COPPER – GOLD
(100% AQD – Selected Prospects Subject to South32 Strategic Alliance Agreement (SAA))
Peru, South America.
Over the past six 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 Chololo, Los Otros and Cerro de Fierro. 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 Chololo Porphyry Copper Prospect which is located ~30km north-east of the port of Ilo, is associated with the north-east trending Chololo Fault which controls the location of other known porphyry copper systems in the area.
Detailed geological mapping, rock and soil sampling has identified potential for a buried porphyry copper system in the area, as defined by advanced argillic alteration, anomalous copper (100ppm to 1220ppm), molybdenum (8ppm to 306ppm) and elevated gold values (20ppb to 815ppb). Subsequent IP surveys identified a strong chargeability anomaly thought to reflect a large-scale pyrite (+/- chalcopyrite) halo associated with a buried porphyry copper system.
A program of up to 5,000m of diamond drilling is planned as an initial test of this large potential porphyry copper target. Drill permitting is in progress and a drilling contract has been awarded.
The Chololo Project is subject to an agreement with South32 under which they can earn a 70% interest in the project by spending a total of US$4.0 million. AusQuest, through its Peruvian subsidiary, will be the operator.
The Cerro de Fierro IOCG prospect occurs in the Chala region of southern Peru and 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 has identified large areas containing anomalous copper with numerous samples in excess of 0.1%Cu in surface samples. IP surveys located a strong IP chargeability anomaly associated with the large discrete magnetic response, providing a priority target for drilling.
A programme of up to 3000m of diamond drilling has been planned and drill permitting has commenced.
Cerro de Fierro is the second copper project in Peru to be the subject of an agreement with South32 to fund the drilling programme. South32 can earn a 70% interest in the project by spending a total of US$4.0 million. AusQuest will again be the first operator.
The Cerro de Fierro Project is located at the southern end of a recognised IOCG metallogenic belt in the south of Peru, and occurs south of the Mina Justa (~475Mt @ 0.68% Cu) and Pampa de Pongo (945Mt @ 44.7% Fe, 0.12% Cu, 0.09g/t Au) deposits.
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 intermediate to 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.
Induced polarisation (IP) surveys designed to test to depths of approximately 500m below ground level, commenced late in January to locate potential targets for drilling. This work is being funded under the SAA with South32.
Project Generation work is continuing in the south of Peru using the Company’s proprietary airborne data. Several new projects are being advanced for presentation to South32 as possible new opportunities under the terms of the SAA.
The Company continues to be encouraged by progress being made at all of 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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