AusQuest Limited (ASX: AQD) is pleased to report results from the initial reconnaissance Reverse Circulation (RC) drilling program completed at the Morrisey Nickel-Copper-Platinum Group Element (Ni-Cu-PGE) Project, located in the Narryer Terrane approximately 500km north of Perth in WA (Figure 1). The Morrisey Project is subject to the Strategic Alliance Agreement (SAA) with a wholly-owned subsidiary of South32 Limited (South32).
Drilling was designed to test three discrete electromagnetic (EM) targets that were closely associated with magnetic anomalies similar to the anomaly over the Gonneville intrusion that hosts Ni-Cu-PGE mineralisation at the Julimar Project, just north of Perth. The initial three-hole drilling program (726m) intersected a mixed sequence of high-grade metamorphic rocks including iron formations, mafic (meta-gabbros) and ultramafic (metapyroxenites) units, interleaved within a sequence of granitic gneisses. The ultramafic units reflect potential host rocks for Ni-Cu-PGE mineralisation.
Drilling at the Waterfall and Sandfly prospects intersected increased sulphide levels (up to 13% S) within and marginal to the iron formations that coincide with the location of the modelled EM plates. The sulphide zones vary in thickness from a few metres up to 34 metres (in 22MYRC02) and consist of pyrrhotite and pyrite mineralisation, with no significant base metal anomalism reported. Narrow (1000ppm Cr), magnesium (>10% Mg) and nickel (up to 1,350ppm Ni) values were also intersected at Sandfly and Waterfall, reflecting potential host rocks for Ni-Cu-PGE mineralisation. The extent of these units is unknown but is likely to be more extensive than indicated by this initial drilling program. High iron values (25% to 39% Fe) reported in drill-holes 22MYRC001 and 22MYRC002 occur within relatively thick metamorphosed iron formations (up to 60 metres) that contain coarsely crystalline magnetite (Figures 2 and 3), which could reflect a new opportunity for the Company if the magnetite can be easily beneficiated. Test work is currently being considered under the SAA.
At the Bilga Rocks prospect, drilling (hole 22MYRC003) intersected a thick body (>120m) of meta-gabbro, which appears to form part of a much larger magnetic complex that extends for several kilometres to the north. Trace sulphides (mainly pyrite) reported throughout the metagabbro partly explain the EM response that was targeted by drilling. Strong magnetic anomalies north of 22MYRC003 reflect possible ultramafic units within the inferred complex that have not been tested by drilling. Numerous magnetic responses evident in the regional aeromagnetic data are now considered to be potential prospects for either magnetite and/or nickel-copper-PGE mineralisation based on the results of this program (Figure 1). None of these targets have previously been tested by drilling.
AusQuest's Managing Director, Graeme Drew, said the initial three-hole drilling program had provided much needed geological control in areas considered to have the potential for Ni-CuPGE mineralisation, including confirmation of the presence of prospective ultramafic host rocks. 'This is an important outcome, with the drilling also revealing the potential for high-grade iron, in the form of coarsely crystalline magnetite - which could open up a new opportunity for the Company,' he said. 'Results from this early-stage drilling are being reviewed in consultation with South32, to agree further work required to unlock the potential of this area. 'These are still early days for the Morrisey Project, which has seen little exploration activity prior to the discovery of the Julimar nickel-copper-PGE deposit by Chalice Mining, which highlighted the untested nickel-copper-PGE potential along the western margin of the Yilgarn,' he added.
COMPETENT PERSON'S STATEMENT
The details contained in this report that pertain to exploration results are based upon information compiled by Mr Graeme Drew, a full-time employee of AusQuest Limited. Mr Drew is a Fellow of the Australasian Institute of Mining and Metallurgy (AUSIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the 'Australasian Code for Reporting of 4 Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr Drew consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears
COMPETENT PERSON'S STATEMENT
The details contained in this report that pertain to exploration results are based upon information compiled by Mr Graeme Drew, a full-time employee of AusQuest Limited. Mr Drew is a Fellow of the Australasian Institute of Mining and Metallurgy (AUSIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the 'Australasian Code for Reporting of 4 Exploration Results, Mineral Resources and Ore Reserves' (JORC Code). Mr Drew consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears
FORWARD LOOKING STATEMENT
This report contains forward looking statements concerning the projects owned by AusQuest Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on management's beliefs, opinions and estimates as of the dates the forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.
AUSQUEST LIMITED 
