AusQuest Expands Cangallo Copper Project to 1,500 Metres

Understanding copper mining investments requires careful analysis of project fundamentals, and the Cangallo Copper Project by Ausquest Ltd exemplifies the potential of systematic exploration in Peru's proven mining belt. This emerging porphyry discovery has expanded dramatically through methodical drilling programmes, demonstrating the value of strategic exploration approaches.

AusQuest's Cangallo Discovery Reaches Major Milestone

AusQuest Limited (ASX: AQD) has delivered a major milestone at its 100%-owned Cangallo Porphyry Copper-Gold Project in Peru, with recent drilling results substantially expanding the known copper mineralisation to over 1,500 metres in length. The Stage 3 Reverse Circulation (RC) drilling program has returned significant intersections that demonstrate the growing scale and economic potential of this emerging copper discovery.

Furthermore, the latest results from the first 10 completed drill holes showcase consistent copper mineralisation across broad intervals, with standout intersections including 172 metres @ 0.33% Cu, 0.07g/t Au and 209 metres @ 0.22% Cu, 0.04g/t Au. Importantly, all new sections contain copper mineralisation starting from near-surface and extending to depths exceeding 400 metres, with the system remaining open in multiple directions.

Stage 3 Drilling Delivers Strong Results

The Stage 3 RC drilling program consisted of 20 broadly spaced drill holes totalling 7,836 metres, strategically positioned along east-west sections south of the initial drill coverage. The program was specifically designed to extend mineralisation from previous stages and expand the overall size of the porphyry system.

Key Intersections from Initial 10 Holes

The drilling has confirmed continuity of the porphyry copper system to the south, with higher copper grades (above 0.3% Cu and up to 0.6% Cu) present on each section drilled. The strongest mineralisation appears on the southern-most section, highlighting potential for additional discoveries further south.

In addition, these results demonstrate the systematic expansion approach that has characterised the Cangallo Copper Project by Ausquest Ltd throughout its exploration programme.

Managing Director's Comment:

"We are very pleased with the initial results from the RC drilling, which has clearly extended the mineralisation a considerable distance to the south – and highly likely even further than what we have drilled to date. Results from the first drill-hole on the southern section are very encouraging and may lead to a new porphyry centre being defined in the south." – Graeme Drew

Understanding Porphyry Copper Systems

What is a Porphyry Copper Deposit?

Porphyry copper deposits represent some of the world's largest copper resources, typically containing over 1 billion tonnes of ore. These deposits form when copper-rich fluids from cooling magma chambers create extensive networks of mineralised veins and stockworks within host rocks.

The key characteristics that make porphyries attractive to investors include:

• Large scale: Often exceeding 1 billion tonnes of resource
• Open-pit potential: Usually shallow enough for low-cost mining
• Long mine life: Multi-decade operations providing stable cash flows
• Scalable processing: Amenable to large-scale, efficient extraction methods

At Cangallo, copper mineralisation occurs as both oxides and sulphides in stockwork veins within volcanic host rocks and intrusive bodies, closely associated with chlorite/sericite alteration – a classic porphyry signature.

Expanding the Discovery Footprint

System Scale and Depth Potential

Consequently, the Cangallo porphyry system continues to demonstrate significant scale:

• Strike length: Now extends over 1,500 metres
• Depth extent: Known to exceed 800 metres in northern areas
• Open geometry: Mineralisation remains open north, south, east and at depth
• Multiple centres: Evidence suggests potential for additional porphyry centres

The presence of a large outer pyrite zone supports interpretation that the Cangallo Copper Project by Ausquest Ltd could develop into a very large porphyry system. Multiple intrusions identified within the system – including quartz diorite to tonalitic compositions – are common features in larger porphyry deposits.

Geological Indicators

Key geological features supporting the discovery's potential include:

• Supergene enrichment zones at the base of oxidation on most sections
• Higher grade zones within quartz diorite intrusive dykes/stocks
• Extensive alteration halos indicating a large-scale hydrothermal system
• Multiple intrusive phases suggesting a complex, long-lived magmatic system

Strategic Location Advantage

Cangallo benefits from exceptional infrastructure positioning within Peru's established copper mining region:

Infrastructure Benefits

• 25km east of Chala town
• Within 10km of the coast
• Established mining district with proven operations
• Government support for mining development
• Community engagement progressing without critical issues

Regional Context

Peru ranks as the world's second-largest copper producer (2.8Mt annually), with successful operations including Cerro Verde, Cuajone, and Quellaveco using head grades between 0.20-0.40% Cu – directly comparable to Cangallo's grades.

However, the strategic positioning provides the Cangallo Copper Project by Ausquest Ltd with significant competitive advantages over more remote discoveries in the region.

Near-Term Catalysts and Timeline

AusQuest has outlined a clear progression plan to advance the discovery:

Immediate Priorities (February-March 2025)

1. Remaining assays: Results from 10 additional holes expected within weeks
2. Extended RC drilling: Additional 5,000+ metres commencing early March
3. Multi-element analysis: Complete geochemical assessment to guide targeting

Medium-Term Objectives (April 2025+)

1. Diamond drilling program: Targeting depth extensions of copper sulphide mineralisation
2. Stage 4 permitting: Expanding drill coverage further south
3. Resource definition: In-fill drilling to improve grade continuity and define initial resources

Investment Thesis: Why Cangallo Matters

Scale and Growth Potential

• Expanding discovery: System now exceeds 1,500m strike length with growth in all directions
• Depth continuity: Open at depth with known extent to 800+ metres
• Grade consistency: Broad intervals of economic-grade copper mineralisation
• Multiple targets: Potential for additional porphyry centres within the system

Strategic Positioning

• Tier-1 jurisdiction: Peru's established mining environment with government support
• Infrastructure advantage: Coastal location near existing mining operations
• Development pathway: Oxide zones suitable for lower-cost heap leach processing
• Resource potential: Characteristics consistent with large-scale porphyry deposits

Execution and Momentum

• Systematic approach: Methodical expansion of known mineralisation before in-fill drilling
• Technical expertise: Experienced team with proven porphyry discovery track record
• Financial backing: Well-funded exploration programme with clear milestones
• Market timing: Copper demand growth supporting exploration investment

Why Should Investors Follow AusQuest?

AusQuest has positioned itself as an emerging force in copper discovery, with the Cangallo Copper Project by Ausquest Ltd representing a potentially company-making asset. The systematic expansion of this porphyry system, combined with its strategic location in Peru's proven copper belt, creates a compelling investment proposition.

Furthermore, the upcoming catalyst timeline – with remaining assays due within weeks, extended drilling commencing in March, and diamond drilling planned for April – provides multiple opportunities for value creation. As global copper demand continues to grow and supply constraints tighten, discoveries like Cangallo become increasingly valuable.

With mineralisation remaining open in multiple directions and evidence supporting a large-scale porphyry system, AusQuest offers investors exposure to genuine discovery potential in a world-class copper jurisdiction.

Key Takeaway:

The Cangallo discovery has evolved from an exploration prospect to a significant copper system exceeding 1,500 metres in length. With systematic drilling expanding the footprint, strategic infrastructure positioning, and multiple near-term catalysts, AQD represents a compelling copper discovery story in Peru's established mining region.

Could Cangallo Become AusQuest's Company-Making Asset?

With systematic drilling having expanded the Cangallo system to over 1,500 metres in length and multiple catalysts approaching—including remaining assays due within weeks and extended drilling commencing in March—AusQuest Limited presents a compelling copper discovery story in Peru's established mining region. To explore the full investment potential of this emerging porphyry system and assess how AQD's strategic positioning could benefit your portfolio, discover more about the company's exploration programmes and development pathway at www.ausquest.com.au.