AusQuest Limited has initiated its Stage 2 reverse circulation drilling program at its 100%-owned Cangallo copper-gold project in Peru. The program, which will drill approximately 5,000 meters over the next 4-6 weeks, is designed to extend copper-gold intersections previously identified and help locate the centre of the porphyry system. Initial assay results are expected within six to eight weeks, raising the possibility of higher copper grades and a significant supergene blanket beneath the surface. The company’s management expressed excitement over the drilling campaign, noting that the extended intersections and potential deeper mineralisation could pave the way for additional deep diamond drilling and a third stage of reverse circulation drilling later in the year, pending the required permits. Preliminary exploration has revealed broad zones of copper mineralisation, with some drill holes intersecting up to 304 meters at 0.30% copper and 0.06 parts per million gold. The presence of copper enrichment, stock-work veining, and hydrothermal alteration within volcanic host rocks points to the expansive nature of the porphyry system. Strategically, the Cangallo project benefits from its close proximity to key regional infrastructure, including being only 25 kilometers east of the town of Chala and within 10 kilometers of the coast. This advantageous location in Peru, a major copper-producing country, enhances the project’s potential given the supportive local government and mining-friendly environment in the Arequipa District. Bullish sentiment is supported by the promising early indicators at Cangallo, where extensive mineralisation and signs of supergene processes suggest the potential for a large, high-grade porphyry system. The planned follow-on drilling stages and favourable regional infrastructure further add to the optimism for value creation. However, bearish factors include the inherent risks associated with exploration, the reliance on positive assay outcomes, and the uncertainties surrounding the full extent of the system, which require further investigation before confirming the project’s long-term viability.