AusQuest Limited announced 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.