Early-Stage Drilling at Mt Davis Tests Large VTEM Anomalies Amid Uncertainty

Exploration Begins at Mt Davis

AusQuest Limited (ASX, AQD) has commenced a Reverse Circulation (RC) drilling program at its Mt Davis Base Metal Project, located on the northern flank of Western Australia's Earaheedy Basin. This marks a significant step in exploring the project's potential for sediment-hosted copper, lead, and zinc mineralisation, with drilling designed to test large-scale electromagnetic (VTEM) anomalies and associated soil geochemical anomalies.

Targeting Conductive Sediments Below Frere Iron Formation

The 10-hole program, covering approximately 2,000 metres, aims to investigate conductive sediment layers believed to lie beneath the Frere Iron Formation. These sediments are analogous to mineralised zones recently discovered by Rumble Resources Ltd at the Chinook Prospect on the southern side of the basin. AusQuest's geophysical modelling indicates these conductors are relatively thick and shallowly dipping, suggesting a promising environment for base metal accumulations.

Strategic Alliance with South32

The Mt Davis project is operated under a Strategic Alliance Agreement with a wholly owned subsidiary of South32 Ltd, a major player in the mining sector. This partnership provides AusQuest with valuable technical and financial support as it advances early-stage exploration. The alliance underscores the potential scale and significance of the targets identified.

Drilling Program Details and Expectations

The drilling program involves holes spaced at 200-metre intervals along traverses 400 metres apart, designed to systematically test the VTEM anomalies and multi-element soil geochemical anomalies including lead, molybdenum, bismuth, thallium, and germanium. These elements serve as pathfinders for base metal mineralisation. The program is expected to take 2-3 weeks to complete, with assay results anticipated within 4-6 weeks thereafter.

Early-Stage Exploration with Significant Upside

AusQuest’s Managing Director, Graeme Drew, highlighted the importance of this drilling campaign, noting that heritage clearances have now been secured, allowing the company to proceed. He emphasised that the combination of VTEM and soil geochemical anomalies provides a strong rationale for drilling in an area that has seen limited effective exploration to date. The results of this program will be critical in determining the project's potential to host economically viable base metal deposits.