VBX Limited has reported a significant 51% increase in its Wuudagu bauxite resource and enhanced its project feasibility study, supported by fresh funding and robust market conditions.
- 51% increase in Measured and Indicated Mineral Resources to 95.8 Mt
- Metallurgical optimisation improves product mass recovery to 72.9%
- Definitive Feasibility Study scope expanded to 8–9 Mtpa mining and beneficiation rate
- Secured $2 million in additional funding for DFS expansion and working capital
- Strong Chinese demand and premium pricing for low silica bauxite continue
Resource Growth and Confidence Boost
VBX Limited (ASX – VBX) has delivered a robust update on its flagship Wuudagu bauxite project in northern Western Australia, reporting a 51% increase in its Measured and Indicated Mineral Resource Estimate to 95.8 million tonnes. This uplift, confirmed by SRK Consulting, reflects both an expansion in resource size and an improvement in classification confidence, with 43% now classified as Measured and 56% as Indicated.
The recent infill drilling at Wuudagu B and C deposits, alongside exploration drilling at Wuudagu D, E, and F, uncovered thicker bauxite layers with higher alumina (Al2O3) and lower silica (SiO2) content beyond the previously defined resource boundaries. These findings enhance the project's potential to supply premium quality bauxite, a critical raw material for aluminium production.
Metallurgical Advances and DFS Enhancements
Complementing the resource growth, VBX's metallurgical optimisation test work has yielded a 23% increase in product mass recovery compared to prior studies, reaching 72.9%. This improvement is achieved without compromising the product's high quality, maintaining alumina grades around 45.9% and silica levels near 3.3%, which are highly competitive in the global market.
These positive results have prompted VBX to expand the scope of its Definitive Feasibility Study (DFS). The mining and beneficiation rate is now targeted between 8 and 9 million tonnes per annum, up from the initial 6 Mtpa. Additionally, strategic decisions such as selecting a bore field for water supply and co-locating loading facilities at Guy Point aim to reduce capital and operating costs, enhancing project economics.
Financial Position and Market Context
Despite a cash balance of $1.6 million at the end of December 2025, VBX secured an additional $2 million in unsecured loan notes in January 2026 to fund the expanded DFS scope and provide working capital. The company is also actively engaging with a leading global investment bank to finalise funding and offtake agreements with strategic partners, signalling confidence in the project's commercial prospects.
The bauxite market backdrop remains favourable, driven by record Chinese demand and increasing global reliance on Guinean supply, which faces geopolitical risks. VBX's Wuudagu bauxite, with its low silica content and high alumina grade, is well positioned to command premium pricing comparable to Guinean bauxite, currently trading at around US$62 per tonne CFR China.
Management Changes and Next Steps
On the corporate front, VBX announced the resignation of Chief Financial Officer Curtis Abbott, with interim financial responsibilities managed by Automic Group. The company is searching for a permanent replacement as it advances its development milestones.
Looking ahead, VBX plans to complete the Mineral Resource Estimates for Wuudagu D, E, and F deposits, finalise and lodge the Environmental Review Document, and complete the DFS by mid-2026. These steps will be critical in solidifying the project's pathway to production and attracting further investment.
Bottom Line?
With resource growth, improved project economics, and strong market demand, VBX is poised for a pivotal phase in its Wuudagu development journey.
Questions in the middle?
- How will the expanded DFS scope impact the project's capital expenditure and timeline?
- What are the prospects and timelines for securing long-term offtake agreements?
- How will the CFO transition affect VBX’s financial governance during this critical development phase?