AusQuest (ASX AQD) Expands Peru Copper Discovery as Cangallo Project Shows Tier-1 Scale Potential

Key Highlights:

• AusQuest shares traded around $0.45 on March 4
• Cangallo copper system now exceeds 1.5 km in strike length
• Mineralisation confirmed to more than 400 m depth
• Oxide copper near surface may enable low-cost heap leaching
• Coastal location in Peru reduces infrastructure risk
   

A growing copper discovery in Peru is drawing fresh attention to AusQuest Limited, as the explorer outlined expanding dimensions at its Cangallo porphyry copper-gold project.

At the time of writing, AusQuest shares were trading near $0.45, reflecting renewed interest after the company reported that mineralisation at Cangallo now extends more than 1,500 metres along strike and over 400 metres deep, with the system still open at depth.

For a copper explorer, those numbers matter.

Porphyry deposits are among the largest and longest-lived sources of copper globally. Mines such as Chile’s Escondida and Indonesia’s Grasberg have operated for decades because of the enormous scale of the mineral systems that host them.

AusQuest’s latest drilling results suggest Cangallo may be developing into that kind of geological footprint.

A growing copper system

The company’s drilling program continues to outline consistent copper mineralisation across a broad corridor.

Recent holes have returned long intersections typical of large porphyry systems, including:

• 330 metres at 0.30% copper
• 310 metres at 0.31% copper
  
   

Such grades may appear modest compared with high-grade underground deposits, but porphyry mines rely on bulk tonnage. Large volumes of ore can be mined economically through open-pit operations if grades remain consistent over wide areas.

One hole in particular caught attention.

Hole CANRC034 ended in its strongest mineralisation with 164 metres at 0.33% copper, continuing right to the bottom of the drill hole. In exploration terms, that “end-of-hole” mineralisation suggests the system may extend even deeper than currently tested.

The project already shows mineralisation to around 400 metres depth, with geological modelling indicating potential extensions toward 800 metres.

That combination of width and depth is one of the early hallmarks of major porphyry systems.

Why metallurgy matters

Another detail attracting industry interest is the nature of the copper mineralisation.

AusQuest reports that oxide copper occurs from surface down to roughly 250 metres. Oxide ores are typically easier and cheaper to process than deeper sulphide ores because they can often be treated through heap leaching.

In simple terms, heap leaching involves stacking crushed ore on lined pads and using acidic solutions to dissolve the copper, which is then recovered through solvent extraction and electrowinning.

Compared with conventional milling and flotation plants, heap leach operations can require significantly lower upfront capital.

For early stage projects, that difference can be critical.

A rare infrastructure advantage

Location is another factor working in the project’s favour.

Many large copper deposits in Peru sit high in the Andes where infrastructure, water access and power supply can complicate development.

Cangallo is different.

The project lies about 10 kilometres from the coast and at relatively low altitude, placing it closer to existing infrastructure corridors. For a potential future mine, proximity to roads, ports and power lines could simplify development logistics.

Peru remains one of the world’s largest copper producing nations, supplying about 10 percent of global copper output, according to data from the International Copper Study Group. The country hosts some of the world’s largest porphyry deposits and remains a key region for exploration.

Copper’s strategic importance

The timing of AusQuest’s exploration progress also aligns with a broader shift in global resource markets.

Copper demand is rising as the energy transition accelerates. Electric vehicles, renewable power systems and grid expansion all require large quantities of the metal. The International Energy Agency has repeatedly warned that new copper discoveries are needed to meet future demand.

Porphyry deposits are particularly important because they provide the large, long-life supply needed for global electrification.

Against that backdrop, explorers capable of outlining sizeable copper systems often attract strong market attention.

Next steps for Cangallo

AusQuest plans further drilling to test extensions of the mineralised corridor and refine the geological model of the system.

If ongoing drilling confirms the continuity of mineralisation along strike and at depth, the project could begin to move toward the resource definition stage, an important milestone for any exploration story.

For now, the key message from the latest update is scale.

A mineralised corridor stretching more than 1.5 kilometres with open extensions and near-surface oxide copper is not yet a defined resource. But it is the kind of geological footprint that keeps exploration geologists drilling.

In the copper business, discoveries often grow over time.

And at Cangallo, the dimensions appear to be expanding.

Source: AusQuest Limited ASX announcement, 4 March 2026.