Azzuro Resources Unveils Maiden Exploration Targets at Oval and Red Hill Mongolia

Azzuro Resources Defines District-Scale Copper Corridor in Mongolia with Maiden Exploration Targets at Oval and Red Hill

Azzuro Resources (ASX: AZ9) has announced maiden JORC (2012) Exploration Target estimates across both of its flagship Mongolian projects, marking a significant milestone for the Azzuro Resources maiden exploration targets Oval Red Hill Mongolia story. The Oval Cu-Ni-PGE system and the Red Hill Cu-Au-VMS deposit sit just 8 kilometres apart within a single mineralised corridor in southwest Mongolia, with the two targets collectively pointing to a combined potential of 21Mt to 55Mt of mineralisation, spanning copper, nickel, gold, platinum-group elements (PGEs) and cobalt.

The estimates were prepared by independent consultants Mine Project Consult (MPC) and SLR Consulting Australia, lending third-party review to the figures. Furthermore, Azzuro has outlined a drilling path intended to convert portions of these targets into JORC (2012) Inferred Mineral Resources.

"These maiden Exploration Targets confirm exactly what we've long believed. Oval and Red Hill aren't two isolated discoveries, they're one fertile mineralised corridor. That's genuine district-scale exposure to copper, nickel, gold and PGEs in one of the world's most under-explored, strategically located and low-cost jurisdictions. We have a capital-efficient path forward to advance to a JORC resource," said Gan-Ochir Zunduisuren, Managing Director, Azzuro Resources.

Two Projects, One Corridor: Understanding the District-Scale Opportunity

Azzuro's southwest Mongolia portfolio hosts two distinct but complementary mineralised systems that share a regional structural corridor within the Central Asian Orogenic Belt. The two deposits differ in geological character but are linked by proximity and the potential for a combined exploration approach.

According to the announcement, this proximity creates practical optionality. Azzuro has flagged the potential for shared site infrastructure, camp facilities, roads and power, along with combined technical teams working across both projects — factors the company suggests could improve capital efficiency as exploration advances.

The Exploration Targets in Detail

Oval Cu-Ni-PGE: A Multi-Metal Magmatic System

The Oval deposit is hosted within a Permian mafic-ultramafic intrusion in an oval pattern measuring approximately 800 metres by 100 metres, flanked by spotted hornfels with visible gossan and copper staining along the contact. The Exploration Target spans five priority magnetic-inversion bodies.

A cut-off of 0.2% CuEq (copper equivalent) was applied. This copper-equivalent formula combines the value of Cu, Ni, Au, Pt and Pd into a single expressed grade, using metal prices based on 36-month trailing averages to August 2026 and metallurgical recoveries from testwork completed by ALS Metallurgy in Perth.

The lower case tonnage and grade were estimated from Azzuro's own drilling data using geological domain wireframes and Ordinary Kriging, a statistical estimation method, validated against nearest-neighbour and swath-plot comparisons. The upper case was informed by five constrained magnetic-inversion bodies interpreted from a drillhole-constrained 3D magnetic susceptibility inversion, a geophysical technique used to map subsurface rock properties.

Red Hill Cu-Au VMS: A High-Grade Copper-Gold System

Red Hill is interpreted as a metamorphosed, feldspathic volcanic-related VMS (volcanogenic massive sulphide) deposit, comprising a steeply north-dipping massive sulphide lens that has been folded and faulted. The Exploration Target encompasses three modelled bodies — a North target supported by drilling, a Middle target defined by gravity-inversion modelling, and a South Vein target. It excludes the near-surface oxide gold-silver zone, described as additional upside.

A cut-off of 0.2% Cu was applied. The lower range estimate draws on 35 diamond and RC drillholes and 2,644 samples. The upper range was informed by constrained 3D gravity inversion tied to drillhole intercepts and surface alteration trends.

Understanding Exploration Targets: A Guide for Investors

What Is a JORC Exploration Target?

A JORC (2012) Exploration Target is a preliminary, conceptual estimate of the potential quantity and grade of a mineralised body. It is based on available drilling, geological mapping and geophysical data, but there has been insufficient exploration to define a formal Mineral Resource. It is uncertain whether further exploration will result in a Mineral Resource estimate.

An Exploration Target can be understood as a scientifically reasoned estimate of what a deposit might contain — grounded in real data, but not yet confirmed to the higher evidentiary standard required for a Mineral Resource.

Why Does It Matter to Investors?

Exploration Targets represent a stage of a project's life where value creation often occurs. A credible Exploration Target, particularly one independently estimated using industry-standard techniques such as Ordinary Kriging and constrained 3D inversions, indicates a project is progressing toward Mineral Resource definition.

Each step — from Exploration Target to Inferred Resource, and beyond — typically attracts broader institutional interest and can support project financing.

Key terms:

• JORC Code: The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012 Edition), the industry standard for resource reporting in Australia and internationally
• Ordinary Kriging: A geostatistical method used to estimate grades across a mineralised body using spatial relationships between data points
• CuEq (Copper Equivalent): A single metric expressing the combined value of multiple metals as if they were all copper, using metal prices and metallurgical recoveries
• VMS (Volcanogenic Massive Sulphide): A type of ore deposit formed by volcanic processes on the seafloor, often hosting copper, zinc, lead, gold and silver
• DHEM (Downhole Electromagnetic): A geophysical survey conducted inside a drillhole to detect nearby conductive bodies, typically sulphide mineralisation, that drilling may have missed

A Capital-Efficient Path to Mineral Resource Definition

According to the announcement, Azzuro has structured a two-track approach for advancing both targets.

Priority Drilling: Testing the Full Exploration Target Bodies

A combined 14-hole, approximately 5,835-metre diamond drilling program has been designed to test the highest-priority Exploration Target bodies across both projects.

Lower-Cost Pathway: Targeting Inferred Resource Conversion

Separately, a lower-cost program has been identified to potentially convert the already well-drilled lower case Exploration Target tonnage at each project to JORC (2012) Inferred Mineral Resource status.

This structure is intended to give Azzuro flexibility to pursue testing of the full target bodies while simultaneously advancing toward a formal resource estimate on the most de-risked portions of each project.

Near-Term Activity

According to the announcement, drilling is described as imminent, with geophysical programs already under way:

• A 3D IP (Induced Polarisation) survey is currently under way across regional exploration targets at Oval
• DHEM surveys have commenced on cased diamond holes at Red Hill, with further surveys at Oval scheduled for September 2026
• Pending assay results for four remaining 2026 Red Hill drillholes (MU2609, MU2610, MU2610a, MU2611) are expected within one to two weeks
• Initial metallurgical testwork at Red Hill is currently under way, with results expected in October 2026
• A rock chip sampling program is planned at Red Hill

Investment Thesis: Why This Moment Matters

Several features of this announcement are relevant to the investment case for Azzuro.

1. Independent Estimation at Scale

The Exploration Targets were independently estimated by MPC with block modelling support from SLR Consulting Australia — two established technical consultancies. The use of Ordinary Kriging, constrained magnetic and gravity inversions, and JORC Code compliance are factors that differentiate the estimates from early-stage conceptual work.

2. District-Scale Exposure Through a Single Entry Point

With both Oval and Red Hill 100% owned and separated by just 8 kilometres, Azzuro offers investors exposure to a multi-commodity district spanning copper, nickel, gold, PGEs and cobalt. Indeed, few ASX-listed explorers at this market capitalisation can point to two flagship projects of this scale within a single tenement corridor.

3. Multiple Near-Term Catalysts

The months ahead are dense with potential newsflow. Pending assay results from four drillholes, DHEM survey outcomes, metallurgical testwork results and the start of the priority drilling program all represent near-term events that could inform the project narrative.

4. A Defined Resource Conversion Pathway

The identification of a lower-cost, three-hole program at Oval and an 11-hole program at Red Hill — aimed at Inferred Resource classification — indicates management has scoped an executable plan for resource conversion.

5. Established Jurisdiction with Existing Infrastructure

Southwest Mongolia offers an established exploration jurisdiction with existing local infrastructure connecting both projects. A combined environmental and community engagement footprint across a district scale is described by the company as a practical consideration as the portfolio matures.

Why Investors Should Follow Azzuro Resources

Azzuro has reached a notable point in its exploration programme. The Azzuro Resources maiden exploration targets Oval Red Hill Mongolia announcement — independently estimated, multi-commodity, and located within 8 kilometres of one another — represents a material step for a company at this stage of its exploration lifecycle.

The announcement is underpinned by data drawn from 52 drillholes at Oval, 35 drillholes and 2,644 samples at Red Hill, independent geophysical inversions in both 3D magnetic and gravity modelling, and metallurgical recoveries from ALS Metallurgy testwork. The pathway from Exploration Target to Inferred Resource has, consequently, been costed and scoped by the company.

With drilling described as imminent, assay results pending, and geophysical work already under way, the pipeline of upcoming catalysts is a defining feature of the current period for the company.

Key Takeaway

Azzuro Resources has outlined a district-scale copper, nickel, gold and PGE opportunity in southwest Mongolia, with independently estimated maiden Exploration Targets of 6Mt to 25Mt at Oval and 15Mt to 30Mt at Red Hill. With a 14-hole priority drilling program described as imminent, a defined pathway to Inferred Resource classification at both projects, and near-term assay and metallurgical results anticipated, investors have a structured sequence of catalysts to monitor over the coming months.

The potential quantity and grade of the Exploration Targets is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The combined 21Mt to 55Mt figure is the arithmetic sum of two separately estimated targets reported on different bases and should not be read as a single Exploration Target.

Ready to Learn More About Azzuro Resources' District-Scale Copper Corridor in Mongolia?

With maiden Exploration Targets now independently estimated across both Oval and Red Hill, a 14-hole priority drilling programme described as imminent, and a defined pathway to Inferred Resource classification at both projects, Azzuro Resources (ASX: AZ9) is entering a catalyst-rich period. Investors seeking to learn more about the company's multi-commodity Mongolian portfolio — spanning copper, nickel, gold and PGEs across a single 8-kilometre mineralised corridor — can find further details at www.asianbatterymetals.com.