Asian Battery Metals (ASX:AZ9) widens its Mongolian copper nickel hunt

Asian Battery Metals (ASX:AZ9) has rolled the dice six kilometres out from its flagship Oval discovery and come up trumps.

Scout drilling at the MS1 and MS2 targets inside the Yambat project has confirmed a new ultramafic gabbroic intrusion and, crucially, the presence of conductive plates that could be hiding the next batch of massive sulphides.

For investors conditioned to watch dollars disappear down deep holes, the result signals that Oval might be just one vein in a much larger district.

Highlights

• New ultramafic intrusion at MS1 with visible trace sulphides intersected from 168 m to 254 m downhole.

• Down hole EM plate with conductance of 8 000 Siemens provides a clear geophysical target for follow up.

• Ground based SAMSON EM is under way at Oval and will be extended to MS1, while magnetic work will refine targets at MS2.

• Assays from the current phase three program are expected before month end, and first metallurgy results are due in July or August.

• Yambat now boasts three mineralised trends: Oval, Copper Ridge and the emerging MS corridor within a proven copper nickel belt.

Managing director Gan-Ochir Zunduisuren is not shy about the implications:

“These early scout holes at MS1 and MS2 show we are onto a broader mineralised system.

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.

These new targets could represent a parallel mineralised trend to Oval, offering multiple potential pipelines for discovery.”

The point of difference with Yambat is scale married to simplicity. Unlike the convoluted layered intrusions of Africa’s Bushveld, the MS1 body sits under 130 metres of cover and is already talking back through geophysics.

The geology echoes the Central Asian orogenic success stories that turned modest prospects into company makers almost overnight.

Asian Battery Metals now faces the enviable task of deciding where to point the rigs first.

Phase three assays will flesh out grade potential at Oval, while SAMSON data should tighten a collar on MS1.

If the conductive plate lights up with massive sulphide, the company could have a second discovery without having to build so much as a new camp road.

For a forty million dollar explorer operating in battery metal hungry Mongolia, that kind of optionality can turn step-out holes into step-change rerates.

The next few weeks of assay and survey results will tell whether Yambat’s fresh tracks lead to a new province or a geological dead end, but the early signs suggest Asian Battery Metals has only just scratched the surface.

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