Yambat Drilling Results Reinforce Asian Battery Metals’ Cu-Ni-PGE Strategy

Key Concepts

Copper Recovery: The percentage of copper extracted from ore during processing.
Copper in Concentrate Grade: The percentage of copper present in the concentrated ore.
Nickel Recovery: The percentage of nickel extracted from ore.
Drilling Update: Information regarding the progress and findings of drilling operations.
Initial Metallurgical Results: Early findings from laboratory tests on ore processing.
Feeder: A geological structure that supplies mineralizing fluids.
Mineralization: The process by which valuable minerals are formed and deposited in rock.
Gabroic Intrusion: An igneous rock body composed primarily of plagioclase feldspar and pyroxene.
Sulfide Mineralization: The presence of minerals containing sulfur, often associated with valuable metals.
Surface Mineralization: Mineralization that occurs at or near the Earth's surface.
Enrichment Event: A geological process that increases the concentration of valuable minerals.
Tenement: An area of land granted for mineral exploration or mining.
Copper Gold Mineralization: The presence of both copper and gold in the ore.
PG System: Platinum Group Element system.
Technical Due Diligence: An investigation into the technical aspects of a project or asset.
Drill Rig: A machine used for drilling boreholes.
Copper Ridge: A specific prospect or area of interest.
High Conductive Plate: A geological feature that strongly conducts electricity, often indicative of mineralization.
Broad Mineralized Intercept: A significant thickness of rock containing valuable minerals.
Intrusive System: A geological system involving the intrusion of molten rock.
Fixed Loop EM Survey: Electromagnetic survey method used to detect subsurface electrical conductivity.
Ground Magnetic Survey: Geophysical survey that measures variations in the Earth's magnetic field.

Drilling and Metallurgical Updates

1. Initial Metallurgical Results:

High Copper Recovery: Achieved copper recovery rates ranging from 89% to 95%.
Copper in Concentrate Grade: Copper concentration in the concentrate is between 18.5% and 24%.
Areas for Improvement: There is potential to improve nickel recovery and develop future processing flow sheets. These exercises are ongoing.

2. Drilling Update:

Feeder Interpretation: Expanded interpretation of the feeder structure intersected by drill hole 32 earlier in the spring.
Exciting Results: The results from drill hole 32 are considered very exciting.
Depth Extension: Potentially indicates that mineralization continues to depth.
MS1 Prospect: Geologically promising results at MS1 are guiding future drilling efforts in that region.

Continuity of Mineralization at Depth

Oval Prospect: Latest treating results confirm mineralization continuity at depth at the Oval prospect.
Drill Hole OBD 2032: In earlier in the year, drill hole OBD 2032 intersected various textured gabroic intrusions at 290 meters downhole.
Gabroic Intrusion Intersections: Drilling on both sides of Q2 intersected mineralized gabro, suggesting the extension to depth is more than a single hole and potentially represents a zone.
MS1 Prospect: Additional gabroic intrusions with visual sulfide mineralization were intercepted at MS1.
Increasing Sulfide Mineralization: Visual assessment of drill hole MS1 suggests sulfide mineralization appears to be increasing at depth.
Future Targets: Encouraging results from MS1 will inform the planning of future targets for this prospect.

Significance of New Surface Mineralization

Simplified Mining Operations: Surface mineralization is significant because it can lead to simpler mining operations.
Economically Important Zones: Starting operations from the surface allows for immediate access to economically important mineralized zones.
Continuity to Depth: The continuity of mineralization at depth, potentially interpreted as a feeder, indicates that mineralization extends deeper.
Future Exploration Direction: This provides a future direction for exploration, where high-grade intercepts could be sought.
Understanding Enrichment: It also offers a pathway to investigate potential enrichment events at depth and the causes of enrichment at Oval.

Yamba Tenement and Other Projects

Yamba Tenement Scope: The Yamba tenement hosts not only copper-nickel-PG systems but also copper-gold mineralization, which is copper-rich.
Mah Project: Ongoing work is being conducted at the Mah project.
Acquisition Agreement: An exclusive agreement is in place to acquire a neighboring asset, the copper-gold BMS project (Mahang Old).
Technical Due Diligence: Technical due diligence is currently underway for the Mahang Old project.
Drilling at Copper Ridge: A drill rig is present, and drilling efforts will continue at Copper Ridge after the due diligence.
Copper Ridge Features: Copper Ridge has a high conductive plate close to the surface, which is exciting.
Broad Intercept at Copper Ridge: A broad mineralized intercept was encountered at Copper Ridge in 2024, and efforts will build upon this.
Bins Prospect: The Bins prospect potentially indicates an extension of the intrusive system intercepted at Oval and MS1, possibly continuing to the south.
By Inside Prospect: A conductive plate at By Inside, identified from a fixed loop EM survey using a Samsung EM system, correlates well with ground magnetic data from a separate study.

Conclusion

The past two weeks have seen significant announcements regarding drilling updates and initial metallurgical results, both of which are highly encouraging. High copper recovery rates (89-95%) and good concentrate grades (18.5-24%) have been achieved, with ongoing efforts to optimize nickel recovery and processing flow sheets. Drilling has provided exciting indications of mineralization continuity at depth, particularly at the Oval and MS1 prospects, with evidence of gabroic intrusions and increasing sulfide mineralization. The discovery of surface mineralization is a key development, promising simpler mining operations and immediate economic returns. The Yamba tenement is a multi-mineral system, including copper-gold, and the company is actively pursuing the acquisition of the Mahang Old project, with technical due diligence and continued drilling at Copper Ridge. Geophysical data at By Inside also shows promising correlations, suggesting further exploration potential. Overall, the outlook for the next month is described as very exciting with significant exploration prospects.