AusQuest Limited (ASX: AQD) is pleased to advise that it is gearing up to commence a new program of Reverse Circulation (RC) drilling at its Pirata Copper Project in Southern Peru, under the Strategic Alliance Agreement (SAA) with a wholly-owned subsidiary of South32 Limited (South32) following the receipt of final approvals from the Peruvian Government.
Access preparations are underway and drilling is scheduled to start in early October, pending drill rig availability. The program, which will comprise a total of 20 RC drill-holes for ~6,700m, is expected to take 6-8 weeks to complete. Samples will be sent to the ALS Laboratory in Lima for analysis and should be available 4-6 weeks following the completion of drilling.
The upcoming drill program is designed to test five porphyry copper and/or manto copper targets located south and east of the Cerro de Fierro Project, within a major east-west structural corridor located close to and parallel with the Coastal Batholith contact. This is considered to be a priority target zone within the Coastal Belt of Peru and Chile for major copper deposits.
The targets contain strong indications of advanced argillic alteration, as defined by anomalous pathfinder elements (Mo >10ppm, Bi >5ppm, Te >5ppm, W >10ppm) and high temperature mineralogy (pyrophyllite), representing litho-cap environments that are generally found in close proximity to the centre of potential porphyry copper systems.
Sporadic copper values of up to 0.8%Cu and distinct magnetic anomalies over several targets provides a high priority rating for the targets being drilled. Pirata is located immediately east of the Company's Cerro de Fierro Project, where earlier drilling identified widespread copper mineralisation within volcanic host rocks and identified the potential for porphyry copper mineralisation to the south and east of the project, along east-west trending regional structures.
AusQuest's Managing Director, Graeme Drew, said the upcoming drilling program at Pirata was designed to provide a test of several large-scale copper targets in a district with widespread copper mineralisation and multiple strong indicators of porphyry potential. 'Permitting has taken some time to complete but we are now at the point where drilling is imminent,' he said. 'We are excited about the potential for a large-scale discovery in this area, and we look forward to drilling commencing very shortly
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.
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