AusQuest (ASX:AQD) has received an initial option payment for one of its three new joint venture projects in Peru.
Compania Minera Zahena SAC has paid US$120,000 under the JV agreement for the Cardonal Project that is located 20 kilometres from the coastal town of Ilo in the south of Peru and covers two large porphyry copper targets, Cardonal and Ventana.
The Ventana Prospect contains strong indications of porphyry copper mineralisation that extends over several kilometres in length and will be the subject of drill testing once all permits for drilling have been approved.
Five of AusQuest's porphyry copper and/or IOCG targets are to be drilled by major companies within the next 12 months.
Meanwhile, drilling at the Lana JV project with Southern Peru Copper Corporation Sucurs del Peru will kick off in later October.
This is the first of several large porphyry copper-gold prospects which are scheduled to be drill tested in the south of Peru over the next 12 months.
Lana is located approximately 30 kilometres from the coastal town of Atico in the south of Peru and covers a large (~20km²) discrete gravity anomaly), located close to the intersection of major structures interpreted from aeromagnetic data.
Southern is required to complete a minimum 5000 metres 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) to fulfil their obligations.
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