Asian Battery Metals Unlocks Mongolia’s Copper-Nickel Potential with BHP Backing and High-Grade Discoveries

• Asian Battery Metals is advancing critical mineral assets in Mongolia, led by Managing Director Gan-Ochir Zunduisuren, a 22-year mining veteran with experience at Aspire Mining and on the board of Rio Tinto's Oyu Tolgoi copper operation
• The flagship Oval copper-nickel project has established 800 meters of continuous mineralization with metallurgical test work delivering 89-95% copper recovery and concentrate grades of 18.5-24%, positioning it as a potentially economic discovery
• The company was selected as one of seven globally (the only Asian company) for BHP's Xplor accelerator program in 2023, receiving $500,000 USD in funding to advance early-stage exploration
• Asian Battery Metals has deployed A$7-8 million in exploration across its portfolio, including A$5-6 million at Oval, with additional targets including the Maikhan Uul VMS system showing 20+ meters of massive sulphide mineralization with historic results of 1.7% copper and approximately 1 g/t gold
• Mongolia's mining jurisdiction has matured significantly over 15 years with 20-30 new mines opened, improved infrastructure, and multiple funding pathways including international institutions, domestic banks, and Chinese financing, providing strategic proximity to Asian markets

Asian Battery Metals (ASX:AZ9) is positioning itself as an emerging critical minerals developer in Mongolia, capitalising on the country's rich copper endowment and strategic location adjacent to major Asian consumption markets. Led by Managing Director Gan-Ochir Zunduisuren, a mining engineer and finance professional with over 22 years of experience including roles at Aspire Mining and on the board of Rio Tinto's Oyu Tolgoi copper operation, the company has assembled a portfolio of copper, nickel, and gold projects in southwestern Mongolia. With approximately A$30 million in market capitalization and A$7-8 million deployed in exploration to date, Asian Battery Metals represents an early-stage opportunity in a jurisdiction that has seen significant development over the past 15 years.

Leadership and Strategic Positioning

Ochir brings substantial in-country experience to Asian Battery Metals, having worked across exploration, gold mining operations, and coal projects in Mongolia for two decades. The board includes David Paull , former managing director of Aspire Mining for 10 years; Neil Young, pioneer of coal bed methane exploration in Mongolia and former CEO of Elixir Energy; and Kirsten Livermore, former Australian parliamentarian who led the Australia-Mongolia bilateral government program. This combination of technical, operational, and diplomatic expertise positions the company to navigate Mongolia's mining sector effectively. As Ochir stated, 

"We have quite strong experienced people to promote Mongolia as an investment destination."

The company's strategic focus on southwestern Mongolia aligns with what Ochir describes as "the extension of the Central Asian orogenic belt," a geological structure that hosts copper operations in Kazakhstan, northwest China, and parts of Russia. This geological understanding underpins the company's exploration strategy and its confidence in discovering multiple deposits that could eventually share infrastructure. Mongolia's emergence as a mining destination has accelerated since the late 2000s, with Ochir noting, "

“Over the last 15 years almost 20 to 30 new mines opened up. So it's almost two new mines every year."

Oval: The Flagship Copper-Nickel Discovery

The Oval project represents Asian Battery Metals' most advanced asset and exemplifies the company's conceptual exploration approach. Developed from concept stage, Oval was selected for BHP's Xplor program in 2023, one of seven companies chosen globally from 250 applicants and the only Asian company selected. BHP provided $500,000 USD in funding, which the company used to initially discover the project and prove the concept of magmatic mafic intrusion related copper nickel sulfide system. This validation from a major mining company provided both financial support and technical credibility for the discovery.

Exploration at Oval has progressed through three phases of drilling, supported by extensive geophysical surveys including ground electromagnetic (EM) and downhole EM programs designed to measure conductivity and identify sulphide mineralization. The company has established approximately 800 meters of continuous to semi-continuous mineralization at surface, with widths ranging from 50 to 80 meters depending on location. Mineralization begins at surface and dips to the southeast, extending to depths of 200-220 meters in most areas, with recent drilling in hole 32 intercepting "very textured sulfide mineralization at 290 meter level," suggesting potential for deeper extensions.The geological model at Oval centers on a bladed dyke system where mafic to ultramafic intrusions created multiple mineralization styles. Ochir explained: 

"On the top part we have disseminated mineralization and in the middle we have slightly enriched net textured and then in the bottom part we have massive sulfide". 

Host rocks vary from gabbro to olivine-rich amphibole cumulates, approaching peridotite composition precisely the type of rocks that can host economic nickel-copper sulphide deposits. The exploration strategy now focuses on identifying feeder conduits that could lead to larger chambers where sulphide-bearing magma accumulated in open spaces, potentially hosting higher-grade zones.

Metallurgical Results Demonstrate Economic Potential

Metallurgical test work at Oval has produced encouraging results that support the project's economic viability. The company tested three ore types: disseminated, net-textured, and massive sulphide mineralization. Results from the first two samples showed copper recovery rates of 89-95%, with concentrate grades ranging from 18.5-24%. These are "very good recovery rates" and "marketable grade concentrate for copper," according to Ochir, putting Oval's metallurgical characteristics in line with established copper operations. Nickel recovery remains under optimization, with final processing of massive sulphide samples expected to be completed within 2025.

The company is conducting detailed mineralogical work with laboratories in Japan and Australia, complemented by consultants from the University of Tasmania and University of Leicester. This work will inform process flowsheet design and assess deleterious elements in the final concentrate mix. The potential for byproduct credits from platinum group elements (PGEs) remains under investigation and could enhance project economics. Ochir emphasised the systematic approach: 

"Most of our mineralogy work gets done in Japan and also in Australia. Based on that work, we usually try to model it."

Interview with Gan-Ochir Zunduisuren, Managing Director of Asian Battery Metals PLC

Regional Exploration: MS1 and Satellite Targets

Beyond the immediate Oval deposit, Asian Battery Metals is advancing regional targets that could expand the resource base and support a hub-and-spoke infrastructure model. The MS1 prospect, located six kilometers south of Oval, represents a blind geophysical target where recent drilling intercepted similar host rocks with visual sulphide mineralization. While not yet at economic grades, the discovery confirms "the rock that you are really expecting," providing what Ochir describes as "quite exciting for geologists because the odds are quite remarkable". The geophysical signature at MS1 is "potentially larger than Oval," suggesting significant exploration upside.

The company has expanded its ground position to cover a large aeromagnetic anomaly south of MS1, which may represent "the source or larger intrusion system that are potentially related with the Oval". Additional prospects including Copper Ridge and  Bayan Sair are being evaluated as part of this regional approach. The exploration philosophy emphasises identifying "trap zones where enrichment occurs" within these larger intrusive systems. This cluster concept is central to Asian Battery Metals' strategy, as Ochir explained: 

"We are looking at potentially multiple prospects that could use the same infrastructure down the road for development."

Maikhan Uul: VMS Copper-Gold Opportunity

The Maikhan Uul project adds diversification to Asian Battery Metals' portfolio with a different geological model a volcanogenic massive sulphide (VMS) system hosting copper and gold mineralization. Located just eight kilometers from Oval, Maikhan Uul could potentially share infrastructure in a future development scenario. The company is currently in an exclusive agreement to acquire the project within the next four months, conducting technical due diligence through drilling and geophysics. Historic drilling identified massive sulphide mineralization, which Asian Battery Metals confirmed through twinning a historic hole.

The recent drilling at Maikhan Uul intersected more than 20 meters of massive sulphide mineralization with visual chalcopyrite, confirming historic results of approximately 1.7% copper and close to 1 gram per tonne gold. The system contains two separate mineralization zones: a shallower gold zone at approximately 30 meters depth with historic intercepts of 5.69 meters grading more than 15 g/t gold, and deeper massive sulphide mineralization at 130-140 meters depth. The shallow gold zone appears "related with the breccia zone with iron oxide, could be slightly enriched because of supergene enrichment”, though further work is required to understand its full extent.

Maikhan Uul sits within the Rudny Altai geological belt that extends from Kazakhstan into southwestern Mongolia, a region known for hosting multiple VMS systems. Ochir noted: 

"There's potential for VMS projects in that region of course and around the Maikhan Uul area there are a number of VMS prospects that potentially some of them could be an extension of the Maikhan Uul."

The next phase of work will focus on understanding whether the massive sulphide extends laterally or continues at depth, and assessing any structural controls that may have offset mineralization. One additional hole is planned to establish geological continuity before completing the acquisition.

Development Strategy and Economic Thresholds

Asian Battery Metals operates with a clear vision of what constitutes an economically viable project in its jurisdiction. With a current market capitalization of approximately A$30 million, the company recognises its size constraints and the importance of high-grade components to generate margins. Ochir articulated the strategic goal: 

"More than 20 million tons of economic resources or potentially producing 50,000 tons of metals in one or other form."

The multi-project cluster approach is deliberate, designed to support "centralised processing plant for these projects" where multiple deposits feed a single processing facility over an extended mine life. This model can significantly improve project economics by spreading capital costs across multiple ore sources and extending the period over which initial investment is amortised. Ochir emphasised this is "not here just to drill it" but rather to "define potentially economic resources that can become a mine in the future". The company evaluates projects on accessibility, infrastructure development, and whether resources can be "easily mined or developed" without creating excessive financial burden.

Mongolia: A Maturing Mining Jurisdiction

Mongolia's evolution as a mining jurisdiction over the past 15 years provides crucial context for Asian Battery Metals' strategy. The country has seen substantial infrastructure improvements and legal framework maturation, with Ochir noting that "mining itself is interdisciplinary" and requires not just mining law but also "environmental laws, water usage laws, how you work with other stakeholders and communities". This comprehensive regulatory framework has been "witnessed by the development of median to large size mining operations" with 20-30 new mines opening over 15 years.

The country's transformation is exemplified by coal exports, which grew from 5 million tons 15 years ago to over 80 million tons currently, including brown coal, a commodity "any country globally sells or exports," according to Ochir. This demonstrates that 

"If the project is commercially viable and cost competitive against Chinese domestic producers there's a good merit that these projects can become mine."

For copper projects specifically, Mongolia is home to Oyu Tolgoi, operated by Rio Tinto and described as "probably the single largest copper operation that was built as a new mine in the last 15 years globally". Financing options in Mongolia are diverse, providing multiple pathways for project development. Ochir explained: 

"There are a number of mines built in Mongolia over the last 15 years. Some of them funded by international financial institutions, some of them funded by domestic banks, some of them funded by Chinese institutions". 

The mature contractor mining sector, developed to support the coal industry, provides substantial earth-moving capacity at competitive rates. Proximity to Chinese markets also facilitates offtake financing, an advantage Ochir emphasised: "Closer to the market means we can always tap into funding related to offtakes quite easily."

The Investment Thesis for Asian Battery Metals

• BHP-validated discovery: Selection for BHP Xplor program (1 of 7 globally, only in Asia) provides third-party technical validation and $500,000 USD in exploration funding
• Strong metallurgical results: 89-95% copper recovery with 18.5-24% concentrate grades at Oval positions the project within industry benchmarks for economic viability
• Scale potential: 800-meter strike length at Oval with 50-80 meter widths, plus regional targets (MS1, Copper Ridge,  Bayan Sair) support multi-deposit cluster concept that could share infrastructure
• Diversified portfolio: Combination of magmatic copper-nickel system (Oval) and VMS copper-gold system (Maikhan Uul) provides multiple value drivers and reduces exploration risk
• Experienced management: 20+ years of in-country experience including board position at Rio Tinto's Oyu Tolgoi operation, plus board members with established Mongolia track records
• Jurisdiction maturation: Mongolia has opened 20-30 new mines in 15 years with improved infrastructure, legal framework, and multiple financing pathways including international institutions, domestic banks, and Chinese offtake financing
• Strategic location: Projects located in southwestern Mongolia along the Central Asian orogenic belt that hosts major copper systems in Kazakhstan and China, with direct access to Asian consumption markets
• Capital efficiency: A$5-6 million deployed at Oval has established significant mineralised footprint, demonstrating efficient exploration expenditure relative to discovery scale
• Near-term catalysts: Completion of Maikhan Uul acquisition, final metallurgical results on massive sulphide ore, 2026 exploration program announcement, and potential resource drilling at Oval
• Hub-and-spoke potential: Eight-kilometer spacing between Oval and Maikhan Uul, plus additional satellite targets, supports centralised processing model that could enhance project economics through shared infrastructure

Macro Thematic Analysis

The global energy transition is driving unprecedented demand for copper, nickel, and other battery metals as electrification accelerates across transportation, power generation, and industrial applications. Mongolia's geological endowment positions it as a strategic supplier to Asian markets, particularly China, which dominates global battery manufacturing and electric vehicle production. 

The country's maturation as a mining jurisdiction evidenced by Rio Tinto's Oyu Tolgoi copper mine and the opening of 20-30 new operations over 15 years demonstrates that capital, expertise, and infrastructure are flowing into the region. Asian Battery Metals' portfolio of copper-nickel and copper-gold projects directly addresses critical mineral supply constraints identified by major economies, while its proximity to end markets reduces logistics complexity and enhances competitive positioning. 

TL;DR

Asian Battery Metals (ASX:AZ9) is advancing BHP-validated copper-nickel and copper-gold projects in Mongolia with metallurgical test work demonstrating 89-95% copper recovery and strong concentrate grades. The flagship Oval project shows 800 meters of continuous mineralization with regional targets supporting a hub-and-spoke infrastructure model, while the company's experienced management team and Mongolia's maturing jurisdiction provide multiple pathways to development financing. With A$30 million market cap and A$5-6 million invested at Oval, the company offers leveraged exposure to critical minerals demand at China's doorstep.

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