Alvo Minerals advances exploration at its Palma Copper-Zinc Project in Brazil, defining promising new prospects Touro and Esperanza with strong geochemical and geophysical signatures. The company also reviews rare earth projects amid rising market interest.
- Discovery of Touro and Esperanza prospects with significant Cu-Zn anomalies
- Palma Project Mineral Resource Estimate stands at 7.6Mt @ 2.02% CuEq
- Extensive exploration including auger drilling, soil sampling, and geophysics
- Review of Bluebush and Ipora Rare Earth Element projects underway
- Alvo Services generates revenue, supporting operational cash flow
Exploration Momentum Builds at Palma
Alvo Minerals Limited (ASX – ALV) has reported a productive quarter at its flagship Palma Copper-Zinc Volcanogenic Massive Sulphide (VMS) Project in central Brazil. The company’s exploration efforts have intensified, with the identification of new high-priority prospects named Touro and Esperanza. These targets exhibit compelling geochemical and geophysical anomalies that suggest potential for significant copper and zinc mineralisation beyond the existing resource base.
The Palma Project already hosts a robust JORC-compliant Mineral Resource Estimate of 7.6 million tonnes at 2.02% copper equivalent, translating to over 150,000 tonnes of contained copper equivalent metal. This sizeable resource underpins Alvo’s ambition to establish Palma as a major VMS district, with all known deposits remaining open for expansion both along strike and at depth.
Touro and Esperanza – Emerging Prospects
The Touro prospect is distinguished by a well-defined mineralised trend exceeding one kilometre, marked by multiple gossan occurrences rich in zinc, copper, and lead. Rock-chip samples have returned zinc grades up to 7.5%, supported by coincident soil and auger drilling anomalies and a strong fixed loop electromagnetic (FLEM) conductor. Geological mapping revealed hydrothermal alteration zones, including the zinc-bearing mineral gahnite, indicative of mineralised fluid pathways.
Esperanza, located approximately three kilometres southeast of Palma’s C3 deposit, features a geochemical anomaly over one kilometre in length with elevated copper, zinc, and lead values. FLEM surveys have identified multiple sub-vertical conductor plates aligned with these anomalies, suggesting potential massive sulphide mineralisation. Although induced polarisation surveys were inconclusive, the combined geological and geophysical data position Esperanza as a highly prospective drill target.
Comprehensive Exploration Program and Strategic Review
During the quarter, Alvo conducted extensive fieldwork including over 5,000 metres of auger drilling, more than 5,600 soil samples, and nearly 100 line kilometres of geophysical surveys integrating induced polarisation and FLEM techniques. The company’s in-house exploration team leverages advanced equipment and methodologies to efficiently refine targets ahead of drilling.
Beyond Palma, Alvo is reassessing its Bluebush and Ipora Ionic Clay Rare Earth Element (REE) projects in response to recent geopolitical developments and rising REE prices. Although no fieldwork was conducted on these projects this quarter, the review signals Alvo’s intent to diversify and capitalise on critical mineral markets.
Corporate and Financial Highlights
Alvo’s exploration contracting subsidiary, Alvo Services, contributed revenue of A$131,000 during the quarter, with additional receivables pending. This business arm is helping to offset exploration costs and improve the company’s financial flexibility. However, the group reported a net cash outflow from operations of A$611,000, leaving a cash balance of A$521,000 at quarter end. Management indicated plans to adjust expenditure as needed and is actively evaluating capital requirements to sustain ongoing activities.
On the corporate front, the board saw the resignation of Mr Mauro Barros, a non-executive director representing Ore Investments Ltda, due to other professional commitments. The company continues to maintain a strong governance framework as it advances its exploration agenda.
Bottom Line?
With promising new targets emerging and strategic reviews underway, Alvo Minerals is poised for a pivotal phase, pending upcoming drill results and financial management.
Questions in the middle?
- When will diamond drilling commence at the Touro and Esperanza prospects, and what are the expected timelines for results?
- How will the review of Bluebush and Ipora REE projects influence Alvo’s strategic focus and capital allocation?
- What measures will Alvo implement to extend its cash runway beyond the current 0.85 quarters?