Ann: Chololo Porphyry Cu To Be Drilled, page-2

September 21st, 2017 ASX Release

SOUTH32 COMMIT TO DRILLING

THE CHOLOLO PORPHYRY COPPER TARGET IN PERU

• First project to be drilled in Peru under the Strategic Alliance with South32
• Permitting now in progress for up to 5,000m of drilling
• Strong charge ability anomaly identified from recent IP survey


AusQuest Limited (ASX: AQD) is pleased to advise that its Strategic Alliance partner, South32 (ASX: S32), has committed to a diamond drilling program of up WR5,000m at the Chololo Porphyry Copper Project in southern Peru, making it the first project in Peru to be selected for drilling under the Strategic Alliance. Drill permitting is now in progress and is estimated to take around six months to complete, with diamond drilling expected to commence before the end of Q1 2018. As provided for in the Strategic Alliance Agreement (SAA), the parties will execute a joint venture document in regard to the Chololo Project before drilling commences. Under the joint venture, South32 would need to spend US$4.0 million to earn a 70% interest in the Chololo Project. The Chololo Project is located ~30km from the port of Ilo in southern Peru, where a recently completed Induced Polarisation (IP) survey highlighted a strong charge ability anomaly indicating a potential for a buried porphyry copper system in the area (see ASX release 5 July).

My Personal Take on this announcement, Hold on to your hats as we all could be on the ride of a lifetime... 'Whoop-dee-doo' lol