Australian explorer AusQuest (AQD) reported continued growth at its Cangallo copper-gold porphyry prospect in southern Peru, describing the discovery as potentially the first major greenfields find in the country in two decades.
The project lies approximately 8 kilometers from the Pacific coast, with a processing plant likely sited about 5 kilometers from shore at the base of the hill. Reverse circulation drilling has tested the mineralized system to depths of 350 to 450 meters, with five diamond holes also completed across the broader exploration area. Drill spacing is generally maintained at 250 to 300 meters apart.
Copper grades range from 0.3% to 0.5%, with some intervals reaching 0.8% to 1% copper equivalent when gold is factored in. Gold assays include readings of 0.1 g/t, 0.16 g/t, and 1.2 g/t in selected intervals. Mineralization begins near surface—often within 20 meters or directly at outcrop—and the upper 250 to 300 meters are oxidized, making them amenable to heap leaching.
"Heap leaching is a cheap option to get copper out, and you can mine much lower grades if you have a heap leach-type operation as opposed to a flotation metallurgical process," said Mick Sherrington, AusQuest's chief operating officer for Peru.
The company noted that each successive drilling program has expanded the known extent of the deposit, which remains open in all directions. AusQuest described Cangallo as a "new copper growth story" situated in what it considers a Tier 1 mining jurisdiction in Peru.
Stage 4 environmental permits are expected before the end of the current period, between the presentation and year-end. The company holds more than AUD 6 million in cash as of June 30, with 1.766 billion shares outstanding. Its market capitalization was valued at approximately $54.5 million US, or roughly AUD 70 million to AUD 80 million, according to InvestingPro data. AusQuest shares have returned 34% over the past year, carry a beta of 1.87, and a current ratio of 3.83.
The company's next earnings report is scheduled for September 21.
