Cangallo Copper Discovery Expands with New Drill Results
AusQuest Limited (ASX: AQD) has announced significant new assay results from its Stage 2 drilling program at the 100%-owned Cangallo Project in southern Peru, revealing the continued expansion of what appears to be a major greenfields copper discovery along Peru's coastal belt.
New Drilling Extends Mineralisation Footprint
The latest batch of assay results from the company's Reverse Circulation (RC) drilling program has successfully expanded the Cangallo porphyry system both laterally and at depth. The mineralised footprint now spans approximately 800m by 500m and remains open in multiple directions.
Key intercepts from the latest drilling include:
- 330 metres @ 0.30% Cu, 0.06ppm Au from 32m (CANRC014), including 178 metres @ 0.40% Cu
- 234 metres @ 0.30% Cu, 0.06ppm Au from 110m (CANRC013), including 142 metres @ 0.39% Cu
- 314 metres @ 0.20% Cu, 0.04ppm Au from 106m (CANRC019)
Notably, 11 of the 13 holes drilled in Stage 2 intersected copper mineralisation, with six holes ending in mineralisation, indicating the system continues beyond the depths tested so far.
Shallow Oxide Mineralisation Highlights Development Potential
A particularly encouraging aspect of the discovery is the presence of higher copper grades at shallow depths within the oxide zone. This suggests potential for supergene enrichment processes, which could enhance the economic viability of the project through possible heap leach processing options.
"The second round of drilling continues to extend the known mineralisation at Cangallo and provide further evidence that this is shaping up as a major greenfields copper discovery along the coastal belt of southern Peru," said AusQuest's Managing Director, Graeme Drew.
"We are very encouraged that higher copper grades continue to be recorded at shallow depths and are becoming increasingly widespread the more we drill. The presence of narrow tonalite dykes containing higher copper grades is also encouraging, as it suggests that the source porphyry should also contain higher grades."
Strategic Location Near Key Infrastructure
The Cangallo Project benefits from an exceptional location, situated just 25km east of the town of Chala and within 10km of the coast in southern Peru. This proximity to significant infrastructure provides a strategic advantage for any future development scenario.
Peru ranks as the world's second-largest copper producer behind Chile, with approximately 2.8 million tonnes of copper mined annually. The country hosts several profitable large-scale operations in the Arequipa District where Cangallo is located, with typical head grades between 0.20% and 0.40% Cu.
Understanding Porphyry Copper Systems
Porphyry copper deposits represent some of the world's largest copper resources. These systems typically form large ore bodies that can be mined via open-pit methods with favourable waste-to-ore ratios.
What are Porphyry Copper Deposits?
Porphyry copper deposits are large mineral systems that form when copper-rich fluids from cooling magma bodies rise through the earth's crust and deposit copper minerals in networks of small veins and fractures. These deposits are characterized by:
- Large size: Often exceeding 1 billion tonnes of mineralized material
- Low to moderate grades: Typically 0.2% to 0.8% copper
- Extensive mineralisation: Spread across large volumes of rock
- Vertical zonation: Different mineral assemblages at different depths
- Multiple mineral phases: Often containing copper, gold, molybdenum and silver
The shallow portions of porphyry systems frequently contain oxide ores that can be processed using heap leach methods, which generally entail lower development and operational costs compared to processing sulphide ores.
In the Cangallo system, copper mineralisation occurs within volcanic host rocks, with higher grades found in the oxide zone and within narrow tonalite (porphyry) dykes. Multiple porphyry centres are considered highly likely, which aligns with the typical clustering pattern seen in major porphyry districts worldwide.
Upcoming Exploration Program
AusQuest has outlined an aggressive exploration strategy to further define this emerging copper discovery:
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Diamond Drilling Program: Set to commence in mid-September to test the depth extent of copper mineralisation and provide geological control for vectoring toward the causative porphyry.
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Stage 3 RC Drilling: Planned to begin in October following receipt of permits expected by the end of September. This program will test the southern extension of the porphyry system, where surface sampling has highlighted additional copper and gold targets.
"We look forward to commencing our deeper diamond drilling program next month, with the Stage 3 RC drilling to follow in October, which will test the southern extension of the porphyry system – where surface and drill data suggest we should find more porphyry mineralisation," Drew added.
"We believe that we have only just started to scratch the surface of what appears to be a significant copper discovery."
Why Investors Should Pay Attention
The Cangallo discovery represents a potentially significant new copper system in one of the world's premier copper jurisdictions. With Peru being a stable mining jurisdiction where the government actively supports new mine developments, the project has several compelling factors for investors:
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Scale Potential: The growing footprint of mineralisation suggests this could develop into a large-scale copper resource.
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Grade Profile: The presence of higher-grade zones within the broader mineralised envelope enhances economic potential.
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Location Advantages: Unlike many Peruvian projects that face challenges related to high altitude, remote locations, or water access, Cangallo benefits from favourable geography and proximity to infrastructure.
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Multiple Catalysts: With diamond drilling and Stage 3 RC drilling planned in the coming months, investors can expect a steady flow of news as the company continues to define the discovery.
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100% Ownership: AusQuest maintains full ownership of the project, maximising potential upside for shareholders.
The next six months will be pivotal as AusQuest tests the depth and lateral extensions of what appears to be emerging as a significant new copper discovery in a world-class copper jurisdiction.
Ready to Capitalise on Peru's Next Major Copper Discovery?
Discover why AusQuest's expanding Cangallo copper project could represent a significant investment opportunity in one of the world's premier copper jurisdictions. With impressive drill results, strategic location advantages, and an aggressive exploration program underway, now is the time to evaluate this emerging story. For comprehensive information about AusQuest and the full details of their expanding copper discovery in southern Peru, visit their website today.
