Alvo Minerals uncovers Bluebush REE zone

Junior explorer Alvo Minerals (ASX:ALV) has struck an ‘exceptional’ high-grade rare earth element (REE) zone at the Bluebush REE Project in Central Brazil.

It comes as part of the $14.15 million market capitalisation company’s ongoing exploration work in the area as it completes its due diligence for a potential buyout of the Bluebush project. Alvo has an option agreement with Brazil-based Mata Azul SA to take full control of the project, and as part of this agreement, the company has 6 months to complete due diligence to its satisfaction.

While auger drilling has struck rare earths in the project area, Alvo still plans to complete electromagnetic survey work and soil sampling, alongside follow-up auger and diamond drilling, as it assesses the potential of the project.

In this vein, the company has imported a Loupe Portable Electromagnetic system into Brazil for use across the project area, and Alvo believes this is the first system of its kind to hit South American shores. Alvo plans to map the thickness and extent of saprolite and clay horizons in the project area to help prioritise ongoing exploration.

So far, the company has received results for 77 of 210 auger holes drilled as part of the maiden program in the area.

The top results so far include hole BLG08 with 6m @ 2,537ppm total rare earth oxides (TREO), comprising 21% magnet rare earth oxides (MREO), from surface, including 3m @ 3,415ppm TREO (24% MREO) from 3m.

Hole BLG05 struck 6m @ 1,243ppm TREO (23% MREO) from 8m, and hole BLG09 hit 7m @ 1,183ppm TREO (26% MREO) from 3m.

These results come from the Boa Vista prospect in the project area

Alvo Managing Director Rob Smakman says the results are an indication that Bluebush is looking “more and more” like the nearby tier-one Serra Verde Ionic Clay REE Project, which is the only ionic clay project currently being commissioned outside of China.

“We plan on focusing on the areas with the higher grades of the higher-value MREOs, as these are the most important aspect of all REE projects. There is fantastic potential at Boa Vista, and we will now start a more systematic approach to the auger drilling whilst we wait for more drill results from the northern Sao Bento prospects.

Given most of the high-grade mineralisation ended at the bottom of the holes, we really don’t know how deep the mineralisation goes at Boa Vista”

We are also planning some diamond drilling to better test the depth-extent of the saprolite. Given most of the high-grade mineralisation ended at the bottom of the holes, we really don’t know how deep the mineralisation goes at Boa Vista.

In our opinion, Brazil really is emerging as the most important ex-China location for Ionic-Clay hosted Rare Earth projects, especially the Magnet REEs, and the early results indicate that Bluebush will be an important project in this space.”

Alvo Minerals is a critical minerals explorer with two projects in Central Brazil, including Bluebush. The other core project in the area is Alvo’s Palma Copper-Zinc VMS Project, which has a mineral resource estimate (MRE) of 4.6 million tonnes @ 1% copper, 3.9% zinc, 0.4% lead, and 20 grams per tonne (g/t) silver.

On June 30, Alvo had a net cash position of $2.5 million, though it was at the time still awaiting the receipt of $2.4 million from the second tranche of a capital raise.

Write to Joshua Smith at Mining.com.au

Images: Alvo Minerals
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Written By Joshua Smith
Joshua Smith has years of experience in the media sector, having worked as a markets reporter, features writer, and editor since completing a Communications and Journalism degree and a Creative Writing degree. Josh is an avid board game fan and a self-professed coffee snob.