Asian Battery Metals PLC (ASX:AZ9) expanded its Mongolian exploration footprint during the September 2025 quarter, advancing drilling at the Yambat Project and securing new ground. The company also entered an exclusive option to acquire the Maikhan Uul copper-gold VMS project and was granted the Bayan Sair exploration licence south of Yambat.
Project locations in Mongolia.
Highlights
- Drilling: Phase 3 drilling continued at the Oval Cu-Ni discovery and across regional targets, with 16 additional holes for 2,529.7 metres. Results indicate extensions of mineralisation along strike at Oval and continuation of the mineralised mafic intrusion at depth at the MS1 area.
- Geophysics: Further high-priority geophysical targets were identified across regional prospects.
- Metallurgy: Initial test work from Oval reported payable copper recoveries of 89–95% in concentrate.
- Portfolio growth: Secured a six-month exclusive option over the Maikhan Uul Cu-Au VMS project. Bayan Sair licence granted: a new 3,327.17 ha tenement immediately south of Yambat, covering regional magnetic highs.
- SAMSON EM survey: Completed mid-September by Gap Geophysics Pty Ltd, covering ~39.5 km² over key targets including Oval, MS1, MS2, Quartz Hill, Maikhan Uul, Copper Ridge and Bayan Sair.
Yambat (Oval Cu-Ni-PGE) Project – 100% owned
The Yambat Project is situated in the north-central region of Govi-Altai Province, southwest Mongolia, just north of the main asphalt highway connecting the Altai and Khovd Provinces. The project targets a magmatic copper-nickel sulphide system and comprises the existing exploration licence XV-020515 (covering 106 square kilometres) and the recently acquired Bayan Sair licence (XV-023028).
During the quarter, the company advanced its Phase 3 exploration program, focusing on confirming and extending high-grade mineralisation at the Oval and North Oval prospects.
Location plan map of drillholes, DHEM plates and FLEM plates.
Additional drilling was undertaken across regional targets including MS1 and Copper Ridge. SAMSON EM surveys were also completed over the Oval, MS1, Copper Ridge and the newly acquired Bayan Sair licence areas.
Copper tailwinds, nickel headwinds
Fitch Ratings has reaffirmed Mongolia’s sovereign credit rating at “B+, Stable,” pointing to a steady growth outlook and resilient investment trends. The agency forecasts GDP expansion of 5.7% in 2025 and 5.3% through 2026–2027. Growth this year is being helped by a rebound in agriculture and stronger copper exports, partly counterbalancing weaker coal prices. Fitch also notes that stable capital spending in mining alongside consistent performance in non-mining industries should support medium-term momentum.
On the policy front, Prime Minister Zandanshatar Gombojav is pressing ahead with the government’s 100-day action plan. Priorities for the resources sector include rolling out the Gold-3 campaign, passing an updated Minerals Law, and tightening the criteria used to classify strategic deposits. These themes featured prominently at the annual Mining Week held from September 9–11, where policymakers, industry leaders and investors focused on the government’s push to apply big data and AI to geology, exploration, and mine operations, as well as ongoing negotiations over strategic mines and progress on Gold-3.
Commodity markets present a mixed picture. Copper futures, which touched a 15-month high of US$10,485 per tonne after the September quarter, are widely expected to hold at or above current levels through 2026. The bullish outlook reflects robust demand from energy-transition sectors and persistent supply-side constraints, including declining ore grades, rising extraction costs at mature operations and disruption risks such as recent flooding at Indonesia’s Grasberg mine. Nickel, by contrast, remains in surplus. Goldman Sachs projects a 6% price decline to around US$14,500 per tonne by December 2026, arguing that continued supply growth will require further margin compression for Indonesian producers to restore balance.
Corporate and cash
AZ9 maintained a visible profile at key events during the September quarter and into October 2025, providing project development updates and sector insights.
Mongolian Mining Week 2025 (September 11-13): ABM co-hosted an “Explorers’ Tent” with the Mongolian Society of Economic Geologists (MSEG), facilitating discussions with stakeholders on the transition from exploration to mine development.
Spark Plus Australian Equities Day 2025 (October 3-5): Managing director Gan-Ochir Zunduisuren delivered a company update at the Singapore forum.
Cash and use of funds
The group closed the quarter with $2.264 million in cash.
During the quarter, expenditure comprised:
- Exploration and evaluation — $1.156 million: drilling, camp services, DHEM and SAMSON EM surveys, other geophysics, technical consulting, project administration and ESG costs.
- Bayan Sair exploration licence acquisition — $76,000.
- Maikhan Uul mining licence option: option agreement to acquire for US$0.890 million, subject to six months of technical and legal due diligence; US$50,000 option fee paid and preparatory due diligence commenced.
- Administration and corporate — $0.529 million: payroll, compliance, professional services and investor relations, including $193,000 in remuneration for the Managing Director and Non-Executive Directors.
After quarter-end, ABM completed a $6 million equity placement (before costs). Combined with existing cash, proceeds are intended to fund ongoing exploration and evaluation, continue technical and legal due diligence for the Maikhan Uul Project, cover raising costs and provide general working capital.
Outlook
In the December 2025 quarter, the company will continue Phase 3 drilling and downhole EM work at the Oval Cu–Ni–PGE target and the Copper Ridge Cu–Au prospect, while undertaking due-diligence drilling at the Maikhan Uul Cu–Au VMS project ahead of a potential acquisition.
Management expects to report pending assay results from the Phase 3 program and the Maikhan Uul due-diligence holes during the period. Initial metallurgical test work for Oval is also scheduled for completion.