High-Grade Tungsten Hit Extends Momentum at One of Europe's Largest Drill Campaigns

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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) reported the first assay results from its 2026 drilling campaign at the Santa Helena breccia, part of the Borralha tungsten project in northern Portugal, including 23.8 meters grading 0.68% WO₃ from 24.0 meters estimated true width. The interval included 4.0 meters grading 2.96% WO₃ from 44.0 meters. The company also reported a wider mineralized corridor of 57.6 meters grading 0.30% WO₃ from 24.0 meters estimated true width and an overall interval of 81.5 meters grading 0.22% WO₃.

According to the company, the first drill hole of the 2026 campaign, Bo_13/26, intersected broad tungsten mineralization consistent with the current geological and mineral resource model. The drilling is intended to support resource conversion, mine planning, geotechnical engineering, and metallurgical variability studies while continuing to demonstrate the continuity of the Santa Helena breccia.

The company said the higher-grade tungsten occurs within broad mineralized corridors that are expected to support the Borralha project's planned bulk underground mining approach, which was outlined in the project's preliminary economic assessment dated effective April 14, 2026.

"The first assay results from our 2026 Santa Helena drilling campaign continue to validate the geological and mineralization model that underpins the Borralha preliminary economic assessment," Roy Bonnell, chief executive officer and director of Allied Critical Metals, said in a company news release.

He added, "With six drill rigs currently operating and a seventh expected shortly, we are executing the largest drilling campaign in Borralha's recent history. Our strategy is twofold: continue expanding the long-term potential of the district through exploration at Venise while simultaneously increasing confidence in the Santa Helena mineral resource through infill, technical, and engineering drilling."

The company said its current 20,000-meter drilling campaign is focused on the Borralha project, with development drilling at the Santa Helena breccia and concurrent exploration drilling at the newly discovered Venise breccia approximately 400 meters to the northwest.

In addition to the drilling update, Allied Critical Metals announced the grant of 1,675,000 stock options exercisable at CA$2.01 per common share and 4,635,000 restricted share units to directors, officers, employees, and consultants under its omnibus equity incentive plan.

Why Tungsten Demand Is Back in the Spotlight

According to the June 29 Fortune Business Insights report, the global tungsten market was valued at US$5.43 billion in 2025 and was projected to reach US$5.78 billion in 2026 before growing to US$9.19 billion by 2034 at a compound annual growth rate of 6.0%. The report stated that the market had been supported by increasing demand for durable, high-performance materials used in mining, construction, automotive, aerospace, and industrial equipment. Fortune Business Insights wrote that "the market is progressing steadily as industries increasingly demand durable, high-performance materials for arduous operations," adding that tungsten-based materials offered "exceptional hardness and thermal stability," helping improve tool life, operational efficiency, and equipment reliability. The report also cited data from the International Tungsten Industry Association indicating that approximately "60-65% of tungsten consumed globally is used in cemented carbides," which are widely used in cutting tools, drilling equipment, and wear-resistant industrial components.

Seeking Alpha wrote on July 15 that tungsten had become an increasingly important critical mineral as Western economies focused on strengthening supply chains. The publication said projects located in Western jurisdictions had become "highly sought after," while noting that "surging tungsten prices and Western supply chain concerns" had increased attention on the sector. The article also stated that political support, permitting progress, and supply chain security had become key themes across the tungsten industry as governments and manufacturers sought reliable sources of the metal.

Writing on July 15 in Cutting Tool Engineering, Alan Richter examined the effect of higher tungsten prices on industrial manufacturers. According to the article, tungsten ammonium paratungstate prices had risen to about US$3,150 per metric ton, representing "an increase of 550% in the past 14 months," primarily because "China's export controls... created a significant supply bottleneck." Andreas Lackner, spokesperson for the executive board of Ceratizit, said, "The current surge stems primarily from the raw materials side, and there, the bottleneck is tungsten," adding that "about 65% of the tungsten processed worldwide is used for carbide tools." The publication also reported that competition for available tungsten had intensified as manufacturers, semiconductor producers, aerospace companies, medical technology firms, and the defense industry all required the metal for a growing range of applications.

Analysts Highlight Near-Term Production and Long-Term Development Potential

Ventum Capital Markets analyst Surya Sankarasubramanian reiterated a "Buy" rating on Allied Critical Metals on June 18 while increasing the firm's price target to CA$2.95 from CA$2.75. The report was published before the company announced its Venise Breccia drilling results. Sankarasubramanian wrote, "We like Allied because it offers near-term production potential through Vila Verde and longer-term scale potential through Borralha, where current exploration is poised to augment that potential."

Diamond Equity Research initiated coverage of Allied on June 22 with a CA$3.50 price target. The firm said its valuation was based on separate project-level forecasts for the company's Borralha and Vila Verde assets. According to the report, Borralha was modeled as the company's primary long-term development project using the 13.0-million-tonne measured and indicated resource over an 11-year mine life, while the 7.7-million-tonne inferred resource was treated as a lower-confidence mine-life extension opportunity. Diamond Equity Research also modeled Vila Verde as a near-term pilot plant operation with an initial processing rate of 150,000 tonnes per year over five years.

Borralha Drilling, Venise Exploration, and Portugal Tungsten Development Continue

The company said its fully financed 20,000-meter exploration and development program remains underway at Borralha, with six drill rigs currently operating and a seventh expected to arrive shortly. At Santa Helena, drilling is focused on resource conversion and validation, confirmation of the geological model, geotechnical characterization for underground mine design, metallurgical variability sampling across the planned mining sequence, and selective testing of mineralization beyond the current preliminary economic assessment mine plan. The program is intended to increase confidence in the existing mineral resource while generating engineering data for potential future feasibility-level studies.

At the Venise breccia, two drill rigs are evaluating the geometry, continuity, and vertical extent of the newly identified tungsten-molybdenum breccia system. The company has completed drill hole Bo_BV_04a, with assays pending, while drill holes Bo_BV_02b and Bo_BV_05a remain in progress. Allied Critical Metals said additional updates will be provided as analytical results become available. The Venise breccia is not included in the current Borralha resource estimate, mine plan, or preliminary economic assessment.

The Borralha project is advancing under a mining rights concession license in northern Portugal and has an updated mineral resource estimate effective Nov. 19, 2025, comprising measured and indicated resources of 13.0 million tonnes grading 0.21% WO₃ and inferred resources of 7.7 million tonnes grading 0.18% WO₃. The project has also received an Environmental Impact Declaration and is advancing through Portugal's mine licensing pathway.

The presentation states that the Borralha preliminary economic assessment outlines an initial 11-year mine life and that the fully funded drilling program is targeting resource expansion and potential mine life extension. The operating profile described in the assessment includes a planned processing rate 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 using underground long-hole stoping and gravity-dominant processing.

The company is also advancing the Vila Verde tungsten-tin project in northern Portugal. According to the presentation, the project is progressing toward an experimental mining license, with a pilot plant that is fully funded through a binding US$15 million senior secured project financing facility. The planned pilot plant is designed for a processing capacity of 150,000 tonnes per year of mineralized material, with the potential to increase capacity to 300,000 tonnes annually. The presentation states that construction is scheduled to commence in 2026, and the first tungsten concentrate production is targeted for the fourth quarter of 2026. It also notes a binding off-take agreement covering 50% of pilot plant tungsten concentrate production for five years at a 2026 floor price of US$1,000 per mtu, an executed letter of intent with Global Tungsten & Powders for tungsten concentrate sales, and ongoing discussions with additional global refineries regarding remaining production.

Ownership & Share Information¹

Allied Critical Metals Inc. has a market cap of CA$416.22 million, with 180.96 million shares outstanding. The company's 52-week range is CA$0.29-CA$2.46.

Institutions own 16% of shares, while Management & Insiders own 31%. The remaining 53% of shares are held by Retail.

Frequently Asked Questions About Allied Critical Metals, Borralha, and the Tungsten Market

What did Allied Critical Metals announce?

Allied Critical Metals announced the first assay results from its 2026 drilling campaign at the Santa Helena breccia within the Borralha tungsten project in northern Portugal. The company reported drill hole Bo_13/26 intersected 23.8 meters grading 0.68% WO₃, including 4.0 meters grading 2.96% WO₃, along with broader mineralized intervals.

Where is the Borralha tungsten project located?

The Borralha tungsten project is located in northern Portugal. The project includes the Santa Helena breccia deposit and the recently discovered Venise breccia exploration target.

What were the latest Borralha drill results?

The first drill hole of the 2026 campaign returned 81.5 meters grading 0.22% WO₃, including 57.6 meters grading 0.30% WO₃, 23.8 meters grading 0.68% WO_3, and 4.0 meters grading 2.96% WO₃.

What is the Santa Helena breccia?

The Santa Helena breccia is the primary tungsten deposit supporting the Borralha project. According to the company, the current drilling program is designed to support resource conversion, geological model confirmation, mine planning, geotechnical studies, and metallurgical testing.

What is the Venise breccia discovery?

The Venise breccia is a newly discovered tungsten-molybdenum breccia system located approximately 400 meters northwest of Santa Helena. The company is conducting exploration drilling to evaluate its geometry, continuity, and vertical extent.

How large is Allied Critical Metals' current drilling program?

The company is conducting a fully financed 20,000-meter drilling campaign at the Borralha project. Six drill rigs are currently operating, with a seventh rig expected to join the program.

What is WO₃ in tungsten drilling results?

WO₃ refers to tungsten trioxide, the standard reporting unit used in tungsten exploration and mining. Drill results are commonly reported as a percentage of WO₃.

What is tungsten used for?

According to industry sources, tungsten is widely used in cemented carbides, cutting tools, drilling equipment, mining, aerospace, defense, automotive manufacturing, semiconductors, and other industrial applications because of its hardness and resistance to heat.

Why is tungsten considered a critical mineral?

Tungsten is classified as a critical mineral because it is used in defense systems, industrial manufacturing, aerospace, mining equipment, semiconductors, and other strategic applications where durable, high-performance materials are required.

How large is the global tungsten market?

According to Fortune Business Insights, the global tungsten market was valued at US$5.43 billion in 2025 and was projected to reach US$5.78 billion in 2026.

What is driving demand for tungsten?

Industry research cited in the article attributes tungsten demand to growing use in mining, construction, manufacturing, aerospace, automotive, defense, and industrial equipment, where wear-resistant and high-temperature materials are required.

What is the Borralha preliminary economic assessment?

The Borralha preliminary economic assessment outlines an initial mine plan for the project and forms the basis for ongoing technical work, including resource conversion, engineering studies, and development drilling.

What is the difference between Borralha and Vila Verde?

Borralha is Allied Critical Metals' flagship tungsten development project in northern Portugal, while Vila Verde is a separate tungsten-tin project that includes a planned pilot plant and experimental mining program.

Is Allied Critical Metals advancing more than one tungsten project?

Yes. According to the company, it is advancing the Borralha tungsten project while also progressing the Vila Verde tungsten-tin project in Portugal.

What is the outlook for tungsten exploration in Portugal?

The company continues to conduct drilling at both the Santa Helena and Venise breccias while advancing engineering, resource conversion, and technical studies at Borralha, alongside development activities at Vila Verde.