Allied Critical surges to new high on Portugal tungsten hit

Allied Critical Metals (CSE: ACM) soared to a new high on Tuesday as early drilling results indicated the presence of extensive tungsten mineralization at its Borralha project in Portugal.

In a press release, the Canadian explorer said initial drilling has intersected over 200 metres of tungsten mineralization at the newly defined Venise target, supporting its interpretation of a historically recognized breccia system that had not previously been systematically tested.

The identification of visible tungsten mineralization supports the company’s strategy to expand its resource base and reinforces the potential for additional breccia-hosted mineralization within the broader project area, the company said.

“These initial results bode very well for our fully funded drilling campaign at the Borralha project,” said CEO Roy Bonnell, who noted that the Venise target could add a second breccia complex to the one it previously discovered at Santa Helena, located just 400 metres away.

Shares of Allied Critical surged nearly 8% to a new all-time high of C$1.88 on the drill results. Its market capitalization is estimated at C$317 million ($228 million).

District-scale tungsten

The drill results follow the release of a preliminary economic assessment (PEA) last month outlining an initial mine plan for the Santa Helena deposit, based on its latest resource estimate of 13 million tonnes grading 0.21% tungsten trioxide (WO₃) in the measured and indicated category and 7 million tonnes grading 0.18% WO₃ in the inferred category.

The PEA envisaged an 11-year mine producing 1,708 tonnes of WO₃ annually, with the potential for expansion. Its after-tax net present value is calculated at C$473 million, with an internal rate of return of 49%, assuming an 8% discount rate and WO₃ price of $1,000/mtu.

The Venise target, which was recently identified through an ongoing 20,000-metre drill program, was excluded from the PEA mine plan. According to Allied Critical, this breccia system was historically recognized in underground workings and documented in geological studies conducted during the 1970s and 1980s, but these zones have not been systematically tested using modern exploration methods.

Project of national importance

The company considers the new target as a key part of its strategy to expand the project’s resource base and reinforces the Borralha project’s potential as a district-scale tungsten system that would contribute to the EU and NATO supply chains.

A past-producing tungsten mine located 60 km east of the city of Braga, the Borralha project is being endorsed by idD Portugal Defence, which recently designated it as a project of strategic national importance. Currently, the project undergoing its environmental review process.

“We are encouraged by these early results and continue to believe the Borralha project is a world-class tungsten deposit with the possibility of being a meaningful new supply of tungsten,” Bonnell said.

Drilling at the property remains in progress and is advancing toward the interpreted central portion of the breccia body, the company said.