The maiden reverse circulation (RC) drilling program comprised eight holes for a total of ~3,000 metres, targeting porphyry-style copper-gold mineralisation. The results highlight extensive near-surface and deeper sulphide mineralisation, reinforcing the potential for both an open-pit copper oxide resource and a larger, deeper porphyry system.
Figure 1: Cangallo Porphyry Copper Prospect showing drill-hole locations and significant
intersections plus copper-molybdenum assay values from surface sampling.
Significant intercepts from the drilling campaign include:
304m @ 0.30% Cu, 0.06ppm Au from 34m (CANRC008)
154m @ 0.37% Cu, 0.06ppm Au from 36m (CANRC003)
226m @ 0.22% Cu, 0.07ppm Au from 4m (CANRC005)
136m @ 0.25% Cu, 0.06ppm Au from 22m (CANRC007)
121m @ 0.26% Cu, 0.04ppm Au from 256m (CANRC007)
Significantly, seven out of eight holes ended in mineralisation, indicating that the system remains open at depth and along strike.
The Cangallo Project is located 25km east of Chala, near the Peruvian coast, with excellent access to transport and power infrastructure. Situated at low elevation (<1,500m), it provides logistical advantages over high-altitude Andean copper projects, allowing for year-round exploration and potential low-cost development.
Geologically, the deposit sits within a 3km x 2km caldera-like structure, containing extensive colluvial and sedimentary cover. The mineralisation is associated with volcanic host rocks (andesites and dacites), displaying strong sericite and potassic alteration, typical of large porphyry systems.
According to AusQuest Managing Director, Graeme Drew, the results have exceeded expectations.
"This is another set of excellent results from our Cangallo Prospect. The final batch of assays has confirmed Cangallo as a significant new greenfields porphyry copper-gold discovery in Peru. "Based on the results generated to date, we believe there is significant upside potential, and we are confident that further exploratory drilling will continue to find more copper near-surface as well as deeper sulphide mineralisation.
"We have only just scratched the surface at Cangallo and look forward to updating our shareholders on the next steps for this exciting new discovery."
AusQuest Managing Director, Graeme Drew
The Cangallo discovery aligns well with existing large-scale copper operations in Peru, a country that ranks second globally in copper production. Many of Peru’s leading copper mines operate with head grades between 0.20% and 0.40% Cu, similar to Cangallo’s reported drill results.
One of the key advantages of porphyry copper deposits is their low strip ratio and potential for heap leach processing of near-surface oxide ores, reducing development capital and operational costs compared to conventional flotation methods.
Moreover, nearby mining infrastructure in the Arequipa District—including powerlines, roads, and ports—enhances the project's development prospects.
With confirmation of broad copper-gold mineralisation, AusQuest is preparing for an expanded drilling campaign, targeting:
The company is also conducting a multi-element geochemical analysis to refine its geological model and prioritise future drill targets.
A detailed assessment of the results, along with an outline of the next exploration phase, is expected in the coming weeks.
The confirmation of a large-scale porphyry copper-gold system at Cangallo is a significant milestone for AusQuest, reinforcing the potential for a substantial new copper project in Peru’s world-class Andean Copper Belt.
With copper demand projected to rise in the coming years—driven by electrification, renewables, and global infrastructure spending—AusQuest’s latest discovery comes at an opportune time.
For investors, the next phase of drilling will be crucial in determining the scale and economic viability of the project, as AusQuest looks to establish a globally significant copper resource.