Azzuro Resources Returns High-Grade Copper-Gold Results at Red Hill Mongolia

Azzuro Resources Strikes Again: High-Grade Copper-Gold Results Extend Red Hill's VMS Discovery in Mongolia

Azzuro Resources PLC (ASX: AZ9) has reported a second batch of assay results from its 2026 drilling program at the 100%-owned Red Hill Copper-Gold Project in southwestern Mongolia, with drillhole MU2603 returning 21.45m at 1.70% copper, 0.85 g/t gold, 16.86 g/t silver and 0.21% zinc from 83.2m. The result confirms a thick massive sulphide zone and shows a higher copper tenor than the comparable 2025 due diligence hole.

The update also outlined shallow gold results from both diamond and reverse circulation drilling, with Azzuro reporting that near-surface gold mineralisation north of the main volcanogenic massive sulphide, or VMS, system may extend over a potential 600 metres of strike. With nine holes still pending assay and the 2026 exploration program described as fully funded, Red Hill remains an active source of near-term news flow.

Managing Director Gan-Ochir Zunduisuren commented on the findings, stating: "The outstanding results from MU2603 have exceeded our expectations. The significantly higher copper grades encountered up-dip from last year's project due diligence drilling reinforce our belief that Red Hill hosts a substantial high-grade copper-gold VMS system with excellent potential."

He added: "Equally encouraging is the confirmation of a broad, shallow gold zone north of the VMS system. With further assay results pending and geophysical datasets being integrated, we are excited about defining the scale of the system in due course."

MU2603 Confirms a Thicker and Higher-Grade Massive Sulphide Zone

MU2603 was drilled to test an up-dip extension of the massive sulphide intersected in earlier hole MU2502, while also targeting a downhole electromagnetic conductor plate modelled from prior drilling. The hole was collared approximately 50 metres south of MU2502 and intersected the targeted sulphide lens roughly 75 to 80 metres up-dip from the earlier intercept.

The main assay results from MU2603 were:

• 21.45m @ 1.70% Cu, 0.85 g/t Au, 16.86 g/t Ag and 0.21% Zn from 83.2m
• Including 8.0m @ 3.27% Cu, 1.04 g/t Au, 18.09 g/t Ag and 0.20% Zn from 95.0m

Furthermore, the assays confirm that copper tenor in the MU2603 massive sulphide interval increased significantly relative to the equivalent intercept in MU2502. For investors, this matters because rising grades in successive holes can point to a better-developed part of the mineralised system and improve confidence in the geological model.

What Did the Deeper Intervals Reveal?

The hole also returned additional mineralised intervals beneath the main lens. These included a 0.45m semi-massive sulphide vein grading 2.67% Cu, 0.63 g/t Au, 5.90 g/t Ag and 0.68% Zn from 126.95m, reported within a broader 9.05m @ 0.33% Cu and 0.13 g/t Au interval.

That combination of a main high-grade sulphide zone and subsidiary mineralised intervals suggests the system is not limited to a single narrow intercept. While it remains an exploration-stage project, the geometry and metal mix described in the update fit the pattern of a multi-metal VMS environment.

MU2602 Adds More Copper and Shallow Gold Mineralisation

The second diamond drillhole in the batch, MU2602, was drilled to test the eastern extension of the mineralised system beneath a hydrothermal breccia mapped at surface. In accessible terms, a hydrothermal breccia is a broken rock zone formed by hot mineral-rich fluids moving through the ground, and it can sometimes mark pathways for mineralisation.

Azzuro reported several copper and gold intervals from MU2602:

The copper-gold mineralisation is hosted within strongly pyritic rhyolite with chalcopyrite veining and minor bornite. In other words, these are sulphide-rich volcanic rocks carrying copper minerals, which is consistent with the type of geology expected in a VMS system.

Why Do the Shallow Gold Intervals Matter?

The shallow gold interval from 19.0m and the gold-zinc interval from 58.0m sit within the oxidised near-surface profile. This gives Red Hill more than one style of target, with a deeper sulphide system and a shallower oxide gold component both being defined by drilling. For investors, that adds meaningful exploration optionality to the project.

Near-Surface Gold Zone May Extend Across 600 Metres

The update also included results from three reverse circulation holes — MURC01, MURC02 and MURC03 — drilled north of the main VMS system to test the lateral continuity of a near-surface oxide gold-silver zone.

Two of the three holes returned gold intersections:

However, MURC01 did not confirm the gold zone at its location, returning only narrow low-grade copper intervals. Azzuro noted that this may indicate mineralisation continues towards MURC02 instead — a point that will need to be assessed using pending assay results and future drilling.

For investors, the practical point is clear. Red Hill is not being defined as a single-target story. The project now includes a high-grade sulphide zone and a separate shallow gold trend, each with different exploration implications.

Understanding VMS Deposits and Why They Matter

VMS stands for Volcanogenic Massive Sulphide. These deposits form when hot, metal-rich fluids move through volcanic rocks on or beneath the ancient seafloor and then cool, depositing sulphide minerals in concentrated zones. That geological context matters because MU2603 was drilled directly at a modelled DHEM conductor and delivered a strong sulphide intercept.

Key Characteristics Investors Watch in a VMS Discovery

Here are the main points investors often monitor when evaluating a VMS discovery:

• Multi-metal exposure: A single system may contain more than one payable metal, including copper, zinc, gold and silver.
• Distinct high-grade zones: Massive sulphide intervals often carry higher grades than surrounding rock.
• Potential for multiple lenses: VMS deposits can occur in clusters rather than as isolated bodies.
• Strong geophysical response: Sulphide-rich zones can often be detected using electromagnetic methods, helping guide future drilling efficiently.

VMS Glossary: Simplifying the Technical Terms

Some of the technical terms used in the announcement are worth clarifying:

• Massive sulphide: Rock made up largely of sulphide minerals, usually the higher-grade part of the system.
• DHEM: Downhole electromagnetic surveying, a method used from inside a drillhole to detect conductive bodies such as sulphide zones.
• Siemens: A unit of electrical conductance. Higher readings can indicate stronger sulphide content.
• Chalcopyrite and bornite: Copper-bearing sulphide minerals that contribute to copper grade.
• RC drilling: A faster drilling method commonly used for shallow exploration holes.
• HQ core: A standard diamond drill core size that provides continuous rock samples for detailed logging and laboratory testing.

Nine Holes Still Pending and More Data Due in July

The second batch covers five reported holes from Phase 1 of the 2026 program. According to the program table in the ASX announcement, nine additional holes remain pending.

The company noted that MU2610 was abandoned in faulted ground and re-drilled as MU2610A, with assays from sampled recovered core still pending.

In addition, Azzuro outlined the following next steps:

1. Reporting assays for the remaining nine drillholes in July 2026
2. Integrating geology, drilling and geophysical data including DHEM, gravity, resistivity and chargeability
3. Reporting results from Copper Ridge diamond drillhole CRS05
4. Reporting initial 3D IP survey results from the Oval Cu-Ni area

This pending data matters because exploration stories often evolve in stages rather than through a single announcement. Strong intercepts can increase interest, but follow-up holes and integrated geophysics are what typically determine whether an isolated result develops into a broader mineralised system.

What the Batch 2 Results Mean for the AZ9 Investment Case

The Batch 2 update strengthens three parts of the Red Hill exploration model. First, the main VMS zone appears to be improving in grade in at least one direction. The MU2603 result is materially stronger in copper tenor than the earlier MU2502 intercept, which may indicate that drilling is moving toward a more metal-rich portion of the lens.

Second, Red Hill is showing evidence of multiple mineralised zones rather than a single target. The shallow oxide gold-silver zone north of the sulphide system could become an important additional exploration focus if continuity is confirmed.

Third, there is still a meaningful amount of near-term news flow ahead. With nine holes pending, plus additional geophysical and regional target updates, the project remains in an active definition phase. The Red Hill mining licence MV-019681 is valid to 2045 and covers 79.14 hectares in southwestern Mongolia.

Azzuro completed its 100% acquisition of the project in April 2026. For investors following ASX copper-gold explorers, the current Red Hill results suggest a project that is still being mapped out through drilling — with improving grades in the sulphide core and expanding scale in the shallower gold zone. The next set of assays and integrated geophysical interpretation are likely to be key in assessing how far that mineralised system truly extends.

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