AusQuest Ltd Advances Cangallo Copper-Gold Project in Peru

Significant Copper Discovery Taking Shape in Peru's Coastal Region AusQuest Limited has unveiled promising results from its Cangallo Porphyry Copper-Gold project in Peru, with extensive drilling confirming a significant discovery with substantial scale potential. Located along Peru's productive coastal copper belt, the 100% owned Cangallo copper-gold project by AusQuest Ltd has delivered multiple broad copper and gold intercepts, highlighting the prospect's growing footprint. Recent drilling programs have returned impressive results, including 324m @ 0.30% Cu and 0.07 g/t Au (CANRC012), with higher-grade zones of 160m @ 0.45% Cu and 0.09 g/t Au within the broader mineralised envelope. Similar extensive intercepts have been reported in multiple drill holes, demonstrating consistent mineralisation across the target area. The discovery's appeal is enhanced by its strategic location at a low altitude of approximately 1,200 meters, just 8km from the coast, with existing power infrastructure crossing the property and proximity to the town of Chala, providing potential workforce and logistical advantages. Drilling Results Reveal Extensive Mineralisation System Stages 1 and 2 of reverse circulation (RC) drilling, totalling approximately 8,000 meters, have successfully identified copper mineralisation in 19 of 21 holes drilled. The mineralisation remains open in multiple directions, with copper grades ranging from 0.1% to 1.0% throughout the drill holes. Key intercepts from the drilling programs include: Drill Hole Intercept Including Higher Grade Zone CANRC012 324m @ 0.30% Cu, 0.07 g/t Au 160m @ 0.45% Cu & 0.09 g/t Au CANRC014 330m @ 0.30% Cu, 0.06 g/t Au 178m @ 0.40% Cu & 0.08 g/t Au CANRC013 234m @ 0.30% Cu, 0.06 g/t Au 142m @ 0.39% Cu & 0.06 g/t Au CANRC003 154m @ 0.37% Cu, 0.06 g/t Au 44m @ 0.47% Cu & 0.08 g/t Au CANRC008 304m @ 0.30% Cu, 0.06 g/t Au 56m @ 0.40% Cu & 0.06 g/t Au CANRC001 348m @ 0.26% Cu, 0.06 g/t Au 34m @ 0.39% Cu & 0.08 g/t Au Preliminary leach tests on oxide material have shown encouraging results, suggesting potential for heap leach processing of near-surface mineralisation. Understanding Porphyry Copper Deposits: The Prize for Investors Porphyry copper deposits represent some of the world's largest and most valuable mineral resources, accounting for approximately 60% of global copper production. These deposits typically form large, low to medium-grade ore bodies that can be economically mined using bulk mining methods. What makes porphyry systems attractive to investors is their potential scale. While grades may appear modest compared to some deposit types (typically 0.3-1.0% copper), the enormous tonnage and potential for by-products like gold and molybdenum can create highly profitable mining operations with decades-long production profiles. Cangallo displays the hallmark characteristics of a substantial porphyry system, with broad zones of consistent mineralisation, increasing copper grades in certain zones, and a large alteration footprint. The presence of higher copper grades at shallow depths and within porphyry intrusions suggests the potential for a higher-grade source porphyry at depth. Ambitious Exploration Program Planned AusQuest has outlined an aggressive exploration plan to advance the Cangallo discovery through the remainder of 2025. Key components include: Diamond Drilling Program: Two deep holes of approximately 800 meters each are planned for late September to test the depth extent of copper sulphides and provide geological control in the search for the source porphyry. Stage 3 RC Drilling: Approximately 5,000 meters of additional RC drilling is scheduled to begin in late October, pending permits. This program will extend exploration to the south based on anomalous surface results. Metallurgical Testing: Ongoing leach tests will continue to assess the potential for heap leaching of oxide copper mineralisation. The company's exploration timeline indicates steady news flow over the coming months as these programs are implemented: Work Program Timing Diamond Drilling (~1,600m) September-October 2025 Assay Results from Diamond Drilling October-November 2025 Stage 3 RC Drilling (~5,000m) October-December 2025 Assay Results from RC Drilling November 2025-January 2026 Early Stage Leach Tests Ongoing through early 2026 Regional Potential Adds Further Upside Beyond Cangallo, AusQuest holds a substantial land position along 60km of prospective structures in Peru's coastal copper belt. The company has identified multiple additional porphyry copper and Iron Oxide Copper-Gold (IOCG) targets within its tenements, including the Lantana and Playa Kali prospects, where drilling permits are expected shortly. This district-scale potential provides investors with exposure not just to the Cangallo discovery, but to multiple potential copper discoveries along the same geological trend. The success at Cangallo has enhanced the prospectivity of these additional targets, creating a pipeline of exploration opportunities. Investment Thesis: Why Cangallo Matters The Cangallo discovery represents a compelling investment opportunity for several key reasons: Scale Potential: The growing copper and gold footprint suggests potential for a large-scale deposit with significant resource potential. Grade Profile: The presence of higher copper grades at shallow depth enhances economic potential, particularly for initial open-pit development. Strategic Location: Unlike many Andean copper projects that face challenges of high altitude and remote locations, Cangallo benefits from low altitude, coastal proximity, and existing infrastructure. 100% Ownership: AusQuest's complete ownership of the project maximises the potential upside for shareholders, with no joint venture splits or royalty burdens. Exploration Upside: The drilling to date has tested only a small fraction of the target area, with a large caldera-like structure defining a much greater target area extending over 1,000 meters to the south. "Cangallo represents an exceptional opportunity in Peru's coastal copper belt. The combination of consistent broad copper mineralisation, excellent infrastructure, and 100% ownership provides AusQuest shareholders with significant leverage to continued exploration success." – Graeme Drew, Managing Director, AusQuest Limited Corporate Strength to Advance the Discovery AusQuest is well-positioned financially to advance the Cangallo discovery, with approximately $7.2 million in cash as of June 30, 2025. The company has a market capitalisation of around $51.5 million (at 3.7 cents per share), providing an enterprise value of approximately $44.3 million. The company's board includes Managing Director Graeme Drew, a Fellow of the Australasian Institute of Mining and Metallurgy with extensive experience in exploration, providing technical leadership for the project. Why Investors Should Follow AusQuest AusQuest presents a compelling opportunity for investors seeking exposure to copper exploration with significant discovery potential. The Cangallo copper-gold project by AusQuest Ltd combines the essential elements that make for a potentially transformative discovery: Proven Mineralisation: Extensive drilling has already defined significant copper-gold mineralisation Scale Potential: Large target area with mineralisation open in multiple directions Infrastructure Advantages: Low-altitude location near coast with existing power infrastructure Multiple Catalysts: Upcoming diamond drilling and RC programs provide near-term news flow Strong Balance Sheet: Cash position of $7.2 million to fund planned exploration With copper prices projected to remain strong due to growing demand from renewable energy and electric vehicle sectors, discoveries of new copper deposits are increasingly valuable. Cangallo represents a rare opportunity to invest in an emerging copper discovery at an early stage, with the potential for significant valuation upside as the project advances. Key Takeaway:"AusQuest has positioned itself as an emerging player in Peru's prolific copper belt, with significant upside potential due to the scale of the Cangallo discovery and its 100% ownership. With upcoming drilling programs in September and October 2025, investors should keep a close eye on developments as the company continues to define what could become a significant copper-gold resource." Looking to Invest in Peru's Next Major Copper Discovery? To learn more about AusQuest's promising Cangallo Porphyry Copper-Gold project in Peru's coastal region and the significant potential it offers investors, visit www.ausquest.com.au. With impressive drill results, strategic location advantages, and an aggressive exploration program planned, AusQuest provides a compelling opportunity for exposure to an emerging copper discovery with substantial upside potential.