AusQuest Confirms Cangallo Copper System Extends Beyond 800m in First Deep Hole
AusQuest confirms Cangallo porphyry system extends beyond 800 metres in first deep diamond hole
AusQuest has completed its first deep diamond drill-hole at the 100%-owned Cangallo Porphyry Copper-Gold Project in Peru, confirming the mineralised porphyry system extends to at least 800 metres vertical depth. The company logged copper mineralisation from near surface to approximately 550 metres depth in hole CANDD003, which reached a total depth of ~880 metres.
These are visual observations from core logging only. Laboratory assay results remain pending and are expected in 4-6 weeks.
The hole forms part of a six-hole drilling programme designed to test for hypogene copper mineralisation below the ~350-metre depth limit of prior reverse circulation (RC) drilling. Copper oxides were logged to depths exceeding 250 metres, with a chalcocite zone observed from approximately 250-280 metres, suggesting a supergene blanket above a potential sulphide system. Below ~280 metres, drilling intersected hypogene sulphides—chalcopyrite ± pyrite, with rare bornite and molybdenite—in stockwork veins. Consistent stockwork vein mineralisation continued to ~550 metres, with vein density decreasing below this depth but remaining present at the end of the hole, indicating the system is open at depth.
The results confirm substantial vertical extent well beyond the shallow RC drilling completed to date, expanding the scale potential of the Cangallo discovery. For investors, this represents a critical milestone: proving depth continuity in a porphyry system is essential to defining a large-tonnage resource footprint.
When big ASX news breaks, our subscribers know first
What the first deep hole revealed
Hole CANDD003 provides a vertical snapshot of the Cangallo porphyry system, logging three distinct mineralisation zones from surface to ~880 metres depth:
- Near surface to ~250m: Copper oxides including malachite, atacamite, and chrysocolla, representing weathered copper mineralisation typical of the upper portions of porphyry systems.
- ~250m-280m: A zone dominated by chalcocite (a copper-rich sulphide), suggesting a supergene blanket—an enriched zone where secondary copper mineralisation has concentrated above the primary system.
- Below ~280m: Hypogene (primary) sulphides consisting of chalcopyrite ± pyrite, with rare bornite and molybdenite in stockwork veins, confirming the presence of a large-scale porphyry copper system at depth.
- To ~550m: Consistent stockwork vein mineralisation with chalcopyrite ± molybdenite and pyrite, demonstrating continuity of the hypogene system.
- Below ~550m: Vein density decreases but mineralisation remains present to the end of the hole at ~880 metres, indicating the system remains open at depth.
The host geology comprises andesite and dacite volcanics intruded by quartz diorite and tonalite dykes, with extensive quartz-sericite-chlorite veining and multiple hydrothermal breccia zones—characteristics typical of a large mineralised porphyry system.
Visual log summary (assays pending)
The table below summarises the visual mineralisation logged in CANDD003. These are visual estimates only and must not be considered a substitute for laboratory assays.
| From (m) | To (m) | Interval (m) | Dominant minerals | Visual estimate |
|---|---|---|---|---|
| 35 | 250 | 215 | Malachite, atacamite, chrysocolla | 0.1% to 0.5% Cu oxides |
| 250 | 300 | 40 | Chalcocite | 0.1% to 1% Cu |
| 300 | 360 | 60 | Chalcopyrite, bornite, pyrite | 0.1% to 1% Cu sulphides |
| 440 | 520 | 80 | Chalcopyrite, molybdenite, pyrite | 0.1% to 1.5% Cu sulphides |
| 700 | 880 | 180 | Chalcopyrite, molybdenite (disseminated) | 0.05% to 0.2% Cu sulphides |
JORC Visual Estimate Caveat
“Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analyses where concentrations or grades are the factor of principal economic interest. Visual estimates also potentially provide no information regarding impurities or deleterious physical properties relevant to valuations.”
Why deep porphyry drilling matters for investors
Porphyry copper-gold deposits are large-scale disseminated systems found in orogenic belts around the Pacific Rim. They can host significant tonnages of copper and gold but require extensive drilling to evaluate due to their size and geological complexity.
Understanding the vertical zonation of a porphyry system is critical to assessing its economic potential. Porphyry deposits typically exhibit three zones:
- Oxide zone: Near-surface copper that has been weathered and oxidised, often easier to process but lower grade.
- Supergene blanket: An enriched zone where secondary copper mineralisation (such as chalcocite) has concentrated, often delivering higher grades.
- Hypogene sulphides: The primary sulphide system at depth, representing the core of the porphyry deposit and the bulk of its potential tonnage.
For investors, confirming hypogene mineralisation at depth—and a system that remains “open” below existing drilling—signals that the potential resource footprint could be far larger than previously understood. Scale is the key driver of economics in porphyry projects: large, continuous mineralised systems can support long-life, low-cost operations. The confirmation that Cangallo extends to at least 800 metres vertical depth, with mineralisation still present at the end of the hole, materially expands the scale story.
Rig moves north to chase higher-grade zones
The diamond rig has now shifted to the northern area of the Cangallo project to test below zones where earlier RC and diamond drilling (CANDD002) indicated hypogene copper mineralisation extends to at least 600 metres down-hole. Multiple RC holes in the northern area finished in mineralisation, supporting the potential for additional hypogene mineralisation at depth.
Hole CANDD004 has been sited to test below high copper grades reported from earlier RC drilling. The hole is designed to determine the distribution and controls on hypogene mineralisation in the northern area, with completion expected within 2-3 weeks.
Near-term catalysts for the project include:
- CANDD003 assays — expected in 4-6 weeks
- CANDD004 completion — within 2-3 weeks
- Deep diamond drilling to continue at Cangallo for the next few months
Management commentary
Graeme Drew, Managing Director
“We are very pleased with the visual observations from diamond drilling completed so far and we look forward to receiving assays from this first drill-hole in the not-too-distant future.
“The first deep diamond hole in the south has confirmed that the system extends to depths in excess of 550 metres below surface, with highly encouraging visual indications from the core (see pages 2 to 4 of this announcement).
“Deep diamond drilling is expected to continue at Cangallo for the next few months and is expected to provide critical information for assessing the scale and depth potential of the Cangallo system, as well as its economic potential.
“We look forward to keeping shareholders updated on the results as they become available.”
The next major ASX story will hit our subscribers first
The investment case at a glance
The Cangallo project is a 100%-owned porphyry copper-gold target located approximately 25 kilometres east of Chala in southern Peru, within an established copper belt. The completion of CANDD003 confirms vertical extent to 800+ metres, with the system open at depth, and a supergene blanket identified between 250-280 metres. The combination of oxide, supergene, and hypogene zones suggests a large-scale, vertically extensive porphyry system.
For investors, the depth and scale confirmation strengthens the long-term resource potential of Cangallo, positioning it as a material discovery in the company’s portfolio. The key near-term catalyst is the assay results from CANDD003, expected in 4-6 weeks, which will test the visual promise observed in the core. All mineralisation described in this article is based on visual logging and awaits laboratory confirmation.
Want the Next Mining Breakout in Your Inbox?
Join 20,000+ investors receiving FREE breaking ASX news within minutes of release, complete with in-depth analysis. Click the “Free Alerts” button at Big News Blast to get real-time alerts the moment market-moving announcements drop across Tech, Healthcare, Finance, and Mining sectors.