Bluebush Ionic Clay REE Project
- Bluebush is a highly prospective Rare Earth Element (REE) project in Central Brazil, adjacent to Alvo’s Palmeiropolis exploration base.
- Alvo signed a binding deal with Mata Azul in June 2023 for an exclusive 6-month purchase option over 100% of the Bluebush tenements for an exploration tenure covering 120km2.
- Metallurgical testwork confirmed REEs hosted in surficial saprolites to be of the highly-valued ionic clay classification.
- Bluebush is along strike from, and on the same biotite-rich granitic intrusion Serra Dourada, the granite that hosts the Serra Verde ionic clay REE project– Serra Verde is the only Tier 1 Ionic-clay hosted REE project currently in construction.
For more information, please refer to Serra Verde company website: https://serraverde.com/en/home/
- Alvo is uniquely positioned to rapidly explore and advance the Bluebush REE Project due to existing exploration infrastructure, personnel and the equipment on site in Palmeiropolis.
- Alvo intends to utilise the due diligence period to verify previous auger drilling results, as well as apply systematic exploration across the tenure to better understand the project potential.
- Alvo will utilise the Loupe Portable Electromagnetic survey system to map the thickness and extent of saprolite/clay horizons, to accurately prioritise ongoing exploration.
- Ionic clay hosted REE deposits are highly favoured due to the relatively simple processing required to create a REE concentrate and the high levels of Heavy (HREO) or Magnet (MREO) rare earth element oxides as compared to the Light (LREO)^.
^ REE Definitions:
HREO Heavy rare earth oxides are defined by their higher atomic weights relative to light rare earth oxides. HREOs include oxides of gadolinium (Gd), terbium (Tb), dysprosium (Dy), holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb), lutetium (Lu) and often include scandium (Sc) and yttrium (Y). Uses include computer and phone displays, and fibre optic cables.
MREO Magnet rare earth oxides can handle greater saturation magnetization than more common elements such as iron and allow for fabrication of stronger and smaller magnets. These can be used for climate economy products such as electric vehicles and wind turbines. MREOs include oxides of Nd, Pr, Dy, Tb, Eu and Y and are some of the highest value REEs.
LREO Light rare earth oxides are defined by lower atomic weights compared to heavy rare earth oxides. LREOs include lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), samarium (Sm), europium (Eu). Used as stabilisers in catalytic compounds and elements in hybrid batteries.
Infrastructure & Location
- Covers 8 exploration tenements, spanning over 120km2
- Neighbours Alvo’s Palma VMS Project and all associated infrastructure
- Along strike from, and on the same biotite-rich granitic intrusion Serra Dourada, hosting the Serra Verde ionic clay REE Project, the only ionic clay REE project currently in construction anywhere in the world outside of China
- Serra Verde estimated Mineral Resource: 911Mt @ 1,200ppm TREO and a Mineral reserve of 350Mt @1,500ppm TREO
- Sealed roads to project, 6 hours from Brazil’s capital city, Brasilia
Refer to Serra Verde presentation: https://www.cetem.gov.br/antigo/images/palestras/2015/iiisbtr/05-denilson-fonseca.pdf
- Historical work by the vendors Mata Azul SA (Mata Azul) has been ongoing intermittently since they acquired Bluebush in 2004, targeting the alluvial concentrations of REE along the drainages. During exploration, Mata Azul also confirmed the presence of mineralised REEs within the saprolite
- The vendors utilised auger drilling for channel sampling and pitting to test various projects, over 258 holes for 923m, with an average depth of 3.6m
- During the vendors exploration, several mineralised saprolite clay horizons were intercepted, with some being up to 13m thick
The early-stage exploration reported from the early auger drilling by the Mata Azul – noting the alluvial focus of their exploration includes clay hosted highlights such as:
- 6m @ 1,188ppm TREO (37% MREO) auger ERRO273AGR from 1m
- 1m @ 1,355ppm TREO (29% MREO) auger ERRO031AGR from 1m
- 5m @ 1,139ppm TREO (36% MREO) auger ERRO072AGR from 1m
- 13m @ 928ppm TREO (33% MREO) auger ERRO017AGR from 0m
- 6m @ 871ppm TREO (31% MREO) auger ERRO142AGR from 0m
- 7m @ 860ppm TREO (43% MREO) auger MAZ-TR-011 from 1m
- 6m @ 796ppm TREO (34% MREO) auger ERRO279AGR from 0m
- 5m @ 951ppm TREO (37% MREO) auger ERRO136AGR from 1m
- 4m @ 863ppm TREO (35% MREO) auger ERRO095AGR from 1m
*Cautionary Statement: The exploration results reported here have been reported by the previous owner. The Exploration Results have not been reported in accordance with accordance with JORC Code 2012. A Competent Person has not done sufficient work to disclose the exploration results in accordance with the JORC Code 2012. It is possible that following further evaluation and/or exploration work that the confidence in the prior exploration results may be reduced when reported under the JORC Code 2012. Nothing has come to the attention of Alvo that causes it to question the accuracy or reliability of the former owner’s exploration. The Company however has not independently validated the former owner’s exploration results and therefore is not to be regarded as reporting, adopting or endorsing those results.