Asian Battery Metals PLC (ASX:AZ9) has returned strong copper-gold grades from due diligence drilling at its Maikhan Uul (Red Hill) volcanogenic massive sulphide (VMS) prospect in southwestern Mongolia, marking a significant step in its assessment of the proposed acquisition.
The highlight came from drillhole MU2501 — a twin of a historically mineralised hole — which delivered thick massive sulphide intervals and shallow zones of high-grade gold and silver. The company says the results validate earlier geological interpretations and strengthen the case for Maikhan Uul as a meaningful addition to its copper-focused portfolio.
Managing director Gan-Ochir Zunduisuren said the drilling reinforces the strategic rationale behind the due diligence program.
“We are making excellent progress in establishing a compelling, copper-focused portfolio in southwestern Mongolia, within the Central Asian Orogenic Belt — an area known for hosting major copper producers,” Zunduisuren said.
“The high-grade copper and gold assay results from the Maikhan Uul Cu-Au drilling strongly corroborate previous geological findings,” he added. “The confirmation of shallow high-grade gold is an exciting development that will potentially add significant value to the project.”
Maikhan Uul deposit. Drillhole locations on the Landsat image. Inset shows location of Maikhan Uul deposit relative to Oval Cu-Ni Project.
Thick massive sulphides with high-grade copper
MU2501 intersected a 14.5-metre zone grading 2.23% copper and 0.73 g/t gold from 132.5 metres, including two higher-grade intervals of:
- 4.8 metres at 2.80% copper and 0.88 g/t gold from 132.5 metres; and
- 6.3 metres at 2.58% copper and 0.82 g/t gold from 139.7 metres.
- A further 2.6 metres at 2.28% copper and 0.49 g/t gold was encountered from 154.1 metres.
These zones sit beneath the footprint of the foreign historic resource and suggest scope to target deeper extensions — areas that were not adequately tested by earlier sub-horizontal drilling due to topographical constraints.
Maikhan Uul deposit. Drillhole locations on the Landsat image. Inset shows location of Maikhan Uul deposit relative to Oval Cu-Ni Project.
MU2502, drilled 73 metres east to test for lateral continuity, also intersected massive sulphide mineralisation, with assays pending. ABM says the visuals indicate growth potential beyond the historically drilled depth.
Shallow gold-silver zones point to additional upside
The program also uncovered near-surface high-grade gold and silver, including:
- 4.8 metres at 2.02 g/t gold and 35.39 g/t silver from 28.2 metres;
- 5.2 metres at 6.54 g/t gold and 126.40 g/t silver from 36.9 metres, including 2.1 metres at 13.33 g/t gold and 227.81 g/t silver from 37.9 metres; and
- 3.0 metres at 1.16 g/t gold and 0.07% copper from 45 metres.
Read more: Asian Battery Metals extends copper-nickel mineralisation at Oval project in Mongolia
Asian Battery Metals notes that initial fire-assay variability — particularly in the high-grade interval around 37.9–43.2 metres — prompted the use of metallic screen fire assays for more robust grade determination.
Surface reconnaissance results, including mapping and outcrop sampling aimed at defining the lateral extent of this shallow mineralisation, are due soon.
Due diligence advancing towards year-end
The company is undertaking technical and legal due diligence on Maikhan Uul, with completion targeted for December 2025 to January 2026. Subject to outcomes and remaining conditions precedent, Asian Battery Metals plans to settle the acquisition thereafter.
Upcoming milestones include:
- remaining assays for Maikhan Uul and the company’s Oval Cu-Ni project;
- metallurgical testwork for Oval, expected by December 2025; and
- planning for the 2026 drilling and exploration program.
Zunduisuren said results from MU25021 — the second confirmatory hole — and the surface work would further clarify Maikhan Uul’s scale and continuity.
Asian Battery Metals continues to advance a broader battery-metal portfolio across Mongolia, including its Yambat (Oval Cu-Ni-PGE and Copper Ridge Cu-Au), Bayan Sair, Khukh Tag Graphite and Tsagaan Ders Lithium projects.
Read more: Asian Battery Metals maintains momentum in September quarter