Asian Battery Metals’ regional drilling backs potential for district-scale system at Yambat

Asian Battery Metals’ regional drilling at the Yambat project in Mongolia has intersected ultramafic mineralisation at the MS1 target.

It’s looking big as regional drilling at Yambat lends support to Asian Battery Metals’ belief in the project’s district-scale prospectivity. Pic: Getty Images

• New regional drilling results at Asian Battery Metals’ Yambat project suggest the company may be on the cusp of a major district-scale copper-nickel discovery

• Ultramafic mineralisation intersected at the MS1 target while MS2 might have structural linkage to Oval

• District-scale systems can host multiple deposits — offering companies like AZ9 a pipeline of potential discoveries rather than a single isolated hit

• EM survey to be extended to cover MS1 and follow-up geophysical surveys planned for MS2

Special Report: Asian Battery Metals’ belief that its Yambat project in Mongolia hosts a district-scale system has been supported by regional drilling discovering new mafic-ultramafic intrusions at the MS1 and MS2 targets.

Drilling at the MS1 target about 6km southeast of the main Oval copper-nickel discovery intersected a new ultramafic-gabbroic intrusion with weak sulphide mineralisation.

Downhole electromagnetic surveying has identified a conductive plate that supports the possibility of lateral and deeper mineralised zones.

Meanwhile, drilling at MS2 intersected gabbroic rock which is visually similar to un-mineralised zones at Oval, suggesting a potential structural linkage and potential for mineralisation in this area.

The results come just days after Asian Battery Metals (ASX:AZ9) reported high-grade assays from phase 3 drilling at the Oval discovery that correlate well with previous results as well as intersecting deeper, high-tenor sulphides.

“These early scout holes at MS1 and MS2 show we are onto a broader mineralised system,” AZ9 managing director Gan-Ochir Zunduisuren said.

“The discovery of new mafic-ultramafic intrusions at MS1 and MS2 — with mineralisation and EM conductors at MS1 — supports the view that Yambat is a district-scale system.

“These new targets could represent a parallel mineralised trend to Oval, offering multiple potential pipelines for discovery.”

Map of regional exploration area. Pic: Asian Battery Metals

Regional targets

AZ9 drilled four scout holes as part of its broader regional program to test the MS1 and MS2 areas.

MS1 is a concealed strong magnetic anomaly under about 130m of sediment cover  interpreted to be a deep-seated mafic intrusion.

Scout hole SC07 intersected over 100m of ultramafic intrusion, ending in mineralised rock — suggesting the system continues at depth and remains open for follow-up.

MS2 is 1.7km northeast of Oval and features a distinctive spotted slate outcrop – a product of contact metamorphism – that is identical to the alteration patterns observed adjacent to the Oval intrusion.

Notably, the structural alignment of this spotted slate follows a northwest trend parallel to the Oval intrusion, suggesting a potential genetic and structural connection between the two systems.

With a strong cash position following its ~$4 million raise earlier this year, AZ9 is well positioned to accelerate drilling and geophysical work across Yambat

Next steps include extending the SAMSON EM survey to MS1 and conducting further geophysical work at MS2, with the goal of identifying new high-priority drill targets. With two strong copper–nickel targets now emerging beyond Oval, the regional upside is beginning to take shape.

This article was developed in collaboration with Asian Battery Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Asian Battery Metals’ regional drilling backs potential for district-scale system at Yambat