News: AusQuest wins copper-gold drilling approvals in Peru

AusQuest (ASX:AQD) should trade firmer after receiving further drilling approvals for its Puite copper-gold prospect in Peru.

This paves the way for the drilling of a large buried porphyry copper prospect under shallow covr at Puite. This is the second approval out of three major porphyry copper-gold prospects identified for drill testing this year.

Approval to drill the Cardonal prospect was announced last month and approval for drilling at the Lana prospect is expected shortly.

The Puite prospect is a large buried porphyry copper gold target under shallow cover, which has been outlined by a combination of surface mapping, sampling, and ground magnetic and induced polarisation surveys.

The company was originally attracted to the prospect after reconnaissance field work located anomalous copper values to 0.27% copper within altered diorite dykes and granodiorite, reiterated by soil sampling.

Subsequent ground magnetic surveys defined a discrete magnetic target roughly 1 kilometre by 1 kilometre in size, closely associated with the surface copper anomalism.

Drilling approval at Puite covers 13 drill platforms which will test a range of magnetic, IP and copper targets.

AusQuest's remaining drilling application at the Lana prospect, where a large-scale gravity target has been identified, is expected to be approved within the coming weeks.

The company is lightly capitalised at under $4 million and also holds nickel ground in the Fraser Range.