Highlights

• Diamond drill holes CANDD005 and CANDD006 have returned the longest copper intersections reported to date at Cangallo, with CANDD005 intersecting 708 metres averaging 0.21% copper from 4 metres depth and CANDD006 intersecting 618 metres averaging 0.26% copper from 36 metres.

• Higher-grade zones within the broad intervals include multiple intersections above 0.40% copper, highlighting the potential for stronger grade concentrations within the broader porphyry system.

• The Peruvian Government has declared Cangallo a 'Project of National Interest', expected to streamline future drilling permit approvals as the company pursues further exploration across a system open in multiple directions.

• Stage 4 drilling permits have been received for 20 new drill pads to the south of current coverage, testing an area with surface rock-chip anomalism up to 1.0% copper that remains completely untested by previous drilling.

AusQuest Limited (ASX:AQD), an ASX-listed minerals exploration company trading under the ticker AQD, reported further drill results from its 100%-owned Cangallo Porphyry Copper-Gold Project in southern Peru on 12 November 2026. The results from diamond drill holes CANDD005 and CANDD006 extend the mineralised footprint of the Cangallo system at depth and return the longest copper intersections the company has reported from the project to date. The Cangallo project, situated approximately 25 kilometres east of the town of Chala in southern Peru, is being drilled on the basis of a geological model that interprets the mineralisation as a large-scale porphyry copper-gold system hosted within volcanic rocks and associated with multi-phase intrusive events that created a continuous stockwork vein system across a strike length of at least 1.5 kilometres, with intrusive bodies and dykes extending over at least 2.5 kilometres of strike.

CANDD005 and CANDD006 — Scale and Depth of the System

Hole CANDD005, drilled from a collar to a total depth of approximately 762 metres, returned a broad interval of 708 metres averaging 0.21% copper and 0.05 grams per tonne gold from 4 metres depth — meaning significant copper mineralisation was intersected from effectively near-surface through the full length of the drilled interval before subeconomic grades were reached. Within this broad interval, several higher-grade sub-intervals were identified, including 40 metres at 0.40% copper and 0.11 grams per tonne gold and additional intersections reflecting elevated vein density and breccia development within the broader porphyry stockwork. CANDD006 similarly returned a broad interval of 618 metres at 0.26% copper and 0.06 grams per tonne gold from 36 metres depth, with higher-grade zones including 114 metres averaging 0.40% copper from 88 metres depth. The 114-metre higher-grade interval is particularly notable as it encompasses both shallow supergene-enriched copper oxide mineralisation and deeper primary copper sulphide mineralisation, suggesting that the grade enhancement within this zone has two distinct geological contributors.

Higher-Grade Zones and Geological Interpretation

The geological data being accumulated from the sequential diamond drill holes at Cangallo is building a progressively more detailed picture of the controls on copper distribution within the porphyry system. Areas of more intense stockwork veining, breccia development, and fluid-related alteration tend to correspond with higher copper grades, while the broader disseminated stockwork component carries the lower-grade but broadly continuous copper mineralisation that characterises the system as a whole. Diamond core logging has also confirmed the presence of potassic alteration assemblages with chalcopyrite and bornite in the deeper portions of some holes, which are typical of the core zone of a porphyry copper system and can be associated with the highest grades in certain deposit styles. The company noted that the mineralised footprint is still open in most directions, and that all surface and drill data indicate that testing to date has captured only a portion of the total system extent.

Stage 4 Program and Project of National Interest Status

The Stage 4 drilling program, for which 20 drill pad permits have been received from the Peruvian Government, will test the southern extension of the Cangallo system across an area where surface rock-chip sampling has previously identified anomalous copper and molybdenum values in outcropping volcanics and porphyritic dykes. This southern area has not been drill-tested to date, and successful drilling could materially expand the overall footprint of the mineralised system. Access preparations for the Stage 4 program were described as commencing as soon as possible, subject to drill-rig and crew availability. Additionally, the recent declaration of Cangallo as a 'Project of National Interest' by the Peruvian Government is expected to provide support in streamlining future drilling permit approvals beyond those already received, which could accelerate the pace at which additional exploration areas are tested and reduce the administrative lead time between planned and executed drill programs. The government declaration of Cangallo as a Project of National Interest also carries strategic significance beyond the immediate benefit of potential permit acceleration. Such declarations in Peru typically reflect the government's assessment that a project has the scale and strategic importance to Warrant priority treatment within the administrative and regulatory framework, and they can also facilitate more constructive engagement with local communities and other government agencies that have roles in the exploration and eventual development permitting process. For AusQuest, operating as a junior explorer without the resources or institutional relationships of a major Mining company, this government endorsement is a meaningful risk-mitigation Factor that could reduce the administrative burden of advancing the project through its next phases. The progressive accumulation of drill results at Cangallo also illustrates the evolving nature of porphyry copper exploration, where the initial drilling establishes the outline of the mineralised system and subsequent holes are used to both extend and refine understanding of its internal architecture. The identification of zones of more intense veining, breccias, and potassic alteration that correspond to higher copper grades is an important step in the geological modelling process, as these zones ultimately define the highest-value portions of the deposit and inform the design of future drilling programs aimed at resource definition. For AusQuest shareholders, the confirmation that the mineralised system extends to greater than 600 metres depth and remains open in multiple directions means that the ultimate size of the Cangallo discovery is still being determined, and each new drill hole has the potential to materially expand the known footprint — including the Stage 4 program targeting the entirely undrilled southern area.

Key Insights

The Stage 4 drilling program, for which 20 drill pad permits have been received from the Peruvian Government, will test the southern extension of the Cangallo system across an area where surface rock-chip sampling has previously identified anomalous copper and molybdenum values in outcropping volcanics and porphyritic dykes. This southern area has not been drill-tested to date, and successful drilling could materially expand the overall footprint of the mineralised system. Access preparations for the Stage 4 program were described as commencing as soon as possible, subject to drill-rig and crew availability. Additionally, the recent declaration of Cangallo as a 'Project of National Interest' by the Peruvian Government is expected to provide support in streamlining future drilling permit approvals beyond those already received, which could accelerate the pace at which additional exploration areas are tested and reduce the administrative lead time between planned and executed drill programs. The government declaration of Cangallo as a Project of National Interest also carries strategic significance beyond the immediate benefit of potential permit acceleration. Such declarations in Peru typically reflect the government's assessment that a project has the scale and strategic importance to warrant priority treatment within the administrative and regulatory framework, and they can also facilitate more constructive engagement with local communities and other government agencies that have roles in the exploration and eventual development permitting process. For AusQuest, operating as a junior explorer without the resources or institutional relationships of a major mining company, this government endorsement is a meaningful risk-mitigation factor that could reduce the administrative burden of advancing the project through its next phases. The progressive accumulation of drill results at Cangallo also illustrates the evolving nature of porphyry copper exploration, where the initial drilling establishes the outline of the mineralised system and subsequent holes are used to both extend and refine understanding of its internal architecture. The identification of zones of more intense veining, breccias, and potassic alteration that correspond to higher copper grades is an important step in the geological modelling process, as these zones ultimately define the highest-value portions of the deposit and inform the design of future drilling programs aimed at resource definition. For AusQuest shareholders, the confirmation that the mineralised system extends to greater than 600 metres depth and remains open in multiple directions means that the ultimate size of the Cangallo discovery is still being determined, and each new drill hole has the potential to materially expand the known footprint — including the Stage 4 program targeting the entirely undrilled southern area.