AusQuest's (ASX:AQD) ongoing drilling at the Cangallo porphyry copper-gold project in Peru is expected to further extend mineralization and underpin a significant new copper discovery with material resource upside, according to a Friday note by Euroz Hartleys.
Stage three reverse circulation drilling at the project highlighted extensive copper-gold mineralization from near surface. It encountered intercepts of 176 meters at 0.4% grade of copper and 0.1 grams per tonne grade of gold from 40 meters, as well as 236 meters at 0.3% copper and 0.1 g/t grade of gold from two meters.
Drilling is increasingly vectoring toward a higher-grade hypogene core, particularly in the southern parts where stronger copper grades have been reported with chalcopyrite mineralization observed. Success in identifying a coherent higher-grade zone would represent a key inflection point, potentially confirming Cangallo as a large-scale, multi-phase development opportunity.
The nearby Playa Kali and Lantana projects add attractive exploration optionality, with confirmed surface copper mineralization and well‐defined targets.
The investment firm retained its speculative buy recommendation and AU$0.12 price target on AusQuest.
AusQuest's shares were up nearly 3% in recent Friday trade.