Asian Battery Metals Delivers Exceptional Copper Recovery at Oval

Asian Battery Metals Achieves Exceptional 95% Copper Recovery at Oval Project

Asian Battery Metals PLC (ASX: AZ9) has delivered outstanding metallurgical test results from its flagship Oval Cu-Ni-PGE project in Mongolia, confirming 89-95% copper recoveries using conventional flotation methods. The comprehensive test work validates the project's technical viability and reinforces ABM's position as a strategic developer of critical battery metals in Asia.

The latest results demonstrate that Oval's copper mineralisation can be effectively processed using standard industry techniques, with no penalty elements detected in the concentrate. This breakthrough positions ABM to advance toward production planning whilst targeting both copper and nickel markets essential for the global energy transition.

Key Metallurgical Achievements:

• Copper recoveries: 89-95% across all composite samples
• Copper concentrate grades: 18.2-24.5% achieved through differential flotation
• Simple two-product flowsheet established for commercial processing
• Clean concentrate composition with no deleterious elements
• Excellent chalcopyrite liberation confirmed through mineralogy testing

"The initial test results are very promising. They confirm that copper from Oval can be recovered at exceptionally high levels using a straightforward flotation process. This gives us strong confidence that Oval can produce a clean, marketable copper concentrate."

— Gan-Ochir Zunduisuren, Managing Director

Comprehensive Metallurgical Validation Delivers Commercial Confidence

The test work programme, conducted at ALS Metallurgy in Perth, processed 112 kg of mineralised samples from drillhole OVD021, representing three distinct mineralisation styles: disseminated, net-textured, and massive sulphide. Furthermore, the results demonstrate consistent performance across varying grade profiles, confirming the robustness of the processing approach.

Test Results by Composite Type:

The differential flotation process successfully separated copper and nickel into distinct concentrate streams. In addition, the copper concentrate achieved commercial-grade specifications ranging from 18.2% to 24.5% copper content. The consistency of high recovery rates across different mineralisation types validates the processing approach for the broader Oval deposit.

Mineralogy Analysis Confirms Processing Advantages:

• Chalcopyrite is the only copper-bearing mineral, simplifying metallurgical requirements
• 70% of copper minerals are "well liberated", enabling efficient separation
• Minimal silicate associations reduce processing complications
• Standard flotation reagents prove effective across all sample types

Understanding Chalcopyrite: The Key to Oval's Success

Chalcopyrite is the primary copper-bearing mineral at Oval, comprising the most economically valuable component of the deposit. This copper iron sulfide mineral (CuFeS₂) is highly prised in metallurgical processing because it responds excellently to standard flotation techniques.

Why Chalcopyrite Matters for Investors:

• Industry-standard processing: No exotic or expensive extraction methods required
• High liberation characteristics: Minimal energy needed to separate valuable minerals
• Clean concentrate production: Absence of penalty elements maximises sales value
• Established markets: Chalcopyrite concentrates have well-developed global demand

The mineralogy testing confirmed that chalcopyrite occurs predominantly as "well liberated" grains. Consequently, the valuable copper minerals can be efficiently separated from waste rock using conventional methods. This translates directly to lower processing costs and higher profit margins for future operations.

What is Flotation Processing?

Flotation is an industrial separation process that uses air bubbles to separate valuable minerals from waste rock. The process works by adding chemical reagents that make valuable minerals attach to air bubbles, causing them to float to the surface where they can be collected. This established technology is widely used across the mining industry and requires standard equipment and expertise.

Strategic Development Pathway Takes Shape

With metallurgical viability confirmed, ABM is advancing multiple fronts to accelerate Oval's development trajectory. The company has established a clear path toward concentrate production whilst expanding its regional asset portfolio through strategic acquisitions.

Immediate Development Priorities:

• Concentrate marketing study to commence, targeting Asian smelters
• Nickel optimisation testing to enhance by-product revenues
• Phase 4 drilling programme planning for Q1 2026 expansion
• Technical due diligence completion on Maikhan Uul Cu-Au acquisition

The upcoming concentrate marketing study will be particularly significant, as it will establish formal offtake partnerships with regional smelters and confirm pricing mechanisms for Oval's future production. However, Asia's proximity to major copper processing centres provides ABM with logistical advantages and potential cost savings compared to remote projects.

Nickel Development Upside

Whilst copper provides the primary economic driver, nickel concentrate optimisation offers substantial additional value. Current nickel recoveries of 55-77% show promise for improvement through targeted reagent selection and flotation duration optimisation. For instance, given nickel's critical role in battery manufacturing, successful nickel concentrate production could significantly enhance project economics.

Investment Thesis: Asian Battery Metals Emerges as Regional Critical Metals Developer

The exceptional metallurgical results position ABM as a compelling investment opportunity in the rapidly expanding critical metals sector. With 95% copper recovery rates confirmed and a simple processing flowsheet established, Oval demonstrates the technical credentials necessary for near-term development.

Investment Highlights:

The confirmation of no penalty elements in the copper concentrate eliminates a major technical risk that often affects project economics. Furthermore, clean concentrates command premium pricing and face no treatment penalties from smelters, directly improving project margins.

Regional Strategic Advantages:

• Proximity to Asian battery manufacturers reduces logistics costs
• Established mining infrastructure in Mongolia supports development
• Government support for mining development provides regulatory confidence
• Expanding portfolio approach through strategic acquisitions like Maikhan Uul

Technical Validation Supports Resource Expansion

The metallurgical test work utilised samples from drillhole OVD021, which previously delivered outstanding copper-nickel intercepts including 5.96% copper and 3.17% nickel over significant intervals. The successful processing of these high-grade samples validates the potential for future resource definition across the broader Oval deposit.

Processing Flowsheet Simplicity

The establishment of a two-product differential flotation flowsheet represents a significant technical achievement. This simple processing approach requires standard flotation equipment and conventional reagents, reducing both capital expenditure requirements and operational complexity compared to more exotic metallurgical processes.

The excellent chalcopyrite liberation confirmed through TESCAN Integrated Mineral Analyzer (TIMA) testing provides confidence that processing efficiency will remain consistent across varying ore types within the deposit. Consequently, this technical certainty supports future resource estimation and mine planning activities.

Market Context: Critical Metals Demand Surge

The timing of ABM's metallurgical breakthrough aligns with accelerating global demand for battery metals. Copper remains essential for electrical infrastructure supporting renewable energy systems, whilst nickel demand continues growing driven by battery cathode requirements.

Mongolia's Strategic Position

Mongolia's location provides direct access to China's manufacturing sector whilst offering established mining investment frameworks. The country's growing reputation as a reliable critical metals supplier positions ABM to benefit from supply chain diversification trends among battery manufacturers.

The Oval project's multi-element nature provides revenue diversification across copper, nickel, and platinum group elements. In addition, this commodity diversity reduces exposure to single-metal price volatility whilst capturing value from the broader energy transition.

Why Investors Should Follow Asian Battery Metals

ABM has systematically de-risked its flagship asset whilst building a diversified portfolio of critical metals projects across Mongolia. However, the exceptional metallurgical results at Oval represent a significant milestone that validates the company's technical approach and commercial potential.

Compelling Tracking Reasons:

✓ Technical Validation Complete: 95% copper recovery rates using simple, proven technology
✓ Commercial Readiness: Clean concentrate specifications with no penalty elements
✓ Strategic Location: Asian proximity provides market access and logistics advantages
✓ Expanding Asset Base: Maikhan Uul acquisition adds complementary Cu-Au resources
✓ Experienced Management: Proven track record in Mongolia mining development

The transition from exploration success to metallurgical validation marks a critical inflection point for ABM. With Phase 4 drilling planned for Q1 2026 and concentrate marketing studies commencing, the company is positioned to deliver multiple catalysts throughout 2025.

Key Investment Takeaway:

Asian Battery Metals has confirmed exceptional copper recovery rates at its flagship Oval project, establishing a clear pathway toward concentrate production. With 95% recovery rates achieved using conventional processing, proximity to Asian battery markets, and an expanding regional portfolio, ABM represents a compelling opportunity in the critical metals sector. Upcoming milestones including concentrate marketing studies and Phase 4 drilling expansion should maintain strong investor interest.

Technical Terms Glossary

• Flotation: Industrial process using bubbles to separate valuable minerals from waste rock
• Recovery Rate: Percentage of valuable metal extracted from ore during processing
• Concentrate: Processed ore product with high metal content ready for smelting
• Liberation: Degree to which valuable minerals are separated from surrounding rock
• Differential Flotation: Process that separates different valuable minerals into separate concentrate streams

Could Asian Battery Metals Be Your Next Strategic Investment?

With exceptional 95% copper recovery rates confirmed and a clear pathway to concentrate production using conventional processing methods, Asian Battery Metals presents a compelling opportunity in the rapidly expanding critical metals sector. The company's flagship Oval project has successfully transitioned from exploration to metallurgical validation, positioning ABM as a strategic developer of battery metals essential for the global energy transition. To explore the full investment potential of Asian Battery Metals' diversified portfolio across Mongolia's established mining jurisdiction, including upcoming catalysts such as concentrate marketing studies and Phase 4 drilling expansion, visit www.asianbatterymetals.com for comprehensive company information and project updates.