South32 adds fourth project to AusQuest alliance

South32 and AusQuest have decided on the Parcoy iron-oxide-copper-gold prospect in Peru as the fourth exploration project under their strategic alliance agreement (SAA).

Parcoy, which is northwest of Camino Resources’ Los Chapitos prospect in southern Peru, will receive technical and financial support from South32.

Under the agreement, South32 has exclusive rights to AusQuest’s projects by funding selected projects up to the drilling stage.

South32 can spend a further $US4 million on each project to earn a 70 per cent interest, with the right to earn an additional 10 per cent by completing a pre-feasibility study.

AusQuest managing director Graeme Drew said the inclusion of the Parcoy project under the strategic alliance added further depth and momentum to the company’s ongoing exploration program in Peru.

“This builds on the strong pipeline of high-potential projects we have already established under the SAA,” Drew said.

“The next six months will be an exciting time as we begin drill testing five of our key projects – with significant drilling commencing at the Chololo and Cerro de Fierro copper projects in Peru, as well as the Blue Billy zinc, Balladonia and Jimberlana nickel prospects in Western Australia.”

According to AusQuest, interpretation of the its proprietary airborne data in the Los Chapitos area indicated widespread potassium anomalism to the north and west of Los Chapitos, along a potentially mineralised structure.

This is similar to the potassic alteration identified at the company’s Cerro de Fierro project, which will be drill tested later this year.

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