AusQuest Launches 6,000m Drilling Push to Unlock Cangallo’s Copper Core
AusQuest has kicked off an extensive Stage 3 drilling campaign at its Cangallo copper-gold project in Peru, aiming to expand mineralisation and pinpoint higher-grade zones. The results could reshape the project’s potential and set the stage for deeper exploration.
- Stage 3 Reverse Circulation drilling commenced with over 6,000m planned
- Focus on expanding copper-gold mineralisation south of initial discovery
- Targeting the porphyry system’s core for potentially higher copper grades
- Drilling expected to take 4-6 weeks; assays due ~4 weeks post-completion
- Positive geochemical and magnetic data underpin high confidence in expansion
AusQuest Advances Cangallo Exploration with Major Drilling Program
AusQuest Limited (ASX – AQD) has officially commenced its Stage 3 Reverse Circulation (RC) drilling program at the Cangallo porphyry copper-gold discovery in Peru. This ambitious campaign involves approximately 15 holes totaling more than 6,000 meters, designed to significantly extend the known mineralisation footprint beyond the areas tested in earlier stages.
The primary focus of this drilling phase is to explore southward from the current copper-gold intersections, where surface geological and geochemical indicators suggest the presence of the porphyry system’s core. This core zone is particularly enticing because it may host higher copper grades, which could materially enhance the project’s economic potential.
Strategic Targeting Backed by Robust Data
AusQuest’s confidence in this southern extension is bolstered by a combination of anomalous surface geochemistry; highlighting elevated copper, gold, and molybdenum values; and geophysical evidence from ground magnetic surveys. These surveys reveal areas of magnetite destruction, typically associated with intense alteration near porphyry centers, further validating the high priority of the drill targets.
The drilling layout employs wide-spaced pads approximately 300 meters apart, aiming to test a broad area and potentially double the areal extent of mineralisation defined to date. Drilling depths are planned to reach around 400 meters, with the program expected to last between four and six weeks. Final assay results should be available roughly a month after drilling concludes.
Looking Ahead – Deeper Drilling and Value Creation
Results from Stage 3 will inform the next phase of exploration, which involves deep diamond drilling (Stage 4) to further delineate the system’s depth and grade profile. AusQuest’s Managing Director, Graeme Drew, emphasized the transformative potential of this campaign, noting that success in these southern targets could significantly increase shareholder value and mark a pivotal moment for the company.
While the current drilling is focused on expanding the footprint and identifying higher-grade zones, the broader strategy is to build a robust resource base that can underpin future development. The market will be watching closely as assay results emerge, potentially reshaping expectations for the Cangallo project’s scale and quality.
Bottom Line?
AusQuest’s latest drilling push could redefine Cangallo’s scale and grade, setting the stage for a critical resource upgrade.
Questions in the middle?
- Will Stage 3 drilling confirm the presence of a higher-grade copper core?
- How will assay results influence the timing and scale of the planned Stage 4 diamond drilling?
- What impact could expanded mineralisation have on AusQuest’s valuation and project economics?
