en.Wedoany.com Reported - Allied Critical Metals Inc. (ACM:CSE; ACMIF:OTCQB; 0VJ0:FSE) has announced the first assay results from its 2026 drilling program at the Santa Helena Breccia of the Borralha Tungsten Project in northern Portugal. The results show a 23.8-meter interval grading 0.68% WO3 starting at an estimated true thickness of 24.0 meters; within this interval, a high-grade zone of 4.0 meters grading 2.96% WO3 was intersected starting at 44.0 meters. The company also reported a wider mineralized corridor of 57.6 meters grading 0.30% WO3 starting at an estimated true thickness of 24.0 meters, and a total interval of 81.5 meters grading 0.22% WO3.
The company stated that the first drill hole of the 2026 program, Bo_13/26, encountered broad tungsten mineralization consistent with the current geological and mineral resource model. The drilling program is designed to support resource conversion, mine planning, geotechnical and metallurgical variability studies, and to further validate the continuity of the Santa Helena Breccia. The company noted that high-grade tungsten mineralization occurs within a broad mineralized corridor, a feature expected to support the large-scale underground mining method planned for the Borralha project, as outlined in the preliminary economic assessment effective April 14, 2026.
Roy Bonnell, CEO and Director of Allied Critical Metals, stated in a company press release that the first assay results from the 2026 Santa Helena drilling program continue to validate the geological and mineralization models supporting the Borralha preliminary economic assessment. He added that with six drill rigs currently operating and a seventh expected to arrive shortly, the company is executing the largest drilling program in the recent history of the Borralha project. The company's strategy is twofold: expanding the long-term potential of the area through exploration at Venise, while increasing confidence in the Santa Helena mineral resource through infill, technical, and engineering drilling.
Currently, the company's 20,000-meter drilling program is primarily focused on the Borralha project, encompassing development drilling at the Santa Helena Breccia and exploration drilling at the newly discovered Venise Breccia, located approximately 400 meters to the northwest. In addition to drilling progress, Allied Critical Metals announced the grant of 1,675,000 stock options (with an exercise price of CA$2.01 per share) and 4,635,000 restricted share units to directors, officers, employees, and consultants under its comprehensive equity incentive plan.
On the macro level of the tungsten market, according to Fortune Business Insights, the global tungsten market was valued at $5.43 billion in 2025, is expected to grow to $5.78 billion in 2026, and reach $9.19 billion by 2034, representing a compound annual growth rate of 6.0%. Market growth is driven by demand for durable, high-performance materials in the mining, construction, automotive, aerospace, and industrial equipment sectors. Data from the International Tungsten Industry Association indicates that approximately 60-65% of global tungsten consumption is used in cemented carbides, which are widely applied in cutting tools, drilling equipment, and wear-resistant industrial components.
Seeking Alpha noted that as Western countries focus on strengthening supply chains, tungsten is becoming an increasingly important critical mineral, making projects located in Western jurisdictions "highly sought after." The article emphasized that political support, permitting progress, and supply chain security have become key issues across the tungsten industry. An article in Cutting Tool Engineering magazine discussed the impact of rising tungsten prices on industrial manufacturers, noting that ammonium paratungstate prices have risen to approximately $3,150 per metric ton, representing a 550% increase over the past 14 months, primarily attributed to supply bottlenecks caused by Chinese export controls. Andreas Lackner, spokesperson for the Ceratizit Board, stated that the current price surge originates mainly from the raw material side, with the bottleneck being tungsten, of which approximately 65% of globally processed tungsten is used in cemented carbide tools. Competition for available tungsten has further intensified with growing demand from the semiconductor, aerospace, medical technology, and defense industries.
From an analyst perspective, Surya Sankarasubramanian, an analyst at Ventum Capital Markets, reiterated a "Buy" rating for Allied Critical Metals and raised the target price from CA$2.75 to CA$2.95. He believes the company has near-term production potential through the Vila Verde project and long-term scale potential through the Borralha project. Diamond Equity Research initiated coverage of Allied with a target price of CA$3.50, with its valuation based on separate project-level forecasts for the company's Borralha and Vila Verde assets. The firm models Borralha as a long-term major development project involving 13 million tonnes of measured and indicated resources with an 11-year mine life.
The company stated that the fully funded 20,000-meter exploration and development program continues to advance at Borralha, with six drill rigs currently operating. At Santa Helena, drilling priorities include resource conversion and validation, geological model confirmation, geotechnical characterization for underground mine design, metallurgical variability sampling within the planned mining sequence, and selective testing of mineralization outside the current preliminary economic assessment mine plan. At the Venise Breccia, two drill rigs are evaluating the geometry, continuity, and vertical extent of the newly discovered tungsten-molybdenum breccia system. Allied Critical Metals stated that further updates will be provided as assay results become available.
The Borralha project is advancing under a mining concession license in northern Portugal and has a current mineral resource estimate including 13 million tonnes grading 0.21% WO3 in measured and indicated resources, and 7.7 million tonnes grading 0.18% WO3 in inferred resources. The project's preliminary economic assessment outlines an initial 11-year mine life with a planned processing capacity of 1.4 million tonnes per year, average annual production of approximately 1,708 tonnes of WO3, and peak annual production of 2,388 tonnes of WO3. Meanwhile, the Vila Verde tungsten-tin project in northern Portugal is also advancing, moving toward a trial mining license. The trial plant is funded by a binding $15 million senior secured project financing arrangement, with a designed processing capacity of 150,000 tonnes of mineralized material per year and the potential to increase capacity to 300,000 tonnes per year. Construction is scheduled to begin in 2026, with first tungsten concentrate production targeted for the fourth quarter of 2026. The company has entered into a binding offtake agreement covering 50% of the trial plant's tungsten concentrate production for five years, with a floor price of $1,000 per metric ton unit (mtu) in 2026; it has also signed a letter of intent with Global Tungsten & Powders for tungsten concentrate sales and is in ongoing discussions with additional global refiners for the remaining production.
