AusQuest Limited advised that it is gearing up to commence a new program of Reverse Circulation (RC) drilling at its Parcoy Copper Project in Southern Peru, under the Strategic Alliance Agreement (SAA) with a wholly-owned subsidiary of South32. Access preparations have been completed and drilling is scheduled to commence in July, with the program expected to comprise a total of 10 RC drill-holes for ~3,500m. The drilling is designed to test beneath strong surface copper anomalism that stretches over a strike length of ~3km within the andesitic volcanics.

The target, which is located adjacent to an interpreted feeder structure, is thought to reflect manto style (replacement) copper mineralisation similar to that found at the nearby Mina Justa deposit, which is being developed by Marcobre SAC. Drilling in 2021 provided `proof-of-concept' for manto-style copper at Parcoy but did not test the strongest copper anomalies due to poor access into the centre of the target area. New access roads have now been prepared with drill collars located on the top of ridges to enable testing of the full stratigraphic section.

The drilling program should take approximately 3-4 weeks to complete with samples being sent to ALS Laboratory in Lima for analysis. Final assay results should be available 4-6 weeks after the completion of drilling. The Parcoy Project is located near the southern end of a recognised IOCG metallogenic belt in Southern Peru.

It lies within ~100km of the Mina Justa deposit (~475Mt @ 0.68% Cu), and ~50km north-west of the Company's Cerro de Fierro Project. Geological mapping and rock- chip sampling has identified significant concentrations of copper (+/-gold) at surface, reflecting potential manto-style (replacement) mineralisation within the volcanic stratigraphy. The maiden drilling program in 2021 identified an association between copper and potassic alteration in the volcanics with anomalous pathfinder elements (Mo, W, and Bi) in the footwall, supporting the concept of manto copper mineralisation at Parcoy.

AusQuest's Managing Director, Graeme Drew, said the upcoming drilling program was expected to provide a comprehensive test of the potential to delineate a Tier-1 resource at Parcoy.