AusQuest identifies Peruvian porphyry targets

THE DRILL SERGEANT: AusQuest Limited (ASX: AQD) has identified priority drill targets for porphyry copper-style mineralisation and iron oxide copper gold (IOCG) targets at a further three prospect areas within the company’s portfolio of copper-gold exploration projects in Peru.

These targets and are owned 100 per cent by AusQuest are in addition to others the company has already defined within the Lana and El Jaguay-Azucar prospects, which it reported in its June 2013 Quarterly report.

“We are very encouraged with what we are seeing over our extensive land package in Peru,” AusQuest Limited managing director Graeme Drew said in the company’s announcement to the Australian Securities Exchange.

“In particular the drill targets at the Cardonal, Puite and Cerro de Fierro prospects are very large and sit in one of the world’s best locations for copper exploration.

“AusQuest looks forward to commencing drilling operations in the near future, across what it considers to be a number of highly prospective, and potentially company making projects.”

The Cardonal, Puite and Cerro de Fierro prospects are subject to a Joint Venture Agreement with Cliffs Natural Resources Exploration (CNRE), a wholly-owned subsidiary of New York-listed company, Cliffs Natural Resources.

Under the joint venture, should CNRE elect to proceed with further evaluation of one or more of these prospects, it is required to sole-fund further evaluation (drilling) of the selected prospect(s) up to US$4 million to secure a 70 per cent interest in each prospect.

If CNRE elects not to proceed with further evaluation of a prospect, ownership of the prospect will revert 100 per cent to AusQuest.