COPPER – GOLD

(100% AQD – Selected Prospects Subject to South32 Strategic Alliance Agreement (SAA))

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.

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” and the extension announced to the ASX on March 10 2020.

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 IOCG 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 large areas containing anomalous copper with numerous samples in excess of 0.1%Cu in surface samples. Ground magnetic and IP surveys located semi-coincident anomalies, providing additional targets for drilling.

The inaugural drilling program in the area was in 2018 which intersected significant copper mineralisation within andesitic volcanic rocks in widely spaced drill-holes with better intersections including CDFDD03 (30m @ 0.43% Cu, 0.16g/t Au plus 43m @ 0.43% Cu, 0.35g/t Au plus 28m @ 0.42% Cu, 0.15g/t Au), CDFDD05 (28m @ 0.32%Cu, 0.37g/t Au), CDFDD06 (7m @ 1.17%Cu, 11.2g/t Ag) and CDFDD014 (51m @ 0.31% Cu, 0.18g/t Au and 1.2g/t Ag including 6m @ 1.16% Cu, 0.42g/t Au and 4.4g/t Ag).

Follow up drilling in 2019 confirmed the widespread nature of copper with numerous intersections in andesitic volcanics located beneath relatively barren dacitic volcanics that outcrop over much of the prospect. The andesite-dacite contact dips to the north, suggesting potential for shallow copper mineralisation could be south of current drilling.

Follow up mapping and sampling has identified outcropping areas of the mineralised andesite to the south of the area drilled, and outlined several targets where shallow copper mineralisation was found to occur within altered andesites. Drilling of these targets is planned for 2021.

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 operator and manages all exploration work at the project.

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. Parcoy is subject to the Strategic Alliance Agreement with South32.

Reconnaissance mapping and rock chip sampling located numerous rock samples returning anomalous Cu (150ppm up to 3.2% Cu) and gold (50ppb to 1.6ppmAu) values associated with both andesitic volcanic rocks in the north and intrusive monzodiorite to the south. The two rock types are separated by a major fault which is the likely feeder for copper mineralisation in the area. Subsequent IP surveys and systematic soil and rock sampling outlined large areas of copper and IP anomalism along the structure with associated multi-element geochemistry supporting the concept of both manto (replacement) and structurally related copper mineralisation beneath these anomalies.

A drilling application for 20 drill pads submitted to Government in 2020, was finally approved in January 2021, allowing access preparations to commence. The initial “proof of concept” drilling (~1800m) is planned to start around mid 2021.

The Los Otros Porphyry Copper prospect is located ~10km north-west of Moquegua, close to very large porphyry copper deposits at Toquepala, Cuajones and Los Calatos which occur within the highly productive Palaeocene Belt that extends southwards into Chile where it hosts some of the world’s largest porphyry copper deposits (Chuquicamata and Escondida).

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. Age dating of the alteration suggests a similar age to the nearby Palaeocene porphyry deposits significantly upgrading the potential of this prospect. Drill permit applications which are in progress are expected to be approved around mid 2021 allowing initial test drilling to be undertaken in the second half of 2021. This work is being funded under the SAA with South32.

Initial wide spaced drilling at the Chololo Porphyry Copper Project confirmed the potential for a buried porphyry copper system in the area but failed to locate the central potassic zone, which is where copper mineralisation is expected to occur. Alteration vectors suggest the main porphyry is located beneath Moquegua sediment cover close to the regional Chololo Fault. This prospect is 100% AusQuest with further drilling dependent on suitable funding being found.

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 15/02/2021

Peru Tenement Locations

Cerro de Fierro Prospect summary showing 2021 drill holes.

 

Cerro de Fierro East.

 

Parcoy Project planned drill hole locations.

 

ABOUT US.

The company is currently exploring within Australia & Peru and holds in excess of 5,000 km² of exploration title (granted tenements and tenement applications).

CONTACT US.

Company office & mailing address:
8 Kearns Crescent, Ardross WA 6153
Email: InvestorRelations@ausquest.com.au
Phone: 08 9364 3866
Fax: 08 9364 4892

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