AusQuest Confirms Copper Mineralisation at Playa Kali With Maiden Drilling

AusQuest Confirms IOCG Discovery Potential at Playa Kali With Maiden Drilling Results

AusQuest Ltd (ASX: AQD) has reported assay results from the maiden Reverse Circulation (RC) drilling program at its 100%-owned Playa Kali Copper-Gold Project in southern Peru. The AusQuest Playa Kali maiden drilling results in Peru, announced on 8 July 2026, confirm anomalous copper mineralisation across multiple wide-spaced holes and support the potential for iron-oxide copper-gold (IOCG) systems extending under cover across the project area.

The 12-hole, 3,733 metre RC program represents the first drilling ever completed in this part of coastal southern Peru. It was designed as a reconnaissance test of a portion of an approximately 8 km east-west trending magnetic complex at the eastern end of the project.

Managing Director Graeme Drew commented:

"We are pleased with the initial drilling results at Playa Kali as they have confirmed the prospectivity of the area for IOCG-style mineralisation."

"Magnetic anomalies defined by our ground survey are now known to reflect an extensive influx of iron (magnetite/hematite) over many kilometres of strike, with highly anomalous copper intersected in several wide spaced drill-holes that were designed to test the magnetic complexes."

"This is the first drilling program ever to be completed in this area, so the fact we have intersected copper in a number of the drill-holes is very encouraging."

AusQuest Ltd is now reassessing multi-element geochemistry and magnetic modelling to refine targets ahead of possible geophysical surveys and further drilling, including diamond drilling.

First Drill Program Delivers Encouraging Copper and Molybdenum Results

The maiden RC drilling at Playa Kali comprised 12 holes for 3,733 metres, testing a limited portion of the broader magnetic complex within a ~33 km² landholding across six granted mineral concessions. Holes were positioned on reconnaissance lines with spacing greater than 200 metres, reflecting the early-stage nature of the program.

The company reports that a mixed sequence of andesitic and dacitic volcanics and sandstones and siltstones was intersected, commonly containing disseminated magnetite and pyrite. Within this package, highly anomalous copper values (>1,000 ppm Cu) were intersected in many holes, highlighting the presence of copper-bearing systems beneath cover.

AusQuest Ltd has highlighted the following significant intercepts:

All intervals are reported as down-hole lengths; true widths are not known at this stage.

Additional significant assays disclosed in the ASX table include:

• PKRC004:
  • 4 m at 0.13% Cu from 78 m
  • 4 m at 0.13% Cu from 102 m
  • 4 m at 0.15% Cu from 236 m
  • 4 m at 0.16% Cu from 246 m

• PKRC005: 4 m at 0.12% Cu and 0.03 g/t Au from 88 m
• PKRC009: 2 m at 0.37% Cu from 84 m
• PKRC010: 2 m at 0.37% Cu and 0.02 g/t Au from 84 m

AusQuest Ltd interprets the copper (>0.2% Cu) and molybdenum (>200 ppm Mo) intercepts in holes PKRC004, PKRC007 and PKRC009 as suggesting proximity to IOCG-style mineralisation centres, particularly given the wide drill spacing and limited drilling to date.

For investors, these intercepts indicate that the project has moved from conceptual geophysical target to a mineralised system with measurable copper, gold and molybdenum in drilling.

What Is an IOCG Deposit and Why Does It Matter at Playa Kali?

Understanding the IOCG deposit model is important context for assessing the AusQuest Playa Kali maiden drilling results in Peru and their broader significance.

Definition and Key Characteristics

Iron-oxide copper-gold (IOCG) deposits are a class of mineral deposit where copper and often gold are associated with large concentrations of iron oxides, mainly magnetite and hematite.

Common features include:

• Large size potential: IOCG systems can extend over several kilometres and to significant depths.
• Widespread mineralisation: Copper and gold are often spread through large volumes of rock rather than in narrow veins.
• Strong iron alteration: Rocks are heavily altered with iron oxides and specific minerals formed by hot fluids.
• Hydrothermal origin: Metals are transported and deposited by hot, mineral-rich fluids moving along faults, fractures and rock boundaries.

From an investor perspective, IOCG deposits, when confirmed and delineated, can support large-scale copper operations. The ASX announcement notes that Playa Kali targets manto-style IOCG deposits similar to those along the coastal belt of southern Peru, including the Mina Justa deposit approximately 100 km to the north.

Why IOCG Potential at Playa Kali Is Relevant

According to AusQuest Ltd, several features at Playa Kali are consistent with an IOCG setting:

• An ~8 km long magnetic complex interpreted as iron-oxide rich bodies (magnetite/hematite).
• Hydrothermal alteration minerals such as actinolite, chlorite, epidote and K-feldspar recorded in drilling.
• Copper and molybdenum association in both surface manto samples and drill assays.
• Copper mineralisation associated with magnetic highs and structural features.

These features do not confirm an economic deposit but indicate that the project is positioned within a recognised IOCG belt. Furthermore, the maiden program has intersected components typically associated with such systems.

Key IOCG-Related Terms Explained

• IOCG: Iron-oxide copper-gold deposit; a large mineral system where copper and often gold occur with abundant iron oxides.
• Manto: A layer-like ore body that follows the bedding of host rocks, commonly in sedimentary or volcanic sequences.
• Magnetic susceptibility: A measure of how strongly a rock responds to a magnetic field; higher values often indicate more magnetite.
• Molybdenum (Mo): A metallic element; elevated Mo alongside copper can signal proximity to certain copper systems, including IOCG and porphyry deposits.
• Chalcopyrite: A copper-bearing sulphide mineral and a common source of copper in many deposits.
• RC drilling: Reverse Circulation drilling, a method that returns rock chips to surface for sampling and is widely used for first-pass exploration.

For AusQuest Ltd, confirming an IOCG system is an early but important step. The next challenge is to refine vectors within that system that could lead to higher-grade and more continuous mineralisation zones.

Geological Interpretation From the Maiden RC Program

The ASX announcement outlines several geological observations that shape the current model at Playa Kali.

Host Rocks and Alteration

Drilling intersected:

• Volcanic rocks: Andesites and dacites.
• Sedimentary rocks: Sandstones and siltstones.
• Variable disseminated magnetite with pyrite.

Hydrothermal alteration logged in drill chips includes actinolite, chlorite, epidote and K-feldspar. AusQuest Ltd states that this alteration suite supports the presence of hydrothermal iron alteration systems with copper potential at Playa Kali.

Copper-bearing mineral assemblages are reported as magnetite – pyrite +/- chalcopyrite. These are present in both volcanic and sedimentary rocks and are described as more common at volcanic–sediment contacts and possible structural zones, which are considered favourable positions for IOCG mineral accumulation.

Structural Control and Key Holes

Several specific holes are highlighted in the ASX release.

PKRC004: fault-related target

• Located near a regional east-west trending fault (Los Medanos), interpreted as a key structural control.
• The fault shows strong alteration including jarosite, goethite and hematite along strike.
• PKRC004 returned:
  • Up to 747 ppm Mo, including:
    • 28 m at 218 ppm Mo from 186 m
    • 4 m at 617 ppm Mo from 236 m

  • Narrow copper intercepts up to 0.25% Cu over 2–4 m

The combination of molybdenum and copper in this structural context is taken by AusQuest Ltd as evidence of proximity to a mineralisation centre.

PKRC007 and PKRC009: northern magnetic complex

• Part of a north-south section at 589,900E testing the northern magnetic complex.
• Intersected anomalous copper and weakly anomalous gold beneath shallow cover of ~10 to 40 metres.
• Reported key intervals include:
  • PKRC007: 12 m at 0.20% Cu and 0.05 g/t Au
  • PKRC009: 4 m at 0.29% Cu and 0.04 g/t Au; 10 m at 0.37% Cu; 2 m at 0.40% Cu and 1.2 g/t Ag

Copper zones occur marginal to or associated with higher magnetic susceptibility zones. This spatial link between copper grades and magnetic response is consistent with AusQuest Ltd's IOCG interpretation, where iron-oxide bodies hosting or adjacent to copper are mapped using magnetics.

Early-Stage Nature of the Geological Model

It is important to note that this is the first drilling program ever completed in the Playa Kali area. Drill spacing is greater than 200 metres, and lines are reconnaissance in nature. All intercepts are down-hole lengths, with true widths currently unknown, meaning the geological model is therefore evolving and subject to refinement as additional data are acquired.

Next Steps: Geochemistry and Magnetic Re-Modelling to Refine Targets

The ASX announcement states that AusQuest Ltd is focusing on data integration and targeting rather than immediately commencing follow-up drilling.

Planned work includes:

1. Multi-element geochemical review — assessment of the full analytical suite from RC samples and previous surface sampling, using elements such as Cu, Mo, Au, Ag and others measured by ICP-MS to identify chemical gradients that may point toward stronger mineralisation.

2. Revised magnetic modelling — integration of down-hole magnetic susceptibility measurements with existing ground magnetic data and refinement of the 3D geometry of iron-oxide bodies to better understand their relationship to copper intercepts.

3. Target ranking and planning — identification and prioritisation of areas for additional RC or diamond drilling and potential geophysical surveys aimed at imaging structures and covered targets.

4. Assessment of survey options — evaluation of geophysical survey types that could improve targeting beneath cover, complementing magnetic and geochemical information.

AusQuest Ltd indicates that this stepwise approach is intended to improve the efficiency of future drilling by concentrating efforts on zones that display the strongest combined geological, geochemical and geophysical support.

Investment Case: How the Maiden Program Advances Playa Kali

From an investor viewpoint, the AusQuest Playa Kali maiden drilling results in Peru have provided several key data points that help frame the project's potential and stage.

Program Metrics and Context

According to AusQuest Ltd, the program has demonstrated that copper-bearing systems are present beneath cover over part of the magnetic complex. In addition, it has identified structural and lithological controls that can be tested with follow-up drilling and confirmed a correlation between magnetic features and copper mineralisation in certain holes, which is important for future targeting.

Why Investors May Watch Ongoing Work at Playa Kali

For investors following AusQuest Ltd, key aspects arising from this update include:

• Confirmation of an active mineral system: Anomalous copper (>1,000 ppm), with significant copper (>0.2% Cu) and molybdenum (>200 ppm Mo) in several holes, supports the presence of an IOCG-style system under cover.

• Shallow cover improving future drill economics: Intersections beneath 10–40 m of cover suggest that large parts of the system, if mineralised, could be tested at moderate depth using RC and diamond drilling.

• Large untested strike length: Only part of the ~8 km magnetic trend has been drilled. Consequently, the majority of the magnetic complex remains to be systematically tested.

• Frontier exploration position: There is no public historic exploration data for this area, so AusQuest Ltd is operating in a frontier setting. This typically combines higher geological risk with potentially higher discovery upside.

Potential upcoming catalysts, based on the ASX announcement, include the release of outcomes from multi-element geochemical interpretation, publication of revised magnetic models integrating drill data, and the announcement of next-phase drilling or geophysical programs at Playa Kali.

Why AusQuest Ltd Remains a Project to Monitor

According to the 8 July 2026 ASX update, AusQuest Ltd has achieved with its first-pass RC program what many early-stage explorers aim for: demonstration of a mineralised system consistent with the targeted deposit style, combined with enough geological control to guide the next phase of work.

Playa Kali is now advancing into a data-driven targeting stage, in which 3,733 metres of drilling, multi-element geochemical datasets and detailed magnetic information are being combined to identify higher-priority zones for follow-up. The AusQuest Playa Kali maiden drilling results in Peru have, however, laid a technically credible foundation for this next phase.

For investors and industry observers, key points to monitor include how the structural and magnetic interpretation evolves around holes PKRC004, PKRC007 and PKRC009, whether future drilling can extend anomalous copper zones along strike and to depth, and how AusQuest Ltd sequences its capital deployment between Playa Kali and other portfolio projects.

As the company refines its exploration approach, Playa Kali remains at an early but technically supported stage, with the maiden drilling program indicating that the targeted IOCG system is present and warranting further systematic evaluation.

Ready to Dig Deeper Into AusQuest's Playa Kali IOCG Discovery?

AusQuest Ltd (ASX: AQD) has taken a significant first step at Playa Kali, confirming copper mineralisation across multiple holes within an expansive ~8 km magnetic complex in southern Peru — with the majority of the trend still untested. As the company moves into a data-driven targeting phase ahead of potential further drilling, investors seeking to stay across developments at this 100%-owned IOCG project should head directly to the source. Visit www.ausquest.com.au to learn more about AusQuest's projects, exploration pipeline, and the full details behind the Playa Kali maiden drilling results.