Exploration Success at Yambat Raises Stakes Amid Copper Supply Crunch

Exploration Breakthroughs at Yambat

Asian Battery Metals PLC (ASX: AZ9) has delivered a compelling update on its December 2024 quarter activities, highlighting substantial progress at the Yambat Oval Cu-Ni-PGE Project in Mongolia. The company’s Phase 2 diamond drilling program, comprising approximately 1,050 metres, has confirmed multiple high-grade massive sulphide intercepts, reinforcing the prospectivity of the Oval gabbroic intrusion system.

Notably, drillhole OVD025 intercepted 3.6 metres grading 3.85% copper, 3.82% nickel, and 1.55g/t combined precious metals (E3) within an 11.4-metre mineralised zone. This intercept lies about 500 metres northwest of the initial massive sulphide discovery in OVD021, suggesting a broader mineralised footprint than previously understood. Similarly, drillholes OVD026 and OVD027 have extended the known mineralisation zones, with OVD027 intersecting 6.1 metres at 4.16% copper and 3.51% nickel, indicating a near-flat orientation of sulphide lenses along the intrusion’s strike.

Geophysical Insights and Future Targets

Complementing drilling results, Asian Battery Metals has reprocessed gravity data using updated topographic and lithological density inputs. This reinterpretation has revealed potential mineralisation extensions at depth beneath the Oval area, opening new avenues for exploration. The company’s Down-Hole Electromagnetic (DHEM) surveys have identified several untested conductive plates, which will be prioritised for future drill testing to delineate the system’s full scale.

Beyond the Oval, the Copper Ridge Cu-Au prospect has benefited from a detailed magnetic survey, enhancing geological understanding and guiding forthcoming exploration efforts. Meanwhile, the Khukh Tag Graphite and Tsagaan Ders Lithium projects in Dundgobi province remain on the company’s radar, with geophysical surveys and preliminary metallurgical testing underway, albeit with restrained expenditure to focus resources on Yambat.

Financial Position and Strategic Outlook

Asian Battery Metals closed the quarter with a robust cash balance of A$3.47 million, sufficient to fund the upcoming exploration phases planned for 2025. The company intends to advance Phase 3 of the Yambat program, focusing on testing deeper magmatic sources, untested DHEM plates, and other targets within the magmatic sulphide corridor. Initial flotation test work is also slated to assess ore processing characteristics.

Management continues to engage actively with local communities and regulatory authorities, ensuring compliance and fostering strong social license to operate. Environmental protection reports have been submitted and approved, and exploration licenses have been successfully renewed, underpinning the company’s operational continuity.

With copper’s long-term demand outlook buoyed by the global energy transition, Asian Battery Metals’ exploration success positions it well to capitalize on the anticipated supply deficits. The company’s strategic focus on high-grade magmatic sulphide deposits aligns with market trends favoring critical battery and energy metals.