Major Step Out Extends VMS Mineralisation Over 100m Down Plunge

Alvo Minerals Limited (ASX: ALV) (“Alvo” or the “Company”) is pleased to release assay results from its extensional (Phase 2) diamond drill program at the C3 deposit at the Palma Project (“Palma” or “the Project”) located in Central Brazil. The Company has now completed over 18,800m of diamond drilling at Palma, continuing uninterrupted since listing in October 2021.

HIGHLIGHTS

• Assays received from extensional diamond drilling at the Palma Volcanic hosted Massive Sulphide (“VMS”) Project delivers high-grade mineralisation, including:
  • PD3-069: 9m @ 2.5% CuEq* or 6.21% ZnEq from 342m
    • Inc. 4m @ 5.1% CuEq or 12.5% ZnEq from 347m
  • PD3-071: 4m @ 1.4% CuEq or 3.45% ZnEq from 433m
• Major step-out hole PD3-076 intersected a broad zone of sulphide mineralisation over 100m down- plunge from previous deepest intercept – assays pending
• Results follow significant high-grade extensional drill intercepts released in January 2023:
  • PD3-059: 14m @ 3.0% CuEq from 228m; inc. 5m @ 7.3% CuEq from 237m
  • PD3-065: 13m @ 1.5% CuEq from 333m; inc. 5m @ 3.1% CuEq from 340m
  • PD3-065: 14m @ 1.7% CuEq from 376m; inc. 5m @ 3.6% CuEq from 379m
• Downhole Electromagnetic (“DHEM”) surveys completed on the deepest holes at C3 demonstrate conductive plates extend potential VMS mineralisation hundreds of metres down-plunge
• Alvo aims to incorporate the results from the recent extensional drill program at C3 to expand the Palma Project Mineral Resource Estimate¹ (“MRE”) of 4.6Mt @ 1.0% Cu, 3.9%, 0.4% Pb & 20g/t Ag in Q3 CY2023

*Refer to the detailed explanation of assumptions and pricing underpinning the copper equivalent (CuEq) on page 9 of this announcement and in Section 2 of the attached JORC Code Table (Appendix 1)

Alvo is aiming to significantly expand the existing JORC 2012 MRE of 4.6Mt @ 1.0% Cu, 3.9% Zn, 0.4% Pb & 20g/t Ag that was based on only historical drilling performed by the CPRM. The drill results from Phase 1 and Phase 2 exceeded expectations on grade and thickness when compared to the existing MRE and the Company anticipates incorporating these into an updated MRE in Q3 CY2023.

Alvo has accelerated the regional exploration program across Palma which now covers >875km² of contiguous and highly prospective ground in a known VMS district. The district, which is now 90% controlled by Alvo, has been idle for over 30 years since the first discovery in the 1970s and presents an extraordinary opportunity to make new discoveries by applying modern exploration techniques.

Rob Smakman, Alvo’s Managing Director commented on the latest results from C3:

"C3 continues to deliver the high-grades and widths we have come to expect from drilling this exceptional VMS deposit. We have now completed Phase 2 extensional drilling at C3 and will begin to update the MRE which we are confident will be a significant improvement on tonnes and grade when compared to the previous estimate, that was based solely on historical drilling by the Brazilian Geological Survey (CPRM).

We now turn our drilling attention to C1 where we have kicked off the Phase 2 extensional drill program, aiming to build on and extend the fantastic results we achieved there in CY2022. The drilling at C1 will utilise the DHEM in the same way we have at C3, allowing drilling to focus in on the best areas of the deposit.

We remain committed to making new discoveries at Palma and are advancing the regional exploration across multiple fronts, looking to build regional targets to a point where we are compelled to drill. I look forward to updating shareholders on the regional exploration which is progressing at pace and building multiple targets towards drilling. Every day we are closer to new a discovery.”

Diamond Drilling and DHEM Surveys at C3

Phase 2 diamond drilling at the C3 prospect has been completed, with the final hole (PD3-076) now completed and awaiting assays. The drilling announced in this update includes several holes targeting extensions to the mineralisation drilled historically by the Brazilian Government geological survey (CPRM) and more recently by Alvo in 2021 and 2022.

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