AusQuest Reports Broad 324m @ 0.30% Cu at Cangallo, Drilling Deeper Targets

Cangallo Project, Expanding the Copper-Gold Footprint

AusQuest Limited’s September 2025 quarterly report highlights a substantial expansion of copper-gold mineralisation at its flagship Cangallo Project in southern Peru. Stage 2 Reverse Circulation (RC) drilling has delivered broad intervals of copper grades around 0.3% with accompanying gold, including standout intersections such as 324 metres at 0.30% copper and 0.07 ppm gold, featuring higher-grade zones within. These results extend mineralisation over an area approximately 800 by 500 metres, with mineralisation still open at depth and along strike.

Importantly, diamond drilling commenced late in the quarter to test the sulphide mineralisation below the current RC drilling limits, aiming to better understand geological controls and the potential for higher-grade zones at depth. Assay results from these deeper holes are expected by mid-December, which will be critical in defining the project’s next development steps.

Advancing Drilling and Permitting

Permitting for Stage 3 RC drilling is progressing well, with plans to commence in mid-to-late November. This next phase will focus on testing the southern extensions of the porphyry copper system, an area highlighted by sericite alteration and geochemical anomalies as a priority target for additional oxide and sulphide copper mineralisation. The presence of oxidised copper near surface and indications of heap leach recoverability add a potentially attractive processing angle to the project.

Australian Projects, Diverse Exploration Portfolio

In Australia, AusQuest continues to advance several base metal projects under its Strategic Alliance Agreement with South32. At Balladonia in Western Australia, multi-element geochemical data is being compiled to refine targets for nickel, copper, and rare earth elements. The Morrisey magnetite project awaits final test results expected in early November, which will inform next steps.

Exploration at Coober Pedy in South Australia targets copper-gold IOCG (Iron Oxide Copper Gold) mineralisation, with heritage clearance underway to enable drilling. Meanwhile, at Mt Davis in Western Australia, RC drilling is ongoing to test conductive anomalies associated with copper, lead, and zinc mineralisation, with results anticipated in the coming months.

Financial Position and Corporate Update

AusQuest ended the quarter with approximately AUD 3.8 million in cash after investing around AUD 2.9 million in exploration activities. This expenditure was partly funded through the Strategic Alliance Agreement with South32, which continues to support the company’s Australian exploration programs. The company also reported ongoing monitoring of a court appeal in Queensland, with no immediate impact on operations.

Looking ahead, AusQuest plans to complete permitting and commence further drilling at its Peru projects, continue metallurgical test work, and advance exploration across its Australian portfolio. The upcoming assay results from diamond drilling at Cangallo will be a key catalyst for the market.