MINEX Forum

Tag: Portugal mining

  • 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 Posts Strong PEA Economics for Borralha Tungsten Project as 20,000 m Drill Program Gets Underway

    Allied Critical Metals Posts Strong PEA Economics for Borralha Tungsten Project as 20,000 m Drill Program Gets Underway

    Allied Critical Metals Inc. has released the results of an initial Preliminary Economic Assessment (PEA) for its 100%-owned Borralha Tungsten Project in northern Portugal, outlining an underground development concept with strong returns across multiple tungsten price scenarios and a fully funded drilling campaign aimed at expanding resources beyond the initial mine plan.

    In the study’s medium case using a tungsten price of USD 1,000/mtu WO₃, the project delivers an after-tax NPV(8%) of C$473.4 million (USD 346.6 million) and an after-tax IRR of 48.8%, with an estimated payback period of 4.2 years. Under the base case aligned with an Argus long-term average price assumption of roughly USD 704/mtu WO₃, the after-tax NPV(8%) is C$182.7 million (USD 134.0 million) and the after-tax IRR is 27.2%, with a payback of 5.8 years. A high-price sensitivity case at USD 1,500/mtu WO₃ increases the after-tax NPV(8%) to C$963.8 million (USD 706.4 million) and the IRR to 78.4%, shortening payback to 3.2 years.

    The PEA estimates initial capital at approximately USD 91 million (C$124.2 million) and sustaining capital at about USD 87 million (C$118.8 million), for total life-of-mine capital of roughly USD 178 million (C$243.1 million). The mine plan covers an 11-year operating life, based on the Santa Helena Breccia deposit, with a nominal processing rate of 1.4 million tonnes per annum and average mill feed grade of about 0.20% WO₃. Average annual recovered production is estimated at approximately 1,708 tonnes WO₃, with peak annual output of 2,388 tonnes WO₃. The company reported an all-in sustaining cost estimate of around USD 303/mtu WO₃.

    Allied said the economic model was built on conservative design assumptions, including mine design and cut-off grade selection developed using USD 659/mtu WO₃. The company highlighted that reported spot market pricing for tungsten has recently been materially higher than the study’s sensitivity cases.

    The company also reported several de-risking milestones and strategic positioning factors. Borralha has received a favourable Environmental Impact Declaration (DIA) from Portugal’s environment agency, subject to standard regulatory conditions, and the project has been endorsed by idD Portugal Defence as a strategic initiative of national importance.

    To support growth beyond the initial 11-year plan, Allied has begun a fully funded 20,000-metre drill program targeting resource expansion, conversion of inferred material into higher-confidence categories, potential mine life extension, and possible throughput and scale optimisation. The PEA does not include Allied’s other tungsten project at Vila Verde.

  • Allied Critical Metals Launches 20,000 m Drilling Campaign at Borralha Tungsten Project in Portugal

    Allied Critical Metals Launches 20,000 m Drilling Campaign at Borralha Tungsten Project in Portugal

    Allied Critical Metals has launched a fully funded 20,000 metre drilling programme at its wholly owned Borralha Tungsten Project in northern Portugal, marking the company’s most ambitious exploration campaign at the site to date.

    The 2026 programme is designed to build on strong drill results delivered in 2025 and to further define the scale and grade of tungsten mineralisation ahead of economic studies and potential resource expansion. Drilling will combine core and reverse circulation methods across several priority target zones within the Borralha licence area.

    The campaign will focus on step-out and infill drilling aimed at expanding and upgrading the existing mineral resource estimate, which was significantly increased in late 2025. Additional work will test extensions of the Santa Helena Breccia and other prospective zones identified during recent exploration, while also targeting the Venise Breccia north of Santa Helena, a historically recognised high-grade structure associated with wolframite and molybdenum mineralisation.

    Material collected during drilling will also be used for advanced metallurgical testing to support prefeasibility work and economic modelling. The programme is expected to generate key inputs for a Preliminary Economic Assessment that the company is targeting for completion in the first quarter of 2026.

    According to Allied, recent exploration has confirmed both bulk-style mineralisation and higher-grade corridors that could be suitable for future underground mining. The project has already passed several regulatory milestones, allowing it to advance through detailed engineering and permitting stages alongside ongoing drilling.

    The Borralha project is considered one of the more advanced undeveloped tungsten assets in Western Europe. Tungsten is classified as a critical raw material in both the European Union and the United States, highlighting the strategic importance of projects that can contribute to supply diversification away from dominant producers.

  • Allied Critical Metals Hits High-Grade Tungsten at Borralha, Strengthening Europe’s Strategic Supply

    Allied Critical Metals Hits High-Grade Tungsten at Borralha, Strengthening Europe’s Strategic Supply

    Allied Critical Metals Inc. (CSE: ACM; OTCQB: ACMIF; FSE: 0VJ0) has reported one of the highest-grade tungsten intercepts in Western exploration, marking a breakthrough at its 100%-owned Borralha Tungsten Project in northern Portugal.

    Drill hole Bo_RC_14/25 returned 12.0 metres at 4.27% WO₃, including 6.0 metres at 8.39% WO₃ from 252 metres downhole. The result confirms visual observations of massive wolframite and highlights a high-grade breccia corridor within the mineralized system. Allied says the intercept validates its geological model and positions Borralha among Europe’s most promising undeveloped tungsten assets.

    More than 2,500 metres of drilling across nine holes have been completed, with visible wolframite and chalcopyrite encountered in several holes. Drilling, temporarily paused in August due to fire season restrictions, resumed September 1 with two rigs, aiming to complete 4,200 metres in Phase 1. An additional 1,528 metres of fully funded drilling is scheduled for Q4 2025.

    The campaign is designed to expand and upgrade resources under NI 43-101, collect material for metallurgical testing at 65% WO₃ concentrate grades, and deliver a Mineral Resource Estimate (Q4 2025) and Preliminary Economic Assessment (PEA) by year-end.

    The update comes as tungsten prices surge to $545 USD/MTU, up 40% in four months, amid growing demand and tightening Chinese export controls.

    “Allied’s exceptional tungsten grades place Borralha among Europe’s most exciting critical mineral projects,” CEO Roy Bonnell said. “We are confident this will become a cornerstone asset for Western supply chains at a time of heightened strategic need.”

    Borralha, a past-producing tungsten district, is advancing through environmental permitting, with a final decision expected by late 2025 or early 2026. Tungsten is classified as a Critical and Strategic Raw Material by both the EU and the US, vital for defense, AI, and EV technologies.

  • Cerrado Gold’s Lagoa Salgada Project Clears Key Regulatory Hurdle in Portugal’s Environmental Permitting Process

    Cerrado Gold’s Lagoa Salgada Project Clears Key Regulatory Hurdle in Portugal’s Environmental Permitting Process

    Cerrado Gold Inc. has achieved a major step forward for its Lagoa Salgada project in Portugal as its subsidiary, Redcorp – Empreendimentos Mineiros, received approval from the Portuguese Environment Agency (APA) to proceed under Article 16 of the country’s Environmental Impact Assessment (EIA) legal framework. This permits the company to revise and resubmit project documentation to address environmental concerns without restarting the full permitting process.

    Article 16 allows for technical and environmental improvements to be submitted within 180 days, providing developers with an opportunity to respond to feedback without project rejection or significant delays. APA’s approval follows Redcorp’s formal request made during the public hearing stage of the EIA review.

    Cerrado Gold is integrating these revisions into its Optimized Feasibility Study (OFS), expected in September 2025. Planned enhancements include the complete removal of cyanide from processing operations in favor of flotation-only circuits, upgraded groundwater protections, emergency water supply planning, a real-time environmental monitoring network, and implementation of Best Available Techniques (BAT) across mine infrastructure.

    CEO Mark Brennan stated that this step demonstrates APA’s constructive and transparent approach to permitting, noting that many requested modifications are already being addressed. He added that Cerrado, in partnership with Portugal’s state-owned EDM, remains committed to developing the Lagoa Salgada Project as a benchmark for environmentally responsible mining in Europe.

    If the revised submission is accepted, a final EIA decision is expected in Q1 2026. The project is viewed as strategically important to Portugal’s mining sector and Europe’s critical raw materials supply chain.

  • Avrupa Minerals Submits Mining License Application for Copper-Zinc Project in Portugal’s Iberian Pyrite Belt

    Avrupa Minerals Submits Mining License Application for Copper-Zinc Project in Portugal’s Iberian Pyrite Belt

    Avrupa Minerals Ltd. (TSXV: AVU) has officially submitted a Mining License Application (MLA) for its 100%-owned Sesmarias copper-zinc volcanogenic massive sulfide (VMS) project, located in the northern sector of Portugal’s renowned Iberian Pyrite Belt (IPB). The application was filed with the Portuguese Mining Bureau (DGEG), which will now review the documentation and may request additional information before reaching a decision.

    This milestone follows nearly 15 years of exploration work by Avrupa in the Portuguese portion of the IPB and 11 years specifically dedicated to the Sesmarias site. CEO Paul W. Kuhn emphasized the significance of the submission, calling it the product of “persistence and continued upgrade of the 3D geo-structural model” developed through both joint ventures and Avrupa-funded drilling campaigns.

    Kuhn highlighted that Sesmarias still holds significant potential, with several accessible targets across its Central, Northern, and Southern zones. Avrupa believes the Central Zone could be further expanded and that other areas may soon be incorporated into a broader mineral resource estimate.

    As the project moves into its next phase, Avrupa is actively seeking a mining partner to support development. The company continues to use its hybrid prospect generator model to pursue mineral opportunities across Europe, with active projects also in Finland and Kosovo.

  • Savannah Resources Appoints Ex-Ministers to Steer Controversial Lithium Mine Forward

    Savannah Resources Appoints Ex-Ministers to Steer Controversial Lithium Mine Forward

    Despite persistent local resistance and legal challenges, Savannah Resources continues to press ahead with its controversial open-pit lithium mine in Barroso, northern Portugal. The company announced the formation of a new advisory committee, composed of former Portuguese government ministers Luís Mira Amaral (PSD) and Luís Amado (PS), German supply chain specialist Astrid Karamira, and former EDM president Carlos Caxaria.

    Savannah’s CEO Emanuel Proença stated that the committee’s role is to provide strategic guidance to ensure the “success and sustainability” of the Barroso lithium project, which is slated to begin production in 2027. The mine received a conditional Environmental Impact Statement (EIS) in 2023 and has been classified as a strategic project by the European Commission under the Critical Raw Materials Regulation.

    However, opposition remains fierce. NGOs including Unidos em Defesa de Covas do Barroso (UDCB), MiningWatch Portugal, and ClientEarth have formally challenged the European Commission’s support, claiming the project’s environmental and social impacts were insufficiently assessed.

    Savannah argues that the mine could supply enough lithium to power over half a million electric vehicle batteries annually — more than three times Portugal’s yearly vehicle sales. Nonetheless, the lack of a domestic refinery has drawn criticism, with the original plan for a lithium processing plant by GALP now abandoned and a new facility only projected for 2028.