Drilling at Northern Portugal's Borralha Mine Hits 200 Metres of Tungsten — a Critical Mineral the West Cannot Afford to Ignore

Allied Critical Metals, a Canadian-listed exploration company, has reported that drilling at the Borralha tungsten project in northern Portugal intersected more than 200 metres of breccia-hosted tungsten mineralisation at a newly defined target — a result that sent the company's shares surging to a record high and underscored Portugal's growing strategic importance in Europe's critical minerals supply chain.

The discovery at the Venise target, located roughly 400 metres from the Santa Helena breccia complex that forms the basis of the company's existing mine plan, was made during a fully funded 20,000-metre drill programme. Geologists observed visible wolframite, molybdenite, and chalcopyrite in the drill cores. True widths and laboratory assay results are pending.

What Borralha Could Become

The Borralha project is not new. The site was one of Europe's major tungsten producers during the Second World War and continued operating intermittently until the 1980s. Allied Critical Metals acquired the 100 per cent interest in the project and completed a preliminary economic assessment (PEA) in March 2026 for the Santa Helena deposit alone.

That assessment outlined an 11-year open-pit mine producing approximately 1,708 tonnes of tungsten trioxide (WO₃) per year, based on a measured and indicated resource of 13 million tonnes grading 0.21 per cent WO₃ and an inferred resource of 7 million tonnes at 0.18 per cent. The after-tax net present value was estimated at 473 million Canadian dollars with an internal rate of return of 49 per cent.

The Venise target was excluded from that assessment entirely. If further drilling confirms the mineralisation extends at similar grades and widths, the project could evolve from a single-deposit mine into a district-scale tungsten system — a designation that would significantly increase its economic and strategic value.

Why Tungsten Matters

Tungsten is classified as a critical raw material by both the European Union and the United States. It has the highest melting point of any metal, making it indispensable in armour-piercing ammunition, cutting tools, aerospace components, and high-temperature industrial applications. China controls roughly 80 per cent of global tungsten production and has repeatedly signalled willingness to restrict exports as a geopolitical lever.

The EU's Critical Raw Materials Act, adopted in 2024, set a target of sourcing at least 10 per cent of strategic minerals from domestic European extraction by 2030. Portugal — which also hosts significant lithium deposits — is one of the few EU member states with the geology and permitting framework to contribute meaningfully to that target.

Allied Critical Metals noted that the Portuguese government has designated the Borralha project as being of strategic national importance, a classification that can accelerate environmental and mining permits.

Market Reaction

Shares of Allied Critical Metals rose eight per cent to 1.88 Canadian dollars on the Toronto Stock Exchange following the announcement, valuing the company at approximately 317 million Canadian dollars. The stock has more than tripled over the past 12 months as tungsten prices have climbed in response to tighter Chinese export controls and rising military demand driven by conflicts in Ukraine and the Middle East.

The company said it expects assay results from the Venise target within six to eight weeks and plans to integrate the new zone into an updated resource estimate later this year. Additional drill rigs are being mobilised to test the lateral extent of the breccia system.

For Portugal, the Borralha project represents a test case for whether the country can translate its geological endowment into actual production — and whether European critical mineral supply chains can be built fast enough to reduce dependence on China before the next supply shock.