AusQuest has reported significant results from its drilling program at Cangallo, revealing broad zones of copper and gold mineralization. The project is strategically located near key infrastructure, enhancing its development potential. Ongoing exploration is expected to identify additional mineral resources, reinforcing the discovery’s significance in Peru’s rich copper sector.
AusQuest Limited has confirmed significant results from its drilling program at the Cangallo site in southern Peru, enhancing the initial discovery made in January 2025. The company reported multiple broad intercepts of copper and gold mineralization in its first two reverse circulation (RC) holes, prompting further drilling. The updated program now features eight RC holes, showcasing the site’s potential in a renowned copper-producing region.
Managing director Graeme Drew highlighted Cangallo’s strategic location near major infrastructure, including regional power lines and the coast, strengthening its mineral potential. He remarked, “This is another set of excellent results from our Cangallo prospect—the final batch of assays has exceeded our expectations and confirmed Cangallo as a significant new greenfields porphyry copper-gold discovery in Peru.” Drew expressed optimism about finding more copper and deeper sulphide mineralization with ongoing exploratory drilling.
The drilling has revealed extensive zones of copper mineralization, identifying averages of up to 0.30% copper and 0.06 parts per million gold. Notably, seven out of eight drilled holes have shown mineralization, which remains open in all directions, including potential depth extensions. Prospectivity appears to increase towards the west, where deeper porphyry systems may lie beneath younger sedimentary cover.
Previous geological surveys indicated a partially exposed copper porphyry system nestled within a significant caldera-like structure. This area contains abundant colluvial and sediment cover, complicating exploration efforts. AusQuest plans to provide a comprehensive analysis of the initial drilling results as multi-element data interpretations are finalized, alongside future exploration plans, including further drilling.
As Peru ranks as the second-largest producer of copper globally, mining around 2.8 million tonnes annually, the discovery of significant porphyry deposits aligns with current mining trends. Major copper production arises from about ten large porphyry projects located primarily along the Andean Belt from Chile to Ecuador. Porphyry deposits are characterized by their large size and favorable open-pit mining conditions, often exceeding 1 billion tonnes of ore.
Porphyry copper deposits are typically extensive, low-grade, and occur in geological settings conducive to large-scale mining. Located primarily along the Andean Belt, these deposits form significant segments of global copper production. Peru, being the second-largest copper producer after Chile, relies heavily on major projects dedicated to mining these extensive deposits. Understanding the geology and mineralization patterns is crucial for identifying and developing new discoveries like Cangallo.
The confirmation of significant copper and gold mineralization at the Cangallo site underscores AusQuest’s successful exploration efforts in a prime mining region. The ongoing drilling program aims to further delineate the mineral potential, with optimism for continued discoveries of near-surface and deeper mineralization. This discovery aligns with Peru’s status as a leading copper producer, setting the stage for potential advancement in mining operations.
Original Source: smallcaps.com.au
