Asian Battery Metals PLC’s due diligence drilling at the Maikhan Uul copper-gold project confirms more than 20 metres of massive sulphide mineralisation, validating historic data and advancing its acquisition option.
- Drillhole MU2501 intersects 20.35m of massive sulphide mineralisation
- MU2501 twins historic drillhole MU_DH1204, confirming previous high-grade zones
- Asian Battery Metals holds a 6-month option to acquire 100% of Maikhan Uul project
- Assay results pending, expected within 3-5 weeks
- Project located 8km from flagship Oval Cu-Ni-PGE discovery, offering infrastructure synergies
Due Diligence Drilling Confirms Significant Mineralisation
Asian Battery Metals PLC (ASX, AZ9) has reported a successful milestone in its due diligence program at the Maikhan Uul copper-gold volcanogenic massive sulphide (VMS) project in southwestern Mongolia. The recently completed drillhole MU2501 intersected over 20 metres of massive sulphide mineralisation, visually confirming the presence of high-grade copper and gold mineralisation previously identified in historic drilling.
MU2501 was designed as a twin to the historic drillhole MU_DH1204, drilled in 2012, located just one metre away and drilled parallel to it. This strategic twinning validates the historical data, which had been subject to scrutiny due to inconsistencies and gaps in quality control. The visual sulphide intervals in MU2501 closely match those reported in MU_DH1204, reinforcing confidence in the project's potential.
Strategic Acquisition and Regional Synergies
Asian Battery Metals has secured an exclusive six-month option to acquire 100% ownership of the Maikhan Uul project from Best Resources LLC for a consideration of US$890,000, following a US$50,000 option fee. The project’s proximity; just 8 kilometres; to the company’s flagship Oval Cu-Ni-PGE discovery offers potential infrastructure and operational synergies, which could be pivotal in future development plans.
The Maikhan Uul licence covers approximately 79 hectares and hosts a classic felsic VMS deposit with copper, gold, and zinc mineralisation. The project has a complex geological history with multiple deformations, but the recent drilling results provide a clearer picture of the mineralised zones.
Ongoing Exploration and Next Steps
While the visual estimates of mineralisation are encouraging, laboratory assay results for MU2501 are pending and expected within 3 to 5 weeks. These assays will provide definitive grades and help quantify the economic potential of the mineralised intervals. Concurrently, Asian Battery Metals is progressing additional drilling, including a second hole at Maikhan Uul, and conducting downhole electromagnetic surveys to further delineate the mineralisation.
The company is also reviewing historical exploration data and legal documentation as part of its comprehensive due diligence. Metallurgical test work is underway to assess the processing characteristics of the ore, which will be critical for future feasibility studies.
Historical Data Review and Quality Assurance
Asian Battery Metals engaged Robert Dennis, a Competent Person and consultant, to review the historical drilling data and foreign resource estimates. While the historic data shows promising mineralisation, it has limitations such as incomplete QAQC protocols and missing surface evidence for some trenches. The twinning of MU_DH1204 with MU2501 is a key step in validating these historic results under modern reporting standards.
Management remains cautiously optimistic, emphasizing that visual sulphide estimates are not a substitute for assay data, and that further work is required to confirm the project's full potential.
Bottom Line?
With assays imminent and further drilling underway, Asian Battery Metals is poised to clarify Maikhan Uul’s value and its role in Mongolia’s critical minerals landscape.
Questions in the middle?
- What will the assay results reveal about the grade and economic viability of the mineralisation?
- How will Asian Battery Metals integrate Maikhan Uul with its nearby Oval Cu-Ni-PGE project operationally?
- What are the potential risks or challenges in finalising the acquisition and advancing the project?