I asked grok for an analysis of the copper discovery at...

I asked grok for an analysis of the copper discovery at cangallo. This give me a clearer but speculative idea of the size of this discovery.. Its looking very good thus far.This helps me get my head around it all.. Here it is.

The Cangallo Copper DiscoveryAusQuest Limited announced a significant copper-gold porphyry discovery at its Cangallo project in southern Peru in January 2025, with further confirmation in February. Here’s what we know about its size and potential based on drilling results and company statements:Initial Drilling Results (January 23, 2025):The maiden drilling program hit a standout intersection of 348 meters grading 0.26% copper and 0.06 g/t gold from the surface. This included a higher-grade section of 12 meters at 0.53% copper and 0.27 g/t gold from 252 meters depth.Another notable hit was 188 meters at 0.28% copper and 0.07 g/t gold from 214 meters.These intercepts suggest a large-scale porphyry system, which are typically low-grade but massive in volume, making them economically viable due to their size.

Confirmation Drilling (February 6, 2025):Follow-up assays from eight reverse circulation (RC) holes further confirmed the discovery’s scale. Key results included:226 meters at 0.22% copper and 0.07 g/t gold from 4 meters depth.154 meters at 0.37% copper and 0.06 g/t gold from 36 meters.A thicker interval of 348 meters at 0.26% copper and 0.06 g/t gold, reinforcing the initial find.Seven out of eight holes ended in mineralization, indicating the deposit could extend beyond what’s been drilled so far.Size Potentialorphyry deposits, like those in Peru and Chile (major copper-producing regions), are known for their bulk tonnage. The Cangallo discovery’s thickness (hundreds of meters) and lateral extent (yet to be fully tested) suggest it could be a multi-million-tonne resource.

Managing Director Graeme Drew has emphasized that only a fraction of the target area has been explored, with seven untested targets remaining. The mineralized zone’s proximity to surface (starting at 4 meters) and its consistency across multiple holes point to a potentially large, near-surface oxide zone, with deeper sulphide mineralization still to be explored.While no official resource estimate (e.g., JORC-compliant) has been released as of March 24, 2025, the scale of intercepts—348 meters thick over potentially kilometers-wide systems—is comparable to early-stage discoveries that later proved to be tier-1 deposits (hundreds of millions of tonnes).

Contextual Clues:The project’s location, 10 kilometers from the coast and near regional power lines, enhances its economic potential, as infrastructure costs would be lower than for remote deposits.Industry speculation (e.g., *) has raised the possibility of AusQuest becoming a takeover target for majors like South32 (its exploration partner), suggesting the discovery’s size and quality are catching attention.

How Big Could It Be?Grade: The average grade of 0.22–0.37% copper is typical for porphyry deposits, where scale trumps grade. For comparison, large porphyries like Escondida in Chile operate profitably at similar grades (0.3–0.5% copper) due to their massive size (billions of tonnes).Tonnage Estimate (Speculative): Without a defined resource, we can only extrapolate. If the mineralized zone extends 1 km by 1 km laterally and 300 meters deep (conservative based on drilling), with a density of 2.5 g/cm³, that’s roughly 750 million tonnes of rock. At 0.26% copper, that equates to 1.95 million tonnes of contained copper. This is a back-of-the-envelope guess and assumes continuity that hasn’t been proven yet.

Upside: The untested targets and open-ended mineralization suggest this could grow significantly with further drilling, potentially into the billion-tonne range if deeper sulphides are rich.

ConclusionThe Cangallo copper discovery is big in terms of its thickness (hundreds of meters), early intercepts, and potential scale, though its full size remains undefined as of March 24, 2025. It’s a greenfields find with “significant upside potential” (per Drew), and its proximity to infrastructure adds to its allure. For a precise size, we’d need a resource estimate, which could come later in 2025 as drilling progresses. For now, it’s a promising, potentially massive deposit that’s already driven AQD’s stock up over 300% in 2025, reflecting market excitement about its scope.