Regional Targeting Program Underway At Palma Project

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

HIGHLIGHTS

• In CY22, Alvo’s Phase 1 exploration program successfully confirmed & extended high-grade mineralisation at the C1 and C3 deposits at Palma
• In CY23 Alvo aims to incorporate this new drilling to expand the Palma Project Mineral Resource Estimate (“MRE”) of 4.6Mt @ 1.0% Cu, 3.9%, 0.4% Pb & 20g/t Ag and utilise new data to make new discoveries at Palma:
  • Extensional drilling at C1 and C3, testing conductors identified by Down-hole Electromagnetic Surveys (DHEM) that highlight the potential to significantly expand known mineralisation
  • Combination of in-house auger drilling, geophysics and geochemistry to advance greenfield prospects to drill ready status with the aim of making new VMS discoveries
• Exploration to date has been 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”) and Induced Polarisation (“IP”) allows for flexible, fast and efficient exploration to progress targets:
  • Significantly less expensive than typical contracted exploration as only material expense is labour
• Nickel/Copper/PGE exploration to commence in Q2 CY2023 at Cana Brava for “Julimar Style” deposits
• Ongoing assessment of synergistic opportunities around Palma which could have potential to expand project significantly.

Exploration to date has been focused on successfully delivering exceptional results at the Company’s existing deposits, being 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 are located in similar geological districts. These districts can host tens of VMS deposits that range in size from less than 1Mt to exceeding 100Mt.

Rob Smakman, Alvo’s Managing Director commented on the planned exploration at Palma:

"We took some steps towards exploring the Palma District in CY2022, however we are now accelerating regional exploration in CY2023. Our aim is simple and powerful; to significantly expand the known deposits and make new discoveries.

“We have built an expert in-house team that is enthusiastic and focussed on these goals, we have equipped them with the best exploration tools available and we have enhanced our knowledge of the typical type and style of mineralisation in the district through the study of known deposits. We believe this puts our team in a prime position to utilise modern exploration techniques to advance multiple regional exploration targets to drill-worthy status, with the aim of making new discovery in CY2023.

“We are confident that the Palma project has plenty more than the five mineralised prospects identified to date, and we are excited to unlock the district scale potential of the project.”

Palma Regional Exploration Strategy

Since estimating the Maiden Resource Estimate at IPO in 2021 of 4.6Mt @ 1.0% Cu, 3.9%, 0.4% Pb & 20g/t Ag based on historical drill results completed by the CPRM, Alvo has completed 17,356m 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 studies of physical properties.

This information gathered has enhanced Alvo’s technical team’s knowledge and understanding of the Palma VMS district, enabling the team to effectively explore and assess regional target areas across the +780km² of contiguous landholding and 60km of prospective strike for similar deposits.

Exploration work is underway across multiple prospects with the aim of advancing prospects to drill-ready targets. Field activities including geological mapping, soil sampling, Auger drilling (“Auger”), Induced Polarisation Surveys (“IP”) and Fixed Loop electromagnetic surveys (“FLEM”) are being undertaken concurrently on various prospects within the district. Importantly through the Company’s key equipment purchases purchase it allows for flexible, fast and efficient exploration and is significantly less expensive than typical contracted exploration as the only material expense is labour.

Exploration is focusing on the three main disciplines, being geology, geochemistry and geophysics. These disciplines generate data and information when combined and result in positive results will advance the prospects to being drill ready. These disciplines are expanded below:

• Geology - Field Mapping at New Prospects: Mapping is completed as grid lines are opened with particular attention paid to gossanous outcrops (potential weathered VMS) and lateritic cover. All prospects discovered by the CPRM in the 1970s and 1980s were found as gossans.
  
• Geochemistry - Soil sampling and Auger drilling: Alvo’s geologists have mapped extensive laterite caps across Palma, which may be obscuring the deposits beneath. Auger drilling allows testing below this cap and will enhance the exploration efforts. Auger drilling will also be used on a regional basis to cover wide areas quickly. Soil sampling was used traditionally across the project and there are over 60km of co-incident Cu/Pb/Zn anomalies within the district being followed up.
• Geophysics – IP and EM surveys: IP (Gradient Array) is a fast and efficient method for defining new target areas. Deeper seeing pole-dipole IP is a powerful method for detecting disseminated sulphides. FLEM surveys are the jewel in the crown for targeting VMS prospects. This powerful tool can define conductive zones at depth and given the VMS prospects we have at Palma are conductive, most prospective orebodies will have an electromagnetic conductor associated with mineralisation.

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