Alvo Minerals Reports Strong Dysprosium Clays and Completes Bluebush Deal
Key Takeaways
- Hole BLD004 returned 19.5m @ 1,324ppm TREO from 0.5m, and BLD002 hit 2.0m @ 2,040ppm TREO with 123ppm DyTb, confirming thick, heavy-rare-earth-enriched clay near surface.
- DyTb averaged 26ppm across 162 intercepts, about 14.2% of magnet rare earth oxide content, and heavy rare earth oxides make up about 22% of TREO.
- Bluebush shares its host granite with Serra Verde, which USA Rare Earth bought for about US$2.8 billion, but Alvo has no Mineral Resource Estimate yet.
- Permeability has not been measured, so in-situ recovery is still unproven, and ANSTO column leach results are the next processing data point.
- The final purchase contract is signed on MOU terms, with USD$800,000, USD$800,000 and USD$1,000,000 payments tied to an MRE, scoping study and PFS to reach 80%.
Alvo Minerals’ diamond and auger drilling at Bluebush has returned thick intercepts of heavy rare earths in ionic adsorption clay near surface. The company also completed the final purchase contract with the project’s vendors. Alvo Minerals reported 19.5m @ 1,324ppm TREO (38ppm DyTb) in hole BLD004, and 5.0m @ 1,390ppm TREO (68ppm DyTb) in BLD002.
Bluebush drilling returns thick DyTb-enriched ionic clays near surface
Dysprosium and terbium (DyTb) are heavy rare earths used in magnets. The announcement states they are subject to Chinese export controls and are the highest value magnet rare earths, which is why intercepts rich in them matter more than headline totals alone.
The best diamond result sits inside BLD002, which includes 2.0m @ 2,040ppm TREO (123ppm DyTb) from 3m. TREO means total rare earth oxides, a measure of all the rare earth content combined.
Headline points from the update:
- Diamond drilling returned thick, DyTb-enriched ionic clay intercepts close to surface.
- DyTb averaged 26ppm across the significant intercepts.
- Wide spaced auger drilling, mostly ending in mineralisation, confirmed extensive ionic clays across the tenure.
- Previously reported metallurgical testwork confirmed extractions of up to 89%, with more testwork underway.
- The final contract with the Bluebush vendors was completed on terms which mirror the original MOU, bringing tenure to 9,859ha.
Auger drilling confirms extensive clays
Auger drilling is a shallow, low-cost way to test near-surface clays. Hole BLG0008 returned 6m @ 2,537ppm TREO (65ppm DyTb) from 0m, including 3m @ 3,415ppm TREO (95ppm DyTb). BLG0014 returned 11m @ 1,032ppm and BLG0040 returned 12m @ 1,062ppm.
Many auger holes finished in mineralisation. The truck mounted auger averaged 10.2m depth and the handheld auger 5.8m, well short of the 20m average depth to fresh granite seen in the diamond holes. For you, that means the full thickness of the clay is untested in those holes.
| Hole | Interval | TREO | DyTb | Note |
|---|---|---|---|---|
| BLD002 | **5.0m** from 0m | **1,390ppm** | **68ppm** | Diamond; includes **2m @ 2,040ppm TREO (123ppm DyTb)** from 3m |
| BLD004 | **19.5m** from 0.5m | **1,324ppm** | **38ppm** | Diamond; includes **3.5m @ 2,691ppm TREO (86ppm DyTb)** from 4.1m |
| BLD001 | **14.4m** from 0.6m | **1,022ppm** | **27ppm** | Diamond |
| BLG0008 | **6m** from 0m | **2,537ppm** | **65ppm** | Truck auger; ends in mineralisation; includes **3m @ 3,415ppm TREO (95ppm DyTb)** from 3m |
| BLG0014 | **11m** from 0m | **1,032ppm** | **32ppm** | Truck auger; ends in mineralisation |
| BLG0040 | **12m** from 4m | **1,062ppm** | **31ppm** | Truck auger; ends in mineralisation |
Heavy rare earth character
Across the 162 intercepts reported, DyTb averaged approximately 26ppm on a length weighted basis. That equates to about 14.2% of magnet rare earth oxide (MREO) content and about 3% of TREO. Heavy rare earth oxides represent about 22% of TREO on the same basis.
The program totals 448 holes for 3,708m: 6 diamond holes for 145m, 230 truck auger holes for 2,343m and 212 handheld auger holes for 1,220m.
Rob Smakman, Managing Director
“Dysprosium and terbium make up around one eighth of the magnet rare earth content in the intercepts reported today…”
He added that their rarity means they command a premium of “> 16 times the price in China.”
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Serra Verde neighbour and the ionic clay opportunity explained
Bluebush sits on the northern portion of the Serra Dourada granite, the same host granite as the Serra Verde mine. USA Rare Earth announced a definitive agreement in April 2026 to acquire Serra Verde for approximately US$2.8 billion, and the deal closed in early September 2026.
Alvo’s Bluebush tenure is 9,859ha (99km²), compared with Serra Verde’s 9,169ha mining tenure. Size is not resource, though. Bluebush is an exploration stage project and the announcement reports no Mineral Resource Estimate.
Ionic adsorption clays in plain English
In ionic adsorption clays, rare earths are loosely attached to clay formed when granite weathers. That can allow recovery without hard rock processing, which is why the processing route matters: it drives capital costs and development timelines.
Bluebush saprolite (weathered granite) is a quartz and feldspar bearing biotite granite. Quartz grains survive weathering, leaving a quartz and clay mix regarded as an important control on how readily fluids move through it. Good permeability is one of the most important factors for in-situ recovery (ISR) as a potential processing route.
Alvo has not yet measured permeability at Bluebush. Until it does, ISR remains a possibility rather than a demonstrated option.
Metallurgy to date
No new extraction results were published. Previously reported first pass testwork (2023) achieved these extractions:
- Neodymium: up to 89%
- Praseodymium: up to 86%
- Dysprosium: up to 53%
- Terbium: up to 69%
- Total MREO: up to 83%, averaging 56%
The announcement lists three processing routes as currently available:
- Vat leaching (similar to Serra Verde)
- Heap leaching
- In-situ recovery (ISR)
A sample has also been submitted to ANSTO in Australia for diagnostic leaching using magnesium sulphate (MgSO4) and an ISR column extraction test.
Final Bluebush contract completed on MOU terms
Alvo, through its newly formed, wholly owned Brazilian subsidiary Lanta Resources Ltda, signed the Purchase and Sale Contract with vendor Mata Azul SA. The terms are in line with the original 2023 MOU and include a staged purchase based on technical milestones.
| Milestone | Alvo interest in Mata Azul | Payment | Timing |
|---|---|---|---|
| Maiden JORC MRE | **51%** | **USD$800,000** | Within **18 months** of signing |
| Scoping Study | **70%** | **USD$800,000** | Within **30 months** of signing |
| PFS | **80%** | **USD$1,000,000** | Within **48 months** of signing |
Once Alvo buys the 80% interest, it can purchase the remaining 20% for 20% of the discounted NPV10 in the PFS, capped at a maximum of USD$20 million (payable in stages). All payments are to be made in cash or Alvo shares by mutual agreement.
Perth Minerais Ltda, the original purchaser, acts as guarantor. Existing Mata Azul shareholder loans, with total value frozen at USD800k, are to be repaid at stage 2 (50%) and stage 3 (50%).
Because payments follow deliverables such as a maiden MRE and studies, spending is tied to technical progress rather than paid upfront.
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Next steps toward a maiden Mineral Resource Estimate
Planned work comprises:
- Infill auger drilling at Boa Vista, São Bento and Praia toward a maiden Mineral Resource Estimate.
- ANSTO diagnostic and column leach testwork, including desorption tests on the higher HREO intervals to confirm the proportion of ionic heavy rare earths.
- Field hydraulic (permeability) testing.
The announcement gives no timelines, budgets or resource sizes for this work. Smakman said the ANSTO testwork will give “our first read on how the Bluebush clays respond to column leaching, which will help us evaluate the full range of processing routes, including the environmentally friendly, low capex ISR.”
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