Palma VMS Cu-Zn Project
Overview
- Palma VMS District is a known VMS District comprised of 5 high-grade Copper and Zinc shallow mineralised prospects in Central Brazil. Alvo controls this district with >850km2 of contiguous and highly prospective ground.
- VMS deposits typically occur in clusters, where multiple deposits can be located in similar geological districts. These districts can host tens of VMS deposits that range in size from less than 1Mt to exceeding 100Mt.
- Palma contains high-grade, shallow, polymetallic prospects (Copper and Zinc rich) – with multiple prospects drilled historically in the district. JORC resources on only 3 deposits (C1, C3 and C4).
- Discovered in the 1970s, the project has been largely idle for >30 years. Alvo is the first to apply modern / systematic / aggressive exploration techniques. >32,000 meters of Diamond drilling completed (historic); >25,000m of diamond drilling by Alvo since listing in Oct. 2021.
- Preliminary metallurgical testwork completed in 1980s yielded good recoveries and high-grade concentrates – confirmed by Alvo testwork.
Infrastructure & Location
- Sealed roads to Palmeiropolis (7,000 inhabitants) ~15km away from main deposits (C3, C1). 6 hours from Brazil’s capital city, Brasilia.
- Hydro Energy: local 100% hydroelectricity with high kv transmission lines available.
- Rail access to Ports and Smelters: Proximity to railways (70-80km) providing access to ports and smelters.
- Strong community engagement: Local, State and Federal political support for the Project.
- Rural area with farming as main land use.
Project History
Mineral Resource Estimate
Palma hosts a JORC MRE of 7.6Mt @ 2.0% CuEq* or 6.2% ZnEq for 153kt of contained CuEq tonnes (0.7% Cu, 3.4% Zn, 0.6% Pb, 16g/t Ag and 0.03g/t Au) – at a cut-off grade NSR of US$50/t for C1 and C3 and US$80/t for C4.
This demonstrates the potential for Palma to emerge as a globally significant VMS district. The Company continues to test high-priority targets across the >70km of prospective VMS strike which could add significantly to the growing inventory.
The MRE updates the C1 and C3 deposits, which includes resources into the higher confidence Indicated category for the first time, a Maiden MRE for the newly discovered C4 deposit and a Maiden MRE for the near surface oxide component of the C3 deposit.
All Deposits remain open along strike and at depth, are potentially mineable by open-pit methods and have potential to expand and upgrade with additional drilling, metallurgy and engineering studies.
July 2024 JORC compliant MRE for C1, C3 & C4 sulphide resources.
| Deposit | Category | Cut-off Grade: NSR** | Tonnes (Mt) | NSR $USD | CuEq*** (%) | CuEq (t) | ZnEq*** (%) | Cu% | Metal Cu (t) | Zn % | Metal Zn (t) | Pb % | Metal Pb (t) | Ag ppm | Metal Ag (Oz) | Au ppm | Metal Au (Oz) |
| C1 | Indicated | 50 | 1.3 | 148 | 1.7 | 23,300 | 4.7 | 0.7 | 9,600 | 2.5 | 33,900 | 0.5 | 7,200 | 13 | 540,000 | 0.01 | 600 |
| Inferred | 1.2 | 173 | 2.0 | 23,400 | 6.4 | 0.5 | 6,500 | 3.8 | 45,800 | 0.7 | 8,000 | 17 | 640,000 | 0.01 | 500 | ||
| C1 Total | 2.5 | 160 | 1.8 | 46,700 | 5.5 | 0.6 | 16,100 | 3.1 | 79,700 | 0.6 | 12,500 | 14 | 1,180,000 | 0.01 | 1,100 | ||
| C3 | Indicated | 50 | 2.0 | 236 | 2.7 | 53,100 | 8.4 | 1.1 | 21,600 | 5.0 | 97,200 | 0.2 | 4,500 | 15 | 920,000 | 0.04 | 2,200 |
| Inferred | 1.6 | 144 | 1.7 | 25,800 | 5.1 | 1.0 | 14,900 | 2.0 | 31,500 | 0.1 | 2,100 | 10 | 523,000 | 0.04 | 1,800 | ||
| C3 Total | 3.5 | 195 | 2.2 | 78,900 | 6.9 | 1.0 | 36,500 | 3.7 | 128,600 | 0.2 | 6,600 | 13 | 1,440,000 | 0.04 | 4,000 | ||
| C4 | Inferred | 80 | 1.5 | 150 | 1.8 | 28,000 | 5.5 | 0.2 | 3,200 | 3.3 | 50,600 | 1.3 | 19,700 | 28 | 1,380,000 | 0.03 | 1,300 |
| C1+C3 | Indicated | 50 | 3.3 | 200 | 2.3 | 76,400 | 6.9 | 0.9 | 31,200 | 4.0 | 131,100 | 0.4 | 11,700 | 14 | 1,460,000 | 0.03 | 2,800 |
| C1+C3+C4 | Inferred | (50 & 80) | 4.3 | 154 | 1.8 | 77,300 | 5.6 | 0.6 | 24,700 | 3.0 | 127,800 | 0.7 | 29,800 | 18 | 2,540,000 | 0.03 | 3,600 |
| Total Sulphides | 7.6 | 174 | 2.0 | 153,600 | 6.2 | 0.7 | 55,800 | 3.4 | 258,900 | 0.5 | 41,500 | 16 | 4,000,000 | 0.03 | 6,400 |
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*Rounding discrepancies may occur
**The NSR (Net Smelter Return) and Cu/ZnEq values are reported based on copper, zinc, silver, lead and gold prices of US$8,914/t Copper, US$3,017/t Zinc, US$2,173/t Lead, US$23.3/oz Silver, and US$1,891/oz gold (price deck based 3-year average Metals Prices). Recovery factor for C3: Cu; 95%, Zn; 86%, Pb; 77%, Ag 74% & Au 70%. Recovery for C1 and C4: Cu; 93%, Zn; 90%, Pb; 86%, Ag 96% & Au 85%. The NSR calculation is as follows: NSR (US$/t) = [Cu %] * {Price Cu] * [RecCu %] +[Zn %] * {Price Zn] * [RecZn] + [Pb %] * {Price Pb] * [RecPb] + [Ag ppm] * {Price Ag] * [RecAg]/31.1035+ [Au ppm] * {Price Au] * [RecAu] ]/31.1035 (Adjustments are necessary to normalized to US$/t basis).
***The CuEq calculation is as follow: Cu+(Cu*((Zn % * RecZn*Price Zn) + (Pb % * Price Pb * RecPb) + (Ag ppm * Price Ag * RecAg) + (Au ppm * Price Au * RecAu)) / (Cu % * Price Cu * RecCu). ZnEq is calculated with the same formula as CuEq, swapping Cu and Zn.
The C3 Oxide Deposit has a maiden Inferred MRE (0.15% Cu cut-off) of 1.2Mt @ 0.3% Cu.
Mineralisation is shallow and open along strike and it is likely that open pit mining of the C3 sulphide deposit will require mining of the oxide zone, potentially improving overall project economics.
July 2024 JORC Compliant MRE for C3 Oxide Deposit.
| COG – Cu% | Tonnes (Mt) | NSR $USD | Cu% | Metal Cu (t) | ||
| C3-Oxide | Inferred | 0.15 | 1.2 | 27 | 0.3 | 3,600 |
*Rounding discrepancies may occur
**The NSR (Net Smelter Return) value is reported based on copper price of US$8,914/t Copper. Estimated recovery was 70% and the NSR calculation is as follows: NSR (US$/t) =Cu % *(CuPrice * CuRec %)
*For full details of the Updated MRE, including JORC tables, please refer to ASX Announcement 19 July 2024 “65% Increase in Open-Pit Resources to 7.6Mt @ 2% CuEq at the Palma Project”
* For full details of the previous inferred MRE released at Alvo’s IPO, including JORC compliant information, please refer to the Alvo prospectus lodged with ASX and dated 30 July 2021
Competent Persons Statement:
The information contained in this announcement that relates to information attributed to or compiled from the ‘Mineral Resource Estimate’ is based upon information compiled by Mr Marcelo Batelochi, a Competent Person and Member of the Australasian Institute of Mining and Metallurgy. Mr Batelochi is a full-time employee of MB Consultaria and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the “Australasian Code for Reporting of Mineral Resources and Ore Reserves” (or JORC 2012). Mr Batelochi consents to the inclusion in this announcement of the matters based upon the information in the form and context in which it appears.
Metallurgical Testwork
Alvo’s preliminary metallurgical testwork on representative drill core from the C3 Deposit returned positive results. Locked-cycle testwork is ongoing, designed to maximise recovery to concentrates, targeting a bulk sulphide concentrate grade of >20% Cu and ~5% Pb, and a Zn concentrate grade > 50%.
The testwork returned excellent bond ball mill work index of 14.0 kWhr/t, which is considered relatively soft for VMS projects globally.
Furthermore, the testwork returned a positive conceptual study into producing saleable sulphuric acid from tailings which, through the production process also has the potential to generate electrical power for use on site.
Exploration Targets
Exploration work is underway across multiple prospects with the aim of advancing a pipeline of prospects to drill-ready status. Field activities including geological mapping, soil sampling, auger geochemical drilling (“Auger”), IP surveys and fixed loop electromagnetic surveys (“FLEM”) are being undertaken concurrently on various prospects within the district. Diamond Drilling is used to test only the most advanced of these Prospects- with the expectation of Discovery driving the drill selection process.
Sampling (soils, trenching and auger geochemistry) is typically processed in Alvo’s core shed where preparation includes drying (several drying ovens have been built), screening and then samples are tested with a hand-held XRF.
Utilising the Company’s in-house equipment allows for flexible, fast and efficient exploration that is significantly less expensive than contracted exploration, as the only material expense is labour.
Competent Persons Statement:
The information contained on this website that relates to recent exploration results is based upon information compiled by Mr Rob Smakman of Alvo Minerals Limited, a Competent Person and Fellow of the Australasian Institute of Mining and Metallurgy. Mr Smakman is a full-time employee of Alvo and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the “Australasian Code for Reporting of Mineral Resources and Ore Reserves” (or JORC 2012). Mr Smakman consents to the inclusion in this announcement of the matters based upon the information in the form and context in which it appears.
