AusQuest Confirms Extensive Copper Mineralisation Below 550m at Cangallo Project with First Deep Diamond Drill-Hole

AusQuest Advances Exploration at Cangallo in Peru's Southern Porphyry Copper District

AusQuest Limited is advancing exploration at its wholly owned Cangallo Porphyry Copper-Gold Project in Peru, focusing on assessing the depth potential and economic viability of this extensive porphyry copper system through a six-hole diamond drilling campaign. The project remains AusQuest's primary development focus, aiming to unlock the resource potential of a mineralised system interpreted to extend to considerable depths.

Located within a mineralised corridor with previously encouraging surface rock-chip assays, the southern area—site of the first deep diamond drill-hole—has shown increasing grades and thicknesses toward the southeast, indicating structurally controlled mineralisation. The northern area, now the focus of ongoing drilling, has demonstrated hypogene copper mineralisation to depths of at least 600 metres from prior reverse circulation and diamond drilling, highlighting multiple economically significant zones across the prospect.

First Deep Diamond Drill-Hole CANDD003 Reveals Hypogene Copper Mineralisation Beyond Previous Drilling Depths

The initial diamond drill-hole, CANDD003, was successfully drilled to approximately 880 metres, significantly extending the known vertical extent of the Cangallo mineralised system beyond the previous 350-metre limit of reverse circulation drilling. Positioned within the southern mineralised corridor, this hole was selected based on earlier surface sampling and geological interpretations of the porphyry system's structure and controls.

Copper mineralisation was observed from near surface down to about 550 metres within andesite and dacite volcanics intruded by quartz diorite and tonalite dykes. Oxide copper mineralisation was logged from surface to roughly 250 metres, followed by a chalcocite zone between 250 and 280 metres, indicative of a supergene blanket above a deeper sulphide system. Below 280 metres, chalcopyrite, pyrite, and minor bornite and molybdenite were intersected in stockwork veins and disseminations, confirming hypogene mineralisation. Although vein density decreases below 550 metres, mineralisation persists to the hole's end, suggesting a large vertically extensive stockwork vein complex.

Alteration and Hydrothermal Breccias Confirm Large Porphyry System Characteristics

Core observations from CANDD003 reveal pervasive quartz–sericite/muscovite–chlorite veining typical of large porphyry copper systems. Multiple hydrothermal breccia zones indicate several intrusive and mineralising events consistent with major porphyry systems. Potassic alteration associated with K-feldspar selvages and the distribution of hypogene minerals in both disseminated and vein-hosted forms provide geological support for a substantial mineralised system with significant depth potential.

AusQuest cautions that visual mineral abundance estimates from core are not substitutes for laboratory assays. Core photographs included show chalcopyrite-filled veins, disseminated chalcopyrite in porphyritic host rock, and breccia zones within oxide and sulphide intervals. These observations support the geological interpretation but do not quantify grades or concentrate distribution. Formal assay results remain essential to evaluate the economic significance of the mineralisation.

Assay Results from CANDD003 Expected Within Four to Six Weeks

AusQuest expects assay results from diamond drill-hole CANDD003 within four to six weeks of the 22 July 2026 announcement. These results will provide critical data on copper grades and distribution to assess the economic potential of the southern mineralised corridor. The assay timeline will also guide drilling strategies for subsequent holes.

The company did not specify laboratory details or analytical protocols but indicated the timeframe aligns with standard diamond core processing in Peru. Following assay receipt and evaluation, further drilling in the southern area will aim to delineate copper mineralisation distribution and controls at depth.

Drilling Shifts to Northern Area to Target High-Grade Copper Zones

After completing CANDD003 in the south, the diamond drill rig has moved to the northern area of the Cangallo prospect. Earlier drilling, including hole CANDD002, demonstrated hypogene copper mineralisation to at least 600 metres depth in this sector. Multiple holes ended in mineralisation, suggesting further hypogene mineralisation at depth.

Drill-hole CANDD004 is positioned to test beneath high copper grades identified in prior reverse circulation drilling in the north. This approach aims to clarify the distribution and controls of hypogene mineralisation across varying structural and lithological settings. Drilling of CANDD004 is expected to complete within two to three weeks of the announcement, maintaining momentum on the six-hole program. The northern expansion reflects AusQuest's strategy to explore beneath higher-grade supergene copper zones identified earlier.

Six-Hole Diamond Drilling Campaign to Continue Over Several Months

AusQuest's diamond drilling program includes six planned holes designed to systematically test the depth potential of the Cangallo porphyry system. Deep diamond drilling is anticipated to continue for several months, underscoring the company's strong commitment to exploration. This multi-hole program aims to confirm the vertical extent of mineralisation and gather geological data to target higher-grade copper zones at depth.

As assay results are received and interpreted, drilling targets will be refined to enhance geological understanding. AusQuest commits to keeping shareholders informed with updates tied to assay completions rather than a fixed schedule.

Core Visuals Support Economic Potential Assessment

The announcement includes detailed core photographs from CANDD003 showing chalcopyrite-filled veins, disseminated chalcopyrite in porphyritic andesite, and breccia zones with potassic alteration and chlorite-muscovite veining. These visuals provide geological context on the copper mineralisation style encountered. The chalcocite zone between 250 and 280 metres may reflect supergene enrichment over an economically significant primary sulphide system.

However, AusQuest stresses that visual mineral abundance estimates are not substitutes for laboratory assays and provide no quantitative data on copper grades or impurities. This disclaimer aligns with JORC Code compliance and scientific rigor, ensuring investors understand that core observations are preliminary pending formal assay confirmation.

Competent Person Certification and Forward-Looking Statements

Managing Director Graeme Drew, a Fellow of the Australasian Institute of Mining and Metallurgy (AUSIMM) and Competent Person under the JORC Code, has approved the inclusion of exploration results in this announcement. This oversight guarantees the technical content meets professional standards. Drew stated the company is "very pleased with the visual observations from diamond drilling completed so far," noting the first deep hole "confirms the system extends beyond 550 metres depth with highly encouraging core indications."

The announcement contains forward-looking statements subject to risks and uncertainties that may impact actual outcomes. Assay results could differ from visual observations, drilling may encounter varying geology, and operational or market factors may influence project economics. Investors are advised to review the full announcement and seek independent advice before making investment decisions.

Investor Focus Areas and Communication Timeline

Investors should monitor the release of assay results from CANDD003, expected within four to six weeks from 22 July 2026, which will provide vital data on copper grades, sulphide mineralogy, and spatial distribution to better assess economic potential. Regular updates are anticipated as assay batches are processed and additional drill-holes progress.

Secondary focus includes completion and visual results from drill-hole CANDD004 in the north, expected within two to three weeks, and ongoing drilling of the remaining holes. Post-assay, drilling strategies will be refined for both southern and northern areas. Shareholders should watch for announcements regarding any program extensions, target adjustments, or updated interpretations of economic potential as new data emerges.