advantages. Consequently, this positions it favourably compared to many Peru copper projects.

3. Diversified Portfolio

The South32 partnership de-risks Australian exploration while providing upside exposure to multiple commodity types. These include copper, gold, iron ore, and base metals through Australian mining investments.

4. Experienced Management

Led by Managing Director Graeme Drew, a Fellow of the Australasian Institute of Mining and Metallurgy. In addition, he brings extensive porphyry system experience to the leadership team.

5. Strong Financial Position

$10 million cash provides adequate funding for the aggressive near-term drilling programmes across all key targets. Furthermore, this eliminates immediate dilution concerns for shareholders.

What Makes Cangallo Unique in Today’s Market?

The discovery stands out in today’s competitive copper exploration landscape for several reasons. However, understanding these factors is crucial for investors evaluating the opportunity within copper market trends.

The scale and consistency of copper intersections at Cangallo are particularly impressive when compared to recent discoveries globally. For instance, the continuous nature of mineralisation across multiple drill holes suggests a coherent porphyry system. Furthermore, the relatively shallow depth of high-grade mineralisation could significantly reduce future mining costs.

Upcoming Catalysts Drive Investment Timeline

The next six months present multiple value-inflection opportunities for AusQuest investors seeking exposure to copper exploration success. However, these catalysts are carefully sequenced to maximise information flow and investment interest.

Q1 2026:

• • Stage 3 RC drilling results from Cangallo

• • Lantana and Playa Kali drilling permit approvals

Q2-Q3 2026:

• • Diamond drilling results extending Cangallo depth profile

• • Australian drilling programmes commence at Balladonia and Coober Pedy

• • Stage 4 Cangallo permits expected

Ongoing:

• • Leach test results evaluating processing characteristics

• • Morrisey magnetite commercial assessment outcomes

Technical Excellence Drives Discovery Success

The success of the Cangallo copper discovery by AusQuest Ltd reflects the company’s systematic approach to exploration. Consequently, this methodology has proven effective across multiple jurisdictions and commodity types. The integration of geophysical surveys, geochemical sampling, and strategic drilling has maximised discovery potential whilst minimising exploration costs.

Why Investors Should Follow AusQuest

AusQuest has positioned itself at the forefront of copper exploration in both Peru and Australia. However, the Cangallo discovery potentially represents a company-making asset that could transform its market position. The combination of outstanding drill results, strategic location advantages, and a funded exploration pipeline creates multiple pathways for significant value creation.

The company’s $96.2 million market capitalisation appears modest relative to the scale of the Cangallo system. Furthermore, there remains potential for additional discoveries across its extensive Peru tenement package. With copper demand expected to surge due to global electrification trends, AusQuest benefits from both exploration success and favourable commodity dynamics.

Managing Director Commentary

The presentation highlighted CEO Graeme Drew’s extensive porphyry system experience as a Fellow of the Australasian Institute of Mining and Metallurgy, providing technical leadership for the company’s ambitious exploration programmes across two premier mining jurisdictions.

Future Outlook and Strategic Vision

The upcoming drilling campaigns across Peru and Australia, combined with potential additional discoveries, make AusQuest a compelling copper exploration story. For instance, investors seeking exposure to the electrification mega-trend should consider the company’s strategic positioning across mining sector developments.

The next six months should deliver multiple catalysts that could significantly re-rate the company’s valuation. However, as Stage 3 drilling results emerge and Australian programmes commence, additional Peru targets will advance through the permit process.

The combination of technical merit, strategic positioning, and funded exploration timeline positions AusQuest as a leading copper exploration play. Furthermore, its presence across two of the world’s premier mining jurisdictions provides geographic diversification and multiple pathways to success.

Ready to Explore AusQuest’s Copper Discovery Potential?

With world-class drilling results at Cangallo delivering exceptional copper intersections and an aggressive six-month drilling campaign ahead, AusQuest represents a compelling opportunity in the copper exploration space. The company’s strategic positioning across Peru and Australia, combined with strong financial backing and experienced management, creates multiple pathways for significant value creation. To dive deeper into AusQuest’s full portfolio of projects, upcoming catalysts, and investment proposition, visit www.ausquest.com.au for comprehensive company information and the latest developments from this emerging copper discovery story.