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- Diamond drill results deliver thick intercepts significantly enriched HREE mineralisation
- Assays confirm high-value dysprosium and terbium in ionic clay horizons close to surface.
- Bluebush shares same geological setting and host granite as Serra Verde HREE IAC mine
- Metallurgical studies confirm high extractions with additional testwork underway
Alvo Minerals (ASX: ALV) was up by 110% on news drilling completed across the Bluebush project has defined broad mineralised areas, enriched in the highest priced magnet heavy rare earths – dysprosium and terbium (DyTb).
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The results come after Alvo and Mata Azul SA have completed the definitive contract for the purchase of Mata Azul by Alvo’s new Brazilian subsidiary Lanta Resources.
Previously reported metallurgical testing has confirmed the mineralisation at Bluebush is ionic adsorption clay.
MD, Rob Smakman, said additional testing is underway including samples from site have been received at ANSTO in Australia for diagnostic leaching and column leach testwork.
Bluebush is located on the northern half of the Serra Dourada granite, the same host rock of the Serra Verde ionic clay heavy REE deposit the world-class, ionic adsorption clay operating mine, which was recently taken over by USA REE for US$2.8 billion.
“The importance of the heavy rare earths at Bluebush cannot be understated. Dysprosium and terbium make up around one eighth of the magnet rare earth content in the intercepts reported today, which places Bluebush alongside our neighbour at Serra Verde as a heavy rare earth enriched system on the same Serra Dourada granite,” Mr Smakman said.
“Dysprosium and terbium are subject to Chinese export controls and their prices ex-China are skyrocketing. Their rarity means they command a premium of around 16 times the price in China- and that gap is widening.”
He noted that thhe mineralisation at Bluebush starts at surface,is thick and many of the company’s auger holes finish in mineralisation.
“It also sits on a quartz rich granite, which typically produce permeable clays suitable for very low cost in-situ recovery methods (ISR).
“We are also pleased to have signed the definitive contract for the sale of Bluebush with the vendors Mata Azul SA. The parties have worked diligently to get the documentation complete on terms which closely match the MOU.”
The finalisation of the contract with Mata Azul includes a floor priced offtake and significant commitments from the US government to confirm the offtake and expand production.
“We now move to drill out Boa Vista Praia and São Bento toward a maiden mineral resource estimate. In parallel, the ANSTO testwork will give us 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,” Mr Smakman said,
Assay results have demonstrated Bluebush is enriched with HREE with an average content of 26ppm DyTb in the significant intercepts, comparing favourably with other IAC projects globally. Dy and Tb are subject to Chinese export controls and are the highest value magnet rare earths.
ALV was up 110% to 4.1¢. Mkt cap $5.739M.
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