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Highlights

  • Alvo Minerals enters LOI to acquire Lavra Velha Gold-Copper Project from Pan American.
  • Project includes a 520,000oz gold resource and significant exploration potential.
  • Due diligence process underway, with an Asset Purchase Agreement to follow.

Alvo Minerals Limited (ASX: ALV) has announced a non-binding Letter of Intent (LOI) to acquire 100% of Pan American Silver Corp.’s (NYSE: PAAS) interest in the Lavra Velha Gold-Copper Project, located in Bahia State, Brazil. The project, which was deemed non-core following Pan American’s acquisition of Yamana Gold in 2022, offers significant exploration potential.

The acquisition is subject to conditions, including the completion of satisfactory due diligence and the signing of an Asset Purchase Agreement (APA). Lavra Velha is an advanced Gold-Copper-Silver project that has undergone extensive exploration, including over 50,000 meters of diamond drilling and 6,000 meters of RAB drilling. The project is situated in the Sao Francisco craton, a region with a long history of gold and copper production.

The mineralization at Lavra Velha was first discovered in 2010 and has been explored in two main stages, from 2010 to 2013 and again from 2018 to 2022. In 2022, Yamana Gold estimated a mineral resource of 520,000 ounces of gold on the Lavra Velha Central and Southwest prospects. The resource was calculated according to the CIM Mineral Resource Best Practice Guidelines and classified using the CIM (2014) standard.

Alvo Minerals’ Managing Director, Rob Smakman, expressed enthusiasm about the potential of the Lavra Velha project, noting that the team is eager to complete due diligence and apply their exploration expertise to the site. With favorable gold and copper market conditions, Alvo sees the acquisition as a complementary addition to its Palma Cu-Zn Project in neighboring Tocantins state. The company is moving forward with the due diligence process in anticipation of further steps in the acquisition.