Azzuro Resources (ASX:AZ9) Raises A$3.06 Million and Starts Phase 2 Drilling After 11.95% Copper Hit at Red Hill

Aditi Sarkar

28 October 2026 04:35 PM AEDT

Azzuro Resources (ASX:AZ9) Raises A$3.06 Million and Starts Phase 2 Drilling After 11.95% Copper Hit at Red Hill

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Highlights

Azzuro Resources published maiden Exploration Targets for the Red Hill and Oval projects in Mongolia during the September quarter.
Hole MU2610A returned 5.0 metres at 4.92 per cent copper, including 2.0 metres at 11.95 per cent copper.
Azzuro raised A$3.06 million from a Hong Kong-based investor, which now holds 19.9 per cent of the enlarged capital.
Phase 2 drilling began on 1 September 2026, with hole MU2613A intersecting 7.0 metres of semi-massive to massive sulphide.

Two metres of rock grading 11.95 per cent copper set the tone for Azzuro Resources (ASX:AZ9) at its Red Hill project in Mongolia. Now a A$3.06 million placement, which the company says secures its current exploration programme, keeps the drills turning as the second phase gets under way.

Exploration Targets, Not Resources

The Red Hill Exploration Target, announced on 24 August 2026, spans 15 million to 30 million tonnes at 0.71 to 0.9 per cent copper and 0.26 to 0.4 grams per tonne gold, using a 0.2 per cent copper cut-off. The Oval target covers 6 million to 25 million tonnes at 0.3 to 0.7 per cent copper and 0.26 to 0.6 per cent nickel, equivalent to 0.59 to 1.5 per cent copper equivalent.

Azzuro stressed that both targets are conceptual and that there has been insufficient exploration to estimate a Mineral Resource. The Red Hill lower case, built on 35 historical holes and 2,644 samples, could reach Inferred status with 11 diamond holes totalling 1,760 metres. A further four holes for 1,750 metres are recommended for the Middle and South Vein targets.

Phase 1 at Red Hill

Phase 1 comprised 14 diamond holes for 5,835 metres. Copper-gold volcanogenic massive sulphide mineralisation is confirmed over about 550 metres of strike and to roughly 150 metres depth, and remains open to the east, west and down-dip. Eight of the 14 holes returned high-grade mineralisation.

The standout was hole MU2610A, which hit 5.0 metres at 4.92 per cent copper and 0.94 grams per tonne gold from 142.5 metres. The company described it as the highest copper grade it has drilled at Red Hill. A separate near-surface gold zone extends about 600 metres along strike to the north. Azzuro excluded it from the Exploration Target but called it a potential shorter-lead-time value driver.

Phase 2 and the Wider Programme

Phase 2 started on 1 September 2026, with about 1,200 metres of shallow gold drilling planned before deeper sulphide holes using a second rig. Hole MU2613A, drilled after quarter end, intersected 7.0 metres of semi-massive to massive sulphide from 72.3 metres.

At the Yambat project, a first-stage three-dimensional induced polarisation survey identified nine new anomaly trends. Five are ranked Priority 1 for coincident magnetic, resistivity and chargeability responses.

Funding and Cash

On 14 October 2026, Azzuro announced a placement of 203,875,000 CDIs at A$0.015 each, raising A$3.06 million before costs. The securities were issued on 15 October to Kerry Resources Logistics (Hong Kong) Ltd. The investor may nominate a director while it holds at least 15 per cent, though it has not done so. Proceeds are earmarked for Red Hill resource drilling, metallurgical testwork, an initial commercial study and working capital.

Closing cash at 30 September was A$1.615 million, down from A$2.853 million at the start of the quarter. Before the placement, the company's calculation showed about 1.41 quarters of funding, and it said exploration spending is discretionary.

Next Milestones

For the December 2026 quarter, Azzuro expects Phase 2 assays about four to five weeks after 1 October, second-rig drilling of Zones B and C and gravity targets, and preliminary flotation results early in the quarter. It also plans drilling of the lower-case body to support an Inferred estimate. At Oval, it plans to complete the induced polarisation survey, run down-hole electromagnetic surveys and start a copper-nickel drilling programme.

The company is also monitoring amendments to Mongolia's Minerals Law, passed by Parliament on 16 October 2026. The final text and the treatment of the copper concentrate royalty had not been published.

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