Bluebush Ree Drilling Advancing

Rob Smakman, Alvo’s Managing Director commented on the Bluebush Project:

“With the commencement of activities at Bluebush immediately after the signing of the deal, we continue to demonstrate our commitment to the project and efficiency of operations in Brazil. Our focus during the due diligence period is covering the project with first pass auger drilling to investigate the depth and extensions of the mineralisation and its ionic clay potential. We are well on track to make a sound decision based on results- with first assays expected in the next few weeks.”

The maiden auger drill program¹ has focused initially on the Boa Vista prospect where access on multiple roads facilitated faster entry for the auger rig (see Figure 1). Road improvement to allow for ongoing drilling across the wider Project area is ongoing with over 30km² of the Serra Dourada granite to be assessed.

First laboratory assays from the SGS lab in Brazil are expected within the next 2 weeks, with a second and larger sample lot expected in early-mid August 2023. Ongoing sampling will be submitted to the lab on a batch basis with results released to the market in a timely manner.

Once initial assays are received and interpreted, samples will be selected and submitted for ionic-clay testing with preliminary results expected in September.

Auger drilling is targeting multiple prospects across Bluebush, designed to test and expand on positive results reported by the Project vendor². These results (which are from handheld auger drilling from the clay horizon only as outlined in the ASX announcement dated 7 June 2023) were from drilling which targeted the alluvials. Significant results² included:

• 1m @ 1,355ppm TREO (29% MREO) auger ERRO031AGR from 1m to EOH (Ferradura)
  
• 5m @ 1,139ppm TREO (36% MREO) auger ERRO072AGR from 1m to EOH (Fazendinha)
• 13m @ 928ppm TREO (33% MREO) auger ERRO017AGR from 0m to EOH (Ferradura)
• 6m @ 871ppm TREO (31% MREO) auger ERRO142AGR from 0m to EOH (Ferradura)
• 6m @ 1,188ppm TREO (37% MREO) auger ERRO273AGR from 1m (Boa Vista 01)
• 6m @ 796ppm TREO (34% MREO) auger ERRO279AGR from 0m (Boa Vista 1)

The previous owners of Bluebush drilled a total of 258 auger holes for approximately 930m (average 3.6m depth). The auger drilling would often stop once the saprolite clay horizon was intercepted as the primary target were the alluvials (and partly due to restrictions of the handheld equipment) and as such, the routine sampling of these horizons often ended in mineralisation.

Other work underway at Bluebush includes a review of the official Mata Azul company documents and tenements at the relevant governmental agencies. The Brazilian Mines Department staff are currently on strike, however Alvo should be able to review the relevant documents which are largely online.