Azzuro Resources ends September quarter with A$1.6 million cash, adds Uvs copper-gold licence

Azzuro Resources PLC (ASX: AZ9) lodged its quarterly activities report and Appendix 5B cash flow report for the three months to 30 September 2026 with the Australian Securities Exchange on 27 October 2026. The report sums up work at the Red Hill (formerly Maikhan Uul) copper-gold project and the Oval copper-nickel-PGE project in Mongolia’s Govi-Altai province. Most of the technical results had been announced separately during the quarter; the cash position, a new licence and the regulatory update are the main new details.

Cash and funding

The group finished the quarter with A$1.615 million in cash. Net cash used in operating activities was A$533,000 and net cash used in investing activities A$673,000, of which A$616,000 went on exploration and evaluation. The company said exploration spending of A$0.62 million covered drilling, laboratory work, gravity, downhole electromagnetic (DHEM) and 3D induced polarisation (IP) surveys, the Exploration Target estimate and metallurgical testwork, while administration and corporate costs were A$0.52 million, including A$102,000 paid to the managing director and non-executive directors.

The Appendix 5B put estimated funding at about 1.41 quarters at the current rate of outgoings. The company pointed to the A$3.06 million strategic placement to Kerry Resources Logistics (Hong Kong) Limited, a member of the Kerry Mining group, announced on 14 October, as the funding for its current exploration and evaluation work. The CDIs were issued on 15 October, leaving Kerry with 19.9% of the enlarged capital.

Red Hill: Phase 1 complete, Phase 2 under way

Phase 1 drilling at Red Hill was completed for 14 holes totalling 5,835m. Copper-gold volcanogenic massive sulphide (VMS) mineralisation is now confirmed over about 550m of strike and to about 150m below surface, and remains open to the east, west and down-dip. The final batch of assays included 2.0m at 11.95% Cu and 1.99g/t Au from 143.9m in hole MU2610A, the highest copper grade in any Azzuro hole at the project.

Phase 2 drilling started on 1 September. By quarter end six holes had been completed for 442.6m, with two others abandoned before reaching target; assays for all six are pending. Preliminary flotation testwork also began, with first results expected early in the December quarter to feed an initial commercial study.

Oval and the Exploration Targets

The report restates the maiden JORC (2012) Exploration Targets announced on 24 August: 15Mt to 30Mt at 0.71% to 0.9% Cu and 0.26g/t to 0.4g/t Au at Red Hill, and 6Mt to 25Mt at 0.3% to 0.7% Cu and 0.26% to 0.6% Ni (0.59% to 1.5% CuEq) at Oval. The company notes that the potential quantity and grade are conceptual, that there has been insufficient exploration to estimate a Mineral Resource, and that it is uncertain whether further exploration will lead to one. A first-stage 3D IP survey at Oval identified five priority-1 targets.

New licence and regulatory backdrop

During the quarter Azzuro acquired the Shiveet Khudag (XV-023433) exploration licence, an 18.45km² area in Naranbulag soum, Uvs province, considered prospective for copper and gold, through a competitive tender for a nominal amount.

The report also notes that Mongolia’s parliament passed amendments to the Minerals Law on 16 October 2026. As proposed, the changes covered a critical-minerals framework, a new process for granting exploration licences, closure-bond requirements, processing-linked royalty settings and a larger share of royalties for local governments. The final adopted text has not yet been published, and the company said it is watching whether the royalty on copper concentrate has been brought into line with international benchmarks.

On the community side, Azzuro signed a tripartite social responsibility agreement for 2026 with the governors of Sharga soum and Govi-Altai province, refurbished the teachers’ room at the Taishir soum school and renovated a children’s basketball court in Yesunbulag soum.

Managing Director Gan-Ochir Zunduisuren said the quarter “delivered strong exploration results for Azzuro, headlined by the maiden JORC Exploration Targets at Red Hill and Oval”, adding that the strategic investment secured after quarter end “leaves Azzuro well positioned to carry this momentum through the December quarter and into 2027.”

For the December quarter, the company plans to keep drilling at Red Hill, begin drilling at Oval and move both projects towards maiden JORC Mineral Resources. Phase 2 assays, including the new sulphide zone in MU2613A, are expected about four to five weeks from 1 October.

Source: Azzuro Resources PLC ASX announcement “September 2026 Quarterly Activities Report” and Appendix 5B cash flow report (27 October 2026), ASX filing (PDF). Cover: Figure 1 of the report.