AusQuest Limited advised that it has reached agreement to drill test a potentially significant new copper target identified at the Hamilton North prospect, part of its Hamilton Copper Project in North-West Queensland. The Hamilton Project forms part of AusQuest's Strategic Alliance Agreement (SAA) with a wholly-owned subsidiary of South32 Limited (South32). Modelling of down-hole electromagnetic (DHEM) survey results has confirmed the presence of a high-conductance (3,000 to 5,000 Siemens) body approximately 50-75m south of recently completed drill-hole 22HMDD018 at Hamilton North, highlighting the potential for a sulphide body within the mineralised banded iron formation (BIF) sequence.

Drilling at Hamilton North was designed to test a distinct gravity target closely associated with the mineralised BIF sequence and iron-calcium alteration (skarns) intersected by earlier drilling. Assay results from this drilling confirmed the widespread nature of anomalous copper within the BIF sequence but failed to intersect economic grades. Geochemical results from drill-hole 22HMDD018 suggest that this hole is close to the northern edge of the system, with stronger indications of copper mineralisation to the south in the direction of the off-hole conductor that was detected by the DHEM survey.

Computer modelling of DHEM results from hole 22HMDDH018 indicate the presence of a conductor ~200m x 50m in size with a conductance of ~3,000 to 5,000 Siemens, reflecting a potential sulphide source within the mineralized BIF sequence. The modelled body appears to be plunging at ~50° to the ENE, roughly parallel to the layering intersected by drilling. Modelling of down-hole magnetic data collected during the DHEM survey suggests that the conductive target is also strongly magnetic, indicating a close association with the BIF stratigraphy that hosts the copper mineralisation.

Drilling of this off-hole conductor has been agreed under the SAA and a new drill-hole has been designed to test the target. Drilling is expected to commence in late September/early October depending on drill-rig availability. The mineralised BIF sequence at Hamilton appears to be similar in nature to that hosting the Osborne copper-gold deposit (global resource ~36Mt @ 2% Cu and 1g/t Au), located approximately 70km to the north.

The Hamilton Project covers a belt of magnetic rocks extending over a strike length of approximately 30km under Eromanga Basin cover, which is approximately 200m thick. Numerous magnetic targets within this belt have never been tested by drilling.