MINEX Forum

Tag: Borralha project

  • Allied Critical Metals Intersects Significant Tungsten Mineralization at Borralha Project

    Allied Critical Metals Intersects Significant Tungsten Mineralization at Borralha Project

    Allied Critical Metals has reported a major drilling intersection at its Borralha Tungsten Project in northern Portugal, confirming over 200 metres of breccia-hosted tungsten mineralization at the newly defined Venise Breccia target.

    The discovery highlights a potentially extensive mineralized system, with visible wolframite identified alongside molybdenite and chalcopyrite within quartz-sulphide veining. These results are consistent with the company’s geological model and support the continuity of a historically recognised but previously underexplored breccia system.

    The Venise target is located approximately 400 metres from the Santa Helena Breccia deposit, which underpins the project’s current preliminary economic assessment. This proximity reinforces the potential for near-mine resource expansion and longer-term growth of the operation.

    The drilling forms part of a fully funded 20000 metre programme aimed at increasing the resource base, extending mine life, and scaling up the overall project. While the presence of visible mineralization is considered encouraging, the company emphasises that laboratory assay results will be required to confirm grade and economic viability.

    The findings also point to polymetallic potential, with associated molybdenum and copper mineralization suggesting similarities to other breccia-hosted systems in the district. This could further enhance the project’s strategic relevance as Europe seeks to strengthen its supply of critical minerals.

    The Venise Breccia is not yet included in the current resource estimate or mine plan, and further drilling is ongoing to determine the scale and continuity of mineralization. Nonetheless, early results support the company’s strategy of applying modern exploration techniques to historically identified targets.

    As exploration progresses, the Borralha Project is increasingly viewed as a potential district-scale tungsten system, with strategic importance for European and NATO-aligned supply chains amid rising global demand and strong tungsten pricing.

  • Allied Critical Metals Highlights Strong Cash Flow and Rapid Payback at Borralha Tungsten Project

    Allied Critical Metals Highlights Strong Cash Flow and Rapid Payback at Borralha Tungsten Project

    Allied Critical Metals has released additional economic and technical details from the Preliminary Economic Assessment (PEA) of its Borralha tungsten project in northern Portugal, highlighting strong cash flow potential, rapid capital recovery and capital-efficient development.

    The company confirmed that the previously announced project economics remain unchanged, including an after-tax net present value (NPV) of $473.4 million and an internal rate of return (IRR) of 48.8% based on a tungsten price of $1,000 per metric tonne unit (mtu) of WO₃.

    Under this scenario, the project is expected to achieve payback in approximately 2.2 years from the start of commercial production, equivalent to about 4.2 years from the beginning of construction.

    The underground tungsten project requires initial capital investment of about $124.2 million (US$91 million). The development plan incorporates a compact infrastructure layout designed to support efficient underground mining and processing operations.

    According to the PEA, the project could generate average annual revenue of approximately $184.9 million and average annual EBITDA of about $104.1 million over the initial mine plan at the $1,000/mtu WO₃ price assumption. Average annual free cash flow is estimated at roughly $70.5 million.

    The economic outlook strengthens significantly at higher tungsten prices. At $1,500/mtu WO₃, the project’s after-tax IRR increases to 78.4% and NPV rises to $963.8 million.

    The current mine plan is based on an initial production period of 11 years with average annual output of about 1,708 tonnes of WO₃ concentrate. Processing capacity is expected to reach approximately 1.4 million tonnes of ore per year with an average grade of about 0.20% WO₃.

    Tungsten accounts for around 96% of the project’s economic value, with minor contributions from copper and tin.

    Infrastructure for the project includes a planned connection to Portugal’s national power grid through a 60 kV line, water supply and recycling systems, road access, and a paste backfill facility designed to support underground operations while minimizing environmental impact.

    The project will produce tungsten concentrate grading about 65% WO₃ using a gravity-dominant processing flowsheet, which reduces metallurgical complexity and operating costs.

    The current resource estimate for the Santa Helena Breccia deposit includes 13.0 million tonnes of measured and indicated resources at 0.21% WO₃, along with 7.7 million tonnes of inferred resources at 0.18% WO₃.

    Allied Critical Metals is currently conducting a fully funded 20,000-metre drilling program aimed at expanding the mineral resource, upgrading inferred resources to higher confidence categories and potentially extending the mine life beyond the initial 11-year production plan.

  • Allied Critical Metals Reports Significant Resource Increase at Borralha Tungsten Project in Portugal

    Allied Critical Metals Reports Significant Resource Increase at Borralha Tungsten Project in Portugal

    Shares of Allied Critical Metals (CSE: ACM) surged on Thursday following the announcement of a major resource upgrade for its Borralha tungsten project in Portugal. The company revealed that the total resource at Borralha now stands at 13 million tonnes grading 0.21% WO₃ (tungsten trioxide) in the measured and indicated category, alongside 7.7 million tonnes grading 0.18% WO₃ in the inferred category. The update includes data from Phase 1 drilling conducted this year, focusing on the Santa Helena Breccia zone with 4,210 metres of drilling.

    This new estimate marks a significant improvement over the 2024 resource update, especially in the higher-confidence measured and indicated (M+I) category, which grew from just under 5 million tonnes to the current 13 million tonnes at the same grade. The inferred resource also saw an increase of 600,000 tonnes, though at a slightly lower grade.

    CEO Roy Bonnell described the updated resource as a “major milestone” for the Borralha project, calling it one of “Europe’s most compelling tungsten assets.” He highlighted the project’s continued success in producing record tungsten intercepts and expressed confidence in its future expansion. “With our next core drilling campaign set for early 2026, we are optimistic about further developments,” Bonnell stated.

    The Borralha project covers a 3.8-square-kilometre land package with a rich production history on its northern side. Between 1904 and 1985, the site produced over 10,280 tonnes of wolframite concentrate with an average grade of 66% WO₃.

    Looking ahead, Allied Critical Metals plans to complete a Preliminary Economic Assessment (PEA) for Borralha in the first quarter of 2026, coinciding with the expected completion of environmental and permitting processes. The company also holds the Vila Verde tungsten-tin project, located 45 km south of Borralha, which boasts a historical inferred resource of 7.3 million tonnes.

    Following the announcement, shares of Allied Critical Metals climbed 6.8%, bringing the company’s market capitalization to C$80.8 million ($57.3 million).