There is significant upside potential for AusQuest's (ASX:AQD) ongoing 1,600-meter, two-hole diamond drilling program at the Cangallo copper-gold project in Peru, Euroz Hartleys said in a note on Tuesday.
The drilling program is expected to provide insights into the geological controls influencing near-surface copper mineralization.
A significant southern target is also emerging during exploration, extending over 1,000 meters. A stage three reverse circulation drilling is scheduled to begin in November. This will focus on the southern-central zone, where prospective host rocks remain open, and it is expected to provide further scale potential.
The investment firm recommended a speculative buy rating on AusQuest and maintained its price target of AU$0.095 per share.