The statement you provided reflects a mix of accurate...

The statement you provided reflects a mix of accurate observations and opinions about AusQuest Limited’s recent drilling announcement at the Cangallo porphyry copper-gold project in Peru. Let’s break it down and evaluate its truthfulness in the context of the announcement and general industry knowledge, while addressing each point:

1. “Not a lot.”

• This is vague and likely refers to the lack of surprises or significant new developments in the announcement. AusQuest’s Stage 2 Reverse Circulation (RC) drilling program at Cangallo, which began as announced on June 12, 2025, is a continuation of earlier exploration efforts. The maiden drilling campaign (January-February 2025) already confirmed significant copper-gold mineralization, with intercepts like 348m at 0.26% copper and 0.06 g/t gold, and 304m at 0.30% copper. The Stage 2 program aims to extend these intersections and locate the porphyry center, which aligns with expected follow-up work rather than groundbreaking news. So, this part of the statement is somewhat true in that the announcement doesn’t introduce unexpected developments but builds on prior results.

“RC drilling a porphyry shouldn’t throw up too many surprises.”

• This is generally accurate. RC drilling, as used in AusQuest’s Stage 2 program (5,000m planned), is a standard exploration technique for porphyry systems, particularly in early to mid-stage exploration. It’s effective for testing extensions of known mineralization and identifying broad zones of mineralization, as seen in AusQuest’s earlier results. Porphyry deposits, characterized by large-scale, low-grade disseminated mineralization, often yield predictable results in terms of mineral presence once a system is identified, as was the case with Cangallo’s maiden drilling. However, surprises could still occur, such as unexpectedly high grades, supergene enrichment zones, or structural complexities, which AusQuest is targeting (e.g., a potential enriched supergene blanket). Thus, while RC drilling is less likely to yield shocking results at this stage, it’s not entirely without potential for new findings.

“Key will be defining how big at what grade.”

• This is absolutely true and aligns with the core objectives of AusQuest’s Stage 2 drilling. Porphyry deposits are valued for their size and economic viability, which depend on the volume of mineralized material and its grade. AusQuest’s initial drilling covered only a small fraction of the prospective area within a caldera-like structure, with results indicating 0.22–0.37% copper and low gold grades (0.06–0.07 g/t). The current program aims to extend these zones and locate the higher-grade porphyry center, which could significantly impact the project’s scale and value. Defining the size and grade distribution is critical for assessing whether Cangallo can become a viable mining operation, comparable to other Peruvian porphyry deposits in the Andean Belt.

“Drilling porphyry = expensive to define.”

• This is true. Porphyry deposits require extensive drilling to delineate their size, grade, and geometry due to their large scale and often complex geology. RC drilling, while cost-effective for initial exploration (estimated at $100–200/meter in Peru), can still accumulate significant costs over thousands of meters. AusQuest’s 5,000m Stage 2 program, following the 3,000m maiden campaign, reflects this need for substantial drilling. Additionally, the statement aligns with industry reality: defining a porphyry deposit often requires transitioning to diamond drilling (more expensive, ~$300–500/meter) to confirm deeper sulfide mineralization and structural details, as AusQuest plans for future phases. The company’s recent $7.5 million capital raise in February 2025 supports this costly exploration effort.

“Might be a bit like having a tiger by the tail.”

• This is an opinion but captures a valid sentiment. Exploring a porphyry deposit like Cangallo can be both promising and challenging. The “tiger” metaphor suggests significant potential (a large-scale copper-gold system could be a multi-billion-dollar asset) but also risk and complexity (high costs, technical challenges, and market expectations). AusQuest’s share price surged 300% in January 2025 after the initial discovery, indicating high investor enthusiasm, but defining the deposit’s economic viability requires sustained effort and funding. The metaphor reflects the high-stakes nature of the project, where success could be transformative, but failure to delineate an economic resource could strain resources.

Overall Assessment: The statement is largely true and aligns with AusQuest’s recent announcement and the realities of porphyry exploration. The Stage 2 RC drilling at Cangallo is a logical step to expand known mineralization and define the deposit’s size and grade, without major surprises expected at this stage. Defining a porphyry is indeed expensive and requires extensive drilling, and the project’s potential is both exciting and risky, as the “tiger by the tail” metaphor suggests. However, the statement’s dismissive tone (“not a lot”) slightly underplays the significance of the ongoing program, which could unlock substantial value if higher-grade zones or a supergene blanket are confirmed. Assay results, expected within 6–8 weeks from June 12, 2025 (i.e., by late July to mid-August 2025), will be critical for validating the project’s potential.

Sources:

• AusQuest Begins Stage 2 Drilling at Cangallo Project in Peru, TipRanks, June 12, 2025
• AusQuest Confirms Major Copper-Gold Discovery at Cangallo, The Pick, February 6, 2025
• AusQuest raising cash to drill promising Peru copper-gold discovery, Mining News, February 20, 2025
• AusQuest eyes holy grail of exploration with first taste of copper-gold porphyry find, Livewire Markets, January 24, 2025
• X post by @OrestocksNews, June 12, 2025