Wedoany.com Report on Mar 6th, Allied Critical Metals Inc. (ACM) has announced the Preliminary Economic Assessment (PEA) for its wholly-owned Borralha Tungsten Project in northern Portugal. The study is based on the Santa Helena breccia deposit, proposing an underground mining operation with an annual processing capacity of 1.4 million tonnes of ore to produce wolframite concentrate containing approximately 65% WO₃ via a gravity concentration process.
The assessment indicates that, under an assumed price of US$1,000 per metric tonne unit (mtu) of WO₃, the project yields a post-tax net present value (NPV) of US$346.6 million (at an 8% discount rate) and an internal rate of return (IRR) of 48.8%. Based on Argus's long-term forecast average price of US$704/mtu, the NPV is US$134 million with an IRR of 27.2%. Should the price increase to US$1,500/mtu, the NPV could rise to US$706.4 million with an IRR reaching 78.4%.
The initial capital cost is estimated at US$91 million, with total capital expenditure around US$178 million. The payback period is projected to be 4.2 years. The mine plan envisions production starting in 2028 over an 11-year period, with average annual output of approximately 1,708 tonnes of WO₃ and a peak annual production of 2,388 tonnes. A total of about 13.4 million tonnes of ore with an average grade of 0.20% WO₃ is planned to be processed.
Allied CEO Roy Bonnell stated in the news release: "The completion of the PEA is a significant milestone for the Company. Recent tungsten prices have risen to over US$1,900/mtu, which provides favorable conditions for the project. Furthermore, we have secured support from Portugal's defense industry agency, idD Portugal Defence, confirming the Borralha project as a national strategic initiative." He added, "This PEA covers only the Santa Helena breccia and the initial 11-year plan. With an ongoing 20,000-meter drilling program, we are committed to expanding the resource base, extending the mine life, and enhancing the project's scale."
The Mineral Resource Estimate includes 13 million tonnes of Measured and Indicated resources at a grade of 0.21% WO₃, along with 7.7 million tonnes of Inferred resources at a grade of 0.18% WO₃. The deposit has been tested by 41 drill holes, with mineralization remaining open along strike and at depth. The Portuguese Environment Agency issued a favorable Environmental Impact Statement in January 2026.
The tungsten market has recently been tight, with prices rising significantly over the past year. Analysis indicates that supply constraints stem from declining ore grades, environmental regulations, and insufficient new investment. Tungsten, valued for its high melting point (3,422°C) and hardness, is widely used in cutting tools, drilling, semiconductor manufacturing, and defense applications. Global supply is highly concentrated, with China accounting for 70-80% of primary production capacity, which impacts global availability and pricing.
Regarding development, Allied has initiated a fully-funded 20,000-meter drilling program at the Borralha project to expand resources. In 2025, 4,120 meters of drilling were completed, with results including high-grade intercepts such as 12.0 meters grading 4.27% WO₃. At the Vila Verde tungsten-tin project, the company is advancing an experimental mining permit and plans to construct a pilot plant with an initial annual capacity of 150,000 tonnes, expected to be operational in 2026.
