Alvo Minerals Unlocks 500m Corridor as New Targets Emerge at Touro
Key Takeaways
- Geophysical reinterpretation at Alvo Minerals' Touro Prospect has identified a new off-hole DHEM conductor at PDT-132 with an estimated conductance of 590–660 siemens — approximately 10x stronger than the original surface FLEM survey values of 35–80 siemens, making it the highest-priority undrilled target at Palma.
- Receipt of the environmental licence for the central corridor unlocks approximately 500m of previously inaccessible strike, opening the most geophysically compelling section of the 1.1km Touro system to drilling for the first time.
- The Metal Factor anomaly from IP surveys — associated with disseminated sulphide mineralisation — continues at least 500m south of the drilled area, with structural reinterpretation indicating a NW-SW fault has offset the MF intensity shells southward by over 500m.
- Maiden 12-hole diamond drilling confirmed continuous Cu-Zn-Ag-Au mineralisation across the full 1.1km Touro corridor, with Touro remaining open along strike and at depth — any discovery there is additive to the existing 7.6Mt JORC resource across C1, C3 and C4 deposits.
- Esperanza Prospect DHEM surveys on PDZ-128 and PDZ-130 modelled off-hole plates of 1,300–1,500 siemens — conductance values that have been associated with mineralisation elsewhere at Palma, including the C3 deposit hosting 3.5Mt @ 2.2% CuEq.
New modelling unlocks multiple untested targets at Touro
Reinterpretation of Downhole Electromagnetic (DHEM), Induced Polarisation (IP) and structural geology data has defined a series of new drill targets along the full 1.1km Touro corridor at Alvo Minerals’ 100%-owned Palma Copper-Zinc Project in central Brazil. Critically, the company has simultaneously received the environmental licence required to commence Phase 2 drilling, opening approximately 500m of previously inaccessible strike in the central corridor. Touro remains open along strike and at depth, and the strongest geophysical response identified to date has yet to be tested by a drill bit.
The headline finding from the geophysical reinterpretation is a new off-hole DHEM conductor at PDT-132 with an estimated conductance of 590–660 siemens, approximately 10x stronger than the original surface Fixed Loop Electromagnetic (FLEM) survey, which returned values of 35–80 siemens. A Metal Factor (MF1) anomaly, derived from IP surveys and associated with disseminated sulphide mineralisation, continues at least 500m south of the drilled area. Phase 2 drilling will prioritise the highest-conductance and highest Metal Factor targets.
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What does the maiden campaign at Touro actually tell us?
A VMS system, or Volcanic Massive Sulphide system, is a type of ore deposit formed on the seafloor by ancient hydrothermal venting. These systems typically concentrate copper, zinc, silver, gold and lead in lens-shaped bodies that can be highly grade-rich. At Touro, the mineralisation is hosted in a 1.1km NNE-trending corridor, and the maiden drilling confirmed that mineralisation persists continuously across that full strike length, remaining open in every direction.
Within a VMS system, there are two distinct mineralisation styles worth understanding. Disseminated mineralisation, where sulphide minerals are spread through the host rock rather than concentrated in massive lenses, is detected via Metal Factor anomalies from IP surveys. Massive sulphide accumulations, where sulphides are densely concentrated, generate stronger electromagnetic signatures and are typically associated with higher grades. A DHEM conductor reading 590–660 siemens compared to the original surface FLEM values of 35–80 siemens is significant precisely because stronger conductance is consistent with more massive sulphide accumulation.
The Palma project already hosts a JORC Mineral Resource Estimate (MRE) of 7.6Mt @ 2.0% CuEq or 6.2% ZnEq across three deposits (C1, C3 and C4) in the Indicated and Inferred categories. Touro is a separate prospect entirely. Any discovery there would be additive to the existing resource base.
| Deposit | Category | Tonnes (Mt) | CuEq (%) | ZnEq (%) |
|---|---|---|---|---|
| C1 | Indicated | 1.3 | 1.7% | 4.7% |
| C1 | Inferred | 1.2 | 2.0% | 6.4% |
| C3 | Indicated | 2.0 | 2.7% | 8.4% |
| C3 | Inferred | 1.6 | 1.7% | 5.1% |
| C4 | Inferred | 1.5 | 1.8% | 5.5% |
| Total Sulphides | Indicated + Inferred | 7.6 | 2.0% | 6.2% |
Source: Palma MRE, July 2024. Rounding discrepancies may occur.
Maiden drilling confirmed the system — now the real targets emerge
Results that anchored the Touro VMS discovery
The maiden 12-hole diamond drilling campaign confirmed continuity of the Touro VMS system, with all results including higher precious metal grades than previously seen across Palma. Cu-Zn-Ag-Au mineralisation was confirmed. Key intercepts from Table 1 include:
- 9.3m @ 0.7% Cu, 1.6% Zn (1.4% CuEq or 5.8% ZnEq) from 55.3m — PDT-117
- incl. 1.0m @ 1.5% Cu, 3.2% Zn (2.6% CuEq) from 58.0m
- incl. 1.6m @ 0.9% Cu, 1.5% Zn (2.1% CuEq) from 63.0m
- 5.1m @ 0.4% Cu, 2.4% Zn (1.1% CuEq or 4.7% ZnEq) from 64.5m — PDT-120
- 2.3m @ 0.8% Cu, 0.4% Zn, 57 g/t Ag, 0.43 g/t Au (1.9% CuEq or 8.0% ZnEq) from 126.9m — PDT-124
Northern corridor confirms depth continuity
PDT-132 was drilled in the northern part of the corridor to test the deeper northern electromagnetic conductor. The hole intersected two mineralised intervals within a broader 10m mineralised zone (193.0–203.0m):
- 0.8m @ 0.46% Cu, 2.33% Zn (1.12% CuEq or 4.7% ZnEq) from 193.3m
- 5.7m @ 0.11% Cu, 0.54% Zn (0.31% CuEq or 1.3% ZnEq) from 197.7m
The drilling appears to have intercepted the mineralised zone between the shallower disseminated mineralisation and above the higher conductance zone. The strong alteration surrounding the intercept confirms overall continuity of Touro, but shallower and deeper holes could prove to be more prospective — which reinforces why the untested DHEM conductor is the priority target for Phase 2.
| Hole ID | From (m) | Length (m) | CuEq % | ZnEq % |
|---|---|---|---|---|
| PDT-117 | 55.3 | 9.3 | 1.4% | 5.8% |
| PDT-120 | 64.5 | 5.1 | 1.1% | 4.7% |
| PDT-124 | 126.9 | 2.3 | 1.9% | 8.0% |
| PDT-132 | 193.3 | 0.8 | 1.1% | 4.7% |
| PDT-132 | 197.7 | 5.7 | 0.3% | 1.3% |
Reported widths are downhole widths. True width unknown at this stage.
The new targets: what 3D modelling has revealed
Preliminary 3D modelling integrating DHEM, IP and structural logging has identified mineralisation across two distinct styles — near-surface disseminated mineralisation (detectable via Metal Factor) and deeper mineralisation associated with stronger EM signatures interpreted to relate to massive sulphides. Both styles have extensive anomalies extending well beyond anything drilled to date. The key findings from the reinterpretation are:
- The Metal Factor anomaly continues at least 500m south of the drilled area. Structural reinterpretation indicates a NW-SW fault has offset the MF intensity shells southward by over 500m.
- The off-hole DHEM conductor at PDT-132 returned an estimated conductance of 590–660 siemens, approximately 10x the original surface FLEM survey (35–80 siemens). This is the highest-priority undrilled target.
- The environmental licence has been received, unlocking approximately 500m of central corridor previously classified as “Legal Reserve” and inaccessible to drilling.
- Multiple untested targets have now been defined along the full corridor from integrated geophysical interpretation.
Rob Smakman, Managing Director
“At a time when we are seeing very strong copper and zinc prices, Touro delivered continuous mineralisation over 1.1km, is open in every direction and we have yet to test the strongest geophysical response.”
He added:
“Phase 2 drilling will target the highest-conductance and highest MF targets.”
Esperanza adds to the pipeline — Entre Rios downgraded
At the Esperanza Prospect, preliminary DHEM surveys on PDZ-128 and PDZ-130 modelled off-hole plates of 1,300–1,500 siemens. The announcement notes that conductance values like these have been seen to be mineralised elsewhere at Palma, including at the C3 deposit, which hosts 3.5Mt @ 2.2% CuEq within the existing MRE. These remain early-stage conductors, not confirmed mineralisation, and additional surface FLEM is planned to further constrain the target ahead of the next drill test.
At Entre Rios, a single diamond hole (PDR-131, 140m) returned no significant intercepts. Sulphides were pyrrhotite-dominant, and the FLEM conductors at Entre Rios are interpreted to be associated with barren pyrrhotite rather than base-metal mineralisation. A subsequent DHEM survey on PDR-131 detected no significant off-hole conductors. Entre Rios has accordingly been downgraded in the target ranking.
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What’s next for Alvo at Palma
The near-term pipeline is clearly defined, with multiple active workstreams running in parallel:
- Planning of Phase 2 Touro drilling, prioritising the 590–660 siemens DHEM conductor and highest Metal Factor targets within the newly licensed central corridor.
- Continued geophysical surveys at Touro to complement the updated 3D interpretation.
- Additional surface FLEM at Esperanza to constrain the 1,300–1,500 siemens off-hole conductor identified in PDZ-128 and PDZ-130.
- Continued IP, geophysical and geochemical work across the Gahnita–Rodeio trend within the Southern Cluster.
- Continued exploration work across the wider Palma Project, aimed at advancing prospects to drill-ready status across more than 80km of VMS sequence.
Touro sits within a project that already hosts a 7.6Mt JORC resource across three deposits. Phase 2 will test targets that are both larger in geophysical footprint and completely undrilled, against a backdrop of strong copper and zinc prices. For investors watching Alvo, the combination of a newly licensed corridor, a conductor ten times stronger than the original surface survey, and a Metal Factor anomaly extending hundreds of metres beyond what has been tested represents a meaningful escalation in the prospect’s potential.
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