Alvo Minerals is set to become a leading Brazilian explorer with its proposed acquisition of the Lavra Velha Gold Project, complementing its strong copper-zinc and rare earth portfolios.
- Proposed acquisition of Lavra Velha Gold Project with 520koz NI 43-101 resource
- Lavra Velha resource requires JORC re-estimation post-acquisition
- Palma VMS copper-zinc project holds 7.6Mt at 2.0% CuEq JORC resource
- Bluebush rare earth element project features high-grade ionic clay deposits
- Entitlement issue underway to raise up to $4.4 million for exploration funding
Alvo’s Strategic Move into Brazil’s Gold Sector
Alvo Minerals Limited (ASX: ALV) is positioning itself as a dominant force in Brazil’s mineral exploration landscape with the proposed acquisition of the Lavra Velha Gold Project. This advanced-stage asset boasts a substantial NI 43-101 mineral resource estimate of 520,000 ounces of gold, marking a significant step for Alvo as it seeks to expand beyond its established copper-zinc and rare earth element (REE) interests.
The Lavra Velha project, located in Bahia State, is notable for its near-surface oxide gold resources and promising exploration upside. While the current resource estimate is based on Canadian NI 43-101 standards, Alvo plans to re-estimate the resource under the JORC Code, aligning with Australian reporting standards and providing greater clarity for investors.
Complementing Assets and Exploration Momentum
Alongside Lavra Velha, Alvo’s portfolio includes the Palma VMS project, a district-scale copper-zinc rich volcanogenic massive sulphide deposit with a JORC resource of 7.6 million tonnes at 2.0% copper equivalent. Recent drilling has delivered impressive grades and thicknesses, underscoring the project’s potential to contribute materially to Alvo’s growth trajectory.
Additionally, the Bluebush ionic clay REE project adds a strategic dimension to Alvo’s asset base. With exceptional total rare earth oxide (TREO) grades and a mineralisation style similar to the Serra Verde mine, the only operating ionic clay REE mine outside China, Bluebush positions Alvo to tap into the critical minerals market that underpins the global energy transition.
Funding and Experienced Leadership
To support its aggressive exploration and acquisition strategy, Alvo is currently conducting a non-renounceable entitlement issue to raise up to $4.4 million. This capital injection will fund ongoing drilling programs and due diligence activities, particularly around the Lavra Velha acquisition.
The company benefits from a seasoned board and management team with deep expertise in Brazilian mineral exploration and mining. Managing Director Rob Smakman, who previously led the development of the Borborema Gold Project, brings valuable experience in advancing projects from exploration through to production.
Exploration Outlook and Market Positioning
Alvo’s exploration approach combines extensive drilling, geophysics, and geochemical sampling across its project areas. The Lavra Velha package itself contains numerous untested regional targets, including IOCG-style breccia zones and high-grade gold-copper mineralisation, offering multiple avenues for resource growth.
With a relatively low enterprise value compared to the quality and scale of its mineral resources, Alvo is attracting attention as a compelling exploration story in Brazil’s mineral-rich Bahia State. The company’s ability to drill year-round in a well-infrastructured region further enhances its operational efficiency and potential for discovery.
Bottom Line?
Alvo’s Lavra Velha acquisition and diversified project portfolio set the stage for a pivotal growth phase in Brazil’s competitive exploration sector.
Questions in the middle?
- How will the JORC re-estimation impact the Lavra Velha resource valuation and market perception?
- What are the timelines and expected milestones for exploration drilling at Lavra Velha and Palma?
- How will the entitlement issue affect Alvo’s capital structure and shareholder dilution?