The rigs are spinning at Oval again, and Asian Battery Metals (ASX: AZ9) just proved something significant. Their electromagnetic targeting approach works.
Eight new holes at the Mongolian project have hit thick sulphide zones exactly where the EM plates predicted they’d be.
The EM model is the same technique used in the Nova-Bollinger discovery in 2012, which ultimately led to a $1.8 billion acquisition by IGO.
With Phase 4 drilling about to test fresh conductors at MS1, MS2, Quartz Hill and Maikhan Uul – and new surveys underway at Bayan Sair – AZ9 is moving from a single discovery into what could be a district-scale copper–nickel story.
At just 3.3c and a market cap of $14 million, with assays pending and rigs shifting onto new ground, investors should be watching closely.
Assays from the latest holes land within weeks. Phase 4 drilling starts shortly after.
The next few months will show whether AZ9 has found one deposit or the start of an entire belt.
Oval Drilling Confirms AZ9’s Exploration Model
If there’s one takeaway from this update, it’s that Asian Battery Metals’ exploration model is working. Something you can’t say for many small-cap stocks.
AZ9 used electromagnetic surveys (called FLEM) to scan underground and predict where they were most likely to find metal-rich rocks. Drilling into those spots – OVD041 and OVD042 – hit mineralisation exactly as modelled.
OVD042 cut almost 90 metres of mineralised rock from surface, including a narrow massive sulphide band visually estimated at around 15% chalcopyrite (copper) and 65% pyrrhotite (nickel-bearing sulphide).
The hole extended known mineralisation 23 metres northwest of the previous intercept, confirming the targeting model works and the mineralisation continues.
OVD041 intercepted disseminated mineralisation over 25 metres right where the EM plates indicated.
Electromagnetic targeting works because sulphide minerals conduct electricity differently than surrounding rock. AZ9 can scan underground, identify these conductive zones, then drill straight into them.
With over 30 untested conductors identified across the Oval region, this systematic approach means AZ9 has a pipeline of drill-ready targets rather than drilling blind.
If this track record holds, Oval could be the opening chapter of a much larger belt-scale discovery.
EM Targeting: A Method Behind Major Discoveries
The Nova-Bollinger discovery by Sirius Resources in 2012 is one of Australia’s most famous EM-led success stories.
Using EM surveys, Sirius identified a strong conductor beneath shallow cover and drilled straight into 4m of massive sulphides grading 3.8% nickel and 1.42% copper on the very first hole.
Follow-up downhole EM refined the picture, the deposit grew quickly, and IGO eventually wrote a $1.8 billion cheque to take it out.
AZ9 has already produced an 8 metre intercept of massive sulphide grading over 6% copper and 3% nickel at Oval. Now it’s applying the same systematic approach across Mongolia.
With dozens of untested conductors across a broader belt, AZ9 is hoping to replicate Nova-Bollinger’s playbook.
AZ9’s Phase 4 to Test New High-Priority Conductors
AZ9 is now taking its proven model beyond Oval. Phase 4 drilling is set to target fresh conductors at MS1, MS2 and Quartz Hill, with rigs also heading to Maikhan Uul as new surveys at Bayan Sair feed the pipeline.
This is the shift from a single deposit into a belt-scale copper–nickel hunt. The rigs will work systematically through high-priority ground, giving each conductor a chance to deliver.
Recent ground expansion at Maikhan Uul and Bayan Sair has lifted the regional potential even further. The exploration story now stretches well beyond one target.
AZ9 Upcoming Catalysts: Assays, Drilling, and Metallurgy
AZ9 has a packed few months of news flow ahead. Assays from Phase 3 drilling land within three to four weeks, and the strong visual sulphides already reported make those results worth watching.
At the same time, rigs will be moving onto the next set of high-priority conductors at MS1, MS2, Quartz Hill and Maikhan Uul – keeping momentum rolling straight into Phase 4.
Metallurgical test work is also underway, giving early insight into recoveries and processing options.
Beyond this, regional geophysical programs across Copper Ridge, Bayan Sair and Maikhan Uul are underway, feeding a continuous pipeline of drill-ready targets.
AZ9 Positions for Belt-Scale Discovery Potential
AZ9’s success at Oval has done more than prove they can hit sulphides in Mongolia. It’s validated an exploration approach that can now be applied across multiple targets.
The story is shifting. What started as a single discovery at Oval is becoming a district-scale play.
At 3.3c and a $14 million market cap, the next few months will determine whether AZ9 has found one deposit or the start of something much larger. That’s when we’ll see how far this story can scale.
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