Regional Drilling Ramps up for AZ9 as They Look Beyond The Oval Discovery
Asian Battery Metals is ramping up their exploration efforts in a region known for world-class copper-nickel discoveries
Asian Battery Metals (ASX: AZ9) is quietly expanding its exploration footprint in Mongolia.
While continuing to drill at their flagship Oval copper-nickel-PGE discovery - one of the most exciting new finds on the ASX in 2024 - AZ9 has simultaneously kicked off a regional exploration campaign across other targets in their Mongolian tenements.
What makes this interesting for investors is that AZ9 isn't betting everything on Oval alone.
AZ9 is now testing multiple large-scale copper and nickel systems across an entirely under-explored part of the world, all while fully funded with momentum behind it.
Trading at just 3.2c near 12-month lows with a sub-$25 million market cap, AZ9 stands out as one of the most active copper-nickel explorers on the ASX right now.
The Strategy: Beyond Oval
For investors following AZ9, their Oval discovery has delivered impressive results. In October last year, the company announced their discovery hole – 8.8m at 6.08% copper and 3.19% nickel from 107m – among the highest-grade copper-nickel intercepts reported globally in 2024.
Since then, they've continued to expand the footprint, with consistent high-grade massive sulphide intercepts across a 500m strike length.
The market has good reason to focus on this discovery, but management clearly has bigger ambitions. While drilling continues at their flagship discovery, they're simultaneously pursuing additional prospects across their Mongolian tenements.
The regional push includes Copper Ridge, MS1, MS2, and a new frontier target called CR Far East – all sitting within the same tenement package as Oval. This proximity means they benefit from existing infrastructure, logistical support and potentially similar geological settings.
Smart mining companies build portfolios, not single-asset wonders. AZ9 appears to be following this playbook to the letter.
What You Need to Know
Cut through all the geology speak in today's announcement, and you'll find this: AZ9 has boots on the ground right now and a plan to drill three priority targets:
Copper Ridge – a copper-gold system where previous drilling intersected 137m of semi-continuous mineralisation.
MS1 and MS2 – large copper-nickel sulphide targets showing strong geophysical anomalies but never drilled before.
At a time when funding in the junior sector is tight, AZ9 has the balance sheet to move fast. With gold at all-time highs and copper inching closer to US$5/lb, and the energy transition gaining steam, the timing couldn’t be better.
Copper Ridge: Back for More
AZ9 drilled its first hole at Copper Ridge (CRS01A) back in 2024 and hit a string of intercepts, including:
20m @ 0.21% Cu, 0.43 g/t Au from 7m.
33m @ 0.25% Cu, 0.18 g/t Au from 113.5m.
13.5m @ 0.29% Cu, 0.13 g/t Au from 178m.
These numbers aren’t eye-watering yet, but they revealed wide mineralised zones in virgin territory – always a promising start.
This follow-up program is targeting high-chargeability zones that could represent more continuous or higher-grade zones nearby.
The goal is simple: prove that this system extends and improves with depth or along strike.
MS2: Chasing Hidden Intrusions
MS2 is particularly interesting.
It was first highlighted by a surface outcrop of spotted slate, an altered rock type often associated with the heat and fluids from nearby intrusions.
This kind of rock can be a clue that a buried mineralised system is lurking nearby; MS2 sits just 1.7km from the world-class Oval copper-nickel deposit. Previous surveys showed:
High chargeability
Low resistivity
Elevated magnetic and gravity responses
These geophysical indicators point to a potentially mineralised system beneath the surface - similar to the signatures seen at Oval before drilling revealed its high-grade core.
AZ9 believes these indicators suggest a concealed magmatic sulphide system beneath the surface. That’s what this year’s drilling will test. If Oval was the first chapter in AZ9's story, MS2 might just be chapter two.
If sulphides are confirmed at depth, they could become a major addition to the Oval corridor.
MS1: Buried But Not Forgotten
Located about 6km southeast of Oval, MS1 is a magnetic anomaly buried under about 100m of sediment.
What caught the team's attention here was the presence of:
A distinct high-magnetic anomaly
Coincident gravity and chargeability features
In simple terms, MS1 shows similar underground signatures to what was detected at Oval before its discovery. While just one hole, it’s aimed squarely at the kind of geophysical signature you want to see in a magmatic copper-nickel system.
This represents classic high-risk, high-reward exploration. And let's not forget that Oval itself started as a similar geophysical target, showing how these "longshot" plays can deliver.
CR Far East: Eyes on the Horizon
The newest area on AZ9's exploration map is CR Far East - completely untested ground with promising potential.
Think of this as the early reconnaissance phase. Before spending money on drilling, AZ9 is gathering clues.
Using a combination of magnetics, ASTER satellite imagery, and stream sediment sampling, AZ9 has identified:
Magnetic anomalies that often indicate mineralised systems.
Surface alterations typically seen near copper deposits.
Stream samples containing traces of copper and nickel.
Rather than immediately drilling, AZ9 is running detailed ground surveys across nearly 40km to pinpoint the best possible drilling locations.
This could evolve into a fourth drilling target later in the year, depending on how the data shapes up.
Why This Matters for Investors
Here’s the key takeaway: AZ9 is a rare company.
It has:
A proven copper-nickel discovery at Oval.
A balance sheet that's fully funded, having raised capital in a challenging market.
Multiple regional targets being drilled concurrently.
Exposure to copper, nickel, and PGEs, all of which are essential to the global energy transition.
Most juniors don’t get past one of these boxes. AZ9 is ticking all of them.
This regional exploration program isn’t just about adding ounces or tonnes. It’s about defining a potential new mining district in southwestern Mongolia.
The Months Ahead
The coming months should bring a steady stream of updates.
Drilling is underway at Copper Ridge, MS1, and MS2, with results expected in Q2. The IP survey at CR Far East is also progressing and could feed into H2 drilling decisions.
Meanwhile, Oval Phase 3 drilling continues in the background, meaning the company could be juggling multiple discovery narratives by the middle of the year.
In short, AZ9 is building momentum. As we’ve seen with other juniors, consistent news flow combined with strong metal prices is often the recipe for significant re-rates.
