AsianBatteryMet Discovers New Mineralised Ultramafic System 6km from Oval

New Mineralised Ultramafic System Discovered 6km from Main Deposit

In a significant development for Asian Battery Metals' exploration program, scout drilling has intersected a new ultramafic-gabbroic intrusion with weak sulphide mineralisation at the MS1 target, located 6km southeast of the company's flagship Oval copper-nickel discovery.

Drill hole SC07 cut through a substantial 86.2-meter interval of weakly mineralised ultramafic intrusion from 168m depth to the end of the hole at 254.2m. The mineralisation includes trace amounts of disseminated and occasionally blebby sulphides, with visual estimates indicating 0.3% chalcopyrite, 0.2% pyrrhotite, and 0.2% pyrite.

"These early scout holes at MS1 and MS2 show we are onto a broader mineralised system," said Gan-Ochir Zunduisuren, Managing Director. "The discovery of new mafic-ultramafic intrusions at MS1 and MS2—with mineralisation and EM conductors at MS1—supports the view that Yambat is a district-scale system."

A downhole electromagnetic (DHEM) survey conducted in the MS1 hole revealed a small but highly conductive plate (6m x 6m) with 8,000 siemens conductance to the east of the hole, suggesting potential for more significant mineralisation nearby.

Structural Link Identified at MS2 Target

At the MS2 target, located 1.7km northeast of Oval, drilling intersected approximately 17 meters of gabbro starting at 6m depth. While no mineralisation was encountered, the rock composition is visually similar to unmineralised zones at the Oval deposit, suggesting a potential structural linkage between the areas.

The discovery is particularly significant as MS2 features distinctive spotted slate outcrops—identical to alteration patterns observed adjacent to the mineralised Oval intrusion—following a northwest trend parallel to the Oval intrusion.

Understanding the Mineralisation System

The new discoveries at MS1 and MS2 have significant implications for Asian Battery Metals' exploration model:

These findings suggest the mineralised system at Yambat extends well beyond the Oval discovery, potentially representing parallel mineralised trends with multiple discovery pipelines.

What Are Electromagnetic Conductors?

Electromagnetic (EM) conductors are geophysical anomalies that indicate the presence of electrically conductive material beneath the surface. In mineral exploration, particularly for nickel-copper deposits, strong EM conductors often correlate with massive sulphide mineralisation.

When explorers identify an EM conductor, it represents a priority drill target as sulphide minerals like chalcopyrite (copper), pyrrhotite (iron), and pentlandite (nickel) are highly conductive compared to surrounding rock. The conductance measurement (measured in siemens) provides an indication of the quality of the conductor—higher values generally correlate with more massive or connected sulphide mineralisation.

The 8,000 siemens conductor identified at MS1 represents a highly conductive target that warrants follow-up investigation, as it could indicate more concentrated mineralisation than what was intersected in the current drill hole.

The Role of Downhole EM Surveys in Targeting Massive Sulphides

Downhole electromagnetic (DHEM) surveys are specialised geophysical techniques used to detect conductive bodies around a drillhole. The process involves:

1. Lowering a sensitive probe down a completed drillhole
2. Transmitting an electromagnetic field via a surface loop
3. Measuring the response in three components of the B-field
4. Processing and modelling the data to identify conductive plates

This technique is particularly effective for targeting massive sulphide mineralisation, which tends to be highly conductive. At the MS1 target, the DHEM survey identified a small but highly conductive plate (6m x 6m) with 8,000 siemens conductance to the east of the hole, indicating the potential presence of more significant mineralisation nearby.

The company reports that the DHEM survey was conducted by Logantek Mongolia LLC under the supervision of Southern Geoscience Consultants, using a DigiAtlantis borehole probe and a Zonge transmitter.

Ultramafic Intrusions and Their Mineral Potential

Ultramafic intrusions are igneous rocks characterised by their high magnesium and iron content and low silica levels. These geological formations are particularly significant in mineral exploration for several reasons:

1. Nickel-Copper-PGE Potential: Ultramafic intrusions are known to host significant magmatic sulphide deposits containing nickel, copper, and platinum group elements (PGEs).

2. Formation Process: These intrusions form from magma that originates deep in the Earth's mantle, bringing with it valuable metals.

3. Mineralisation Mechanisms: As the magma cools, sulphide minerals can segregate and concentrate, forming economically significant deposits.

The presence of an 86.2-meter interval of weakly mineralised ultramafic intrusion at MS1 is therefore a significant geological indicator. Even with relatively low sulphide content (0.3% chalcopyrite, 0.2% pyrrhotite, 0.2% pyrite), the scale of the intrusion suggests potential for more concentrated mineralisation elsewhere in the system.

Next Steps for Asian Battery Metals

The company has outlined several near-term milestones to advance exploration across the Yambat Project:

• Remaining assay results from Phase 3 drilling expected later this month
• Ongoing SAMSON EM surveys at Oval and MS1
• First metallurgical test results from Oval anticipated in July/August
• Magnetic surveys planned at MS2 to refine deeper targets

The SAMSON EM survey is particularly significant as it's a deep-penetrating ground-based electromagnetic system capable of detecting conductive bodies at greater depths than conventional EM methods.

Regional Exploration at Copper Ridge

In addition to the MS1 and MS2 targets, Asian Battery Metals has been conducting follow-up drilling at the Copper Ridge prospect in the northern part of the Yambat Project. Unlike MS1 and MS2, which appear to host magmatic Ni-Cu-PGE sulphide mineralisation similar to the Oval discovery, Copper Ridge is prospective for hydrothermal Cu-Au mineralisation associated with strong silicic and sericite alteration in metasedimentary host rocks.

The company drilled two follow-up holes (CRS02 and CRS03) to build on a previous discovery hole (CRS01A) that had intersected 144.3m of semi-continuous mineralisation within a broader 199.0m interval.

However, results from the follow-up drilling have been mixed. Drillhole CRS02 intersected barren phyllic-altered metasediment with no significant mineralisation, while CRS03 encountered only trace amounts of chalcopyrite from 9.0m to 52.0m downhole.

The current interpretation suggests the mineralisation at Copper Ridge may be confined to a narrow, structurally controlled corridor trending southwest to northeast.

Investment Implications

Asian Battery Metals' recent discoveries highlight the expanding potential of its Yambat Project. The identification of new mineralised ultramafic intrusions 6km from the main Oval discovery demonstrates the project's district-scale potential—a key factor in developing economically significant mineral deposits.

For investors focused on the battery metals sector, the company offers exposure to copper and nickel exploration in Mongolia, a mining-friendly jurisdiction strategically positioned near Asian markets. With multiple exploration targets now identified across a broad area, the company has significantly enhanced the prospectivity of its flagship project.

The combination of an established discovery at Oval and multiple new targets creates a pipeline of potential developments that could substantially increase the resource base over time. As asianbatterymet plc discover new mineral system and advances its exploration program with additional EM surveys and follow-up drilling, investors may wish to monitor assay results and further definition of these newly identified mineralised systems.

In the context of global demand for battery metals, particularly nickel and copper, which are essential components in electric vehicle batteries and renewable energy infrastructure, the company's exploration success positions it to potentially benefit from these market trends if its discoveries prove economic.

Are You Looking for the Next Battery Metals Opportunity?

Discover why Asian Battery Metals' expanding mineralised system at Yambat could represent a compelling investment opportunity in the battery metals space. With a district-scale copper-nickel project featuring multiple discovery zones and significant EM conductors, the company is strategically positioned to capitalise on growing demand for critical battery minerals. To learn more about their exploration progress and investment potential, visit www.asianbatterymetals.com today.