Alvo Minerals Limited announced it has commenced drill testing the high-priority greenfields Pelicano prospect, a new Volcanic hosted Massive Sulphide ("VMS") prospect within the Palma Project ("Palma" or "the project") located in central Brazil. The Company has commenced a series of diamond holes to test this new target which is located in proximity to the high-grade C3 deposit and presents similar exploration characteristics. Diamond drilling is underway on hole PDP-074 at the Pelicano Prospect, which is a new prospect within the Palma VMS project.

Drilling will target the anomalies generated by Alvo's Brazilian exploration team which have combined to form a compelling co-incident drill target. Pelicano was identified through a review of historical geochemical sampling results where a co-incident, first order anomaly of Zn, Cu and Pb was noted over ~600m in strike length. Due to the presence of this discrete soil anomaly and its proximity to the high-grade C3 deposit, an additional FLEM survey loop was completed.

The FLEM survey conducted by Alvo's geophysical team identified the Pelicano anomaly which, when processed, shows a major electromagnetic conductor with a conductive thickness of ~200 siemens, a strike length of 1.2km (NNE dips moderately to the east), depth extent of up to 700m and which starts from ~250m below surface. Electromagnetic conductors are an indication of rocks that have a relatively higher conductance than the surrounding rocks, at levels that are either massive/semi-massive conductive sulphide species or a conducting lithological unit. The Company has yet to encounter significant conductive lithological units in its exploration around Palma, however several drillholes have intercepted unmineralized semi-massive sulphides.

Several IP lines (arranged in pole-dipole) have been surveyed across the Pelicano prospect and all the lines have demonstrated a strong chargeability anomaly above the FLEM conductor- on a similar strike orientation. This chargeability anomaly is closely associated with low resistivity, indicating the anomaly could be associated with disseminated sulphides. Dependant on initial results, Alvo plans to complete Downhole Electromagnetic ("DHEM") surveys on initial diamond holes to build on the overall interpretation of the Pelicano prospect.