AusQuest Limited has reported promising early results from its Stage 2 reverse circulation drilling program at the Cangallo Project in southern Peru. The company’s four initial drill-holes have returned significant copper intervals that extend both laterally and at depth, with one hole reporting a 324‐metre intercept averaging 0.30% copper and 0.07ppm gold. Multiple wide intercepts were highlighted, with some segments reaching up to 0.45% copper. The drilling has intersected mineralization from near surface and continues in mineralized rock with both oxide and sulphide mineral assemblages, suggesting that further high-grade copper could be encountered when the underlying porphyry is ultimately intersected. The exploration data indicate that all copper intersections so far occur within the host volcanic rocks or along narrow tonalite dykes. This provides potential vectors to the causative porphyry that is expected to contain even higher copper grades. Preliminary metallurgical test work on reverse circulation samples revealed variable, but generally encouraging, copper recoveries—seven out of ten samples reported recoveries between 60% and 80%, although three samples showed lower values between 33% and 50%. This metallurgical response suggests that the oxide copper mineralization may be amenable to heap leaching, an aspect that will be explored further as additional assay data become available. Looking ahead, the Stage 2 drilling program is scheduled for completion by the end of July, with remaining assay results expected by the end of August. AusQuest Limited is planning diamond drilling in the second half of August to better define the deposit’s depth and vector towards the porphyry centre. Permits for an expanded Stage 3 reverse circulation drilling program are anticipated shortly, while new rock chip sampling to the south of current coverage has provided encouraging surface data that could add further potential targets. The news carries mixed sentiment for market observers. On the bullish side, the wide and consistent copper intercepts at shallow depths combined with promising metallurgical test work and the possibility of multiple porphyry centres support the view of a significant discovery with future high-grade potential. Such early indicators could pave the way for substantial upward revisions in resource estimates as the drilling program expands. On the bearish side, the exploration remains in its early stage and current copper grades are modest relative to some other large-scale copper deposits, while variability in recovery rates and the uncertainty surrounding the causative porphyry add an element of risk. The forthcoming drilling results and further metallurgical work will be key to validating the commercial potential of the discovery.