Asian Battery Metals (ASX: AZ9) has delivered yet another impressive update from its Oval copper-nickel discovery in Mongolia.
The Phase 3 campaign has today confirmed further massive sulphide intercepts – this time 6.9m from shallow depth – while confirming the same host geology spans both zones, raising potential for continuity. The geology is lining up exactly as you’d hope.
At 2.5 cents with an $11 million market cap and over $5 million cash, AZ9 remains one of the most leveraged copper plays on the ASX. Visible massive sulphides already confirmed, high-grade assays in the bank, a high-calibre management team in country, and multiple untested targets still waiting for the drill bit.
AZ9 is building a case for a genuine large-scale discovery. They’ve flagged potential for an 800m zone of shallow mineralisation, and if proven this could significantly re-rate AZ9 and attract global attention.
With copper supply struggling to keep pace with demand, AZ9 is starting to paint a real picture of the potential of its copper discovery at just the right time.
AZ9’s Oval and North Oval Copper-Nickel Discoveries to Date
Before digging into the specifics of today’s drill results, it’s worth recapping what Asian Battery Metals has uncovered so far across the Oval and North Oval zones.
Massive sulphides have become a consistent theme at AZ9. The company has systematically delivered high-grade results, drill hole after drill hole.
“The latest drill results suggest a potential of 800 m long zone of shallow mineralisation from North Oval through to Oval”
– Gan-Ochir Zunduisuren, Managing Director of Asian Battery Metals
In late 2024 and early 2025, AZ9 hit multiple shallow high-grade zones, including standout intercepts of over 8 metres with over 6% copper content. We went back through the archives and couldn’t find anything comparable. No company had ever reported a drill result of that high grade over that length.
The North Oval zone sits around 500m from the initial Oval discovery, and AZ9 has since shown that both zones share the same host geology, a gabbroic intrusion known to contain copper-nickel sulphide deposits.
The project has now evolved from isolated success to a more connected system. And with every new intercept, the scope of what AZ9 might be sitting on grows larger – and so does our confidence in the story.
More Massive Sulphide Hits for AZ9 at Oval Copper Project
The headline result here is straightforward: AZ9 has once again intercepted massive sulphide at shallow depths.
Drill hole OVD036 returned 2.0m of massive sulphide from 113.3m downhole, located 130m down dip from a previous hit in OVD025.
Drill hole OVD040 intercepted 6.9m of massive sulphide from 95.5m depth, 22m north of the earlier world class drill result OVD021 at 8.8m with over 6% copper and 3% nickel.
For a junior explorer trading at $11 million with $5 million cash, this hit rate is remarkable. Even more so when you consider the two zones (Oval and North Oval) are showing early signs of being connected.
The importance of massive sulphide lies in its grade and continuity. Unlike disseminated mineralisation (where metal content is more sparsely distributed), massive sulphides typically indicate high concentrations of copper, nickel, and associated minerals like cobalt or PGEs.
Drill core OVD040 included a 6.9m interval visually estimated to contain 9.2% chalcopyrite – the main copper-bearing mineral. If confirmed by assays, this could indicate a copper grade exceeding 3%, which would be genuinely outstanding.
Both hits show the mineralisation stretching along trend. OVD036 extended the zone deeper, while OVD040 pushed it north along strike. AZ9 is starting to map the edges of what looks like a much broader mineralised system.
AZ9 Confirms Shared Geology Between Oval and North Oval Zones
Two drill holes OVD038 and OVD039 didn’t hit massive sulphides, but they delivered something equally valuable – confirmation of shallow gabbroic rock connecting the two zones.
Instead of Oval and North Oval being isolated discoveries, this strongly suggests the two zones are structurally linked. AZ9 may be drilling along a continuous structural trend.
For investors unfamiliar with this sort of geology, gabbroic intrusions are a common host for magmatic sulphide deposits. They act as the plumbing system for the mineralising fluids.
When you find gabbro spanning two zones that have already delivered massive sulphides, you’d expect the mineralisation to extend between them.
With this geological link now confirmed, future drilling becomes much more targeted. Instead of testing disconnected prospects, AZ9 can drill along a continuous trend – dramatically improving their odds of success.
This helps explain Managing Director Gan Zunduisuren’s recent comments about seeing potential for an 800m zone of shallow mineralisation running from North Oval through to Oval.
If assays confirm this scale, that’s a major evolution in the AZ9 discovery story.
EM Technology Powers AZ9’s Next Drill Phase at Oval
One aspect of this announcement that deserves more attention is AZ9’s tech-driven approach to targeting.
While many juniors still rely on surface testing and blind step-outs, AZ9 is now leveraging advanced downhole electromagnetic tools to refine its drill strategy.
Take OVD040, the target drilled was picked up using a new piece of software called Provus. This tool helps geologists figure out what’s underground by showing how electrical signals move through different types of rock. It’s more advanced than older systems and helps the team aim their drill holes more accurately.
OVD040 delivered exactly what the tech predicted – a strong zone of mineralisation, including that 6.9m massive sulphide zone. The approach is clearly working.
AZ9 is also now deploying the Samson EM survey – a high-powered tool designed to search deeper underground and pick up signals from metal-rich zones, even when they’re hidden under layers of rock or soil.
Between the proven success of downhole EM, the accurate drill targeting from Provus software, and now the deeper-penetrating Samson survey, AZ9 has assembled a sophisticated exploration toolkit. They’re drilling smarter and will hit their next round of drilling with a much clearer picture.
AZ9 Fully Funded to Advance Oval Copper-Nickel Exploration
AZ9 is taking a short pause from drilling while assays are pending and they wait for the Samson EM survey results to define the next best targets. Rather than a red flag, this makes perfect sense given the company has structured its operations to make it feasible.
The drill rig stays parked on site at no extra cost, and with drilling in Mongolia significantly cheaper than most jurisdictions, AZ9 maintains a healthy cash balance of over $5 million heading into the second half of 2025.
In a volatile market, the ability to pace your exploration intelligently without burning through capital gives AZ9 a longer runway and better chance of success.
Rather than drilling blind, management is letting the geology guide the strategy. When targets keep delivering like they have at Oval, patience builds a stronger story.
AZ9 has also flagged that results from regional scout drilling will be released shortly. These weren’t the focus of today’s update, but they could deliver a nice surprise if mineralisation shows up beyond the current Oval system.
Why AZ9’s Oval Discovery Is One to Watch
Asian Battery Metals has now completed 16 diamond holes in 2025, racking up nearly 3,000m of drilling across Yambat. The geological picture is getting clearer with every hole.
Assays are still pending, but visual logging shows high percentages of copper sulphide minerals across what could be an 800m system of shallow mineralisation.
With the EM survey also incoming, the second half of 2025 could be transformational for AZ9.
Copper is ripping higher for good reason. Supply can’t keep pace with demand, and the International Energy Agency along with major banks are warning of structural deficits building through the late 2020s.
For investors seeking early-stage leverage to that theme, AZ9’s consistent progress, experienced management, world-class hits and lean cost structure make it essential viewing for any serious copper investor.
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