Key Highlights

  • Pre-feasibility study (PFS) work program launched, with infill drilling (203 auger holes, 20 diamond twin holes) and bulk-sample trenching underway at the Amargosa Bauxite-Gallium Project in Brazil
  • Independent road logistics study confirmed haulage viability at all tested capacities up to 11.5 wet Mtpa — twice the Scoping Study base case of 5.75 wet Mtpa (5 Mtpa dry)
  • Alurion listed on the ASX on 31 July 2026 following an IPO that raised A$50 million (US$34.8 million) at $1.05 per share, with the maximum offer oversubscribed
  • PFS targeting mid-2027 completion, with bulk-sample test work assessing critical mineral co-products including ilmenite, zircon, monazite, and gallium

Alurion Resources Limited (ASX: ALU), the recently listed bauxite and critical minerals developer, has commenced infill drilling and bulk-sample trenching at its Amargosa Bauxite-Gallium Project in Brazil, marking the transition from resource scale definition to the field-based development programs required to support a pre-feasibility study. The company provided a comprehensive quarterly activities update on 27 October 2026 covering the first full quarter of operations since its ASX listing in late July 2026.

Alurion was demerged from Brazilian Rare Earths and listed on the ASX on 31 July 2026, completing an IPO that raised A$50 million at $1.05 per share — a maximum offer that was oversubscribed, signalling early market appetite for the project. The company's mandate is to advance the Amargosa project through a PFS targeting completion in mid-2027.

PFS Work Program: Five Parallel Workstreams

The PFS program covers five integrated areas of work that Alurion is progressing simultaneously. Resource definition drilling forms the core, with a 203-hole auger program covering 2,436 metres, 20 diamond twin holes totalling 800 metres, and up to 16 bulk-sample trenches designed to sample the full bauxite profile. These programs are intended to lift resource classification density to support PFS-grade mine planning.

Alongside the resource program, the company is advancing logistics planning, export product optimisation, processing test work, and an assessment of additional value streams. The logistics workstream received a significant boost with the completion of an independent road-logistics study that confirmed haulage is viable at all tested capacities up to 11.5 wet Mtpa via Brazil's BR-101 federal highway — approximately 160km from the North District and 220km from the Central District to the Port of Enseada. Notably, at 5.75 Mtpa (the base case), Alurion trucks would represent less than 1% of total road corridor traffic, rising to only 1.6% at the higher throughput scenario, suggesting no material road-capacity constraints.

Central District as the Staged Development Anchor

The Central District of the Amargosa project hosts the largest share of the direct-ship-bauxite (DSB) and beneficiable bauxite mineral resources, and it anchors the company's staged development pathway. Twin export Options are available — north to the Port of Enseada and, in the medium term, south via the FIOL rail and Porto Sul — providing flexibility in export routing as production scales.

Alurion is also advancing engineering work with the port operator at Enseada to assess options for expanding port capacity to up to 13.5 wet Mtpa. This work, combined with the confirmed road haulage viability at 11.5 Mtpa, provides the logistics confidence underpinning the PFS's growth scenario assumptions.

Critical Mineral Co-Products Add Strategic Dimension

A distinctive element of the Amargosa project is the presence of critical mineral co-products within the bauxite profile. Bulk-sample test work is targeting the recovery of ilmenite, zircon, monazite, and gallium alongside the primary bauxite product. Gallium in particular has attracted significant strategic attention in recent years, given its role in semiconductor Manufacturing and the concentration of global gallium refining in China. Australia and Brazil — as potential alternative sources — are increasingly cited by government and industry bodies assessing Supply chain diversification.

The test work program will assess processing yields, recovery of these co-products, product sizing, and Bayer process performance metrics to quantify refinery value-in-use. These results will inform both customer engagement and the Economics underpinning the PFS.

Sector Context

Bauxite is the primary feedstock for alumina, which is in turn refined into aluminium. Global aluminium Demand is supported by the energy transition — aluminium's light weight and recyclability make it a preferred material for electric vehicle bodies, solar panel frames, and grid infrastructure. Atlantic-basin bauxite supply is gaining attention from refiners seeking Diversification from the dominant West African source region, and Brazil's established bauxite industry and logistics infrastructure are supportive of Amargosa's development ambitions.

Risks and What to Watch Next

As a recently listed company with a PFS still 12 months away, Alurion faces execution risks related to drilling program completion, metallurgical test work outcomes, and the eventual bankability of project economics. The critical mineral co-product thesis adds optionality but also introduces processing complexity. Logistics costs and port expansion approvals will be key DFS inputs.

Investors will be watching the PFS timeline, early metallurgical test work results, any offtake or commercial discussions related to the project, and progress at the Enseada port expansion engineering workstream.