Alvo Minerals Expands Bluebush Rare Earth Project with New Brazilian Tenement

Strategic Expansion Along Serra Dourada HREE Province

Alvo Minerals Limited (ASX:ALV) has significantly bolstered its rare earth element (REE) ambitions in Brazil by acquiring 100% of the mineral rights over a 575-hectare tenement directly adjacent to its Bluebush Heavy Rare Earth Element (HREE) project. This acquisition, executed through its Brazilian subsidiary Lanta Recursos Minerais Ltda, extends the company’s footprint along the northern Serra Dourada granite province, a region known for hosting ionic adsorption clay (IAC) deposits of critical heavy rare earths.

The newly acquired ground consolidates the Boa Vista prospect within Bluebush, sharing the same host granite, weathering profile, and geomorphological characteristics as both Boa Vista and the nearby world-class Serra Verde mine. Notably, Serra Verde was recently acquired by USA Rare Earth Ltd in a USD 2.8 billion deal, underscoring the strategic value of this geological setting.

Reconnaissance Exploration Validates Prospectivity

Initial reconnaissance exploration across the tenement has confirmed the interpreted extension of HREE mineralisation mapped at Boa Vista. Alvo’s fieldwork included 40 auger drill holes totalling 269 metres, with portable X-ray fluorescence (pXRF) analyses revealing multiple samples exceeding 1,000ppm of combined rare earth oxides (XREO = CeO2 + La2O3 + Y2O3). These results support the geological model that the mineralisation continues into the new tenement, reinforcing Alvo’s district-scale thesis for the northern Serra Dourada.

The reconnaissance work also highlighted consistent elevation, topography, and drainage patterns with adjacent prospects, indicating a direct read-across for exploration strategies. The tenement was recently released from an extended suspension by Brazil’s Agência Nacional de Mineração, clearing regulatory hurdles and allowing for immediate integration into Alvo’s ongoing Bluebush exploration program.

Transaction Details and Strategic Implications

The mineral rights acquisition was completed for a total consideration of USD 210,000, with USD 150,000 already paid and the balance settled upon transfer document lodgment with the Brazilian Mines Department. This cost-effective expansion positions Alvo as the primary explorer and developer in the northern Serra Dourada HREE province, aiming to replicate the success of Serra Verde’s Pela Ema mine, one of the few large-scale ionic clay HREE producers outside China.

Alvo’s Managing Director Rob Smakman emphasised the strategic importance of the acquisition, noting the high confidence in the prospectivity given the shared geological and geomorphological features with Serra Verde. The company is advancing exploration with further auger drilling, geological mapping, metallurgical sampling, and ground geophysical surveys, including mobile electromagnetic methods to delineate saprolite thickness and mineralisation depth.

Next Steps for Bluebush Project Advancement

Following integration of the newly acquired tenement, Alvo will continue to expand its exploration footprint with a focus on defining the extent and grade of HREE mineralisation. The company is also reviewing its broader Bluebush tenement package and engaging with project vendors to finalise documentation under a memorandum of understanding.

This acquisition complements Alvo’s recent capital raising efforts to accelerate exploration activities in Brazil, including its copper-zinc Palma Project and other rare earth targets. While assay results remain qualitative at this stage, the consolidation of contiguous ground in a proven HREE province enhances Alvo’s potential to develop a significant rare earth resource in a geopolitically strategic location.