Asian Battery Metals Strikes Massive Sulphide at Red Hill, Mongolia

First Drill Hit at Red Hill Puts Asian Battery Metals on the Copper-Gold Map in Mongolia

Asian Battery Metals Red Hill copper gold drill results in Mongolia have captured the attention of the resources sector, with ASX-listed Asian Battery Metals (ASX: AZ9) delivering an encouraging early result from its newly acquired Red Hill Copper–Gold Project in southwestern Mongolia. The company's first drillhole of 2026 intercepted visible sulphide mineralisation across multiple intervals — including a combined 18.8 metres of massive sulphide — at depths between 108.4 and 142 metres downhole.

The result validates the company's geophysical targeting methodology and adds momentum to what is shaping up as an active exploration year at a project ABM only formally completed acquiring on 22 April 2026.

"Encouragingly, our first drillhole of 2026 has already intersected a more intense copper-rich visible sulphide mineralisation, providing a possible vector to higher grade mineralisation and an early validation of our exploration strategy."
— Gan-Ochir Zunduisuren, Managing Director, Asian Battery Metals

What the First Drillhole Actually Found

Drillhole MU2601, a 185-metre diamond drillhole, was collared approximately 20 metres southeast of the previously drilled MU2501 hole and oriented southwest at an azimuth of 218°. The hole was designed to test the extent and continuity of the massive sulphide system identified during the 2025 due diligence drilling programme.

The results from visual geological logging are summarised below:

Note: All intersection lengths are downhole lengths. True widths cannot be reliably determined at this stage due to broken core conditions. Visual estimates are not a substitute for laboratory assay results.

The two massive sulphide intervals together account for 18.8 metres of combined downhole intersection, with the mineralised zone sitting slightly up-dip relative to the MU2501 intercept and positioned 28 metres to the northwest. This geometry is consistent with a steeply north-dipping massive sulphide lens, and the spatial relationship between the two holes suggests a likely strike direction of approximately east-southeast to west-northwest with probable continuity of strongly copper-mineralised massive sulphide over at least 28 metres.

Why the Copper Mineralogy Shift Matters

One of the more technically significant observations from MU2601 is the change in copper mineralogy compared to MU2501. In MU2601, the dominant copper mineral assemblage shifts to chalcopyrite-bornite — a combination that is typically associated with higher copper grades in VMS systems.

In MU2501, chalcopyrite was the primary copper mineral. The appearance of bornite alongside chalcopyrite in MU2601 suggests the new hole may be intersecting a more copper-enriched zone, consistent with a zoning pattern towards higher copper content to the west-northwest within the massive sulphide lens.

Understanding Volcanogenic Massive Sulphide (VMS) Deposits

VMS deposits are high-grade copper, gold, zinc, and lead ore bodies formed by ancient underwater volcanic activity. These deposits typically form when hot, metal-rich fluids are expelled from volcanic vents on the seafloor, creating layers of concentrated metal sulphides.

VMS systems are prized by mining companies for several reasons. They tend to be high-grade, meaning they contain significantly higher concentrations of valuable metals compared to many other deposit types. Furthermore, the metals are often found together, allowing companies to produce multiple commodities from a single operation. Famous VMS deposits have produced some of the world's most profitable mines, including operations in Canada, Australia, and Scandinavia.

The geological setting at Red Hill — Neo-Proterozoic felsic volcanic rocks — is the exact environment where these valuable deposits typically form. The presence of dacitic and rhyolitic volcanic rocks alongside black schists matches the classic VMS signature that has guided successful exploration programmes worldwide.

What Is Bornite, and Why Does It Matter?

Bornite (Cu₅FeS₄) is a copper-iron sulphide mineral that contains approximately 63% copper by weight — significantly higher than chalcopyrite (CuFeS₂), which contains roughly 34% copper. In VMS systems, the presence of bornite alongside chalcopyrite is often interpreted as a proxy for higher copper grade zones.

Bornite commonly forms in the higher-temperature, more copper-rich portions of a hydrothermal system, and its appearance can indicate proximity to the source vent of a VMS deposit — typically where metal grades are at their peak. For investors, consequently, the presence of bornite-chalcopyrite assemblages in MU2601 is a qualitative signal worth watching as assay results come in.

Geophysical Targeting Validated

The fact that MU2601 successfully intersected the conductor associated with downhole EM anomaly MU2501_p1 (539 siemens) — identified from the 2025 due diligence drilling — is more than a technical footnote. It confirms that the company's geophysical targeting workflow is functioning as intended.

The DHEM survey data, acquired by Logantek Mongolia and processed by Southern Geoscience Consultants, had identified conductive plates consistent with semi-massive to massive sulphide mineralisation. MU2601 was drilled specifically to test that anomaly, and it hit — on the first attempt.

This is particularly meaningful given that ABM only completed the formal acquisition of the Red Hill licence on 22 April 2026. Within weeks of completing the deal, however, the company has validated its targeting model with a tangible drill result.

A Project With Geological Credentials

The Red Hill Project (formerly Maikhan Uul) sits within southwestern Mongolia and is hosted in a Neo-Proterozoic felsic volcanic sequence — the geological setting most commonly associated with VMS copper-gold-zinc deposits globally. The project area hosts multiple untested geophysical and geochemical anomalies, and the mineralisation style — dacitic and rhyolitic volcanics with associated black schists — is consistent with classic VMS deposit characteristics.

The licence (MV-19681, 79.14 hectares) was originally secured in 2015 and is valid through 2045, providing a long runway for systematic exploration. Historical work by previous operators includes geological mapping, geochemical sampling, geophysics, trenching, drilling, metallurgical testing, and an early-stage resource estimate — providing ABM with a meaningful historical dataset to build upon.

The copper-gold occurrence was first documented between 1988 and 1991, and historically identified metals of potential economic interest include copper, gold, and zinc.

What Comes Next: The Near-Term Catalyst Pipeline

Assay results from MU2601 are the immediate focus. Gold mineralisation was confirmed in MU2501 but cannot be identified visually due to fine particle size — meaning the quantitative data from the laboratory will be critical in determining the full metal endowment of this intersection.

The company's near-term drilling programme is designed to systematically test priority targets across the Red Hill project area, with the goal of building a clearer picture of the scale and orientation of the mineralised system.

The Investment Case in Context

ABM's Red Hill result lands at a time when copper continues to attract serious attention from investors focused on energy transition metals. Mongolia's geological endowment in base and precious metals is well-established, and the VMS deposit style being targeted at Red Hill has produced significant copper-gold operations elsewhere in the world.

In addition, several factors underpin the investment case for ABM at this stage:

• Early-stage validation: The first drillhole of the 2026 programme has already intersected the target conductor and returned encouraging visible mineralisation, consistent with a functioning exploration model.

• Mineralogy upgrade signal: The chalcopyrite-bornite assemblage in MU2601 suggests a potential shift toward higher copper grades compared to MU2501, which itself returned thick, high-grade copper and gold assays (as confirmed in the November 2025 announcement).

• Multiple untested targets: The project area hosts additional geophysical and geochemical anomalies that have not yet been drill-tested, providing a meaningful pipeline of exploration newsflow ahead.

• 100% ownership: ABM holds the Red Hill Project outright, with the licence formally transferred to Innova Mineral LLC on 16 April 2026 — no joint venture dilution or partner approval required for exploration decisions.

• Long licence tenure: The mining licence runs to 2045, providing the time horizon necessary to systematically explore and potentially develop the project.

• Experienced geophysical support: The use of DHEM surveys processed by Southern Geoscience Consultants, with confirmed conductor intersection on the first 2026 hole, demonstrates a disciplined technical approach to target selection.

Technical Terms Explained

VMS (Volcanogenic Massive Sulphide): A type of metal sulphide ore deposit formed by volcanic-associated hydrothermal activity on the seafloor. VMS deposits are typically rich in copper, gold, zinc, lead, and silver. They tend to be high-grade and are found globally.

Chalcopyrite: A copper-iron sulphide mineral (CuFeS₂) and the most common ore of copper. Contains approximately 34% copper by weight.

Bornite: A copper-iron sulphide mineral (Cu₅FeS₄) containing approximately 63% copper. Its presence alongside chalcopyrite can indicate higher-grade copper zones within a VMS system.

Pyrite: An iron sulphide mineral (FeS₂), commonly known as "fool's gold." Not economically significant on its own but often accompanies copper and gold mineralisation in VMS systems.

DHEM (Downhole Electromagnetic Survey): A geophysical technique where electromagnetic sensors are lowered into a drillhole to detect conductive bodies — such as massive sulphide mineralisation — that may sit off to the side of or below the drillhole.

Conductor (EM): A body underground that efficiently conducts electromagnetic current. In exploration, this typically signals the presence of electrically conductive minerals such as massive sulphides.

Siemens: The unit of electrical conductance used in EM geophysics. Higher siemen values indicate stronger conductors, typically associated with more substantial sulphide accumulations.

Downhole length: The length of a mineralised interval as measured along the drill path, not the true thickness of the ore body. True width is typically shorter and requires additional drilling to determine.

Key Takeaway: Asian Battery Metals has delivered a meaningful early result from the Asian Battery Metals Red Hill copper gold drill results in Mongolia, with its first 2026 drillhole intersecting 18.8 metres of massive sulphide — including a bornite-chalcopyrite assemblage that may signal higher copper grades than previously encountered. With assays pending in 4–5 weeks, additional targets queued for drilling, and a 100%-owned licence running to 2045, the company enters the next phase of its Red Hill programme with clear technical momentum and a pipeline of catalysts for investors to monitor.

Want to Know More About Asian Battery Metals' Red Hill Project?

With its first 2026 drillhole already intersecting 18.8 metres of massive sulphide at Red Hill, Asian Battery Metals (ASX: AZ9) is moving quickly to define what could be a significant copper-gold VMS system in southwestern Mongolia. Assay results are expected within four to five weeks, additional targets are queued for drilling, and the company holds 100% ownership of a licence running to 2045 — giving investors a clear pipeline of catalysts to follow. To learn more about the company and the Red Hill Copper–Gold Project, visit www.asianbatterymetals.com.