COPPER – GOLD
(100% AQD – Selected Prospects Subject to South32 Strategic Alliance Agreement (SAA))
Peru, South America.
Over the past seven 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.
Peruvian projects under the SAA with South32 currently include Cerro de Fierro, Parcoy, and Los Otros. For more details of the SAA, please refer to the ASX announcement on February 20 2017 – “Strategic Exploration Alliance with South32“.
Detailed aeromagnetic data acquired by the Company in 2011 have been used to identify porphyry copper and IOCG prospects beneath the extensive 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 IOCG prospect 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 large areas containing anomalous copper with numerous samples in excess of 0.1%Cu in surface samples. IP surveys located a strong IP response associated with the magnetic anomaly, providing a priority target for drilling.
During 2018 initial wide spaced drilling (7 holes/3500m) of the target was completed, highlighting a number of significant Cu intersections and confirming potential for a sizeable IOCG system. While controls on the shape, size and grade of the mineralisation are yet to be determined, initial indications suggest that the mineralisation is located outboard of a magnetite-pyrite core and is unconstrained by the current drill coverage.
Cerro de Fierro is the subject of an agreement with South32 to fund ongoing exploration including drilling. South32 can earn a 70% interest in the project by spending a total of US$4.0 million. AusQuest is the first operator.
The Parcoy project is located ~50km north of Cerro de Fierro, and is targeting manto style copper mineralisation adjacent to the structures that are known to host copper mineralisation to the south-east at Los Chapitos held by Camino Resources. Interpretation of the Company’s airborne data suggests widespread potassic alteration and the potential for manto-style IOCG mineralisation associated with structures. Parcoy is subject to the Strategic Alliance Agreement with South32.
Reconnaissance mapping and sampling at Parcoy located numerous rock samples returning anomalous Cu (150ppm up to 3.2% Cu) and gold values (50ppb to 1.6ppmAu) associated with altered intrusive and volcanic rocks. IP surveys are planned to identify potential targets for drilling.
The Los Otros prospect is located ~10km north-west of Moquegua, close to known porphyry copper deposits at Toquepala, Cuajones and Los Calatos.
Detailed geological mapping and sampling identified large areas of advanced argillic alteration (lithocap) with numerous samples returning anomalous levels of Mo, Bi, As, Sb, Pb, Au, Ag and occasional Cu, suggesting potential for buried porphyry copper mineralisation. To date a nearby source of this alteration has not been identified. Work is ongoing to confirm a porphyry copper source. This work is being funded under the SAA with South32.
Initial wide spaced drilling (10holes/5,300m) at the Chololo Porphyry Copper Project confirmed potential for a buried porphyry copper system in the area, intersecting a range of alteration types consistent with a mineralised porphyry copper system. These include advanced argillic and phyllic alteration zones and a pyritic/base metal halo.
To date the potassic zone, which is the target for copper mineralisation has not been intersected by drilling. Alteration vectors suggest it is likely to be located either lateral to and/or beneath the current drilling, close to the regional Chololo Fault.
While these targets will not be tested under the SAA with South32, the Company remains committed to advancing the Chololo Project and will in due course seek alternate avenues of funding to complete a second round of drilling which could locate the preserved porphyry copper resource beneath cover sediments.
Project Generation work is continuing in the south of Peru using the Company’s proprietary airborne data. Several new projects are being advanced as possible new opportunities under the terms of the SAA.
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 with the aim of progressing prospects to the drilling stage under the SAA.
The company is currently exploring within Australia & Peru and holds in excess of 4,600 km² of exploration title (granted tenements and tenement applications).
Company office & mailing address:
8 Kearns Crescent, Ardross WA 6153
Phone: 08 9364 3866
Fax: 08 9364 4892
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