In its December quarterly report, Asian Battery Metals PLC outlined the highlights of the quarter along with an optimistic outlook for the March quarter and an overview of the current operating environment.
Positive outlook
The company notes the optimistic long-term outlook for copper, driven by refined copper consumption, which will be led by sectors linked to the energy transition and renewable energy applications.
An anticipated structural supply deficit will see the need for increased investments in production facilities, further underpinning a bullish outlook for copper prices.
With an investment in copper of up to $250 billion required over the next decade, the sector is likely to experience further copper-driven mergers and acquisitions, as indicated by BHP Group CEO Mike Henry.
AZ9 also pointed to activity in the exploration scene, highlighting Sumitomo Metal Mining’s recent $399 million purchase of a 30% stake in the Winu copper-gold project in Western Australia as part of a joint venture agreement, further indicating a positive market outlook for copper.
Supportive jurisdiction
The company also notes the attractive investment climate in Mongolia and the country’s commitment to attract foreign investment in mining development.
For example, French multinational uranium producer Orano and the Government of Mongolia have signed an investment agreement to develop Zuuvch Ovoo Uranium mine in Mongolia.
With a 30-year estimated lifespan, the project represents an initial investment of about $500 million and a total of $1.6 billion over the mine's lifetime.
Project locations in Mongolia.
December quarter highlights
During the past quarter, the company’s exploration work focused on the Yambat Oval copper-nickel-PGE project in Mongolia, where multiple high-grade massive sulphide intercepts were confirmed in the project’s Oval and North Oval areas.
A new massive sulphide zone, revealed from drill hole OVD025 in the North Oval area 500 metres northwest of the massive sulphide intercept in OVD0212, highlighting the broader potential of the Oval gabbroic intrusion system.
Intercepts in OVD025 included 3.6 metres at 3.85% copper, 3.82% nickel, 1.55 g/t E3 (platinum, palladium and gold), and 0.15% cobalt from 48.2 metres within broad intercept of 11.4 metres at 1.85% copper, 1.70% nickel, 0.82 g/t E3 and 0.07% cobalt.
Secondly, drill hole OVD026, 100 metres northwest of the OVD021, suggests a potential extension of the known mineralisation and highlights the potential for further expansion of massive sulphide zones to northwest as indicated by the DHEM conductive plate.
Significant intercepts from OVD026 were 1.8 metres at 3.21% copper, 3.32% nickel, 0.69 g/t E3, 0.14% cobalt from 105 metres within broad intercept of 19.8 metres at 1.23% copper, 0.98% nickel, 0.36 g/t E3, 0.05% cobalt.
Thirdly, drill hole OVD027 intercepted massive sulphide north of the previous intercept in OVD021 — likely indicating an almost flat orientation of massive sulphide along the general strike direction of the Oval intrusive body.
Results from OVD027 included 6.1 metres at 4.16% copper, 3.51% nickel, 0.93 g/t E3, 0.13% cobalt from 98.2 metres within broad intercept of 47.5 metres at 1.14% copper, 0.99% nickel, 0.30 g/t E3 and 0.05% cobalt.
AZ9 also notes that additional analysis of gravity data with new topographic and lithology-based density data has identified potential extensions of Oval mineralisation to depth.
Further exploration planned
With a healthy cash balance of $3.47 million, the company is in a position to fund its next stage of exploration from existing cash reserves, with details of the program to be announced once finalised.
The upcoming phase 3 of the Yambat exploration program plan will focus on assessing the size and metal content potential of the Oval copper-nickel-PGE mineral system targeting untested DHEM conductive plates. It will also target potential deeper magmatic sources beneath the Oval area, while also testing other targets within the identified magmatic sulphide corridor.
Other planned work included initial flotation test work for the Oval project and the commencement of geophysical surveys at the project before drilling.