Allied Critical Metals Delivers Robust Initial PEA at the Borralha Project
Executive Summary
- Allied Critical Metals released its initial PEA for the 100 % owned Borralha Tungsten Project in northern Portugal, showing strong after‑tax economics across three tungsten price scenarios.
- Medium case ($1,000/mtu WO₃) yields an after‑tax NPV(8%) of $473.4 M (CAD $124.2 M), IRR 48.8 %, and a 4.2‑year payback on an initial capital of ~US$91 M.
- The company has commenced a fully funded 20,000 m drill program to expand the current 13 Mt Measured & Indicated resource (0.21 % WO₃) and convert inferred resources, targeting mine‑life extension beyond the baseline 11‑year plan.
Key Details
- Economic Summary (After‑Tax)
- Medium Case – $1,000/mtu WO₃: NPV(8%) $473.4 M (USD $346.6 M), IRR 48.8 %, Payback 4.2 yr.
- Base Case – Argus long‑term forecast (~$704/mtu): NPV(8%) $182.7 M (USD $134.0 M), IRR 27.2 %, Payback 5.8 yr.
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High Case – $1,500/mtu WO₃: NPV(8%) $963.8 M (USD $706.4 M), IRR 78.4 %, Payback 3.2 yr.
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Capital & Cost Structure
- Initial capital ≈ US$91 M (CAD $124.3 M).
- Sustaining capital ≈ US$87 M (CAD $118.8 M); total LOM capital ≈ US$178 M (CAD $243.1 M).
- All‑in sustaining cost (AISC) ≈ US$303/mtu WO₃.
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Operating cost ≈ US$49/t processed (~US$245/mtu WO₃ produced).
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Mine Plan & Production
- Nominal processing rate: 1.4 Mtpa; mine life 11 years (2028‑2039).
- Average annual tungsten production ≈ 1,708 t WO₃; peak 2,388 t/yr.
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Total ore processed over LOM: 13.44 Mt, average feed grade 0.20 % WO₃.
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Resource Base (2025 MRE)
- Measured + Indicated: 13.0 Mt @ 0.21 % WO₃.
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Inferred: 7.7 Mt @ 0.18 % WO₃.
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Drilling Program
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Fully funded 20,000 m of underground drilling underway to (i) expand the Measured & Indicated resource, (ii) upgrade Inferred material, and (iii) explore extensions that could lengthen mine life.
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Metallurgy
- Gravity‑dominant processing with expected tungsten recovery ≈75 %, producing a concentrate of ~65 % WO₃.
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Additional by‑product recoveries: Cu ≈60 %, Sn ≈30 %.
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Permitting
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Received a favourable Environmental Impact Declaration (DIA) from the Portuguese Environment Agency, removing a major regulatory hurdle and enabling progression to RECAPE and construction permitting.
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Strategic Positioning
- One of the largest undeveloped tungsten resources in the EU, aligning with EU critical raw material strategies and reducing reliance on Asian supply.
Notable Quotes
“This initial PEA confirms the Borralha Project as a high‑return, capital‑efficient tungsten development project… at USD $1,000 per mtu (significantly below current market pricing) the project generates a 48.8 % after‑tax IRR with modest initial capital of approximately USD $91 million.” – Roy Bonnell, CEO & Director
The release contains forward‑looking statements regarding the PEA results, drilling program, permitting timeline, and financing expectations.