Peru Cangallo Copper Discovery Delivers Exceptional Results for AusQuest

High-Grade Copper Discovery at Peru's Cangallo Project Delivers Exceptional Results

AusQuest Limited has unveiled impressive drilling results from its Peru Cangallo Copper Discovery by Ausquest Ltd, with multiple broad intercepts demonstrating significant scale potential. The company's Stage 1 and 2 reverse circulation drilling programs have delivered standout results, including 324m @ 0.30% Cu, 0.07 ppm Au, with higher-grade zones reaching 160m @ 0.45% Cu & 0.09ppm Au.

The discovery spans multiple drill holes with consistently strong intersections:

These results demonstrate the presence of a substantial copper-gold system with mineralisation remaining open in multiple directions, suggesting significant expansion potential beyond the current 8,000m of drilling completed to date.

Management Commentary:
"The growing Cu and Au footprint suggests potential for large-scale deposit with presence of oxide Copper at shallow depth enhancing economic potential" – AusQuest Management

Understanding Porphyry Copper Deposits: The Geology Behind Major Discoveries

Porphyry copper deposits represent some of the world's most significant copper resources, typically forming large, low-grade disseminated ore bodies that can support major mining operations for decades. These deposits form when copper-rich magma intrudes into the earth's crust, creating extensive networks of veins and fractures filled with copper-bearing minerals.

Key Characteristics of Porphyry Systems:

• Form through hydrothermal processes associated with igneous intrusions
• Typically contain disseminated mineralisation over large areas
• Often host hundreds of millions of tonnes of ore
• Provide long-term, predictable production profiles suitable for large-scale mining

Why This Matters to Investors

Peru hosts several world-class porphyry copper operations, including major mines operated by companies such as Antofagasta, Rio Tinto, and Grupo Mexico. The coastal porphyry belt where the Peru Cangallo Copper Discovery by Ausquest Ltd is located has proven particularly prospective for significant copper discoveries.

At Cangallo, the presence of oxide copper at shallow depths is particularly significant from an economic perspective. Oxide minerals are typically easier and less expensive to process through heap leaching technology, potentially improving project economics from the outset compared to deeper sulphide mineralisation that requires more complex processing methods.

Strategic Advantages Position Cangallo for Development Success

The Peru Cangallo Copper Discovery by Ausquest Ltd benefits from exceptional locational advantages that could significantly reduce future development costs compared to many Peruvian copper projects located at high altitude:

Infrastructure Advantages:

• Low altitude at approximately 1,200m above sea level, reducing operational costs compared to high-altitude operations
• 8km from the coast, providing accessible process water supply
• Transmission lines cross the prospect, offering potential power infrastructure access
• 30km from Chala, an established town of approximately 10,000 people providing potential workforce
• Potential port site nearby for product export logistics

Ownership Structure Benefits

AusQuest maintains 100% ownership of the Cangallo project, maximising potential shareholder upside without dilution from joint venture partners. This contrasts favourably with many exploration companies that must share discoveries with partners or major mining companies.

Furthermore, the company controls a 60km strike length along prospective structures with additional porphyry and IOCG (Iron Oxide Copper Gold) targets at Lantana and Playa Kali, both awaiting drill permits.

Aggressive Exploration Timeline Promises Multiple Catalysts

AusQuest has outlined an ambitious six-month program designed to rapidly advance the Peru Cangallo Copper Discovery by Ausquest Ltd:

The company's systematic approach includes:

• Deep diamond drilling (2 x ~800m holes) to understand geological controls and test depth extent of copper sulphides
• Stage 3 RC program targeting the 1,200m southward extension where mapping shows high copper and molybdenum values
• Early-stage leach testing to evaluate processing options for oxide copper zones

Key Catalyst Timeline

• Diamond drilling results expected by end of 2025
• Stage 3 RC drilling results throughout Q1 2026
• Metallurgical test results providing processing pathway clarity

Management has indicated that the Stage 1 and 2 drilling programs tested only a small fraction of the target area, with copper mineralisation remaining open in multiple directions. However, the upcoming programs aim to define the southern extension and locate the centre of the porphyry system where higher grades are typically expected.

Investment Thesis: Peru Copper Play in Prime Real Estate

AusQuest presents a compelling investment opportunity in Peru's established "Elephant Copper Country" along the coastal porphyry belt. The company's $51.5 million market capitalisation (at 3.7 cents per share) appears modest relative to the discovery's scale potential.

Financial Position:

• $7.2 million cash (as of June 2025) providing funding runway for planned drilling programs
• Enterprise Value: approximately $44.3 million
• 1,392.4 million shares outstanding with 21.7% daily trading volume

District-Scale Potential

Beyond Cangallo, AusQuest controls significant tenure along prospective geological structures. The success at Cangallo upgrades the prospect of further copper deposits within AusQuest's tenements, with Lantana and Playa Kali both identified as priority targets awaiting drill permits.

Peru Mining Advantages:

• Established mining jurisdiction with multiple new developments approved and in progress
• Proximity to major operators providing infrastructure and services
• Significant coastal infrastructure reducing development risks
• Access to established mining workforce and contractor base

In addition, the company operates in Peru under the management of Country Manager Mick Sherington, providing local expertise and regulatory knowledge essential for project advancement.

Why Investors Should Track This Emerging Copper Story

AusQuest's Cangallo discovery represents a rare opportunity to participate in a potentially large-scale copper-gold system at an early stage of development. The combination of exceptional drill results, strategic location advantages, and aggressive exploration timeline creates multiple near-term catalysts for share price appreciation.

Competitive Advantages:

• 100% project ownership maximising shareholder benefit without joint venture dilution
• Superior infrastructure access reducing future development costs compared to high-altitude projects
• Experienced management team with proven track record in Peru
• Multiple district-scale targets providing portfolio diversification within the same prospective belt

The convergence of geological success, strategic location, and aggressive exploration timeline positions AusQuest as a compelling copper discovery story for investors seeking exposure to Peru's world-class porphyry copper belt.

Next Major Milestones

• Diamond drilling assay results (Q4 2025)
• Stage 3 RC drilling commencement (Q1 2026)
• Potential resource estimation studies (2026)
• Lantana and Playa Kali first drilling programs

Furthermore, preliminary metallurgical test work has reported generally good oxide leach performance, though tests remain ongoing to fully evaluate processing options. This early-stage metallurgical success supports the potential for heap leaching operations, which typically require lower capital expenditure compared to conventional processing methods.

The discovery occurs within Peru's established mining jurisdiction, where multiple new mine developments have been approved or are in progress. Consequently, this regulatory environment, combined with proximity to major mining operations along the coastal belt, provides confidence in the development pathway for successful discoveries.

AusQuest's systematic exploration approach, strong financial position, and strategic location advantages make it a noteworthy emerging copper story as the company continues to define what could become a major copper-gold deposit in one of the world's premier mining jurisdictions.

Could AusQuest's Cangallo Discovery Transform Into Peru's Next Major Copper Operation?

With diamond drilling results expected by year-end and an ambitious 5,000-metre Stage 3 programme planned for Q1 2026, AusQuest Limited is rapidly advancing what could become a substantial copper-gold deposit in Peru's world-class porphyry belt. The company's 100% ownership position, exceptional infrastructure advantages, and systematic exploration approach across multiple district-scale targets present a compelling investment opportunity for those seeking exposure to early-stage copper discovery in an established mining jurisdiction.

Discover how AusQuest is positioning itself to unlock significant value from its expanding copper footprint by visiting www.ausquest.com.au for comprehensive company information, project updates, and investor resources.