Asian Battery Metals Extends Red Hill Massive Sulphide Zone Past 155 Metres

Asian Battery Metals Extends Massive Sulphide Zone Beyond 155 Metres at Red Hill Copper-Gold Project

Asian Battery Metals PLC (ASX: AZ9) has released new drilling results from its Red Hill (Maikhan Uul) Copper-Gold VMS Project in southwestern Mongolia, confirming that the known massive sulphide mineralised zone now extends to over 155 metres of strike length. These Asian Battery Metals Red Hill copper gold massive sulphide drilling results come from three new drillholes — MU2602, MU2603, and MU2604 — all of which intercepted copper mineralisation.

Two of the three holes delivered visually striking massive sulphide intersections, underscoring the growing scale of what ABM believes is a large and previously underappreciated VMS system.

Critically, the extent of massive sulphide mineralisation now confirmed by ABM's drilling was not recognised by any of the historical exploration programmes at the project — a point that carries significant weight for investors assessing the discovery's true potential.

What the Drills Found: A Step-by-Step Breakdown

Each of the three new drillholes added a meaningful piece to the geological picture emerging at Red Hill.

MU2603 — The Standout Intercept

MU2603 was designed to intercept a downhole electromagnetic (DHEM) conductor plate modelled from earlier drilling at MU2502, testing whether the massive sulphide zone continued up-dip. The results were compelling:

• Intercepted 21.9 metres of massive sulphide mineralisation (chalcopyrite and chalcocite) from 82.75 metres downhole
• Located approximately 75 to 80 metres up-dip of the MU2502 massive sulphide intercept
• Visual copper-sulphide content appears to have increased significantly compared to MU2502, with secondary chalcocite observed
• Multiple additional mineralised intervals returned, including semi-massive sulphide and mineralised quartz-sulphide stockwork

The presence of chalcocite is a particularly noteworthy observation. In VMS systems, increasing copper-sulphide content — especially secondary enrichment minerals like chalcocite — is often interpreted as a pointer toward feeder zones, areas that can host higher-grade and more voluminous mineralisation.

MU2604 — Western Extension Confirmed

MU2604 was drilled approximately 70 metres west of MU2601 to test the western extension of the massive sulphide zone, targeting a low-resistivity, high-chargeability zone beneath a gossan outcrop at surface. Despite access constraints preventing the drill from reaching the optimal target location, the hole still delivered:

• 3.6 metres of massive to semi-massive sulphide mineralisation rich in sphalerite and chalcopyrite (from 87.7 to 92.0 metres)
• A broader 15-metre veined and disseminated copper-mineralised zone
• A quartz-pyrite stockwork zone from 132.5 to 171.3 metres, with elevated copper-rich veins
• This result extended the massive sulphide zone a further 60 metres west of MU2601

The fact that a positive result was returned despite drilling toward a secondary rather than primary target speaks to the breadth of the mineralised system.

MU2602 — Eastern Extension and Oxidised Zone Characterisation

MU2602 was designed to test the eastern extension of mineralisation beneath a hematite-limonite-rich hydrothermal breccia mapped at surface. Key findings included:

• A 44.5-metre-thick hematite-limonite-rich breccia zone with associated jarosite alteration from 3 metres downhole
• Oxidised copper minerals (malachite and azurite staining) observed from approximately 28 metres downhole
• Strongly pyritic rhyolite with chalcopyrite veining and minor bornite identified from approximately 80 to 94 metres
• Multiple moderate-to-high sulphide intervals returned across the hole

Drill Intercept Summary Table

Note: All intervals reported are downhole lengths. True widths are uncertain due to core orientation limitations. These are visual estimates only — assay results are expected within 4 to 5 weeks.

Drillhole Location Summary

Understanding VMS Deposits: Why Does This Geology Matter?

What Is a VMS Deposit?

A Volcanogenic Massive Sulphide (VMS) deposit forms on or near ancient seafloors, where hot, mineral-rich fluids vented through volcanic rocks and deposited concentrated sulphide minerals — including copper, zinc, gold, and silver — in thick, high-grade lenses.

The "massive" component refers to ore that is almost entirely composed of sulphide minerals, making it visually distinct and often very high-grade.

Why Does It Matter for Investors?

VMS deposits are among the most attractive exploration targets globally because they can host:

1. High-grade mineralisation in relatively compact zones, reducing mining costs
2. Multiple metals simultaneously — copper, gold, zinc, and silver — improving revenue diversification
3. Stacked or repeated lenses along a single stratigraphic horizon, meaning one discovery can lead to multiple ore bodies

Key Mineralogy Glossary

The Discovery Narrative: What History Missed

One of the most compelling aspects of ABM's drilling campaign is the contrast with what historical explorers found — or rather, what they didn't find.

Previous exploration work at Red Hill, conducted primarily by Best Resources LLC between 2010 and 2013, did identify copper-gold mineralisation, and a historical resource estimate exists for the project. However, historical work was constrained by drilling access limitations and site preparation requirements.

ABM's 2026 drilling programme — designed specifically to probe extensions and higher-grade zones — has furthermore confirmed that:

• Massive sulphide mineralisation of the extent now identified was not recognised by any prior exploration
• The system remains open at depth and along strike in multiple directions
• Historical drill spacing of 70 to 155 metres between sections was insufficient to define the continuity now being demonstrated

Managing Director Gan-Ochir Zunduisuren commented: "The current drilling results continue to highlight the significant and additional unrecognised potential of the Red Hill Cu–Au Project to host high-grade massive sulphide mineralisation with substantial exploration upside. Importantly, the extent of the massive sulphide intersections identified to date by ABM was not recognised by the historical exploration programs. The mineralised system remains open at depth and along strike."

This is a meaningful distinction. When a new operator identifies mineralisation that prior work systematically missed, it raises legitimate questions about whether the full scale of the system has been appreciated.

Near-Term Catalysts: What Comes Next?

ABM has outlined a clear and sequenced set of next steps that will drive newsflow over the coming weeks and months.

Imminent (2–5 Weeks)

• Batch 1 assay results for MU2601 — expected within approximately 2 weeks
• Batch 2 assay results for MU2602, MU2603, and MU2604 — expected within 4 to 5 weeks
• These will be the first laboratory-confirmed grades from the 2026 drilling campaign and will represent a critical data point for investors

Short-Term (Ongoing)

• Gravity survey now underway across the Red Hill project to define the scale and continuity of massive sulphide mineralisation
• Finalisation and interpretation of gravity survey results
• RC drilling targeting shallow gold mineralisation identified in MU2501

Medium-Term

• Integration of 2026 assay results with geophysical and geological data to refine drill targeting
• DHEM surveys planned on MU2602, MU2603, and MU2604, with PVC casing already installed in all three holes
• Ongoing assessment of the historical resource under JORC Code (2012)

Investment Thesis: Why Red Hill Warrants Attention

The emerging story at Red Hill has several characteristics that justify close investor attention.

1. A Genuine Discovery in Progress

The combination of thick massive sulphide intercepts, growing strike length, open mineralisation at depth, and a system that prior explorers missed creates the hallmarks of a genuine discovery narrative. ABM is not simply confirming known mineralisation — it is, in fact, extending it into territory that had not been adequately tested.

2. A System Becoming More Interesting with Depth

The visual observation of secondary chalcocite enrichment in MU2603 adds an important dimension. If the system does intensify toward a feeder zone, the highest-grade mineralisation may still be ahead of the drill bit.

3. Multiple Metal Exposure

Red Hill hosts copper, gold, and zinc mineralisation within the same VMS system. Sphalerite observed in MU2604, chalcopyrite throughout, and gold identified in historical and prior 2025 assay results give the project a compelling multi-commodity profile.

4. Historical Data Suggesting Scale

While the historical resource estimate is a foreign estimate not reported under JORC Code (2012) and cannot be relied upon, historical drilling — including intercepts such as 17.0m at 0.50% Cu and 0.31 g/t Au and 5.0m at 0.69% Cu, 0.30 g/t Au, and 7.0 g/t Ag — provides important geological context for the broader system's potential.

5. Assay Results as a Near-Term Re-Rating Catalyst

With laboratory assay results expected within weeks from multiple holes — including the 21.9-metre massive sulphide intercept in MU2603 — there is a defined, near-term catalyst on the horizon. Confirmed grades will be a critical step in quantifying the project's economic potential.

Why Investors Should Keep Watching ABM

Asian Battery Metals is focused on a specific and strategically relevant opportunity: discovering and developing mineral resources for the energy transition in Asia, with operations in Mongolia — a country with established mining infrastructure and a track record of hosting large-scale base metals deposits.

In the space of one active drilling season, the company has, through these Asian Battery Metals Red Hill copper gold massive sulphide drilling results:

• Extended the massive sulphide zone to over 155 metres of strike through systematic drilling
• Identified mineralisation not previously recognised by any prior exploration programme
• Confirmed that the system remains open in multiple directions
• Commenced a gravity survey to define the system at a broader scale
• Built a pipeline of near-term catalysts including assay results, DHEM surveys, and RC drilling

The scale, geometry, and grade distribution at Red Hill remain open questions — and it is precisely those open questions that represent the exploration upside investors in early-stage discovery stories seek.

Key Takeaway: Asian Battery Metals has positioned itself at the early stages of what appears to be a genuinely underexplored VMS copper-gold system in Mongolia. With over 155 metres of drill-confirmed massive sulphide strike, mineralisation open in multiple directions, and laboratory assay results from key intercepts due within weeks, the next chapter of the Red Hill story is close at hand. Investors focused on copper and gold exploration in the energy transition metals space should be watching closely.

However, it is important to note that all mineralisation intervals discussed are based on visual estimates of core samples. Visual estimates of mineral abundance should never be considered a proxy or substitute for laboratory analysis. Assay results for MU2602, MU2603, and MU2604 are pending and expected within 4 to 5 weeks of the announcement date. All reported intersection lengths are downhole lengths, and true widths have not yet been determined.

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