VBX Limited has more than doubled the Measured and Indicated Mineral Resource at its Wuudagu bauxite project to 131.9 million tonnes with improved grades, while also enhancing its Definitive Feasibility Study scope and securing additional funding.
- 108% increase in Wuudagu Measured and Indicated Resource
- Improved product mass recovery to 72.9% from metallurgical optimisation
- DFS scope expanded with mining rate raised to 8-9 Mtpa
- Secured $2 million additional funding post-quarter
- Favourable bauxite market with strong Chinese demand and supply risks
Resource Estimate More Than Doubled with Higher Confidence
VBX Limited (ASX:VBX) has announced a striking 108% increase in its Measured and Indicated Mineral Resource Estimate at the Wuudagu bauxite project in northern Western Australia. The updated figure stands at 131.9 million tonnes with an improved alumina grade of 40.2% and a silica content of 12.6%. Notably, 32% of the resource is now classified as Measured, boosting confidence in the deposit’s quality and scale. This upgrade reflects the results of a comprehensive 2025 infill and exploration drilling program, which also included new resource estimates for the D, E, and F plateaus, extending the project’s footprint and potential lifespan. The resource update builds on earlier increases, including a 51% boost announced earlier this year, underscoring the rapid advancement of Wuudagu’s development potential 108% increase in Measured and Indicated Resource.
Metallurgical Optimisation Lifts Product Recovery
Complementing the resource upgrade, VBX has reported successful metallurgical optimisation test work as part of its Definitive Feasibility Study (DFS). Conducted on a bulk sample from the Wuudagu C deposit, the test work demonstrated a 23% increase in product mass recovery to 72.9% compared to the earlier Pre-Feasibility Study (PFS). This improvement was achieved without compromising the high-quality, low-silica product grade, which remains around 45.9% alumina and 3.3% silica. The optimised beneficiation process involves refined scrubbing, screening, and filtration techniques, confirming the project's ability to produce a premium bauxite product that commands a price premium in the market due to its low silica content. These results reinforce Wuudagu’s competitive edge in the global bauxite industry DFS metallurgical optimisation.
Expanded DFS Scope Reflects Resource and Processing Gains
VBX has also revised the scope of its DFS to capitalise on the enlarged resource and improved beneficiation outcomes. The mining and beneficiation rate is now targeted between 8 and 9 million tonnes per annum, up from the initial 6 Mtpa. While the company is careful to note that this does not yet constitute a new production target, the increase signals a more ambitious project scale. Additional enhancements include selecting a bore field as the preferred water supply, reducing capital and operating costs, and co-locating the barge loading and materials offloading facilities at Guy Point to minimise infrastructure expenses. These modifications highlight VBX’s adaptive project management approach as it moves towards finalising the DFS and Environmental Review Document (ERD) in the coming months DFS scope expansion.
Market Conditions Support Project Economics
The timing of these developments coincides with robust global demand for bauxite, particularly from China, which imported a record 201 million tonnes in 2025. Guinea and Australia remain the dominant suppliers, but geopolitical volatility and supply uncertainties in Guinea are increasing global reliance on alternative sources like Australia. Wuudagu’s low silica bauxite, with grades comparable to premium Guinean bauxite, is well positioned to attract strong pricing, currently estimated at around US$68 per tonne CFR China. This market backdrop, combined with Wuudagu’s favourable location and logistics, is drawing significant interest from potential buyers and marketing partners, underpinning VBX’s ongoing funding and offtake discussions with strategic groups.
Funding and Financial Position
At the end of March 2026, VBX reported cash and loan funds of $0.9 million. Since then, the company has secured an additional $2 million in unsecured loan notes from Managing Director Ryan de Franck’s Valperlon Trust and an entity controlled by Non-Executive Director Richard de Franck. These funds are earmarked to support the finalisation and lodgement of the ERD and completion of the DFS. The company is also engaging with a leading global investment bank to advance funding and offtake discussions with potential strategic partners, aiming to secure the capital necessary to progress Wuudagu towards production.
Next Steps and Strategic Questions
VBX is poised to deliver its DFS mid-year, which will likely provide clearer guidance on production targets and project economics. The company’s ability to translate the resource and metallurgical gains into a robust development plan will be critical. Meanwhile, the evolving global bauxite market dynamics, particularly supply risks from Guinea and sustained Chinese demand, will continue to shape the project’s commercial appeal. How VBX navigates funding, offtake agreements, and regulatory approvals in the near term will be decisive for its trajectory.
Bottom Line?
VBX’s resource and processing upgrades position Wuudagu strongly but upcoming DFS and funding outcomes will be pivotal.
Questions in the middle?
- Will the expanded DFS translate into a formal production target upgrade?
- How will VBX secure long-term offtake agreements amid shifting global bauxite supply risks?
- What are the implications of increased mining rates on project capital and operating costs?