Alvo Minerals has progressed multiple prospects at its Palma Copper-Zinc Project in Brazil, secured $1.56 million through an entitlement offer, and expanded its mining services division, positioning itself for growth.
- Continued exploration at Palma with multiple prospects advanced
- Scientific cooperation with Brazilian Geological Survey (CPRM) yields detailed gravity surveys
- Completed $1.56 million non-renounceable entitlement offer to fund exploration
- Alvo Services expands with new drilling and geophysical contracts
- Palma Project holds 7.6Mt mineral resource with over 30 prospects under evaluation
Exploration Momentum at Palma
Alvo Minerals Limited (ASX – ALV) has reported steady progress in its exploration activities at the Palma Copper-Zinc Project in central Brazil during the quarter ending 30 June 2025. The company’s in-house team, equipped with cutting-edge technology, has advanced multiple prospects towards drill-ready status, underscoring Alvo’s commitment to expanding its high-grade copper and zinc resources.
The Palma Project, which hosts a JORC-compliant mineral resource estimate of 7.6 million tonnes at 2.0% copper equivalent, remains open for expansion along strike and at depth. With over 30 new prospects identified, the exploration program integrates geology, geochemistry, and geophysics to refine targets ahead of drilling, which remains the definitive test for new mineralisation.
Strategic Partnership with CPRM
A significant development this quarter was the signing of a 12-month scientific cooperation agreement with the Brazilian Geological Survey (CPRM). This partnership leverages CPRM’s extensive expertise and advanced equipment, including drones and geophysical survey tools, to conduct detailed gravity surveys at key deposits C1 and C4. The collection of 65 litho-geochemical samples from drill core further enhances the understanding of the mineralisation setting. Importantly, this collaboration incurs no cost to Alvo, potentially accelerating exploration insights without impacting budgets.
Capital Raising and Financial Position
To support ongoing exploration and pursue accretive projects, Alvo successfully completed a non-renounceable entitlement offer, raising approximately A$1.56 million. The offer was well supported, with 77% subscribed by existing shareholders and the remainder placed with institutional investors. This capital injection strengthens Alvo’s balance sheet and underpins its exploration momentum.
Financial reports indicate operating cash outflows consistent with exploration activities, offset by the proceeds from the entitlement offer. At quarter-end, Alvo held cash and equivalents of A$1.08 million, with an estimated 1.65 quarters of funding available based on current expenditure levels. The company also benefits from growing revenue streams through its Alvo Services division.
Expansion of Alvo Services Division
Alvo Services, the company’s mining services arm, has gained traction with the completion of a 2,000-metre auger drilling contract and the commencement of an electromagnetic geophysical survey contract. Another large auger contract is imminent, with gross revenue of approximately A$180,000 expected in the current quarter. This division is poised to materially offset overheads and contribute positively to Alvo’s financial outlook.
Looking Ahead
With exploration advancing on multiple fronts, a strengthened financial position, and a growing services business, Alvo Minerals is well positioned to continue its growth trajectory. The market awaits the interpretation of CPRM survey results and upcoming drill results, which could significantly enhance the understanding and potential of the Palma Project.
Bottom Line?
Alvo’s blend of strategic partnerships, capital raising, and operational expansion sets the stage for pivotal exploration milestones ahead.
Questions in the middle?
- When will the results from the CPRM gravity surveys and litho-geochemical analyses be released?
- Which of the over 30 new prospects at Palma are closest to drill testing and what are the expected timelines?
- How will the expansion of Alvo Services impact the company’s overall financial sustainability in the medium term?