AusQuest Limited announced that drilling (1 hole for 500m) has commenced to test a strong off-hole conductor identified by down-hole electromagnetic (DHEM) surveys at the Hamilton North prospect, part of the Hamilton Copper-Gold Project in North-West Queensland. Previous drilling at this prospect returned highly anomalous copper values within a mineralised banded iron formation (BIF) sequence in several drill-holes, highlighting the potential for copper mineralisation. Modelling of DHEM data indicates a high-conductance (3,000 to 5,000 Siemens) source occurring ~50-75m south of drill-hole 22HMDD018, which has not been tested by previous drilling.

Down-hole three component magnetic data supports a close association with strongly magnetic rocks, highlighting the possibility of a sulphide source within a mineralized BIF sequence. The mineralised BIF at Hamilton appears to be similar in nature to that hosting the Osborne copper-gold deposit (global Resource of ~36Mt at 2% Cu and 1g/t Au), located approximately 70km to the north. Drilling is expected to take approximately one to two weeks to complete, with further DHEM surveying to be considered once results of the drilling have been received.

The Hamilton Project forms part of AusQuest's Strategic Alliance Agreement (SAA) with a wholly-owned subsidiary of South32 Limited.