copper gold intersected at diamantina

IOCG SYSTEM INTERSECTED AT DIAMANTINA
AusQuest Limited (ASX: AQD) is pleased to advise that the initial diamond drill-hole at the
Machattie Prospect at its Diamantina Project, located approximately 450km south of Mt
Isa in western Queensland, has intersected a large Iron-Oxide Copper-Gold (IOCG)
intrusive system from 960 metres to the end of the hole at 1,790 metres.
The purpose of the drill-hole was to establish whether the strong coincident gravity (32
milligals) and magnetic anomaly located below the Eromanga Basin sediments was caused by
an IOCG system, as these systems can contain significant occurrences of copper and gold
mineralisation.
Drilling intersected ~800 metres of magnetite-rich pyroxenite rock, cut by numerous mafic
dykes and containing abundant calcite-pyrite mineralisation both within the rock itself and
within veins and stock-works, suggesting the presence of large scale fluid movement, a
prerequisite for the concentration of metals in IOCG systems.
The Company believes this is a highly unusual rock-type and may have analogies with the
Palabora complex in southern Africa, which researchers have recently classified as an IOCG
type deposit.
Measurements on core confirm the very high densities (3.5 gm/cc) and very high magnetic
susceptibilities (>25,000 x 10-5 SI units) that are a result of the high iron content of the rock.
Drill core has been systematically sampled and sent for analysis. Selected samples were
collected for microscopic study. Results are expected within the next six to eight weeks.
The Company is encouraged by this result which has established the presence of a large scale
IOCG intrusive system (~25km²) at the southern boundary of the Mt Isa Block, which may
have potential for copper-gold mineralisation. Further exploration at the Machattie Prospect
will be planned once all analytical results have been received and assessed.
Diamond drilling at the Mulligan Prospect which represents a second IOCG target located
approximately 120 kilometres west of Machattie, has commenced.