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AusQuest Confirms Additional Magnetite Discovery at Morrisey Project in WA

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By Colin Hay - 
AusQuest ASX AQD Additional Magnetite Discovery Morrisey Project
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AusQuest (ASX: AQD) has reported further exploration success, intersecting significant zones of coarse-grained magnetite at its Morrisey project in Western Australia.

The news comes in the wake of the company’s recent positive drilling returns at its Cangallo gold project in Peru and commencement of an exploration program at its Coober Pedy iron-oxide-copper-gold (IOCG) project in South Australia.

At Morrisey, AusQuest added to the magnetite potential previously identified at the Waterfall prospect, with drilling results producing highly encouraging results in at least four of six new areas tested.

Quality Iron Project

After Davis Tube Recovery (DTR) test results of samples from Waterfall previously confirmed that it could use coarse-grinding to produce a quality (above 70% grade) iron product from the magnetite occurrences in that area, AusQuest has now sent all magnetite intervals from the latest drilling program to the lab for DTR test work.

Managing director Graeme Drew said the company expected the DTR results within six weeks and that it would provide drill cross-sections once it had received and assessed all analytical data from the program.

“We have been pleasantly surprised by the extent and apparent continuity of the coarse magnetite BIF sequence at Morrisey [and] look forward to reporting further results to our shareholders over the coming weeks and months as they become available,” Mr Drew said.

Peruvian Gold Promise

Last week AusQuest received promising gold assays from the first four Stage 2 reverse circulation drill holes at its Cangallo gold project in southern Peru.

The latest stage of drilling at Cangallo further expanded the size of the porphyry system both laterally and at depth, and the company is now planning to undertake deep diamond drilling in the second half of August.

AusQuest is looking to test the depth extent of copper and gold mineralisation and confirm a potential porphyry centre located below the near-surface mineralisation or further south beneath the cover.

Coober Pedy JV

In South Australia, the company is working with South32 (ASX: S32) under a strategic joint venture (JV) agreement to confirm the IOCG potential of the Coober Pedy project.

The JV recently completed induced polarisation and magnetotelluric surveys at the project to outline two targets with weak to moderate chargeabilities and associated low apparent resistivities.

“The Coober Pedy project has a great address – at the northern end of a world-class IOCG province that hosts the Olympic Dam, Carrapateena and Prominent Hill deposits – and we now have a couple of credible targets to test to advance the project,” Mr Drew said.