AusQuest's (ASX:AQD) latest assay results from its Cangallo porphyry copper-gold project in Peru continue to showcase the scale, continuity, and growth potential of the system, which remains open in multiple directions, Euroz Hartleys said in a Thursday note.

"The expanding mineralized footprint, coupled with the emergence of higher-grade zones, strengthens the case for a major porphyry copper discovery with the potential to host a significant higher-grade core," the equity research firm said.

The company disclosed assays for the first two completed diamond holes, with one of them intersecting around 348 meters at 0.2% copper and 0.06 grams per tonne grade of gold from 178 meters, and the other returning around 356 meters at 0.3% copper and 0.05 g/t gold from 34 meters.

The existence of multiple higher-grade intervals within the broader intersections "is particularly encouraging," and the latest drilling further de-risks the project by confirming both depth and lateral continuity, Euroz Hartleys said.

The investment firm maintained its speculative buy recommendation on AusQuest, saying that the company "remains a compelling copper-gold exploration story," with an unchanged target price of AU$0.12.