Tungsten Explorer Launches Major Drill Campaign in Portugal

1. Allied Critical Metals Inc. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
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Allied Critical Metals Inc. (ACM:CSE; 0VJ0:FSE) has initiated a fully funded 5,000 metre core drilling program at its flagship Borralha Tungsten Project in northern Portugal. The announcement, made on June 2, 2025, signals a significant advancement in the company’s efforts to expand the resource base and enhance project economics ahead of a scheduled updated Preliminary Economic Assessment (PEA) expected this fall.

The Borralha project is a brownfield tungsten property with a rich production history dating back to the early 20th century. Between 1904 and 1985, the site produced over 10,280 tonnes of wolframite concentrate with an average grade of 66% WO₃. The project currently hosts an indicated mineral resource of 4.98 million tonnes grading 0.22% WO₃, 762 g/t copper (Cu), and 4.8 g/t silver (Ag), as well as an inferred resource of 7.01 million tonnes at 0.20% WO₃, 642 g/t Cu, and 4.4 g/t Ag. These estimates are detailed in the company’s technical report dated July 31, 2024.

In the company's news release, CEO Roy Bonnell described the new drill campaign as “a major milestone for Allied and the continued advancement of the Borralha Project.” He added that the company’s technical team expects the results to expand the current resource base. The company also confirmed that advanced metallurgical test work is underway at Wardell Armstrong’s UK labs, aimed at optimizing metal recoveries and improving concentrate grades.

The project holds a Mining Rights Concession License and is undergoing environmental permitting that allows for bulk sampling of up to 150,000 tonnes per year. Situated near the cities of Braga and Porto, Borralha benefits from proximity to power, roads, water, and a skilled labor force.

Strategically, Borralha is positioned as one of the few potential near-term, non-Chinese tungsten sources globally. Tungsten is classified as a critical raw material due to its industrial, defense, and clean energy applications, including use in semiconductors, electric vehicles, and high-performance tools. With China and Russia controlling the vast majority of global production, Allied’s project represents a potential supply chain alternative for Western economies.

Tungsten Demand Surges Amid Global Supply Constraints

Tungsten’s unique physical properties have made it indispensable across a wide range of industries, including defense, automotive, aerospace, construction, energy, electronics, and medical technology. According to the International Tungsten Industry Association (ITIA), the metal’s high melting point, exceptional tensile strength, low vapor pressure, and resistance to corrosion make it particularly well-suited for demanding applications. Straits Research notes that in the mining sector, tungsten carbide is increasingly replacing steel in tooling due to its durability, cost efficiency, and improved productivity.

The ITIA reports that global demand for tungsten remains strong and continues to grow as industrial applications expand and new use cases emerge. Straits Research projects substantial growth in consumption from 2024 through 2033, driven by ongoing investment in mining, construction, and manufacturing.

Tungsten is also classified as a critical mineral due to its scarcity and strategic importance. In February 2025, China added tungsten to its list of restricted exports, prompting concern across global supply chains. “Tungsten is a critical component of the 21st century industrial supply chain, both civilian and military,” wrote Reuters columnist Andy Home, adding that demand from end users significantly exceeds global output, motivating shifts toward new pricing mechanisms to secure non-Chinese supply.

According to the U.S. Geological Survey, global tungsten reserves were estimated at 4.4 million tonnes in 2023, with China holding over half of those reserves and producing more than 80% of the world’s primary supply.

Despite its supply constraints, the tungsten market is expected to see significant growth. Straits Research forecasts the global market will expand from US$4.7 billion in 2024 to US$11.6 billion by 2033, representing a 7.7% compound annual growth rate.

On the pricing front, tungsten has seen a steady recovery since mid-2017. In 2024, the average price for tungsten trioxide (WO₃) was approximately US$250 per metric ton unit (MTU), according to Statista. As of January 2025, prices reached US$380/MTU. Hallgarten & Co. Editor Christopher Ecclestone noted in a recent report that this price momentum may reflect a shift in Western procurement strategies. “There now exists a window of opportunity for tungsten plays in the Western world as end users look to secure alternative and more reliable sources of supply than China,” he wrote.

Project Momentum and Near-Term Triggers

With exploration now active, Allied Critical Metals is pursuing multiple milestones that could influence its trajectory in the tungsten space. According to the company’s investor materials, the Borralha drilling program is part of a broader effort to complete an updated Mineral Resource Estimate and PEA in 2025. Additionally, the company aims to move forward with environmental permitting, which is already under review by Portuguese regulators.

The Borralha project also stands out for its infrastructure advantages and cost structure. Drilling costs are estimated at approximately US$172 per metre, according to the company, supporting efficient expansion efforts. The company is concurrently advancing its Vila Verde project, which includes a historical resource and a planned pilot plant with targeted commissioning in Q4 2025.

Offtake discussions are underway, including a signed Letter of Intent with Global Tungsten & Powders of Pennsylvania for future concentrate sales. As the company moves toward potential production, such agreements may strengthen its commercial positioning.

Allied recently closed US$4.6 million in financing concurrent with its listing on the CSE and continues to focus on non-dilutive options to fund development activities. With Portugal emerging as a key jurisdiction for European tungsten supply, Allied's assets are aligned with broader geopolitical efforts to secure critical minerals from reliable sources. 

Ownership and Share Structure

According to Allied Critical Metals' Corporate Presentation, insiders and management own 25% of the stock, institutional investors hold 25% and the rest is in retail.

The company reports it has 109.85 million (109.85M) shares outstanding and 134M fully diluted shares outstanding.

According to Refinitiv, Allied's market cap is CA$24M. Its trading range since it started trading in April is CA$0.20–CA$0.25.