Tungsten Explorer Confirms New Breccia; Drilling Massive 200m of Mineralization in Portugal

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Allied Critical Metals Inc. (ACM:CSE; ACMIF:OTCQB; 0VJ0:FSE) announced significant drilling results from its Borralha Tungsten Project in northern Portugal, specifically from the newly confirmed Venise Breccia target, according to an April 7 release.

The drilling intersected over 200 meters of breccia-hosted tungsten mineralization, showcasing zones of hydrothermal alteration and quartz-sulfide veining that contain visible wolframite, molybdenite, and chalcopyrite. These findings confirm the continuity of a historically recognized breccia system that had not been systematically explored with modern techniques.

Located about 400 meters from the Santa Helena Breccia deposit, which is central to the company's recent Preliminary Economic Assessment (PEA), the Venise Breccia target adds significant near-mine expansion potential. The presence of molybdenite and chalcopyrite alongside tungsten also suggests the possibility of polymetallic mineralization, similar to other systems in the district.

"These initial results bode very well for our fully funded drilling campaign at the Borralha Project," Chief Executive Officer Roy Bonnell said. "At the Venise target, we have identified significant mineralization at a second Breccia complex to add to the previously discovered Santa Helena Breccia. 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 in a world where pricing is above US$3,000 per mtu (metric tonne unit)."

The ongoing 20,000-meter drill program at Borralha aims to expand the mineral resource base, extend the mine life, and enhance the project scale. While the Venise Breccia is not yet included in the company's current mineral resource estimate or the PEA mine plan, these promising results support the potential for further exploration and development within this historically rich mining area.

The company said it plans to continue leveraging both historical data and modern exploration techniques to explore underexplored breccia-hosted mineralization within the project area. Further drilling and analytical results are needed to confirm the scale and continuity of the mineralization discovered, Allied Critical noted in the release.

Looking Ahead for the Company

The Venise Breccia is not currently part of the company's mineral resource estimate (MRE) or the preliminary economic assessment (PEA) mine plan, Allied Critical said. The PEA, which is still in its preliminary stages, includes inferred mineral resources that are considered too speculative for economic valuation to classify them as mineral reserves, and there is no guarantee that the PEA will come to fruition. The PEA estimates an after-tax net present value (NPV) of CA$473.4 million and an internal rate of return (IRR) of 48.8% based on a tungsten price of CA$1,365 per metric ton unit WO₃, with an expected payback period of about 2.2 years from the commencement of commercial production.

The project's development plans involve constructing an underground mine, a processing plant, and the necessary supporting infrastructure, with total life-of-mine capital expenditures projected at US$178 million.

In January 2026, the project achieved a significant milestone by receiving an Environmental Impact Declaration, setting the stage for detailed engineering and development aimed at beginning construction and production around 2027. Furthermore, a 20,000-meter drilling program is currently underway, which could potentially extend the initial 11-year production plan.

Beyond the Borralha project, Allied is also advancing the Vila Verde Tungsten-Tin Project, expecting to build a pilot plant in 2026 designed to process approximately 150,000 tonnes per year, which would yield about 250 tonnes of WO₃ annually. The company has signed a letter of intent with Global Tungsten and Powders in Pennsylvania for the sale of tungsten concentrate and is currently in discussions with other refineries.

Thibaut Lepouttre of Ceasar's Report told Streetwise Reports, "While the project has been around for a while, but never gained momentum when the tungsten price was US$300-375 per mtu, the current renewed interest and sky-high tungsten price make Borralha's economics very attractive."

He noted that the company's base case scenario used a price of CA$1,000/mtu, yielding an after-tax NPV8% of CA$475M, which could nearly double to CA$1B at $1,500/mtu, highlighting Borralha as one of Europe's prime options for boosting domestic tungsten production.

Following a strategic transformation through a reverse takeover of Deeprock Minerals in April 2025, Allied Critical Metals now operates solely in the tungsten sector, with operations in Portugal.

This shift has allowed the company to fully focus its resources on tungsten projects. After receiving the necessary environmental permit in January 2026, Allied launched an ambitious 20,000-meter drilling program at Borralha to deepen the geological understanding and confirm the deposit's resource potential.

The Catalyst: World at War Is Short of 'War Metal'

Global manufacturers are currently grappling with a severe shortage of tungsten, a critical metal for defense and electronics, due to Chinese export restrictions and increased military demands. This shortage has pushed tungsten prices to unprecedented levels, with the price more than doubling this year to US$2,250 per metric ton unit, marking a 557% increase since China's export controls began in February of the previous year amid a trade dispute with the U.S., as reported by 101 Finance for Bitget on March 16.

The ongoing conflict in the Middle East has intensified the demand for military materials, further accelerating the depletion of reserves and price increases. George Heppel, vice president of commodity research at BMO Capital Markets, expressed that he has never seen a market as constrained as tungsten, comparing it to the lithium market in 2021. He noted a significant gap in the development of new tungsten projects compared to other metals like lithium.

Since China became the leading global supplier of tungsten, its tightened export regulations have compelled manufacturers worldwide to seek alternative sources. Project Blue noted a 40% reduction in Chinese exports of restricted tungsten products last year. This reduction has prompted Western governments to reduce their dependence on Chinese minerals, which has become a critical point in ongoing trade and technology disputes.

Lewis Black, CEO of Almonty Industries Inc., mentioned that his company is reactivating a dormant mine in South Korea and planning the first U.S. tungsten mine in a decade. He revealed that U.S. officials have inquired about immediate supply needs, with nearly half of the South Korean output intended for munitions use in Pennsylvania.

The U.S. has not mined tungsten commercially since 2015, increasing its reliance on Chinese imports. David Argyle from Arlington Innovation Partners described last year's export restrictions as a geopolitical strategy and suggested that expanding mining in countries like Spain, Brazil, Australia, and the U.S. could alleviate some pressure. However, he estimated it would take around two years for new Western production to impact the market.

Efforts to diversify tungsten supplies in the West are progressing, with exploration activities in Kazakhstan and potential mining operations in Nevada, as reported by Caroline Kong for NAI500 on March 26.

However, these new sources are not anticipated to quickly stabilize production, with expectations of a two-year adjustment period before they can significantly influence the market. The recent surge in tungsten prices reflects a shift in the valuation of strategic metals, driven by geopolitical tensions, adjustments in the supply chain, and increased military demands. This has introduced a new pricing dynamic where tungsten now carries a strategic premium, underscoring its vital role in national security and technology sectors.

Investors are encouraged to focus on tungsten production capacities outside of China and the expanding recycling sector, which are emerging as significant opportunities amid the revaluation of strategic metals. According to Junior Mining Network, the top five tungsten companies by market capitalization currently include Almonty Industries, United States Antimony, Fireweed Metals, Allied Critical Metals, and American Tungsten.

Ownership and Share Structure¹

Insiders own approximately 31% of Allied. About 16% is held by institutions and institutional investors, and the rest is held by retail shareholders.

The company has 170.41 million common shares issued and outstanding. Its market cap is CA$316.97 million. Its 52-week range is CA$0.20–CA$2.05 per share.