AusQuest announces commencement of maiden Peru drill program

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Image credit: www.ausquest.com.au

Mineral exploration company AusQuest Limited has announced the commencement of the diamond drilling program under the Lana Joint Venture Agreement with Southern Peru Copper Corporation (Southern).

Image credit: www.ausquest.com.au
Image credit: www.ausquest.com.au

The company said that drilling at Lana represents the first of five large porphyry copper-gold prospects in the south of Peru which are scheduled for drill testing before the end of 2016.

“The Company is pleased that its maiden drilling program in Peru has finally commenced and is excited about the year ahead which will see up to 25,000 metres of diamond drilling completed across five of its copper-gold prospects in the south of Peru,” AusQuest said in a statement to the ASX.

Image credit: www.ausquest.com.au
Image credit: www.ausquest.com.au

To fulfil its obligations under the Lana Joint Venture Agreement, Southern is required to complete a minimum 5000m of diamond drilling or spend not less than US$1.0 million before the first anniversary of the registration date of the agreement (April 9th 2016).

Adertisement

In order to earn a 70% interest in the Lana project, Southern must complete a further 15,000m of drilling and make staged cash payments to AusQuest totalling a further US$2.925 million over the following 3 year period.

Lana is located approximately 30 kilometres from the coastal town of Atico in the south of Peru.