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Alvo Minerals Limited (ASX: ALV) (“Alvo” or the “Company”) is pleased to announce the signing of a binding agreement to earn-in to the highly prospective Alfa Project (“Afla”), consolidating the broader Palma Volcanogenic Massive Sulphide (VMS) belt. The Afla Project is located adjacent to Alvo’s Palma Project and covers a strategic southern portion of the target host rocks of the VMS sequence.
HIGHLIGHTS
- Binding agreement to earn-in to the Afla Cu/Zn Project, consolidating the southern portion of the highly prospective Palma VMS belt
- The Afla Project was partially covered by a VTEM survey, and multiple conductors have been identified which appear similar to conductors that host significant VMS mineralisation at Palma
- The Brazilian Geological Survey (CPRM) conducted regional stream sediment sampling and soils sampling across the area highlighting several highly anomalous prospects
- Earn-in transaction has no upfront cash payments and will utilise Alvo’s existing exploration team to deliver the 1,000m of diamond drilling within 18 months of the agreement to earn the initial 60% of the project
- Ability to earn up to 100% of the project dependant on additional exploration and contract milestones
Alvo has the team, the tools and expertise to conduct a cost-effective exploration program across the Afla Project.
Rob Smakman, Alvo’s Managing Director commented on the Afla Project:
"We have secured the Afla Project due to its prospectivity and strategic location. It’s a significant area that increases our control over the VMS district, an enviable land package for a junior anywhere in the world and we are confident that integrating exploration at Afla with our existing CY2023 plans will be seamless. Field work on the ground will start immediately, focussed on the already identified targets. We will continue our systematic approach to prioritisation of the multiple greenfields targets to the point of being drill-ready.
“We have built an expert in-house team that is motivated and focussed on making new discoveries. We have leading edge in-house exploration tools available and continue to enhance our knowledge of the typical type and style of mineralisation in the district. We are really excited that we will be integrating the Afla Project into our exploration plans.”
Afla Cu/Zn Project
Alvo has signed a binding deal with AFLA INVESTIMENTOS E PARTICIPAÇÕES LTDA, (“Afla Investimentos”) a Brazilian company with interests in gold and limestone mining, agriculture, and real estate. The Afla Project includes 5 granted exploration licenses covering a total area of 9,758Ha (98km2), located adjacent to both Alvo’s Palma VMS Project and Alvo’s Ni/Cu/PGE Project at Cana Brava (see Figure 1). The Project is considered predominantly prospective for VMS style (Cu, Zn, Pb, Ag, Au) mineralisation.
Figure 1: Regional geology and tenement holdings for Alvo's Palma project area - Afla Project area in red hash.
Prior to Afla Investimentos taking control of the project in 2018, the area was explored by the Brazilian subsidiary of BHP (Colorado Exploration circa 1980’s), Glencore (early 2000’s) and Nexa in 2008. No historical data from these companies is currently available, however a recent due diligence field visit noted historical drill-core believed to be from when BHP was exploring the area.
Alvo is pursuing the historical information which may exist in the Mines Department, however there is no guarantee that this information will be available.
The Geological survey of Brazil (CPRM) completed a regional Stream Sediment survey which covered the Afla Project ground and indicated anomalous catchments of Cu, Zn and Pb. The CPRM also completed several soil sampling and mapping traverses also confirming anomalous Cu and Zn.
In 2008, Votorantim Exploration (now Nexa) flew a VTEM survey covering most of the Afla ground. This is the same survey that covers much of the Palma project and the source of multiple conductive targets currently being followed up by the Alvo exploration team. Alvo’s consultants have highlighted 5 individual conductors on the Afla ground that warrant follow up (see Figure 1).
The work by the CPRM and the VTEM survey is a great starting point for Alvo’s exploration strategy.
Integrating Afla into the Palma Regional Exploration Strategy
Alvo is undertaking an extensive regional exploration program across the Palma project which covers over 780km2 (including the Afla Project increases this tenure to ~875 km2) of contiguous and highly prospective ground in a known VMS district. The district has been largely unexplored for over 30 years since the first discovery in the 1970s and presents an extraordinary opportunity to make new discoveries by applying modern and systematic exploration techniques.
VMS deposits typically occur in clusters, where multiple deposits are located in similar geological districts. These districts can host a number of VMS deposits that range in size from less than 1Mt to exceeding 100Mt.
Exploration work is underway across multiple prospects with the aim of advancing prospects to drill-ready status. Field activities including geological mapping, soil sampling, Auger drilling (“Auger”), Induced Polarisation Surveys (“IP”) and Fixed Loop electromagnetic surveys (“FLEM”) are underway. These activities are being undertaken concurrently within the district on various prospects identified by the Company from historical work completed to date.
Importantly, the Company’s key equipment purchases allow for flexible, fast and efficient exploration which is significantly less expensive than typical contracted exploration as the only material expense is labour and maintenance.
The Afla project areas have been integrated into the Palma project plan and exploration will proceed across the new areas according to the current schedule in place. Alvo expects that the time required to complete the earn- in is sufficient assuming the first pass exploration is successful.
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This article includes content from Alvo Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
ALV:AU
New Ground Acquisition at Broken Hill
- Impact to acquire a large tenement package from New Frontier Minerals Limited (ASX:NFM) adjoining its existing ground holding that almost completely surrounds the giant Broken Hill lead-zinc-silver mine in New South Wales.
- Impact’s ground now extends over 1,770 sq km and covers an area considered extremely prospective for large copper deposits following a novel exploration model that formed the basis of the company’s participation in the inaugural BHP Xplor program in 2023.
- Detailed mapping and sampling of 99 gabbro sills and other work completed during the Xplor program confirmed the copper potential with numerous areas for further exploration identified within the Broken Hill sequence. At least one such target lies within the newly acquired ground.
- Next steps will include ground geophysics to help identify targets for drilling.
- Terms of the acquisition are as follows: Impact to purchase BHA No 1 Pty Ltd, a wholly owned subsidiary of NFM, for $275,000 in Impact shares and subject to staged voluntary escrow over six months commencing one month after Completion.
The acquisition builds on exploration and research completed as part of the BHP Xplor program, in which Impact participated in its inaugural year, and positions the company as one of the largest ground holders in the region, particularly to the south of Broken Hill. Impact now has 100% ownership of tenements covering 1,770 sq km and over 100 kilometres of strike (Figures 1 and 2; ASX Releases January 17, 2023, and February 16, 2023).
The Broken Hill region is currently experiencing a resurgence of interest in exploration. Broken Hill Mines (ASX: BHM, formerly Coolabah Metals Limited) recently purchased the privately owned Rasp Mine in Broken Hill and the nearby Pinnacles deposit. In addition, South32 Limited has entered a joint venture with a private company that owns a significant ground holding north of the Broken Hill mine. This interest is partly driven by a recent increase in silver prices and long-term demand trends for zinc and lead.
The Search for Copper at Broken Hill
Since the discovery of the giant Broken Hill deposit in 1883, most previous exploration has focused on silver-lead-zinc mineralisation. However, various styles of copper mineralisation are also known to occur throughout the region and have been the focus of some exploration and shallow drilling, though with limited success (Figures 1 and 2). Since copper mineralisation is commonly associated with, but peripheral to, numerous silver-lead-zinc deposits, many exploration geologists have asked, “Where is the large copper deposit at Broken Hill?”.
Figure 1. Image of regional total magnetic intensity showing the Broken Hill orebody (Line of Lode), Impact’s granted licences and licence applications and the new tenements acquired. Note the Thackeringa Fault and Farmcote shear zone, both interpreted as deep-seated long-lived crustal lineaments, and the interpreted sub-basin in the new tenements. Widespread copper occurrences attest to the prospectivity of the region for copper. Impact’s rock chip locations are also shown.
Figure 2. Image of the first vertical derivative of regional magnetic data as in Figure 1. A detailed interpretation of this data has resulted in the identification of numerous target areas for large copper deposits.
Impact became interested in the region's copper potential during exploration for silver-lead- zinc at the Dora East prospect, located about 30 km south of Broken Hill (Figures 1 and 2). Here, Impact discovered moderate widths of high-grade silver-lead-zinc mineralisation and narrow zones of high-grade copper-silver mineralisation (Figure 3 and ASX Releases December 8, 2015, and February 19 2016).
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This article includes content from Impact Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
BHP to Spend up to A$40M to Explore for Tier 1 Copper-Silver Deposits on CBE Tenements in Botswana
Highlights
- The Transaction comprises the following key funding terms (detailed in Schedule 1):
- A minimum of US$5 million of committed funding to be paid to Cobre within 2 years of the commencement date with a planned budget of US$7m (A$11m) for exploration expenditure for the Kitlanya Projects starting in April 2025; and
- BHP can earn a 75% interest in the Kitlanya Projects by funding US$25 million (inclusive of the initial US$5 million) for exploration expenditure for the Kitlanya Projects.
- Cobre Botswana will be appointed operator during the earn-in phase and will be entitled to a management fee of no less than US$250,000 per annum.
- Upon commencement of the 75:25 joint venture, BHP may provide a loan to Cobre to fund Cobre's portion of joint venture expenditure up until the final investment decision.
- An additional payment of up to US$10 million, calculated at $5/tonne contained copper, is payable to Cobre upon the declaration of a maiden JORC Compliant Mineral Resource (JORC) at the Kitlanya Projects.
- If the Transaction is terminated during the Earn-In Phase and BHP has funded at least US$20 million for exploration expenditure, BHP will be entitled to a 2.0% net smelter royalty in respect of the Kitlanya Projects. Cobre may, in certain circumstances, buy back 50% of this royalty for an amount equal to the aggregate of exploration expenditure funded by BHP at the time of electing to exercise the buy-back.
- The Transaction does not cover Cobre’s flagship Ngami and Okavango Copper Projects which Cobre will continue to operate and advance independently.
The Transaction underscores Cobre's confidence in the potential for its projects to host Tier 1 copper- silver deposits. A partnership with BHP provides the exploration funding, scale and expertise to maximise Cobre's chances of making significant new discoveries on our basin margin exploration ground while retaining 100% ownership of its Ngami and Okavango Copper Projects.
The planned work programme for the initial US$7m includes several deep (~1km) diamond holes combined with active 2D seismic survey designed to assess key components of the Mineral System required for Tier 1 copper deposit formation. Mobilisation for the first phase of drilling, which will test targets identified in the 2024 seismic programme at Kitlanya West, is scheduled for April 2025.
Tim O’Connor, BHP Group Exploration Officer said:
"We are thrilled to continue our partnership with one of the BHP Xplor alumni, Cobre Limited, through this agreement. This collaboration reflects our excitement for the exploration potential in Botswana and underscores the high standard of partnerships we see coming out of the BHP Xplor program. The Kitlanya Projects in Botswana represent an exciting opportunity to uncover Tier 1 copper-silver deposits, and we are pleased to contribute our expertise and resources to this venture.”
Commenting on the Transaction, Adam Wooldridge, Cobre’s Chief Executive Officer, said:
“This significant transaction with BHP, one of the world’s leading mining companies, is a major moment in time for Cobre as a company as well as a testament to the success of BHP’s Xplor programme. The partnership with BHP will provide us with the funding and support necessary to implement a technology-driven work programme designed to discover the Tier 1 deposits we believe may be hosted in our Kitlanya East and West Projects.
Independently, Cobre will continue advancing its Ngami and Okavango copper Projects.This combined strategy provides exposure to potential Tier 1 discoveries, a development opportunity at Ngami and short-term discoveries on our Okavango project.”
Commenting on the transaction, Martin Holland Chairman of the Cobre board, said:
“First and foremost, I would like to extend my gratitude to BHP for their exceptional efforts in the 2024 BHP Xplor program, which aims to foster bold thinking and elevate global exploration to new heights.
I would also like to thank the Cobre Board and team, especially our CEO Adam Wooldridge and Technical Lead Thomas Krebs, for their tireless dedication throughout the year-and-a-half-long process that has led us to this point and for their efforts in successfully finalising this transaction with BHP.”
Figure 1. Locality map illustrating the position of Cobre’s project areas. Green licenses are relevant tothe Transaction, dark grey licenses will be run, and are owned, independently by Cobre.
Geology, Mineralisation and Exploration Target
Mineralisation in the KCB is sediment-hosted and structurally controlled, with copper-silver mineralisation most frequently hosted along the redox contact between the basal units of the reduced marine sedimentary rocks of the D’Kar Formation and oxidised clastic sedimentary red bed units of the Kuke and Ngwako Pan Formations and the underlying volcanosedimentary Kgwebe Formation. Of particular interest for Tier 1 deposits are the tight, upright folds which offer ideal trap-sites for upgrading of copper-silver mineralisation and formation of large deposits. These folds are typically bounded by district-scale shears (often with evidence of copper anomalism) which would provide the necessary plumbing architecture for movement of copper-rich fluids during basin formation and subsequent closure and deformation. A schematic illustration of the preserved fold hinge model is illustrated in Figure 2. The upcoming exploration programme will focus on testing these buried anticline hinge zones along with assessing primary basin architecture, source rocks, fluid pathways and trap-site mechanisms.
Figure 2: Schematic illustrating of the target model compared with typical settings for known KCB deposits.
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This article includes content from Cobre Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Anax Metals Limited
Investor Insight
Anax Metals, an ASX-listed exploration company, is dedicated to advancing its copper assets in Western Australia’s Pilbara region. Through key joint ventures and strategic partnerships, the company is well-positioned to develop a central processing hub, enhancing operational efficiency and delivering strong investor value.
Overview
Anax Metals (ASX:ANX) is a project developer that is on track to begin producing copper and zinc concentrates from its flagship Whim Creek project in the Pilbara region of Western Australia. The project is 80 percent owned by Anax, with JV partner Develop Global (Develop) owning the remaining 20 percent. The Whim Creek DFS (and leaching study) have demonstrated the opportunity for an eight-year mining operation producing copper concentrates, cathodes and valuable byproducts. The operation will generate $410 million in cash flow and deliver an NPV of $270 million with a development capex of $71 million.
The company believes its growth potential lies both in expanding the mineral resources across the project’s four deposits and in a consolidation strategy that includes a processing hub with a concentrator and heap leach at Whim Creek. Benefits from the consolidation include delivering economies of scale with processing flexibility to treat ores from regional orebodies. The permitted infrastructure is ideally located and suited to becoming the Pilbara-processing hub.
Anax Metals and GreenTech Metals signed a non-binding and non-exclusive memorandum of understanding to assess the potential to treat mined material from GreenTech’s base metal assets, with a focus on the open-pittable Whundo deposit.
Anax Metals also signed a non-binding and non-exclusive memorandum of understanding (MoU) with Artemis Resources (ASX:ARV) to jointly assess the potential for processing the copper content of Artemis’ open-pittable Greater Carlow resource at the fully-permitted Whim Creek Processing hub. Anax and Artemis also agree to evaluate the potential for Artemis to explore for gold mineralisation on the Anax project tenure.
Company Highlights
- Anax Metals focuses on delivering copper production at the Whim Creek copper-zinc project within the next 18 to 24 months, targeting over $400 million in free cash flow across an eight-year mine life.
- The company aims to drive resource expansion and consolidate copper assets in the Pilbara region by developing a central processing hub.
- Since completing the DFS last year, Anax Metals has been evaluating opportunities to increase Whim Creek’s production capacity beyond 20 kt of copper equivalent per year.
- Capital requirements are expected to remain low, with plans to leverage existing infrastructure and deploy preconcentration technology to optimize processing capacity..
- Anax Metals actively collaborates with key partners, including Develop Global (ASX:DVP), Greentech Metals (ASX:GRE), and several metal trading groups.
Key Projects
Whim Creek Copper-Zinc Project
Whim Creek is strategically located along the NW Coastal Highway in Western Australia’s Pilbara region, approximately 120 km from both Port Hedland and Karratha. With a long history of copper production, the project benefits from existing infrastructure, including dams, haul roads, offices, workshops, and a dedicated gas spur line. Currently being developed as an 80/20 joint venture between Anax Metals and Develop Global, Whim Creek hosts four key deposits—Whim Creek, Mons Cupri, Salt Creek, and Evelyn. These deposits feature structurally controlled, volcanic-hosted massive sulphide copper-zinc-lead mineralization, presenting significant development potential.
On-going exploration work at Evelyn resulted in discovering exciting new targets for future drilling campaigns scheduled in early 2025. Exploration works conducted in 2024 indicated high copper grades and new soil anomalies. The company is assessing the regional potential of the granted Evelyn Mining Lease for further high-grade VMS-type, polymetallic base metal deposits.
Anax Metals announced its recent application for an exploration license (E47/5275) covering 65 sub-blocks spanning approximately 207 sq. km, which extends the company’s landholding to the south and west of the Whim Creek joint venture tenement package. Once granted, the new tenement will be 100 percent owned by Anax. The majority of E47/5275 lies within the Whim Creek Greenstone Belt, which is highly prospective for volcanogenic massive sulphide (VMS) mineralization, similar to the Whim Creek and Mons Cupri deposits.
Production – Concentrator and Heap Leach
Since completing the definitive feasibility study in 2023, Anax has promoted Whim Creek as a regional processing hub, with potential for an expanded production capacity over 20 kt copper equivalent. Highlights of the technical report include FCF generation of $410 million over an eight-year mine life. Processing would be predominantly through the planned concentrator. Heap leaching is anticipated to begin in the second year of production.
Anax has achieved significant success with bioleaching technology, reporting up to 80 percent copper and 90 percent zinc extraction rates. This innovative approach enhances metal recovery and supports the company’s commitment to sustainable practices.
A processing hub with sorting, concentrator and heap leach facilities
The company believes the project will also provide a processing solution for surrounding projects located within trucking distance of Anax’s processing facility. In the long term, Anax plans to establish a Pilbara Base Metal Alliance to facilitate collaboration with other base metal projects in the region.
Management Team
Phillip Jackson - Chairman
Phillip Jackson is a barrister and solicitor with significant legal and international corporate experience, Phillip Jackson specialises in commercial and contract law, mining and energy law and corporate governance. He has been a director and chairman of a number of ASX and AIM listed minerals companies.
Geoff Laing - Managing Director
Geoff Laing is a chemical engineer with 30 years in mining and project development. He has been involved in the exploration and junior mining sector for the last 15 years, taking on corporate and advisory roles. He was a key player in Exco Resources’ divestment of a substantial copper asset for $175 million to Xstrata Copper, and as managing director, he delivered the successful takeover of the company by WH Sol Pattinson.
Peter Cordin - Non-executive Director
Peter Cordin is a civil engineer with over 45 years' global experience in mining and exploration, both at operational and senior management levels. He has direct experience in the construction and management of diamond and gold operations in Australia, Fenno-Scandinavia and Indonesia.
Phil Warren - Non-executive Director
Phil Warren is a chartered accountant with over 25 years’ experience in board governance, corporate advisory and capital raising advice. Warren has spent a number of years working overseas for major international investment banks. He is currently a non-executive director of ASX listed companies, including Family Zone Cyber Safety, Narryer Metals, Killi Resource and Rent.com.au. He was a founding director of Cassini Resources, which was subsequently acquired by Oz Minerals.
Jenine Owen - Chief Financial Officer
Jenine Owen joined Anax in 2020, where she is responsible for corporate risk management, financial management and financial reporting. She is a chartered accountant with extensive finance and commercial experience, including several CFO roles in ASX listed entities. Having started her career with Deloitte (Zimbabwe) in the external assurance division, she moved to London in 1999 where she held various finance and governance roles before settling in Australia in 2008. Prior to joining Anax, Owen was CFO at Predictive Discovery (ASX:PDI).
Andrew Mcdonald - General Manager
Andrew McDonald is a seasoned geologist with over 20 years of experience in project management, development, resource geology, and exploration across a wide range of commodities. He has held roles with several ASX-listed mining companies, where he has led project development and managed regulatory approvals for mining projects in both Australia and the United States.
Dan O’Hara – Environmental Manager
Dan O’Hara is an experienced environmental professional with over 15 years in environmental management across the mining, oil and gas, construction, and government sectors. In recent years, he has played a key role in securing environmental permits for mining projects in Western Australia.