Azzuro Finds New Copper Zone 80m North of Red Hill as Second Rig Mobilises

New copper sulphide zone expands Red Hill’s footprint — and it was found while chasing gold

Drillhole MU2613A has intersected a 7.0m interval of semi-massive to massive sulphide mineralisation from 72.3m downhole, including a 0.85m massive sulphide interval from 75.0m — discovered while targeting the shallow gold zone, not the copper system. Critically, this intersection sits 70–80m north of all previously drilled massive sulphide mineralisation at Red Hill, indicating the copper system is potentially larger than previously mapped.

Azzuro Resources PLC (ASX: AZ9) made the find at its 100%-owned Red Hill Copper-Gold Volcanogenic Massive Sulphide (VMS) Project in southwestern Mongolia. A VMS deposit is a type of mineral system where metal-rich sulphide minerals are deposited on the seafloor by hydrothermal vents — typically concentrating copper, gold, silver, and zinc in dense, layered zones.

Since the Phase 2 shallow gold drilling program commenced on 1 September 2026, six holes have been completed totalling 442.6m. Assay results from both the gold zone and the new sulphide zone are expected in approximately 4–5 weeks.

What Red Hill has already delivered — and why the new zone matters

Drilling across 2025–2026 has defined copper-gold massive sulphide mineralisation over a strike length of approximately 550m at Red Hill. The previously reported Phase 1 assayed intercepts set a high benchmark for what the new zone may represent:

• 14.5m @ 2.23% Cu, 0.73 g/t Au from 132.5m (MU2501)
• 13.1m @ 2.58% Cu, 0.96 g/t Au, 22.4 g/t Ag from 108.4m (MU2601)
• 21.5m @ 1.70% Cu, 0.85 g/t Au, 16.86 g/t Ag from 83.2m (MU2603)
• 18.0m @ 1.02% Cu, 0.54 g/t Au, 12.14 g/t Ag from 74.0m (MU2604)
• 1.6m @ 11.94% Cu, 1.63 g/t Au, 3.13 g/t Ag from 127.2m (MU2605)
• 5.0m @ 4.92% Cu, 0.94 g/t Au, 5.05 g/t Ag from 142.5m (MU2610A)

The sulphide assemblage in MU2613A is bornite-dominant (bornite is a high-grade copper mineral), which is consistent with the high-grade intercepts already recorded across the system. Managing Director Gan-Ochir Zunduisuren drew the comparison directly:

Gan-Ochir Zunduisuren, Managing Director

“MU2613A has given us a new zone of copper sulphides north of everything we have drilled at Red Hill – and we found it while chasing the shallow gold. That tells us the copper system is larger than we had mapped, and that the North Hill gold and the copper sulphides are most likely parts of one system.

The sulphide assemblage is bornite-dominant, resembles our best assayed intercept to date, 13.1m @ 2.58% Cu, 0.96 g/t Au, 22.4 g/t Ag in drillhole MU26012. The DHEM has also handed us a ~1,000 Siemens conductor at Zone B that is already partly confirmed by massive sulphide in MU2601 and is open down-dip and along strike.

With copper at record prices and Red Hill 250km from the Chinese border, we are moving quickly: a second, deeper-capable rig is mobilising, metallurgical testwork is due early in Q4 2026 and assays from the new copper zone are four to five weeks away.”

The macro backdrop reinforces the project’s strategic position. Copper was trading above US$14,800 per tonne on the London Metal Exchange (three-month contract) in September 2026, with Comex futures also at record levels. Red Hill sits approximately 250km from the Burgastai border crossing into China, the world’s largest copper consumer.

Understanding DHEM — the tool now pointing to Azzuro’s next targets

Downhole Electromagnetic (DHEM) surveying is a geophysical technique conducted from inside a drillhole. By measuring the electromagnetic response of surrounding rocks, it can detect conductive material — such as sulphide mineralisation — sitting off to the side or below the hole in areas that drilling has not yet reached.

For investors, the practical value is straightforward: DHEM allows a company to identify and rank drill targets before committing capital to additional holes. It narrows exploration risk by telling geologists where to look next, based on physical evidence rather than inference alone.

Azzuro completed DHEM surveying across eight drillholes at Red Hill, using its Novaminex DHEM system integrated with a Zonge GGT-30B transmitter, operated in partnership with Logantek Mongolia LLC. The data were processed and modelled by Novaminex, identifying three distinct conductive plates.

Three conductors identified — one is a priority

The three modelled zones each carry different levels of confidence and drilling priority. The table below summarises their key characteristics, sourced directly from Table 3 of the announcement:

Zone B is the headline result. With an estimated conductance of approximately 1,000 Siemens and modelled dimensions of approximately 100m × 32m × 20m, it represents the strongest off-hole response identified. Crucially, drillhole MU2601 has already partially intersected massive sulphide that corresponds to the upper and lower plates modelled from the DHEM data — providing direct physical confirmation that the geophysical signal reflects real sulphide mineralisation.

Zone C adds a second line of independent evidence. The modelled Zone C plate is spatially coincident with the constrained gravity inversion developed separately by Terra Resources Pty Ltd. Two geophysical methods — DHEM and gravity — pointing to the same location without being designed in reference to each other is a meaningful signal. The source does note that Zone C’s comparatively modest conductance may partly reflect the conservative transmitter output used during the survey.

The Red Hill gravity survey, completed by Terra Resources Pty Ltd, provided the independent geophysical dataset against which the DHEM-modelled Zone C plate was cross-referenced, with spatial coincidence between the two methods strengthening the case that Zone C reflects genuine sulphide rather than noise.

Zone A (~450 Siemens) is retained as an exploration vector, but the source states it may partly reflect saline groundwater within a deep weathering trough rather than sulphide. Drill testing will be needed to clarify its source.

What comes next — second rig mobilising and a busy Q4 ahead

The near-term catalyst schedule for Red Hill is dense, with multiple data and drilling events expected before the end of 2026. A second, deeper-capable drill rig is now mobilising to site to test the Zone B conductive target and DHEM and gravity targets for depth and strike extensions of the copper mineralisation.

Key milestones to watch:

1. Assay results from the gold zone and new sulphide zone drilling — expected approximately 4–5 weeks
2. Completion of metallurgical testwork on Red Hill Cu-Au sulphide mineralisation — expected early Q4 2026
3. Drill testing of DHEM conductors (Zone B priority) and gravity targets for depth and lateral extension — Q4 2026
4. Phase 2 shallow gold drilling program continues toward approximately 1,200m planned total
5. Ground 3D IP survey and interpretation at the Oval Cu-Ni project — October 2026

The second rig mobilisation is the operational signal that matters here. Azzuro is not waiting for assay results before advancing the deeper copper story — drilling on Zone B will begin while the laboratory is still processing the current batch. That parallel-track approach means the company is simultaneously pursuing a distinct deeper priority target (Zone B, located west of MU2502) while assay results for the new MU2613A discovery are pending.

With a rapidly expanding copper system, record copper prices, proximity to the Chinese border, and multiple catalysts converging in Q4 2026, the next few months are likely to be the most data-rich period in the project’s history.

Note: All intercept widths reported as downhole lengths. True widths have not yet been determined. Visual estimates of mineral abundance in MU2613A should not be considered a proxy or substitute for laboratory analysis. Assay results are pending.

Ready to Learn More About the Red Hill Copper-Gold VMS Project?

Azzuro Resources (ASX: AZ9) has uncovered a new copper sulphide zone extending 70–80m north of all previously drilled massive sulphide mineralisation at Red Hill, with a priority ~1,000 Siemens DHEM conductor at Zone B and record copper prices above US$14,800 per tonne underpinning the project’s strategic value. Assay results from the new zone and a second deeper-capable rig mobilising to site make Q4 2026 a pivotal period for the expanding system.

With multiple catalysts converging — from pending assays to metallurgical testwork and Zone B drill testing — investors tracking this story can explore Azzuro Resources’ full project profile and latest announcements to stay across developments as they unfold.