Can VBX Translate Strong Drilling Results into a Profitable Wuudagu Mine?
VBX Limited has confirmed the quality and scale of its Wuudagu C bauxite deposit through comprehensive infill drilling, reinforcing its Preliminary Feasibility Study and advancing its Definitive Feasibility Study with metallurgical optimization.
- 145 infill drill holes confirm 63.5Mt Indicated Mineral Resource at 39.8% Al2O3
- High-grade assay results support beneficiation potential for improved product quality
- Preliminary Feasibility Study estimates 3.5Mtpa production over 10 years with $125M capital cost
- Metallurgical optimisation underway to refine beneficiation plant design
- Ongoing discussions with potential offtake and funding partners
Confirming the Resource
VBX Limited (ASX, VBX) has released detailed assay results from 145 infill drill holes at its flagship Wuudagu C bauxite deposit in northern Western Australia. These results reaffirm the previously reported Indicated Mineral Resource of 63.5 million tonnes grading 39.8% alumina (Al2O3) and 13.5% silica (SiO2), underpinning the project's robust geological foundation.
The drilling, conducted on a 75m by 150m grid, yielded several high-grade intersections, including intervals exceeding 50% Al2O3. Importantly, these figures are on an in-situ basis and do not yet reflect the significant quality improvements achievable through beneficiation, a standard industry process that VBX is actively optimizing.
Economic Outlook and Feasibility Progress
Earlier in 2025, VBX completed a Preliminary Feasibility Study (PFS) for Wuudagu C, proposing a surface mining operation with staged rehabilitation and beneficiation. The PFS envisages an average annual production of 3.5 million tonnes of low-silica bauxite over a 10-year mine life. Capital expenditure is estimated at $125 million, with an all-in sustaining cost of $54 per tonne delivered to China, projecting an average annual EBITDA of $143 million and a pre-tax net present value (NPV) of $821 million at an 8% discount rate.
Building on this, VBX is advancing a metallurgical optimisation test work program to refine the beneficiation plant design as part of the Definitive Feasibility Study (DFS) for the broader Wuudagu project. This work is being conducted with input from potential product offtake and funding partners, signaling a strategic approach to project financing and market engagement.
Strategic Location and Community Engagement
Wuudagu C is situated on Wunambal Gaambera country near Kalumburu, featuring a flat bauxitic plateau with a low strip ratio and proximity to the coast, facilitating logistics. VBX emphasizes its commitment to responsible mining practices, including staged rehabilitation and strong relationships with Traditional Owners and local communities, aiming for a lasting positive regional impact.
With 52% of the Wuudagu target areas still undrilled and additional exploration potential at the Takapinga project in the Northern Territory, VBX is positioned for growth in a market with rising aluminium demand driven by global decarbonization and technological innovation.
Looking Ahead
As VBX prepares updated resource models incorporating the latest infill drilling data across Wuudagu B, C, and CNN plateaus, the company is poised to finalize its DFS and advance toward development. The ongoing metallurgical optimization and engagement with offtake and funding partners will be critical milestones to watch in the coming months.
Bottom Line?
VBX’s latest drilling results solidify Wuudagu C’s resource base, setting the stage for a refined feasibility study and potential project advancement amid growing aluminium demand.
Questions in the middle?
- How will metallurgical optimisation impact the final product quality and processing costs?
- What are the timelines and terms expected from potential offtake and funding partners?
- How might environmental and community considerations influence project development pace?
