Azzuro Resources Extends Red Hill Copper-Gold Strike 124 Metres in Mongolia

Azzuro Resources Drills High-Grade Copper-Gold at Red Hill, as Mineralisation Extends a Further 124 Metres Along Strike

Azzuro Resources PLC (ASX: AZ9) has reported assay results from drillhole MU2601 at its 100%-owned Red Hill (Maikhan Uul) Copper-Gold VMS Project in Mongolia, confirming thick, high-grade polymetallic mineralisation across multiple zones. The Azzuro Resources Red Hill high grade copper gold drilling results in Mongolia represent a major step forward, with visual logging from drillhole MU2605 extending the known massive sulphide system a further 124 metres to the west-northwest, bringing the total visually intercepted strike length of VMS mineralisation to 272 metres.

The headline intercept from MU2601 — 13.1 metres at 2.58% copper, 0.96 g/t gold, 22.4 g/t silver and 0.76% zinc from 108.4 metres — represents one of the strongest results the Company has recorded to date at Red Hill. Furthermore, the intercept carries notably elevated silver credits compared to the equivalent intercept in nearby drillhole MU25011, with silver grading 22.4 g/t versus 3.51 g/t — more than six times higher.

MU2601 Assays Confirm High-Grade Polymetallic System

The confirmed assay results from MU2601 demonstrate a robust, multi-element massive sulphide system across several distinct zones. The hole intersected two massive sulphide zones, a semi-massive sulphide vein, and a shallow gold-silver zone near surface — each geologically consistent with the VMS deposit model.

MU2601 Key Mineralised Intercepts

The company's geophysical targeting approach received direct validation through MU2601, which successfully intersected the targeted downhole electromagnetic (DHEM) conductor MU2501_p1 (539 siemens). This consequently confirms the effectiveness of the geophysical framework being applied at Red Hill.

Managing Director Commentary

"The results mark a significant step forward for the Red Hill project. The MU2601 assays confirm thick, high-grade copper-gold-zinc-silver massive sulphide mineralisation, with the headline 13.1 metre intercept grading 2.58% copper. Just as importantly, MU2605 has intersected two mineralised zones, with the lower zone intersecting massive sulphide mineralisation a further ~124 metres along strike to the west-northwest from our previously reported drillholes, including a remarkable chalcopyrite-rich basal interval. The combined results suggest this may be part of an annulus of high copper grade arranged around a core of thick, more pyritic, higher-temperature massive sulphide… This possibility, together with the large strike length of VMS mineralisation at Red Hill, suggests a substantial mineralised system."

— Gan-Ochir Zunduisuren, Managing Director, Azzuro Resources PLC

MU2605 Extends System 124 Metres to the West-Northwest

Drillhole MU2605 delivered a material structural development by extending the visually logged massive sulphide footprint 124 metres further to the west-northwest of the previously reported MU2604. The hole was collared approximately 145 metres west-northwest of MU2604, targeting both the continuity of massive sulphide mineralisation and a coincident low-resistivity, high-chargeability geophysical anomaly.

Visual logging of MU2605 (300.5 metres total) identified sulphide mineralisation throughout much of the hole. Key observations include a near-surface copper-rich oxidised zone of 2.6 metres from 2.5 metres characterised by strong malachite staining, and a broader sulphide-rich zone from 74.5 metres with moderate to strong disseminated pyrite and chalcopyrite.

The main sulphide horizon from 113.1 metres comprises a 10.6-metre disseminated sulphide zone with multiple chalcopyrite veins, overlying two massive sulphide zones including a 1.3-metre visually copper-rich basal massive sulphide zone from 127.2 metres grading 41.6% chalcopyrite visually.

The mineralised intercepts in MU2605 coincide with the modelled low-resistivity zones, providing further validation of the geophysical targeting model. Assays for MU2605 are pending and expected within 3–5 weeks.

Understanding VMS Deposits and Their Investment Significance

What Is a Volcanogenic Massive Sulphide (VMS) Deposit?

A VMS deposit forms on or near the ancient seafloor when hot, metal-rich hydrothermal fluids discharge through volcanic rock sequences. These fluids precipitate dense concentrations of sulphide minerals — primarily iron sulphide (pyrite), copper sulphide (chalcopyrite), zinc sulphide (sphalerite), and silver-bearing minerals. The result is a "massive" zone of near-pure sulphide minerals, often sharply bounded and geometrically predictable.

Key Investment Characteristics of VMS Deposits

VMS deposits are recognised for delivering high metal grades in compact zones, meaning relatively modest drilling can delineate significant contained metal tonnages. They are polymetallic by nature — carrying copper, gold, zinc, silver, and sometimes lead simultaneously — which can provide multiple revenue streams and improve economic resilience across commodity price cycles.

The geometry of VMS lenses (typically tabular and steeply dipping) lends itself to efficient drill targeting using downhole electromagnetics (DHEM), which Azzuro has demonstrated is working effectively at Red Hill. In addition, the presence of a separate near-surface oxide gold-silver zone at Red Hill introduces an additional dimension, as oxide gold deposits can be amenable to simpler, lower-cost processing methods compared to primary sulphide ores.

Key Technical Terms

Dual-Target System: Deep VMS and Shallow Oxide Gold

One of the strategically compelling aspects of the Red Hill project is evidence for two distinct mineralised systems that may be independently significant.

Deep High-Grade VMS Cu-Au-Zn-Ag System

The massive sulphide mineralisation has now been visually intercepted over 272 metres of strike between MU2603 and MU2605, with the system open at depth and along strike in both directions. The strongest copper grades reported to date come from the western part of the strike length, consistent with the westward copper tenor increase interpretation. Six Azzuro drillholes have now intercepted this system.

Near-Surface Oxide Gold-Silver Zone

This zone has been confirmed at both MU25011 (5.2 metres at 6.54 g/t Au and 126.4 g/t Ag) and MU2601 (4.9 metres at 3.49 g/t Au and 10.5 g/t Ag). Located to the north of the VMS system in oxidised and altered rhyolite host rocks, a dedicated five-hole program has tested this zone over approximately 721 metres from west-northwest to east.

All five holes visually intersected the targeted oxidised, altered rhyolite host package, with the strongest alteration observed in the central cluster. Assays for all five holes are pending.

2026 Drilling Program Status and Scope

The 2026 campaign at Red Hill represents the most comprehensive program undertaken at the project to date, commencing in April 2026.

Completed Drillhole Summary

The Company has completed seven diamond drillholes and three reverse circulation holes, with assays pending for nine of the ten holes. Results are expected over the coming weeks, representing a significant volume of anticipated newsflow.

Gravity Survey Adds Independent Geophysical Dataset

Azzuro has recently completed a ground gravity survey over the Red Hill project area, conducted by Datamaster LLC. The survey comprised 1,041 stations covering approximately 3.79 km², with station spacing of 20 metres (reduced to 10 metres over selected areas).

A detailed three-dimensional (3D) inversion and interpretation of the gravity dataset is being undertaken by Terra Resources Pty Ltd. The 3D model is expected to map density variations associated with the massive sulphide system and better separate the near-surface oxide response from the deeper VMS sulphide signal.

The gravity survey, furthermore, provides an important independent dataset to complement the growing multi-method geophysical framework at Red Hill, which has demonstrated effectiveness through the successful targeting of the MU2601 DHEM conductor.

Upcoming Catalysts and Development Timeline

The near-term pipeline of potential newsflow and technical milestones at Red Hill is substantial.

Anticipated Developments

1. Assay results from MU2602–MU2607 and MURC01–MURC03 — expected over the coming weeks across both the deep VMS system and the shallow oxide gold-silver zone
2. Completion of the 3D gravity inversion by Terra Resources Pty Ltd, to define new priority drill targets across the broader tenement
3. DHEM surveys on 2026 diamond drillholes — PVC casing already installed; DHEM data will be used to detect off-hole conductors and refine structural understanding
4. Continued diamond drilling to further define the lateral and downdip extent of the near-surface oxide gold-silver zone
5. Exploration activity at the Copper Ridge Cu-Au prospect

Investment Considerations for Azzuro Resources

Azzuro Resources is building a noteworthy exploration story at Red Hill with several characteristics that warrant investor attention.

Key Project Attributes

The Company maintains 100% ownership of the Red Hill project through a mining licence valid to 2045, providing full exposure to exploration upside without dilution through joint venture arrangements. The MU2601 headline intercept of 13.1 metres at 2.58% copper, 0.96 g/t gold, 22.4 g/t silver and 0.76% zinc represents high-grade results at this stage of exploration.

The growing strike extent is significant, with six holes now visually intercepting the massive sulphide system over 272 metres. The system remains open in both directions and at depth, supporting the geological case for further scale. A separate shallow oxide gold-silver zone introduces a potential additional opportunity, with assays from five dedicated holes imminent.

Technical Validation and Newsflow Pipeline

The consistent alignment between DHEM conductor targets and drill intercepts — and the correspondence between low-resistivity targets and MU2605 — demonstrates that the technical approach is working effectively. With nine holes awaiting assays, gravity modelling underway, and DHEM surveys planned, the Company is approaching a period of concentrated potential catalysts.

The Azzuro Resources Red Hill high grade copper gold drilling results in Mongolia continue to reinforce confidence in the scale and quality of this developing discovery. Consequently, with the system open along strike and at depth, the coming weeks of assay results could prove transformative for the project's understood scale.

Investment Summary

Azzuro Resources (ASX: AZ9) is advancing one of Mongolia's compelling early-stage copper-gold VMS discoveries, with the Red Hill project now demonstrating high-grade polymetallic mineralisation across a growing 272-metre strike length. With nine drillholes awaiting assays, a 3D gravity inversion underway, and a separate shallow gold-silver zone under active testing, the Company is approaching a period of concentrated newsflow that could materially reshape the understood scale of the system.

Want to Know More About Azzuro Resources' Red Hill Discovery?

With nine drillholes awaiting assay results, a growing 272-metre strike of high-grade VMS mineralisation, and a separate shallow oxide gold-silver zone under active testing, Azzuro Resources (ASX: AZ9) is entering a period of significant potential newsflow at its Red Hill Copper-Gold Project in Mongolia. Investors seeking to learn more about the Company, its 100%-owned Red Hill project, and the upcoming catalysts that could materially reshape the understood scale of this discovery are encouraged to visit www.asianbatterymetals.com.