Weekly Wrap: Copper Colossus, AVZ's Gates-Bezos Play, and Oval's Story Deepens
With Gates and Bezos eyeing Congolese lithium, copper explorers making breakthroughs, and Argentina yielding monster deposits, the resource sector is showing serious signs of life
With gold holding strong above US$3,300/oz and global tensions sharpening the world's focus on critical minerals, the resource sector barely paused for breath this week.
Between fresh drilling hits, major deals falling into place, and what looks like the copper discovery of a generation in Argentina, there was plenty to keep an eye on.
A few stories stood out from the pack:
Asian Battery Metals may have tagged the feeder system beneath its copper discovery in Mongolia.
AVZ Minerals is nearing a resolution on the Manono lithium project, with backing from some of the world's biggest names.
Lundin Mining announce one of the most significant copper-gold-silver discoveries in modern history in Argentina.
Let's break it down.
Asian Battery Metals closes in on the source at Oval
It might be early days, but Asian Battery Metals (ASX: AZ9) appears to be zeroing in on what could be the copper source beneath its Oval discovery in Mongolia after dropping a bullish drilling update this week.
The announcement on Tuesday revealed:
Thick intersections of sulphide-rich mineralisation, including both high-grade massive sulphides and disseminated textures.
A clearer geological model is emerging, with deeper drill holes pointing to a potential feeder system beneath the existing discovery zone.
Multiple new targets are lighting up the map, expanding the company's potential across the tenement.
This might be the most encouraging update we've seen from AZ9 so far. Geologists often describe feeder zones as natural channels that once carried metal-rich material up from deeper underground.
If Oval is tapping into this kind of structure, it explains the increasing grades and the growing consistency of mineralisation.
But it's what's happening deeper down that's really interesting. The story has now evolved beyond isolated hits near the surface, and we're seeing hints of structure - an emerging system that could explain where this mineralisation is coming from.
One hole in particular has tagged what looks like a channel, which is like a geological corridor that might lead back to the source. If that proves true, it's exactly the kind of setup you'd hope for in a magmatic copper-nickel system.
Should AZ9 confirm a feeder beneath Oval, it could flip this from a cluster of high-grade zones into a large, unified copper-nickel system.
That's the kind of change that moves share prices.
With AZ9 trading at just 3.1c and assays due in late May, this small-cap is one to watch
AVZ Minerals: A global play attracting global names
Three years after trading suspension and nearly a year since being officially delisted from the ASX, AVZ Minerals might be on the verge of a breakthrough.
This week may mark the beginning of a long-awaited turnaround for shareholders who've been trapped in limbo since May 2022.
AVZ has now signed a non-binding framework agreement with US-backed Kobold Metals to purchase its interest in the Manono Lithium and Tin Project in the Democratic Republic of Congo (DRC), the largest undeveloped hard-rock lithium deposit on the planet.
The implications here are big for all involved:
Kobold Metals is backed by billionaires, including Bill Gates and Jeff Bezos, signalling the strategic relevance of the Manono project on the world stage.
The US Government recently brokered a peace deal between the DRC and Rwanda, providing a platform for increased investment and regional stability.
AVZ has publicly endorsed the new agreement and expressed support for US involvement, a sign that the company sees a viable resolution on the horizon.
The agreement will enable KoBold to potentially deploy more than $US1 billion (AUD$1.55b) to bring the Manono lithium to Western markets.
The deal is designed to resolve the protracted ownership dispute that's plagued the project, with AVZ set to receive compensation for relinquishing its claims and has proposed suspending international arbitration to facilitate the transaction.
Meanwhile, China's Zijin Mining, which was awarded part of the deposit in 2023, would retain control of the northern section while KoBold would develop the southern portion.
AVZ recently secured a US$67.5 million penalty in arbitration against Cominière for ignoring emergency orders in the ongoing dispute.
The company's announcement also made it clear: the window for a constructive, negotiated outcome is open, and AVZ is ready to walk through it.
We've been banging on about AVZ for a while now, doing a deep dive last year on the immense potential of Manono and the complex dynamics surrounding the project.
In that piece, we highlighted the asset's strategic position within the lithium supply chain and why it had become the focus of both local political friction and global commercial interest. Today, that thesis is playing out, but now with institutional capital and diplomatic muscle behind it.
So what does this latest update mean for long-suffering shareholders?
The financial terms of the Kobold deal are still being worked out, but signs point to AVZ shareholders finally seeing some return on their patience with it increasingly likely that AVZ could realise meaningful value through a dividend or capital return once the transaction completes.
Manono was never just another lithium deposit. Its sheer size made it a geopolitical chess piece. AVZ shareholders understood this from day one, and those who've white-knuckled through three years of suspension might finally be rewarded for their iron stomachs.
Lundin Mining uncovers a monster in Argentina
It could be the most significant copper discovery in 30 years, Lundin Mining has announced a remarkable initial resource at its Filo del Sol project in Argentina.
1.33 billion tonnes at 0.42% Cu, 0.32 g/t Au, and 2.1 g/t Ag (indicated + inferred)
That equates to a measured and indicated resource of:
13 million tonnes of copper
32 million ounces of gold
659 million ounces of silver
The company calls it a potential "tier-one asset" in a region already welcoming to major mining investment.
As we wrote earlier this year with Geologo Trader (
), Argentina is emerging as a vital jurisdiction for both copper, gold and silver.
Copper is central to electrification. From EV’s to solar panels, transmission lines to wind turbines, global electrification efforts hinge on copper.
According to S&P Global, demand is forecast to outstrip supply significantly by the end of this decade, with a potential shortfall of 6–8 million tonnes per year by 2035.
The size, grade, and location of Filo del Sol make it a globally significant project, not just for Argentina but for copper supply chains worldwide.
This discovery confirms what we've been saying for months - Argentina's mineral potential remains underexplored relative to its neighbours, but policy shifts, inflationary pressures elsewhere, and an investor-friendly stance are beginning to draw significant capital to Argentina.
BHP's existing stake in Filo del Sol alongside Lundin's major commitment says that the mining titans see Argentina as capable of hosting tier-one assets. When companies of this size deploy capital somewhere, they've done their homework on everything from geology to politics.
The Wrap: High stakes, high-grade, and high interest
This week served up a reminder that the mining sector is always moving forward.
Whether it's AZ9 closing in on a possible magmatic source in Mongolia, AVZ drawing the attention of the world's wealthiest men to Manono, or Lundin Mining rewriting the copper map in Argentina, one thing is clear:
The resource sector is hitting its stride.
Big discoveries are being made. Heavy hitters are circling. And for small-cap investors, this is how fortunes are made - early-stage investing, in the hope of unearthing the next monster discovery.
Stay with Equities Club as we continue tracking the drills, deals, and dynamics shaping the future of the ASX small-cap space.
