AusQuest Limited announced that assay results received from the recently completed program of reconnaissance Reverse Circulation (RC) drilling (10 holes for 3,387m) at the Parcoy Copper Project in Southern Peru have extended the zone of anomalous copper mineralisation over the entire ~5km strike length of the prospect. The Parcoy Project is subject to the Strategic Alliance Agreement (SAA) with a wholly-owned subsidiary of South32 Limited (South32). Anomalous copper values (>400ppm Cu) were intersected over relatively large thicknesses (from ~20m up to >100m) in eight of 10 holes, substantially increasing the size of the copper footprint.

The drill-holes were located approximately 300m to 500m apart along three sections located at ~1km intervals across the volcanic sequence. Higher copper values (ranging from 1,000ppm Cu up to a maximum of 1.02% Cu) were recorded in most drill-holes but over relatively narrow thicknesses (<15m) that generally averaged ~1,500 to 2,000ppm Cu. Correlation of the more highly anomalous copper intervals is not possible between holes or across sections.

Anomalous gold values (>50ppb Au) were relatively uncommon but did occur in several drill- holes with a best intersection of 12m @ 0.29g/t Au plus 1,500ppm Cu from 174m down-hole in PARRC016, suggesting that gold may be present in specific areas within the Parcoy prospect. Drill-holes PARRC013 and PARRC020, located at the northern end of their respective drill sections, did not drill deep enough to intersect the potentially mineralised horizon(s). Compilation of assay results with earlier drilling (as reported to the ASX in July 2021) has provided further insights into the possible controls on mineralisation at Parcoy.

Alteration across all of the drilled sections is consistent with the alteration patterns found at the Company's Cerro de Fierro Project, where further drilling for porphyry-style copper mineralisation is about to take place (ASX release 20 September 2022). Alteration patterns which provide evidence for large-scale fluid movement and the possibility of a nearby copper source, are consistently shallow-dipping and centred around a zone of advanced argillic alteration (AAA), with potassic (K) alteration above and sodic (Na) alteration below, suggesting that hot acidic solutions are responsible for the re-distribution of copper mineralisation in this region. The AAA zone is characterised by strong depletion in the acid soluble elements (such as Mn, Na, Mg, Zn and Cu), and retention of the acid stable elements (such as Mo, Bi, and Te), which helps to define the fluid pathway(s) and possible vectors to mineralisation.

Weak copper anomalism within the AAA zone is considered a good indicator of a potentially mineralised source. Construction of a schematic long section from drill-holes located along the full strike length of the prospect reveals that the thickest AAA zones occur in drill-holes PARRC 017 and PARRC 018, suggesting that a potential porphyry copper system may be proximal to these drill-holes. It is also evident that copper has been stripped from the central AAA zone andre-deposited in the surrounding rocks, resulting in the copper anomalies that have been identified at surface.

While further exploration work at this prospect is the subject of ongoing discussions under the SAA, it is envisaged that future programs would focus on finding the source of the copper mineralisation identified at surface as well as possible higher copper grade sections within the surface copper anomalies. The Parcoy Project is located near the southern end of a recognised Iron-Oxide Copper-Gold (IOCG) metallogenic belt in Southern Peru and is located ~100km south of the Mina Justa deposit (~475Mt @ 0.68% Cu), which is being developed by Marcobre SAC.