AusQuest Limited (ASX: AQD) is pleased to advise that it has upgraded the recently identified magnetite potential at its Morrissey Project in Western Australia after receiving highly encouraging results from beneficiation test work (Davis Tube Recovery (DTR)) on magnetite-rich iron formations intersected by earlier Reverse Circulation (RC) drilling (ASX release 20 October 2022).

The DTR test work yielded iron (Fe) concentrate values in excess of 70% Fe, a significant result which elevates this project as a significant new opportunity for the Company. Six composite samples (~10m thick) submitted for testing confirmed that the magnetite ironstone intersected at both the Waterfall and Sandfly prospects can be beneficiated using simple magnetic separation to produce a high-grade iron concentrate (+70% Fe) at a relatively coarse grind size (95% passing 75 microns).

At Waterfall, four composite samples from 102m to 144m down-hole (MYRC001) yielded 42 metres at an average DTR recovery of 40.8% and a concentrate grade of 71.3% Fe, 1.4% SiO2 and 0.08% Al2O3 whilst at Sandfly, two composite samples from 82m to 100m (MYRC002) yielded 18 metres at an average DTR recovery of 41.5% and a concentrate grade of 71.3% Fe, 0.8% SiO2 and 0.29% Al2O3 (see table below). No deleterious element concentrations were recorded in any of the six samples submitted.

The initial RC drilling program (three holes) was designed to test for base metal mineralisation but discovered magnetite iron formations at both the Waterfall and Sandfly prospects. A significant untested strike length is apparent at both prospects, with multiple untested targets evident in the regional magnetic data that are now considered priority targets for additional magnetite mineralisation. Specific gravity measurements on RC drill samples indicated a high density (SG 3.4) for the magnetite mineralisation, suggesting that it should produce distinct gravity anomalies enabling magnetic targets to be prioritised ahead of future drilling

AusQuest's Managing Director, Graeme Drew, said the discovery of magnetite ironstone with the potential to be easily upgraded to a premium product, in the heart of the Midwest Mining District, was a significant development - especially considering the potential to generate large tonnages when untested magnetic anomalies are taken into account. 'Given the positive results from the Davis Tube test-work, shareholders can look forward to more detailed assessments of the magnetite potential of this project over the coming quarters,' he said. 'While we are planning to further test the iron potential of this Project, we are also actively pursuing nickel-copper-PGE opportunities in this area - which was the prime reason for acquiring the tenements in the first place following the discovery of the Julimar nickel-copperPGE deposit north of Perth.

'We plan to follow up on both opportunities over the coming months,' 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 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.

Contact:

Company office & mailing address

8 Kearns Crescent

Ardross WA 6153

T: 08 9364 3866

Fax: 08 9364 4892

Email: InvestorRelations@ausquest.com.au

(C) 2023 Electronic News Publishing, source ENP Newswire