AusQuest (ASX: AQD) has reported a significant expansion of its Cangallo copper-gold project in Peru, with new drilling defining a large mineralised footprint and identifying oxide potential.
Latest Stage 3 RC drilling at Cangallo has defined a mineralised corridor that is at least 1500m long, 250–500m wide, and more than 400m deep.
Deeper diamond drilling has further indicated that mineralisation extends beyond 800m at the project.
Notable drilling intervals include 68m at 0.52% Cu from 36m, and 164m at 0.33% Cu with 0.07 g/t Au from 304m to end of hole.
Copper oxide mineralisation at Cangallo extends from the surface to approximately 200–250m depth.
This oxide zone transitions into a mix of oxides and secondary sulfides to more than 300m depth. The presence of this near-surface oxide potential supports the viability of heap-leach processing.
Aggressive Exploration Program Planned
AusQuest has scheduled an extensive exploration program to advance the Cangallo project.
Over 5,000m of RC drilling is set to commence in mid-March, with a further 5,000m of diamond drilling planned to begin in April.
These upcoming drilling programs aim to test depth extensions and potential higher-grade zones, along with assessing potential southern extensions of the system.
The Cangallo project benefits from its strategic location in Peru, offering favourable logistics due to its proximity to the coast and existing infrastructure.
Importantly, drill permits for the project have been granted, and community approvals have been secured without any critical issues identified.
Annual Report Highlights Growth and Funding
Previous annual reports highlighted the maiden Cangallo discovery and the company's commitment to advancing the project through significant funding efforts.
In FY2025, the company raised approximately $9.9 million through various placements and rights offers.
These funds were specifically earmarked to accelerate exploration activities at Cangallo and other Australian projects.
AusQuest continues its Strategic Alliance Agreement with South32 for its exploration activities in Australia, underpinning a broad exploration program across the continent.
Outlook on Cangallo's Growth
AusQuest's Cangallo project is demonstrating significant potential for expansion, with new drilling defining a large mineralised footprint and identifying near-surface oxide zones amenable to heap leaching.
Upcoming drilling programs are set to further test depth extensions and higher-grade targets, supported by favourable logistics and regulatory approvals, positioning the company for continued exploration success.
