Alvo Minerals Limited announced that the company is winning bidders on two new exploration areas, adjacent to the Palma Project in Central Brazil. The areas were a part of multiple areas auctioned across Brazil by the National Mining Agency (Agência National de Mineração or ANM) and are the only areas on which Alvo bid. The new areas cover 3,568ha of the extension to the geological sequence that hosts the known mineralization at C1, C2, C3 and C4 prospects, currently under exploration at Palma.

Alvo is pursuing a systematic and modern exploration program at Palma, based around the classical model for Volcanogenic Massive Sulphide style of mineralisation (VMS). An airborne electromagnetic survey (VTEM survey) flown in 2008, partially covers the areas and interpretation from Alvo's consultants has highlighted an anomaly within the new areas which could be a conductive body at depth. The anomaly could be an important start to exploration in the area, as the current exploration efforts by Alvo is investigating the relevance of the VTEM anomalies.

Alvo has recently engaged a contract geophysical crew to complete a fixed-loop electromagnetic survey (FLEM survey) on the C1 prospect with the aim of confirming and better defining a VTEM conductive anomaly which is thought to be caused by the massive sulphide mineralisation. If the FLEM survey can achieve the goal of better defining the presence and extent of the mineralisation, it could be a valuable tool in both direct drill-targeting of mineralisation, as well as exploration for new blind discoveries. Historical geochemical databases have also been interrogated and whilst there is no known soil sampling in the area, a regional stream sediment database has highlighted a sample highly anomalous in nickel.