Overview of AusQuest's preliminary findings

AusQuest Limited (ASX: $AQD) has announced the discovery of coarse-grained magnetite across the Waterfall Prospect, part of its Morrisey Project in Western Australia. The preliminary petrographic study of selected drill samples indicates the potential to produce a premium iron product from this prospect. The program is funded under the Strategic Alliance Agreement with a wholly-owned subsidiary of South32 Limited.

Executive commentary on the preliminary findings

Having confirmed abundant coarse-grained magnetite at the Morrisey Project, we are looking forward to receiving results from the Davis Tube Recovery test work, which will determine recoveries and product grades across the whole Waterfall prospect and enable us to assess the commercial potential of this prospect. The Board looks forward to providing further updates to shareholders over the coming weeks as results from the beneficiation test work become available.

Summary of the preliminary findings and future outlook

The preliminary petrographic study at the Morrisey Project has revealed the presence of coarse-grained magnetite, indicating the potential to produce a premium iron product. The upcoming Davis Tube Recovery test work results, expected in mid-August, will play a crucial role in determining the project's future direction, including drilling priorities. The Morrisey Project, located within high-grade metamorphic rocks of the Narryer Terrane, holds significant commercial potential. AusQuest's Managing Director, Graeme Drew, expressed optimism about the project's prospects and emphasized the company's commitment to providing further updates as the test work results become available.