AusQuest Surges 5.7% as South32 Commits to Mt Davis Base Metals Project in WA

Key Highlights:

• Mt Davis added to AusQuest-South32 Strategic Alliance, unlocking funding for drilling
   
• RC drill program to target large-scale VTEM and soil anomalies in the Earaheedy Basin
   
• AQD share price jumps 5.66% to $0.056, 425% up year-on-year
  
   

Strategic Milestone Reinforces Mt Davis Potential as Drilling Prepares to Launch

Junior explorer AusQuest Limited (ASX: AQD) has taken another major step in its drive to unlock large-scale base metals systems across underexplored regions of Australia, with its Mt Davis Project now formally accepted under its long-running Strategic Alliance Agreement (SAA) with mining major South32.

The deal cements South32’s commitment to funding early-stage exploration at Mt Davis, located in the northern Earaheedy Basin of Western Australia—a region growing in significance following notable zinc-lead discoveries to the south. Under the agreement, South32 can earn a 70% interest by investing US$4.5 million in exploration, with an option to increase its stake to 80% upon delivery of a Pre-Feasibility Study.

“This is another exciting step in our collaboration with South32,” said AusQuest Managing Director Graeme Drew. “The geophysics and geochemical signatures we’re seeing at Mt Davis are extremely encouraging and resemble patterns observed in other major sediment-hosted base metal provinces.”

Drilling Targets Conductive Sediments and Pathfinder Elements

AusQuest’s upcoming reverse circulation (RC) drill program will test high-priority anomalies identified through VTEM (Versatile Time Domain Electromagnetic) surveys and soil sampling. The large-scale targets, measuring up to 1,000m x 500m, exhibit elevated levels of lead, molybdenum, bismuth, germanium, and thallium—key pathfinders in sediment-hosted copper-zinc systems.

The targets are also structurally aligned with regional faulting, adding to their geological significance. Drilling will commence once heritage clearance processes are completed.

The Mt Davis model is informed by recent exploration success in the Earaheedy Basin, including Rumble Resources’ Chinook zinc-lead discovery on the southern margin. By focusing on a similar stratigraphic position on the northern margin, AusQuest aims to replicate and potentially exceed these early results with the technical and financial backing of a global partner.

“Our model is well-supported by both the geochemical and geophysical datasets,” Drew added. “We’re targeting the same sedimentary units known to host mineralisation elsewhere in the basin.”

Stock Jumps on Strategic Confidence and Exploration Momentum

Investors responded positively to the announcement, sending AQD shares up 5.66% to $0.056 at last trade. The stock is now up 600% year-to-date and a staggering +425.76% over the past 12 months, significantly outperforming both the Basic Materials sector (+438.03%) and the broader ASX 200 index.

The company’s market capitalisation now stands at $75.45 million, with over 1.34 billion shares on issue. While volumes remain modest relative to larger peers, AQD’s strategic positioning, backed by an active exploration pipeline in both Australia and Peru, continues to attract investor interest.

The share price surge underscores growing market confidence in AusQuest’s business model—leveraging partnerships with major miners like South32 to de-risk frontier projects and fast-track exploration spend. The company’s performance over the past year highlights its transition from speculative microcap to serious base metals contender.

With drilling imminent and the support of one of the world’s largest diversified miners, AusQuest is poised to deliver significant value catalysts in the months ahead as it targets one of WA’s most prospective—and least explored—base metals terrains.