Asian Battery Metals PLC (ASX:AZ9) has intersected a cumulative 20.35 metres of visual massive sulphide in due diligence drillhole MU2501 at the Maikhan Uul copper-gold (Cu-Au) volcanogenic massive sulphide (VMS) project in southwestern Mongolia. The twinned hole to 2012 hole MU_DH1204 lies outside the historic foreign mineral resource.
Location plan map of drillhole MU2501 and historical drillholes/trenches of Maikhan Uul project.
Assay results should be available in three to five weeks.
MU2501 returned multiple visual massive sulphide intervals: 4.8 metres from 132.5 metres, 12.75 metres from 139.7 metres, 2.59 metres from 154.1 metres and 0.21 metres from 211.25 metres.
Asian Battery Metals has a six-month option to acquire 100% of the project for a remaining consideration of US$890,000.
“An excellent result from the twinning of the historic drillhole MU_DH1204 at the Maikhan Uul Cu-Au project, visually confirming the potential for high-grade copper gold mineralisation. This result has increased our confidence in our analysis of the project. We look forward to receiving the initial assay results soon,” AZ9 managing director Gan-Ochir Zunduisuren said.
The Maikhan Uul mining licence sits about 8 kilometres from the company’s flagship Oval copper-nickel-platinum group elements (Cu-Ni-PGE) discovery, offering potential infrastructure synergies.
Review flags data-quality risks in Maikhan Uul resource work
AZ9 engaged Robert Dennis of Mine Project Consult to review historic drilling data and the foreign resource estimate at Maikhan Uul, commencing with a field visit.
The dataset comprises 23 drillholes for 6,150.3 metres and 13 trenches for 578 metres, mostly completed by Samtan Mores LLC between 2010 and 2013. The company later conducted metallurgical and mining studies and received a Mining Licence on October 21, 2015, before changing its name to Best Resources LLC in September 2016.
Potential inputs to a future JORC (2012) resource include 17 diamond drillholes for 3,967.5 m and seven trenches for 298 m. Of the 17 holes, 15 have SGS Mongolia assay certificates and two have partial certification. Drill section spacing ranges from 70–155 m; vertical spacing on sections where applicable is 60–101 m. Trench spacing ranges from 59–150 m. Appendices list drill and trench particulars, including additional holes such as MU_DH1204.
Dennis flagged key data-quality issues: internal laboratory rather than external QA/QC reporting; no surface evidence for many trenches observed in the field; only simple descriptive geology for drilling; downhole surveys completed on four holes to 100 m with straight-hole assumptions elsewhere; and no historic twinning of holes. These factors will need resolution before supporting any JORC resource.
Historic results under review
As part of due diligence, confirmatory hole MU2501 was drilled one metre east of historic hole MU_DH1204 on a matching azimuth and dip to verify previously documented mineralisation. MU2501 intersected altered felsic volcanics with disseminated to massive sulphides consistent with a volcanogenic massive sulphide system. Upper intercept positions around 44.35 metres and 132.5 metres are comparable to MU_DH1204, while mineralisation near 193 metres appears stronger in MU2501.
The massive sulphide mineralisation in drillhole MU2501.
Historic assays reported for MU_DH1204 (not JORC 2012 compliant and calculated at 0.2% copper or 0.2 grams per tonne gold cut-offs) include multiple vein and massive sulphide intervals, notably 6 metres at 2.62% copper from 125.5 metres and 9 metres at 1.61% copper from 139 metres. MU_DH1204 is interpreted as exceptional, being the only one of 17 holes within the mining licence to intersect massive sulphide, with a cumulative 15.0 metres at 2.01% copper and 0.83 grams per tonne gold in two massive intervals. Other mineralised holes averaged 22.9 metres at 0.65% copper and 0.25 grams per tonne gold of vein-style mineralisation.
Details of the historic and twinned drillholes.
Next steps
- Batch 1 assays from the Oval Cu-Ni-PGE Phase 3 drilling program expected within a week; Batch 2 in two to four weeks.
- Ongoing drilling and downhole electromagnetic (EM) surveys at Maikhan Uul (second hole in progress), Copper Ridge and potentially Bayan Sair.
- Initial metallurgy test work to be completed.
- Maikhan Uul due diligence assays expected in three to five weeks and continuing technical/legal review.