Palma Exploration Prospects

Palma Exploration Prospects


Exploration Targets

Alvo has >500km2 of contiguous and highly prospective ground in a known VMS district- the first time this package has been held by the same entity

  • Alvo has compiled an extensive geochemical database that can drive exploration. Stream sediments, soil sampling, rock chips and panned concentrates amount to over 14,000 datapoints with multiple elements sampled
  • Regional geochemistry dataset-27km of untested high tenor Cu/Zn Soil anomalies
  • VTEM (inc. magnetics and radiometrics) survey flown in 2008 has been re-interpreted with >20 late-time conductors in favourable geological settings identified
  • Combining the geochemistry with the geophysics, recent detailed geological mapping and new and ongoing interpretation, Alvo has applied for multiple new areas

VTEM ch10 survey image with known prospects

LWIR (long wave infra red) compilation/prospectivity map with known prospects

VTEM ‘late time’ (ch25) survey image with known prospects (yellow stars) and interpreted electromagnetic conductors (blue markers). Exploration areas are expanded below:

Exploration targets – C1 Extension (JS_43)

  • Late time Ch20 VTEM elongate conductor. Approximately 400m long, estimated to be approximately 100m below surface
  • Conductor is directly along strike from C1 deposit. C1 has a strong conductor co-incident to mineralisation.
  • Medium grade Zn and Cu in soils (indicating JS_43 does not outcrop)
  • Favourable geological setting- could represent the fault offset extension to C1
  • Shallow drilling on southern end hit disseminated sulphides


Exploration targets – C3 West

  • Late time Ch20 VTEM elongate conductor. Approximately 450m long.
  • Conductor is west of C3 deposit. C3 has a small conductor co-incident to mineralisation.
  • Medium grade Zn and Cu in soils


Exploration targets – T1

  • High grade Zn and Cu in soils- soil grid needs additional sampling
  • Late time Ch20 VTEM bullseye conductor. Approximately 300m wide
  • Favourable geological setting- contact zone between mafic and felsic metavolcanics.
  • Contact zone is on the same NE-SW orientation as C1.


Ni/Cu/PGE’s magmatic sulphide target

Early-stage exploration target – Cana Brava mafic/ ultramafic belt

  • N-S striking mafic/ultramafic belt layered intrusion prospective for Ni/Cu/PGE’s
  • Stream sediment sampling Ni shows a very strong correlation with Co, Cr, Cu & V with a moderate correlation with Ba, Ga, Mo & Zn.
  • Correlation indicative of mafic host with magmatic mineralisation
  • Spatially these samples are associated with a layered gabbroic intrusion to the southeast and it’s adjacent metanorite
  • Regionally, this ultramafic unit is the host of important Nickel mines at Niqeulandia (Nickel-land) approximately 50km to the South
  • Approximately 180km2 100% owned by Alvo- 30km of strike, with additional ground recently won in e-Auction


Palma setting and potential

Volcanogenic Massive Sulphide (VMS) deposits occur worldwide and are a major source of Cu and Zn

  • Only outcropping mineralisation drilled to date
  • VMS style appears to be Bimodal-Mafic- other districts with similar mineralisation style host > 20Mt
  • Similar age and mineralisation style to the operating Bisha VMS deposit in Eritrea (+31Mt @ 4.6% Zn, 0.97% Cu and 0.57 g/t Au)

Palma district (4.8Mt)

Maps and diagrams modified after Galley et al., 2007

Palma Polymetallic – Key Metals

Cu & Zn:

  • Cu and Zn are the 3rd and 4th most used metals globally = Massive markets
  • Cu and Zn trading at close to 5-year highs (18/10/2021)
  • Both metals are fundamental for emerging technologies- Electric Vehicles and Renewable Energy
    • Cu in electric vehicles is 3x combustion engines
    • Zn usage in renewables- solar, wind and thermal spray

Au:

  • Palma style VMS mineralisation typically contains significant gold
  • Only 5% of the drilled samples were assayed for gold- results included
    • 6m @ 2.54g/t Au PM-121-GO at C3
    • 1m @ 5.33g/t Au & 933 g/t Ag in PM-104-GO at C3

Gold is trading close to All Time Highs in Brazilian Reals- due to weak currency

Competent Persons Statement The information on this website includes information that is based on or extracted from the Independent Geologists Report prepared by Target Latin America and others, which is included in full in Alvo’s prospectus dated 30 July 2021 (the IGR).

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