Multiple High-Grade Targets Light Up AZ9's Oval
AZ9's massive copper-nickel discovery just got bigger, with multiple new high-grade targets identified. Up 218% since we added it to our portfolio - and drilling is already underway
Asian Battery Metals' (ASX: AZ9) Oval target just lit up like a Christmas tree, with downhole electromagnetic (DHEM) surveys revealing multiple high-priority conductors across their recent massive sulphide discovery in Mongolia.
We highlighted AZ9 as a top pick back in July, added it to our portfolio last Monday (up 218% since), and today's results suggest we've backed something even more significant than initially thought.
We won't have to wait long for more news either. Today's announcement confirmed the team at AZ9 already has drills spinning and expects results by year-end. As investors, we love fast-paced exploration that can carry momentum for all involved.
The Breakdown
17 conductive plates identified across the gabbroic intrusion
Peak conductivity of 29,000 siemens (phenomenally high)
Conductors up to 103 metres in length and 12 metres thick
Located at shallow depths - between 35 to 170 metres from surface
9 plates identified around the discovery hole alone
These are exceptional numbers. When geophysicists hunt for massive sulphide deposits, they get excited about conductivity readings in the thousands of siemens. Here, we're seeing readings up to 29,000 siemens. That's the kind of number that makes mining executives book flights to Mongolia.
Understanding the Geology
The 17 conductive plates identified across gabbroic intrusion are of particular interest to us as investors in early-stage exploration.
These intrusions in the earth's crust often allow minerals to settle and concentrate, which can lead to economically viable ore bodies, especially massive sulphides. Such ore bodies can play host to valuable copper, nickel, and platinum-group elements deposits—the exact type that AZ9 has discovered and is continuing to explore.
Take a look at the 3D model below from today's announcement; think of it as an underground radar showing where to drill next.
What you're seeing is AZ9’s discovery hole surrounded by multiple coloured plates. Each plate represents an area where the EM survey detected highly conductive material - potentially more massive sulphides like the high-grade copper and nickel already discovered that sent the share price soaring last week.
Understanding the DHEM Survey
The DHEM survey results reveal something particularly intriguing at the Oval - the high-grade zone appears to have a NE-SW orientation, dipping to the NW.
This is notably different from the previously tested disseminated mineralisation, suggesting AZ9 might be looking at a pure massive sulphide pulse from a deeper magma chamber below the Oval.
“The DHEM results have exceeded our internal expectations, and we look forward to systematically drilling all of these compelling conductors.”
- Gan-Ochir Zunduisuren, AZ9 Managing Director
For non-geologists, think of it this way: instead of finding a single vein of high-grade material, AZ9 might have discovered an injection point where concentrated metals have pushed up from below. These multi-phase injections of mineralised material are a characteristic feature of major copper-nickel deposits in this part of the world.
The Hunt Continues at the Oval
AZ9 wasted no time after last week's discovery. Drilling has already begun on "Phase 2." This phase will comprise 4-8 holes, totalling 1200 metres.
As investors, we love to see it. A discovery backed up by a hungry but calculated management team that is now advancing the project at a fast pace.
By systematically focusing on the Oval targets potentially deeper high-grade sections, AZ9 hopes to gain a greater understanding of how big and deep this discovery is.
With results due by year-end, we could be in for a big end of 2024.
The Story Is Just Getting Started
When we announced we had added AZ9 to our portfolio last Monday, we knew the Oval target had potential. Today's results suggest we might have underestimated just how much potential.
Here's why we remain bullish:
Multiple high-priority conductors surround the discovery at the Oval
Perfect depth for open pit mining - shallow enough to keep costs down
Drilling is already underway
Results expected before year-end
10c share price valuing the company at only $58 million
What Comes Next
The next few months could be transformational for AZ9. With drilling underway and these compelling conductors to test at the Oval, we expect a steady flow of news.
The company is particularly focused on extending the high-grade mineralisation zone and determining its true orientation. An exercise that could be fruitful for shareholders if today’s announcement is confirmed by drilling.
Remember, discoveries like this don't come along often. When they do, they tend to attract attention from major mining companies - especially when you're finding copper and nickel grades like these in Mongolia, right next door to the world's biggest copper consumer, China.
We'll keep you updated as results come in from the Oval target. For now, we're encouraged to see the drilling rigs turning again, testing what could be one of the most exciting discoveries of 2024.
About AZ9's Oval Discovery
Initial discovery hole: 8.8m at 6.08% copper and 3.19% nickel (announced last week
Located in Mongolia, bordering China
One of the highest-grade copper-nickel intercepts reported globally in the past decade
Today's DHEM survey suggests potential for multiple similar zones
New to Equities Club?
We added AZ9 to our portfolio at 3.3c. Since then:
Share price: 10.5c
Return: +218%
Market cap: $58M