Peru, South America.

Over the past ten years AusQuest has assembled a world-class exploration opportunity in Peru, South America – one of the world’s most prominent destinations for international copper exploration.

Detailed aeromagnetic data acquired by the Company in 2011 have been used to identify porphyry copper and IOCG prospects beneath the extensive volcanic, sand and sediment cover in southern Peru. A combination of geological mapping and sampling, together with ground-based geophysical surveys has been used to identify targets for drilling.

The Cerro de Fierro Copper Project is located approximately 140km south of the Mina Justa copper mine (~475Mt @ 0.68% Cu) in the Chala region of southern Peru. It was initially acquired to test a discrete magnetic target identified by the Company’s regional aeromagnetic survey. The prospect occurs within a large area of potassically altered volcanics – a common indicator of IOCG style mineralising systems.

Geological mapping and sampling identified numerous targets both for IOCG and porphyry copper style mineralisation within the greater project area.

Cerro de Fierro is subject to a Strategic Alliance Agreement with South32 (SAA).  For more details of the SAA, please refer to the ASX announcement on February 20 2017 – “Strategic Exploration Alliance with South32” and the extension announced to the ASX on March 10 2020 and November 16 2021.

The Pirata Prospect located immediately east of Cerro de Fierro contains at least six possible porphyry copper and/or manto-style copper targets over a 20km distance within a major east-west structural corridor that parallels the Coastal Batholith contact, which is considered to be a highly prospective target zone within the Coastal Belt of Peru and Chile.

Up to 2022, drilling was confined to the Cerro de Fierro prospect where extensive copper mineralisation had been found within andesitic volcanics both at shallow depths in the south (including 30m @ 0.5% Cu and 5.6g/t Ag from surface) and deeper in sections to the north (including 30m @ 0.43% Cu, 0.16g/t Au + 43m @ 0.43% Cu, 0.35g/t Au + 28m @ 0.42% Cu, 0.15g/t Au in CDFDD03).

Drilling in 2022 which focused on porphyry copper targets at the Pirata prospect, confirmed the presence of multiple porphyry systems.  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), highlight potential for preserved porphyry copper systems in this lithocap environment.  Further drilling is being planned.

The Parcoy Copper Project is located ~50km north of Cerro de Fierro, and is targeting manto-style copper mineralisation adjacent to structures that are known to host copper mineralisation ~6km to the south-east, at the Los Chapitos prospect (Camino Minerals). Interpretation of the Company’s airborne data suggests widespread potassic alteration similar to that found at Cerro de Fierro.

Reconnaissance mapping and rock chip sampling outlined  large areas of anomalous Cu (150ppm up to 3.2% Cu) and gold (50ppb to 1.6ppmAu) values within both the andesitic volcanics to the north and intrusive monzodiorites to the south providing priority targets for drilling.

Drilling completed in 2021 confirmed the presence of manto copper mineralisation  with further surface sampling suggesting potential for stronger mineralization along strike from the initial drill-holes.

Drilling in 2022 successfully extended the copper footprint at Parcoy, and also identified potential for porphyry copper systems in the area. Shallow dipping alteration (lithocap) zones, inferred from this drilling, suggest potential porphyry copper targets lateral to the current drilling. Further exploratory drilling is being considered under the SAA,

The Los Otros Porphyry Copper prospect is located close to the Palaeocene Porphyry Copper Belt of southern Peru, which is the major copper producing region in the country. It lies within 35km of the Cuajone mine (~1.6Bt @ 0.6% Cu), and 40km from the Quellaveco deposit (~1.3Bt @ 0.57% Cu) currently being developed by Anglo American.

Detailed geological mapping and sampling identified large areas of advanced argillic alteration (lithocap) containing numerous samples with anomalous levels of Mo, Bi, As, Sb, Pb, Au, Ag and occasional Cu, suggesting potential for buried porphyry copper mineralisation.

The maiden drilling program (3 holes) completed in 2022 confirmed the presence of extensive alteration typical of porphyry copper mineralization, and pointed to a possible buried target to the north of the current drilling. Further work at this project is being considered by the Company.

The Cangallo Project is located approximately 20km west Cerro de Fierro, along the same E-W structures that appear to control the emplacement of potential porphyry copper systems in the area. Geological mapping and rock-chip sampling has identified a partially exposed copper (+/- gold) porphyry system within a large-scale (5km x 2km) caldera-like structure containing extensive colluvial and younger sediment cover.

Geological mapping and rock-chip sampling of limited sub-crop has been completed, confirming the presence of highly anomalous copper (up to 0.64% Cu), molybdenum (up to 42ppm Mo) and scattered gold values (up to 2.5g/t Au) within multiple-veined and altered (sericite) volcanics and porphyritic rocks.

Ground magnetics suggests the presence of complex structures with numerous faults and circular features implying multiple intrusive phases.

Drill permits are being sought to enable drilling to commence later in the year.

Project Generation work is continuing in the south of Peru using the Company’s proprietary airborne data. New tenement acquisitions have consolidated the Company’s land position both in the Cerro de Fierro region and to the south near Ilo where previous drilling at the Company’s Puite-Ventura prospect suggested the presence of a nearby porphyry deposit.

The Company continues to be encouraged by progress being made at its Peruvian projects, and plans to continue evaluating its extensive portfolio of large porphyry copper and/or IOCG targets in the south of Peru.

 

  

Revised 05/05/2023.