AusQuest Limited announced that the latest round of diamond drilling at the Hamilton Copper Project in north-west Queensland has identified the potential for nearby copper mineralisation similar in style to that found at the Osborne copper-gold mine (global resource ~36Mt @ 2% Cu, 1g/t Au) located approximately 70km to the north. The wide-spaced drilling intersected chalcopyrite-pyrite mineralisation within a banded ironstone sequence in three of the four holes completed, providing a vector for follow-up exploration targeting potential massive mineralisation. Narrow intervals (~5m to 9m) containing visual estimates of trace to 1 to 2% chalcopyrite, associated with greater amounts of pyrite and magnetite, were intersected in drill-holes HMDD012 and HMDD013 in the southern area, and over an approximate 40m down-hole interval in drill-hole HMDD015, the first hole drilled into the northern magnetic target. Drilling also intersected wide zones (~20m to 60m) of relatively intense carbonate flooding, mainly within amphibolite host rocks (metamorphosed mafic igneous rocks), which is known to reflect alteration associated with mineralisation found elsewhere in the district. These results are considered to be highly encouraging and follow-up down-hole electromagnetic surveys (DHEM) are currently being planned to test for massive copper mineralisation close to the drill-holes (within ~200m). The DHEM surveys are expected to commence in late July, pending the availability of geophysical crews, with further drilling likely to be undertaken subject to the results of these surveys. The current drilling program consisted of a total of four diamond drill-holes for 2,113m. Three holes (HMDD012, HMDD013, HMDD014) were drilled in the southern prospect to test discrete magnetic/gravity targets associated with potassic alteration defined by earlier drilling, and one hole (HMDD015) was drilled ~15km to the north, to provide an initial test of a similar magnetic complex that had not been previously drill-tested. The banded ironstone sequence intersected in three of the drill-holes (HMDD012, HMDD013, and HMDD015), is characterised by both layered and skarn-like accumulations of magnetite with associated, but patchy, chalcopyrite-pyrite mineralisation and carbonate alteration of amphibolite rocks within the ironstone sequence. By contrast, drill-hole HMDD014 intersected variably carbonate altered rocks from the top of basement (~220m) to the bottom-of-hole (~500m) with some broad zones showing evidence of colloform banding and crystal-lined vugs, implying significant fluid activity in this area. The ironstones generally occur within a sequence dominated by amphibolites with occasional granitic pegmatites, except for drill-hole HMDD012 where the ironstones occur within a meta-sedimentary (pelitic) sequence. Highly anomalous magnetic susceptibility measurements (>0.5 SI units) on drill core confirmed that the ironstones were the main cause of the stronger magnetic anomalies being targeted. Structural measurements on oriented core suggest the sequence is relatively tightly folded, which may provide preferential trap sites (fold hinges) for the accumulation of sulphide mineralisation, as is common at other deposits in the region. All drill core has been sampled at one metre intervals with samples sent to Intertek Genalysis for analysis. Assay results are expected within four to six weeks, at which time a full analysis of the drilling results will be completed. The Hamilton Project is located in north-west Queensland, ~120km south of the world-class Cannington mine, which is owned and operated by South32, and 70km south of the Osborne mine which had an original global resource of ~36Mt @ 2% Cu and 1g/t Au (source PorterGeo). The Hamilton Project covers a belt of magnetic rocks extending over approximately 30km of strike length from north to south, under Eromanga Basin cover which varies from ~190m thick in the north to ~220m in the south. Numerous targets within this belt have not been tested by drilling.