AusQuest Confirms Cangallo Copper System Runs 800m Deep With Broad High-Grade Hits
Key Takeaways
- The Cangallo porphyry copper system is now confirmed to extend to at least 800 metres vertical depth, materially beyond the ~350m limit of previous RC drilling.
- CANDD004 returned 355.8m @ 0.31% Cu, 0.05g/t Au from just 34.2m depth, with a peak sub-intercept of 10m @ 0.73% Cu in the northern zone.
- CANDD003 opened the southern corridor at depth for the first time, with higher-grade zones including 10m @ 0.56% Cu, 0.14g/t Au associated with veining, porphyritic dykes, and hydrothermal breccias — textbook indicators of proximity to a source porphyry.
- A possible steep southerly plunge in higher-grade mineralisation has been identified as the primary vector for future drill targeting across both corridors.
- Stage 4 drill permits are pending, and CANDD005 — designed to reach 800m depth — is already planned, with diamond drilling continuing for the next couple of months.
Cangallo copper system reaches 800m depth as first diamond holes deliver broad mineralisation
AusQuest Limited (ASX: AQD) has received assay results from the first two diamond drill holes at its 100%-owned Cangallo Porphyry Copper-Gold Project in Peru, and the headline outcome is significant. The Cangallo porphyry system now confirmed to extend to at least 800 metres vertical depth, materially growing the known copper footprint.
The two holes, CANDD003 and CANDD004, tested distinct parts of the system. CANDD003 represents the first diamond hole drilled in the southern mineralised corridor, while CANDD004 confirmed lateral continuity of higher-grade copper in the northern zone. Both returned broad intersections and, critically, multiple higher-grade sub-intercepts that point toward an increasingly well-defined source porphyry at depth.
The headline intercepts: 348m @ 0.23% Cu, 0.06g/t Au from 178m (CANDD003) and 355.8m @ 0.31% Cu, 0.05g/t Au from 34.2m (CANDD004). These results provide the geological vectors that will guide the next phase of drilling.
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What the drill results actually show
CANDD003 — Southern corridor opens up at depth
CANDD003 is a landmark hole for Cangallo’s southern corridor. Previous Reverse Circulation (RC) drilling in this area was limited to approximately 350 metres depth, leaving the system’s deeper behaviour untested. This diamond hole changed that picture.
The initial phase of deep diamond drilling at Cangallo was specifically designed to test these deeper zones, targeting the primary copper structures that RC rigs could not reach.
The broad intersection of 348m @ 0.23% Cu, 0.06g/t Au from 178m confirms continuous copper mineralisation extending well beyond the RC depth limit, now confirmed to at least 800m vertical depth. Within that broad envelope, several higher-grade zones stand out:
- 348m @ 0.23% Cu, 0.06g/t Au from 178m
- Including: 10m @ 0.46% Cu and 0.07g/t Au (336-346m)
- Including: 10m @ 0.56% Cu and 0.14g/t Au (376-386m)
- Including: 10m @ 0.40% Cu and 0.07g/t Au (450-460m)
These higher-grade intercepts are associated with more intense veining, porphyritic dykes, and hydrothermal breccias, which are structures that act as fluid conduits from a nearby source porphyry. Copper values of up to 1.0% Cu occur within these narrow structures, a signal that the system’s higher-grade core may not be far away.
CANDD004 — Northern zone confirms lateral continuity and grade plunge
CANDD004 tested the northern part of the prospect and delivered an equally compelling result. Mineralisation begins almost immediately below surface cover, intersecting copper from just 34.2m depth, and remains continuous for over 355 metres down-hole.
The key intercepts from CANDD004:
- 355.8m @ 0.31% Cu, 0.05g/t Au from 34.2m
- Including: 40m @ 0.48% Cu and 0.06g/t Au (92-132m)
- Including: 10m @ 0.73% Cu and 0.08g/t Au (118-128m)
- Including: 20m @ 0.53% Cu and 0.07g/t Au (282-302m)
- Including: 10m @ 0.54% Cu and 0.09g/t Au (174-184m)
The geological interpretation here is important. Higher-grade zones shallower than approximately 250 metres are largely attributed to supergene effects (near-surface weathering and copper enrichment). Deeper higher-grade intersections are associated with hydrothermal breccias and porphyritic dykes, similar to the pattern in CANDD003. Correlation between drill holes suggests a possible steep southerly plunge to this higher-grade mineralisation. That plunge direction is now a primary vector for future drill targeting.
| Hole ID | Location | Broad Interval | Peak Intercept | Depth Confirmed |
|---|---|---|---|---|
| CANDD003 | Southern corridor | 348m @ 0.23% Cu, 0.06g/t Au from 178m | 10m @ 0.56% Cu, 0.14g/t Au (376-386m) | At least 800m vertical |
| CANDD004 | Northern zone | 355.8m @ 0.31% Cu, 0.05g/t Au from 34.2m | 10m @ 0.73% Cu, 0.08g/t Au (118-128m) | Mineralisation from 34.2m to 390m+ |
What is a porphyry copper system?
Porphyry deposits are among the world’s largest copper sources. They form when magmatic-hydrothermal systems, essentially superheated mineralising fluids rising from cooling magma bodies, deposit copper, gold, and molybdenum across large volumes of rock. The term “porphyry” refers to the characteristic igneous rock texture associated with these intrusive events.
A key feature of porphyry systems is that grade often increases with depth, closer to the “source porphyry” where the mineralising fluids originated. The higher-grade intercepts in CANDD003, associated with veining, dykes, and hydrothermal breccias, are textbook indicators of proximity to that source. Confirming the depth extension and identifying these grade vectors is precisely the value-creation step at this stage of exploration, because it tells geologists where to drill next and validates the scale potential of the system.
For investors exploring AusQuest’s broader regional footprint in Peru, our dedicated guide to the Lantana porphyry system walks through how the company is applying similar geological vectoring techniques to its other major hydrothermal copper targets.
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What comes next for AusQuest at Cangallo
Diamond drilling is continuing for the next couple of months. CANDD005, the next planned hole, has been designed to reach 800m depth, with the collar location already disclosed. The focus is progressively building the geological picture needed to assess the true scale of the system and vector toward its higher-grade zones.
Stage 4 drill permits are currently pending. Once received, further drilling in the southern area is expected to significantly extend copper mineralisation, given the evidence from CANDD003 of a nearby source porphyry at depth. In the northern area, multiple RC drill holes ended in mineralisation, supporting the potential for additional hypogene copper sulphides (primary, unweathered copper minerals) at depth.
Graeme Drew, Managing Director, AusQuest Limited
“We are very pleased with the results so far as diamond drilling continues to grow the copper footprint at Cangallo and provide our geologists with a much better understanding of the controls on copper distribution. Drill-hole CANDD003 is particularly important as it demonstrates that the porphyry system extends well below the depth of RC drilling in the south, with copper mineralisation now extending to at least 800m vertical depth, and also provides evidence for a strongly mineralised source porphyry nearby, given the presence of higher-grade copper associated with more intense veining, porphyritic dykes and hydrothermal breccias in this drill-hole. This gives us great confidence that further drilling in this area, once Stage 4 permits have been received, should significantly extend the copper mineralisation, with significant implications for the size and grade of the Cangallo porphyry… These first two holes have strengthened our view that Cangallo is an important new South American copper discovery with significant upside, and we look forward to the results from the remaining diamond holes.”
For investors tracking the Cangallo story, the key milestones to watch are:
- Remaining diamond hole assay results as they are released, starting with CANDD005 to 800m depth
- Stage 4 permit approval, which would enable further drilling in the southern corridor where CANDD003 has opened up a compelling depth extension
- Geological interpretation updates, particularly any confirmation of the southerly plunge in higher-grade zones identified in CANDD004
- Any resource estimation milestone as the geological picture matures across both the northern and southern corridors
Ready to Explore the Full Depth Potential of the Cangallo Porphyry Copper-Gold Project?
AusQuest’s first diamond drill results have confirmed copper mineralisation extending to at least 800 metres vertical depth, with higher-grade intercepts pointing toward an increasingly well-defined source porphyry that could significantly grow the Cangallo copper footprint.
Stay ahead of this developing South American copper discovery by visiting the AusQuest Cangallo project page on Discovery Alert for the latest drilling updates, geological interpretation, and upcoming milestones.