Multiple High-Priority Regional VMS Targets Identified At Palma

Alvo Minerals Limited (ASX: ALV) (“Alvo” or the “Company”) is pleased to provide an update on its ongoing regional exploration program across the Palma Project (“Palma” or “the Project”) located in Central Brazil.

• First comprehensive regional exploration program at Palma VMS Project identifies three high-priority near drill-ready targets through a combination of auger geochemistry sampling and geophysical surveys
  • Urubu: FLEM survey results show an extensive and coherent conductor with similar conductive and thickness values to C3, which closely coincides with the soil geochemistry and IP results
  • C5: Coincident soil sampling and IP anomalies, with historical CPRM reports referencing a single mineralised hole; to be followed up with FLEM surveys
  • Condor: Auger geochemical anomaly to be followed up with IP
• Exploration to date has focused on only two of more than 20 late-time conductors identified through the VTEM survey flown in 2008 covering over 60km of prospective strike
• In-house equipment purchases of mechanical auger drill rig, Electromagnetic (“EM”), Induced Polarisation (“IP”) and X-Ray Fluorescence analysing (“XRF”) allows for flexible, fast and efficient exploration to progress targets
• First pass auger geochemical drilling planned at the new Afla VMS Project (earn-in recently announced 28 March 2023), covering the existing roads and open fence lines
• In CY2023 Alvo aims to incorporate Phase 1 & 2 drilling into expanding and upgrading the Palma Project MRE of 4.6Mt @ 1.0% Cu, 3.9% Zn, 0.4% Pb & 20g/t Ag
  • Phase 1 drilling successfully confirmed and extended high-grade mineralisation at the C1 and C3 deposits, exceeding both grade and thickness expectations
  • Ongoing Phase 2 extensional drilling at C1 and C3 (completed) testing conductors identified by DHEM surveys that highlight the potential to significantly expand known mineralisation
• Ongoing assessment of synergistic opportunities in proximity Palma to expand Alvo’s project portfolio

"Exploration is accelerating, we are generating and refining prospects with the clear aim of making new discoveries in CY2023. Regional prospects are being advanced through auger geochemistry and geophysics that is efficient and low-cost exploration through our use of in-house equipment.

Whilst Phase 2 diamond drilling is ongoing at the C1 deposit following the successful program at C3, we have delivered exciting advances at regional prospects; Urubu, C5, Afla, Condor and C1 South.

We are confident we will soon have a pipeline of new prospects to the stage where we are compelled to drill.”

Palma Regional Exploration Strategy

Alvo is advancing a regional exploration program across the Palma Project which covers over 850km² of contiguous and highly prospective ground in a known Volcanogenic Massive Sulphides (“VMS”) district. The district is >80% controlled by Alvo has been largely idle for over 30 years since polymetallic mineralisation was first discovered in the 1970s. Exploration by the Brazilian Geological Survey (CPRM) was paused in the mid 1980’s, after which no modern exploration has been undertaken. Alvo firmly believes the large, highly prospective and under-explored district is an extraordinary opportunity to make new discoveries by applying modern and systematic exploration programs.

Exploration in CY2022 largely focused on successfully delivering exceptional results at the Company’s existing deposits, C1 and C3. These two existing deposits are only two of more than 20 late-time conductors identified through the VTEM survey flown in 2008 that covers over 60km of prospective strike.

VMS deposits typically occur in clusters, where multiple deposits can be located in similar geological districts. These districts can host tens of VMS deposits that range in size from less than 1Mt to exceeding 100Mt.

Since estimating the Maiden Mineral Resource Estimate¹ (“MRE”) at IPO in 2021 of 4.6Mt @ 1.0% Cu, 3.9% Zn, 0.4% Pb & 20g/t Ag (based on historical drill results completed by the CPRM), Alvo has completed >19,500m of diamond drilling and 1,467m of Reverse Circulation (“RC”) drilling. In addition, the Company has completed extensive geological logging, multiple geophysical surveys (IP, FLEM and DHEM) and completed over 4,100m of regional auger geochemical drilling across the 70+ km of prospective geology.

This information gathered has enhanced Alvo’s technical team’s knowledge and understanding of the Palma VMS district, enabling the team to continue effective exploration across the regional target area.

Exploration work is underway across multiple prospects with the aim of advancing a pipeline of prospects to drill-ready status. Field activities including geological mapping, soil sampling, auger geochemical drilling (“Auger”), IP surveys and fixed loop electromagnetic surveys (“FLEM”) are being undertaken concurrently on various prospects within the district. Sampling (soils, trenching and auger geochemistry) is typically processed in Alvo’s core shed where preparation includes drying (several drying ovens have been built), screening and then samples are tested with a hand-held XRF. Utilising the Company’s in-house equipment allows for flexible, fast and efficient exploration that is significantly less expensive than contracted exploration, as the only material expense is labour.

Figure 2: Palma Regional map with tenement areas and selected prospects

Urubu Prospect – Possible Northern Extension of C3 Deposit

Exploration at the Urubu prospect has been ongoing over the last few months with recent data combining into a compelling near drill-ready exploration target. In Figure 3 below, a combined image of soil geochemistry and a series of IP surveys demonstrates the potential for Urubu to be an offset northern extension of the C3 deposit. The soil geochemical anomaly is weaker than C3, however transported cover in drainage (alluvium) inhibits effective soil sampling so auger geochemistry will be utilised.

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