Mongolian mining

ULAANBAATAR — Azzuro Resources PLC (ASX: AZ9), listed on the Australian Securities Exchange, is continuing exploration at its Red Hill copper-gold and Oval copper-nickel-platinum-group metals projects in southwestern Mongolia. The company is targeting initial JORC-compliant inferred resource estimates for both projects in the first half of 2027.

In a presentation released on the Australian Securities Exchange on September 25, 2026, the company outlined its exploration programme for the fourth quarter of this year and the next stage of work at the two projects. Formerly known as Asian Battery Metals PLC, Azzuro Resources owns both projects outright. They are located near Altai in western Mongolia, approximately eight kilometres apart.

Red Hill drilling to be expanded

Red Hill is the company's priority exploration project in the near term. During the first phase of exploration between April and June 2026, Azzuro Resources drilled 15 holes covering a total of 1,884 metres. The drilling indicated that volcanogenic massive sulphide mineralisation occurs at a depth of approximately 150 metres below the surface and extends for about 550 metres along strike.

The company's presentation cited an exploration target of 15–30 million tonnes grading between 0.71% and 0.90% copper per tonne and 0.26–0.40 grams of gold per tonne. These figures are exploration target estimates, however, and do not represent a confirmed mineral resource or a deposit established as economically mineable. Further drilling and technical studies will be required to determine the scale and grade of the mineralisation.

The second phase of exploration began in September, initially focusing on a near-surface gold zone. The company also plans downhole electromagnetic surveys, processing of gravity data and metallurgical testing.

Oval project expands copper and broader metals potential

At the Oval project, mineralisation has been identified along a strike extending for more than 880 metres. The company has outlined an exploration target of six to 25 million tonnes with a copper-equivalent grade of between 0.59% and 1.5%. Metallurgical tests also recorded copper recoveries of 89–95%, according to the company.

The planned programme includes 13 drill holes totalling 4,375 metres, along with a three-dimensional induced-polarisation geophysical survey. The work is intended to test additional target zones and generate information needed for future resource estimates.

Initial resource estimates targeted for 2027

Azzuro Resources is working towards issuing initial JORC-compliant inferred resource estimates for both projects in the first half of 2027. It also plans to conduct preliminary metallurgical and scoping studies at Red Hill.

The results will help determine whether the projects can advance to more detailed technical assessments and further investment. However, exploration target estimates and results from early-stage drilling do not establish a project's commercial viability. Additional studies will be required before any mining decision can be made.

For Mongolia's mining sector, these projects show that interest from foreign exchange-listed companies in exploring for copper and related metals remains strong. The projects' long-term significance will depend on the results of subsequent drilling, resource estimates, economic viability, infrastructure requirements and financing.