Start of first Peru drill program marks the start of a busy six months for AusQuest AusQuest Limited (ASX: AQD) is pleased to advise that a major diamond drill program comprising 10 holes for 5,000m has commenced at its Chololo Porphyry Copper Project in southern Peru. Two drill rigs are currently on site with the
Start of first Peru drill program marks the start of a busy six months for AusQuest
AusQuest Limited (ASX: AQD) is pleased to advise that a major diamond drill program comprising 10 holes for 5,000m has commenced at its Chololo Porphyry Copper Project in southern Peru. Two drill rigs are currently on site with the first rig drilling at the CH06 target and the second due to commence drilling at site CH018 shortly.
All holes are planned to be drilled to at least 500m depth and will take approximately two weeks each to complete. Drill core logging/processing plus analysis should be available approximately 4-6 weeks after each hole is completed. The full drilling program is expected to take several months to complete.
Initial drill-hole priorities have been determined by the availability of access and preparation of drill pads. Drilling progress will be reported on an ongoing basis.
The Chololo Project is located ~30km from the port of Ilo in southern Peru, close to road, rail and power infrastructure. Previous mapping and sampling by the Company identified the potential for a buried porphyry copper system and subsequent Induced Polarisation (IP) surveys outlined a large-scale priority drill target (Figure 1).
The Chololo Project is subject to an agreement with global miner South32 (ASX, LSE, JSE:S32; ADR: SOUHY), whereby South32 can earn a 70% interest in the project by spending US$4.0 million, with the right to earn an additional 10% interest by completing a PreFeasibility Study. AusQuest is the operator during this first phase of drilling.
AusQuest Managing Director Graeme Drew said the start of the Chololo drilling program was another important step for its Strategic Alliance with South32 and for the Company’s ongoing exploration programmes targeting large-scale copper discoveries in southern Peru.
“This is another key milestone for AusQuest and an exciting time for our shareholders,” he said. “The target being drilled at Chololo has the potential to be a company-maker and we are keenly awaiting the outcome of our first drilling program in Peru, where many large copper deposits are known to occur.”
“We are also working hard to keep the drill rigs turning in Peru on a semi-continuous basis over the next six months or so. Drill permitting at our Cerro de Fierro Project is nearing completion and will form the basis of our second drill programme later in the year,” he said.