AusQuest Limited (ASX: AQD) is pleased to advise that further surface rock-chip sampling at its Cangallo Porphyry Copper Prospect in southern Peru has enhanced the potential to discover large-scale porphyry copper mineralisation.

The Cangallo Prospect, which is located 25km east of the town of Chala and 10km from the coast, was originally identified by the Company's aeromagnetic/radiometric survey and subsequently acquired when the area became available for pegging. Recently completed in-fill rock-chip sampling (on 50m x 50m spacing) over the southern diorite porphyry and from limited small outcrops within the covered area has consistently reported highly anomalous copper (ranging from 500ppm Cu up to 0.64% Cu) and molybdenum (ranging from 5ppm Mo up to 42ppm Mo) values.

This supports the potential for discover of large-scale porphyry mineralisation beneath the shallow cover, outlining a large target area 2.5km x 1.5km in size to be tested by drilling

The anomalous copper and molybdenum values are generally associated with sericite and potassic alteration, suggesting close proximity to porphyry-style mineralisation. The fact that nearly all of the small outcrops sampled within the covered area are anomalous in copper and/or molybdenum, presents a strong case for drill testing to identify porphyry copper mineralisation beneath the cover.

Drill permitting has advanced, with currently planned drill sites approved by the Mines Department (MINEM) and approval of surface rights by the Housing Ministry (SBN) expected by the end of the year. The possibility of extending and/or altering the drill coverage is being considered in light of the more recent geochemical results. AusQuest's Managing Director, Graeme Drew, said the most recent sampling results were very encouraging and continued to build the case for a large-scale partially exposed porphyry copper system at Cangallo. 'Much of the porphyry mineralisation appears to be hidden beneath cover, which we believe to be relatively thin.

The size of the target (4km-2) continues to impress - with most, if not all of the small sub-crops within the covered area reporting highly anomalous copper and/or molybdenum values, suggesting there is more to be found.' 'The Company is very encouraged by these results and remains committed to drill testing the Cangallo prospect as soon as it is able to do so' he added

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

Contact:

Tel: 08 9364 3866

Fax: 08 9364 4892

Email: InvestorRelations@ausquest.com.au

(C) 2023 Electronic News Publishing, source ENP Newswire