Announcement PDF February 6th, 2025 Visit Investor Hub for a video update CANGALLO PORPHYRY COPPER DISCOVERY CONFIRMED – SIGNIFICANT GROWTH POTENTIAL IDENTIFIED Highlights: • Large-scale porphyry copper-gold discovery confirmed at AusQuest’s 100%owned Cangallo Project in southern Peru, with significant intercepts including: o 304 metres @ 0.30% Cu, 0.06ppm Au from 34m (CANRC008), including: ▪ 28 metres @ 0.56% Cu and 0.03ppm Au ▪ 56 metres @ 0.40% Cu and 0.06ppm Au ▪ 20 metres @ 0.33% Cu and 0.08ppm Au ▪ 18 metres @ 0.35% Cu and 0.08ppm Au o 154 metres @ 0.37% Cu, 0.06 ppm Au from 36m (CANRC003), including: ▪ 36 metres @ 0.37% Cu and 0.05ppm Au ▪ 24 metres @ 0.42% Cu and 0.06ppm Au ▪ 44 metres @ 0.47% Cu and 0.08ppm Au o 226 metres @ 0.22% Cu, 0.07ppm Au from 4m (CANRC005), including: ▪ 28 metres @ 0.33% Cu and 0.11ppm Au o 136 metres @ 0.24% Cu, 0.06ppm Au from 230m (CANRC003), including: ▪ 30 metres @ 0.37% Cu and 0.07ppm Au o 136 metres @ 0.25% Cu, 0.06ppm Au from 22m (CANRC007), including: ▪ 12 metres @ 0.43% Cu and 0.07ppm Au o 121 metres @ 0.26% Cu, 0.04ppm Au from 256m (CANRC007), including: ▪ 34 metres @ 0.36% Cu and 0.03ppm Au ▪ 12 metres @ 0.48% Cu and 0.08ppm Au • Mineralisation occurs from near surface, confirming the potential to define a shallow copper oxide resource as well as deeper sulphide mineralisation • Drilling has tested a very small fraction of the prospective target area with mineralisation open in all directions • Continuity of copper and gold grades confirmed between drill-holes and between drill sections – seven out of eight holes end in mineralisation. • Planning for a follow-up drilling program has commenced and will be finalised over the coming weeks • Located close to significant infrastructure, 25km east of the town of Chala and within 10km of the coast and regional powerlines, the Cangallo discovery has the potential to be a low-capital copper development project JOIN AUSQUEST’S INTERACTIVE INVESTOR HUB. Visit AUSQUEST.COM.AU for AusQuest’s interactive Investor Hub AusQuest Limited ABN 35 091 542 451 | 8 Kearns Crescent Ardross WA 6153 AusQuest Limited (“AusQuest” or the “Company”) (ASX: AQD) is pleased to advise that additional assay results received from the maiden drilling program (eight RC drill-holes for a total of ~3,000m) at its 100%-owned Cangallo Project in southern Peru have confirmed a new, large-scale porphyry copper discovery close to significant infrastructure, 25km east of the town of Chala and within 10km of the coast (Figure 1). Figure 1: Cangallo Porphyry Copper Prospect showing drill-hole locations and significant intersections plus copper-molybdenum assay values from surface sampling. Cross-sections as shown on the plan are provided below as Figures 2, 3, and 4. Commenting on the new copper discovery at Cangallo, AusQuest’s Managing Director, Graeme Drew, said: “This is another set of excellent results from our Cangallo Prospect. The final batch of assays has exceeded our expectations and confirmed Cangallo as a significant new greenfields porphyry copper-gold discovery in Peru. “Based on the results generated to date, we believe there is significant upside potential at Cangallo, and we are confident that further exploratory drilling will continue to find more copper near-surface as well as deeper sulphide mineralisation. “It is important to emphasise that Cangallo is also very well situated with respect to infrastructure, being only 10km from the coast and close to power transmission lines as well as being at low elevations (<1,500m) making it easier to work year-round. “We have only just scratched the surface at Cangallo and we look forward to updating our shareholders on the next steps for this exciting new discovery!” 2 Cangallo Exploration Results: Broad zones of copper mineralisation (up to 304m @ 0.30% Cu and 0.06ppm Au) – in the form of both oxides (malachite, chrysacolla and brochantite) and sulphides (mainly chalcopyrite) – have been reported for seven of the eight holes drilled, with significant assay results provided in Table 1 below. The copper mineralisation occurs dominantly within the volcanic host rocks (andesites and dacites) and is associated with sericite and potassic alteration. The oxide mineralisation is present as disseminations and blebs within the volcanics and within intrusive porphyry rocks, whereas the sulphide mineralisation occurs within stockwork veins, veinlets, fractures and mineralised dykes. Higher copper grades appear to coincide with relatively thin (<10m) porphyritic dykes intruding the volcanics suggesting the potential for a large, higher grade intrusive stock buried beneath the shallow cover within the interpreted caldera structure. Copper and gold mineralisation remains open in all directions, including at depth, although prospectivity appears to increase to the west of the current drilling, where the centre of the porphyry system is thought to be hidden beneath the cover. Table 1: Significant assay results from the maiden RC drilling program: Hole Number CANRC001 Including Including Including Including CANRC002 Including Including Including CANRC003 Including Including Including Including From (m) To (m) 6 354 EOH 10 26 58 84 252 264 316 350 18 134 138 148 180 208 214 402 EOH 222 234 312 322 342 380 Interval (m) 348 16 26 12 34 116 10 28 188 12 10 38 Cu % 0.26 0.43 0.36 0.53 0.39 0.19 0.48 0.18 0.28 0.5 0.43 0.40 Au ppm 0.06 0.08 0.07 0.27 0.08 0.04 0.07 0.04 0.07 0.07 0.09 0.09 Mo ppm 12 6 6 32 31 28 72 59 39 72 16 33 Ag ppm 0.31 0.09 0.57 1.09 0.44 0.08 0.03 0.58 0.38 0.67 0.41 0.46 36 40 86 128 146 190 76 110 138 190 154 36 24 10 44 0.37 0.37 0.42 0.42 0.47 0.06 0.05 0.06 0.06 0.08 18 15 12 15 33 0.19 0.07 0.12 0.39 0.25 230 366 EOH 136 0.24 0.06 36 0.28 Including CANRC004 258 228 272 288 238 276 EOH 30 10 4 0.37 0.17 0.33 0.07 0.07 0.02 34 30 26 0.41 0.18 0.87 CANRC005 Including Including 4 20 54 230 32 82 226 12 28 0.22 0.33 0.33 0.07 0.04 0.11 9 4 10 0.22 0.07 0.09 3 CANRC006 4 36 110 164 206 270 20 92 122 192 262 408 EOH 16 56 12 28 56 138 0.15 0.12 0.12 0.12 0.13 0.17 0.05 0.03 0.02 0.02 0.03 0.03 5 4 21 10 14 31 0.07 0.05 0.08 0.21 0.26 0.26 CANRC007 22 158 136 0.25 0.06 62 0.15 Including 138 150 12 0.43 0.07 111 0.51 Including Including 256 264 352 377 EOH 298 364 121 34 12 0.26 0.36 0.48 0.04 0.03 0.08 43 37 69 0.32 0.32 0.44 CANRC008 Including Including Including Including 34 36 120 186 216 338 64 176 206 234 304 28 56 20 18 0.30 0.56 0.40 0.33 0.35 0.06 0.03 0.06 0.08 0.08 18 11 12 25 20 0.05 0.06 0.34 0.29 0.40 350 414 EOH 64 0.23 0.05 20 0.20 380 394 14 0.37 0.10 23 0.31 Including (Broad copper intervals were determined using a 0.1% Cu cut-off and an internal waste of 4 metres. Gold, molybdenum and silver values were averaged over the same intervals as determined by the Cu intersections. Higher grade intervals (including) were determined using 0.3% Cu cut-off and 4 metre waste intervals.) A full assessment of the multi-element geochemical data is currently in progress to identify pathfinder elements associated with the porphyry system, to help prioritise key areas for further drilling. Results have confirmed the continuity of extensive copper mineralisation (with gold credits) throughout seven of the drill-holes while also highlighting the potential to delineate a nearsurface copper oxide resource as well as locating deeper sulphide mineralisation. The maiden drilling program only tested a very small fraction of the Cangallo prospect, highlighting the potential for a large-scale porphyry copper system to be defined within the area. Earlier geological mapping and rock-chip sampling outlined a partially exposed copper (+/gold) porphyry system, within a large-scale (3km x 2km) caldera-like structure containing extensive colluvial and younger sediment cover. Next Steps: • The Company expects to release a more detailed assessment of the maiden drilling results over the coming weeks, once interpretation of the multi-element data has been completed and integrated with other available data. • Details of future exploration programs at Cangallo, including further exploratory drilling, will also be advised over the coming weeks. Context: Peru is now the second largest copper producer in the world behind Chile, with around 2.8Mt of copper being mined and processed per annum. The bulk of this production comes from 4 around 10 large copper projects, mainly porphyries, that are located along the Andean Belt that extends from Chile in the south to Ecuador in the north. Porphyry deposits are typically large (often over 1 billion tonnes of ore), usually opencuttable with low waste to ore ratios. The shallower parts of these ore bodies are usually oxide ores that can be processed by heap leach methods, delivering lower development capital costs and use less process energy compared to traditional processing (flotation of sulphide ores). It also produces pure cathode copper metal as a final product on site instead of copper concentrates that require further shipping, smelting and refining. Mining and processing costs benefit from the scale of these operations and there are a number of profitable large-scale operations (Cerro Verde, Cuajone, Toqueapla and the recently developed Quellaveco deposit, plus a new approved development at Zafranal) located within the Arequipa District where Cangallo is situated, using head grades between 0.20% and 0.40% Cu. These mines have multi-decade mine-lives and are long-lived assets. The economic viability of the Peruvian resources is often affected by a range of issues including location, altitude, proximity to infrastructure and quite commonly land usage conflicts with local communities. The Cangallo Project is particularly well located with respect to the foregoing factors and exploration so far suggests that it contains similar copper grades and may have similar size potential to some of the porphyry copper deposits being mined and/or developed within the Arequipa District. Peru is a stable country and the government is supportive of new mine developments as they add significantly to the Peruvian economy and the communities where they are located. Graeme Drew Managing Director Visit Investor Hub for further updates COMPETENT PERSON’S STATEMENT The details contained in this report that pertain to exploration results are based upon information compiled by Mr Graeme Drew, a full-time employee of AusQuest Limited. Mr Drew is a Fellow of the Australasian Institute of Mining and Metallurgy (AUSIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Drew consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears. FORWARD LOOKING STATEMENT This report contains forward looking statements concerning the projects owned by AusQuest Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on management’s beliefs, opinions and estimates as of the dates the forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. 5 Figure 2: Cangallo Drill Section 1 showing RC drill traces with copper grades to the right and gold grades to the left plus intersections as provided in Table 1. NB: the drill hole traces are projections onto the section – their true azimuth and inclination are provided in the JORC table. Figure 3: Cangallo Drill Section 2 showing RC drill traces with copper grades to the right and gold grades to the left plus intersections as provided in Table 1. NB: the drill hole traces are projections onto the section – their true azimuth and inclination are provided in the JORC table. 6 Figure 4: Cangallo Drill Section 3 showing RC drill traces with copper grades to the right and gold grades to the left plus intersections as provided in Table 1. NB: the drill hole traces are projections onto the section – their true azimuth and inclination are provided in the JORC table. 7 JORC Code, 2012 Edition – Table 1 report, Reverse Circulation Drilling at Cangallo in Peru Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling techniques • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • Aspects of the determination of mineralisation that are Material to the Public Report. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). • Samples were collected using a tube sampler by spearing into each one metre sample bag and compositing samples on a two-metre basis. • Sample depths were determined by the length of the rodstring and confirmed by counting the number of samples and bags at the drill platform as per standard industry practice. • A ~4kg sample was collected for representivity. • Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximise sample recovery and ensure representative nature of the samples. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. • Experienced RC drillers and an appropriate rig were used to provide maximum sample recovery. • Minimal to no water was encountered in all drill holes. • The weight of every bulk 1 metre sample was recorded and checked for sample recovery estimates. Sample recovery was acceptable to industry standard. • The sample weight of every laboratory sample was also collected and weighed on site for future reference. • At this early stage of exploration, it is not known if there is a relationship between sample recovery and assay grade. • Drilling techniques Drill sample recovery 1 • RC Drilling with a face sampling bit has been used with a hole diameter of approximately 132mm. • No down-hole surveys were undertaken Criteria JORC Code explanation Commentary Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged. • RC sample chips were collected into chip trays and are stored for future reference. • RC samples were logged on site during the drilling by experienced geologists to identify key rock types and mineralization styles. • Sample logging was qualitative with visual estimates of mineralization made for later comparison with assay results. • All one metre drill samples were logged. Sub-sampling techniques and sample preparation • If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled. • RC samples were collected every 1 metre into large plastic bags and stored in rows per depth at the drill site. • Samples were collected using a 50mm tube sampler and composited on a two metre basis. • Certified coarse blanks and fine standards are inserted approximately every 35 samples and duplicates taken every 20 samples for quality control purposes. • The sample sizes are considered appropriate for the geological materials sampled. Quality of assay data and laboratory tests • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. • Assaying of the drill samples is by standard industry practice. • The samples are sorted, dried, crushed then split to obtain a representative sub-sample which is then pulverized. • A portion of the pulverized sample is digested using a four acid digest (Hydrofluoric, Nitric, Hydrochloric and Perchloric) which approximates a total digest for most elements. Some refractory minerals are not completely dissolved. • Inductively Coupled Plasma Mass Spectroscopy (ICPMS) was used to measure Ag, Al, As, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, In, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti Tl, U, V, W, Y, Zn, Zr, • Au assays were provided by 30g fire assay with AA finish. • Every 2 metre composite sample is also submitted for Hyperspectral analysis using a TerraSpec instrument and uploaded into the aiSIRISTM software for mineral 2 Criteria JORC Code explanation Commentary identification and spectral output. • Assays are provided by ALS del Peru in Lima which is a certified laboratory for mineral analyses. Analytical data is transferred to the company via email. • Data from the laboratory’s internal quality procedures (standards, repeats and blanks) are provided to check data quality. • The Company collects duplicate samples on an approximate 1: 20 basis, and inserts coarse blanks on a 1:30 basis and fine blanks on a 1:35 basis and fine standards are inserted on a 1:35 basis. Verification of sampling and assaying • The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data. • No verification of intersections was undertaken. Drilling was wide spaced and reconnaissance in nature. • All primary sample data is recorded onto a printed sheet on site and uploaded to a site laptop, all geological data is recorded at the drill platform on a site laptop and downloaded daily and onto an external backup. • No adjustments have been made to the assay data. Location of data points • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control. • Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied. • Drill hole collars including elevation are located by hand held GPS to an accuracy of approximately 5m. • All surface location data are in WGS 84 datum, UTM zone 18S. Orientation of data in relation to geological structure • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. • Any bias due to the orientation of the drilling is unknown at this early stage of exploration. Sample security • The measures taken to ensure sample security. • Sample security is managed by the operator of the Project. Procedures match with Industry best practice. • Samples are collected into securely tied bags and placed Data spacing and distribution 3 • RC drill-holes were sited to test for mineralization at shallow depths within a broader intrusive complex. Testing for broad zones of stockwork veining associated with a hydrothermal mineralised system • Samples were composited on a 2 metre basis. Criteria JORC Code explanation Commentary into cable-tied plastic bags for transport to the laboratory. Each sample batch has a sample submission sheet that lists the sample numbers and the work required to be done on each sample. • Samples were transported to the laboratory by company vehicle using trusted company personnel. • Sample pulps (after assay) are held by the laboratory and returned to the company after 90 days. Audits or reviews • The results of any audits or reviews of sampling techniques and data. • No reviews or audits of the sampling techniques or data have been carried out to date. Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary Mineral tenement and land tenure status • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. • The Cangallo project is located approximately 20 km east of the town of Chala in the south of Peru. • The Cangallo project comprises 9 granted mineral concessions. The tenements are held by Questdor which is a 100% subsidiary of AusQuest Limited. • There are no major heritage issues to prevent access to the tenements. A drill permit (FTA) has been provided by INGEMMET for the drilling program following environmental, and community approvals. Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties. • No historic exploration data is available. Geology • Deposit type, geological setting and style of mineralisation. • The Cangallo project is targeting Porphyry deposits along the coastal belt of southern Peru. These are large scale disseminated copper (and gold) deposits found within orogenic belts that surround the Pacific Rim. The deposits can be really large requiring significant drilling to evaluate. 4 Criteria JORC Code explanation Commentary Drill hole Information • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated. • These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’). • All relevant drill hole data and information are provided below. Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. • All drill holes are shown on appropriate plans and included in the ASX release. • Drill-hole cross sections will be provided once all the remaining assays have been received Balanced reporting • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. • The nature and scale of planned further work (eg tests for lateral extensions or depth • At this early stage of drilling, only significant assay results have been reported. Data aggregation methods Relationship between mineralisation widths and intercept lengths Other substantive exploration data Further work 5 • Aggregate assay intervals quoted for the RC drill-holes in this report are based on copper assays, using a cut-off value of ~0.1% Cu, and maximum internal waste of 4 metres. • For higher grade intervals a 0.2% Cu cut-off and a 4m internal waste limit were used. • All intervals reported are down-hole lengths. True widths are unknown at this stage. • The relationship between this first phase drilling and previous exploration data is shown in the report. • Future drill hole locations will be determined once the Criteria JORC Code explanation Commentary extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Drill-Hole Details Hole ID Easting Northing RL Azimuth Dip Depth CANRC001 604112 8245063 1189 255 -60 354.00 CANRC002 603751 8244965 1175 75 -60 402.00 CANRC003 603903 8245259 1185 180 -60 366.00 CANRC004 603578 8245251 1176 135 -60 276.00 CANRC005 604117 8245065 1189 75 -60 402.00 CANRC006 604154 8244906 1186 270 -60 408.00 CANRC007 603757 8244971 1175 25 -65 377.00 CANRC008 603890 8245264 Projection: WGS84 Zone 18S 1185 135 -65 414.00 6 current results have been fully assessed.