VBX Limited (ASX: VBX) has materially expanded the scope of the definitive feasibility study (DFS) for its Wuudagu bauxite project in northern Western Australia following resource growth and improved beneficiation outcomes.
The revised DFS scope incorporates a higher mining rate, stronger product mass recovery, and lower-cost infrastructure solutions that the company believes have the potential to materially improve project economics.
The changes are supported by increased confidence in the mineral resource, positive hydrogeological results, and design optimisation across logistics and port infrastructure.
The company said the expanded scope positions Wuudagu for larger-scale, lower-intensity production while the DFS is completed.
Higher Mining Rate And Product Recovery
VBX plans to lift the mining rate at Wuudagu from 6 million tonnes per annum to between 8Mtpa and 9Mtpa as part of the revised DFS.
The decision follows a 51 per cent increase in the measured and indicated mineral resource at the Wuudagu B and C deposits to 95.8Mt, with additional resource modelling underway at the D, E and F plateaus.
Metallurgical optimisation test work has delivered product mass recoveries of up to 73 per cent at a +3.35-millimetre screen size, as well as up to 80 per cent at a +1 millimetre screen size.
VBX expects the higher mining and beneficiation rates to increase annual production and improve utilisation of product transport infrastructure.
Lower-Cost Water Solution
Hydrogeological drilling and pump testing completed in 2025 has confirmed that Wuudagu’s water requirements can be met through multiple bore fields developed adjacent to demand centres across the project area.
Based on the results, VBX has selected a distributed bore field as the preferred water solution in the DFS in place of a seawater desalination plant.
The company said the bore field solution is expected to materially reduce both capital and operating costs while meeting environmental and social requirements.
VBX has also agreed to co-locate the barge loading facility and materials offloading facility at Guy Point following design work that identified an opportunity to reduce capital costs through shared infrastructure.
Completion of the DFS remains targeted for the first half of 2026 as VBX advances Wuudagu toward development.
Funding And DFS Progression
To fund the expanded DFS scope and provide additional working capital, managing director Ryan de Franck has provided $2 million in unsecured loan notes to the company.
The loan notes carry an interest rate of 4.5 per cent per annum and are repayable by 31 December 2026, with the terms approved by the board excluding Mr de Franck.
VBX said the funding allows the DFS to progress immediately while preserving the company’s capital structure during a critical period of project de-risking.
The company is working with a leading global investment bank to finalise funding and offtake discussions with potential strategic partners.
Strong Industry Interest
VBX said Wuudagu’s low-silica product quality, short logistics chain, expanding scale and northern Australian location are driving strong interest from aluminium industry participants.
“On this basis, and due to the high reliance and instability of bauxite supply from Guinea in West Africa, we are seeing strong interest from groups who want to buy or market Wuudagu bauxite and are willing to provide funding solutions to secure these rights,” Mr de Franck said.
The board said the expanded DFS scope reflects a clear pathway to a larger, more efficient and more competitive bauxite operation at Wuudagu.
Wuudagu is located in the north Kimberley region of WA, approximately 270 kilometres north-west of Kununurra—the closest regional centre, accessible by road with a transit distance of 563km.
