Viridis Mining Unveils 140% Resource Surge at Colossus, Sets New Rare Earth Benchmark

Resource Expansion and Global Significance

Viridis Mining and Minerals Limited (ASX: VMM) has delivered a transformative update on its flagship Colossus Rare Earth Project in Minas Gerais, Brazil. The company reported a 140% increase in its JORC Mineral Resource Estimate (MRE), now standing at an impressive 493 million tonnes grading 2,508ppm Total Rare Earth Oxide (TREO) and 601ppm Magnetic Rare Earth Oxide (MREO). This upgrade establishes Colossus as the largest and highest-grade ionic adsorption clay (IAC) style rare earth deposit globally, a significant milestone in the rare earth sector.

The resource upgrade is underpinned by extensive drilling campaigns across the Northern Concessions and Southern Complex, with a substantial portion, 329 million tonnes, classified as Measured and Indicated, providing strong confidence for near-term mine planning. Notably, a premium segment of the deposit contains 106 million tonnes grading above 4,000ppm TREO and 1,000ppm MREO, positioning Colossus at the forefront of rare earth mineralisation quality worldwide.

Scoping Study Validates World-Class Economics

Complementing the resource upgrade, Viridis released a comprehensive Scoping Study that confirms Colossus’ potential as a world-leading rare earth development. The study envisions a 20-year mine life with an initial 5 million tonnes per annum production facility, leveraging the high-grade Measured and Indicated resources from less than 13% of the total tenement area.

Financially, the project demonstrates robust economics with a pre-tax Net Present Value (NPV8) of approximately US$1.43 billion (AUD $2.26 billion) based on a conservative long-term NdPr price forecast of US$90/kg. Even under a lower spot price scenario of US$60/kg NdPr, the project maintains a pre-tax NPV8 of US$719 million (AUD $1.13 billion), underscoring its resilience to market volatility.

Viridis highlights Colossus as the lowest-known cost producer globally, with an all-in sustaining cost (AISC) of just US$8.8 per kilogram of TREO. This cost advantage stems from the unique ionic adsorption mineralisation, enabling simple, environmentally friendly processing using a low-cost ammonia sulphate flowsheet powered by 100% renewable energy. The project’s design prioritises Magnetic Rare Earth Oxides, which command premium market prices, further enhancing its economic profile.

Regulatory Progress and Strategic Funding

On the regulatory front, Viridis achieved critical milestones by submitting the Environmental Impact Assessment (EIA) and Relatório de Impacto Ambiental (RIMA) to the Environmental Agency of Minas Gerais (FEAM). The company also secured the Certificate of Regularity for Land Use and Occupation from the Municipality of Poços De Caldas, a vital prerequisite for obtaining the Preliminary Licence required to advance mining operations.

These approvals reflect strong local support and position the project for a streamlined permitting pathway. Public consultation processes are anticipated to commence in the second quarter of 2025, marking a key step toward construction licensing.

To support its transition into the next development phase, Viridis successfully raised $3.5 million through a placement to institutional and sophisticated investors at $0.33 per share. The funds will underpin the Definitive Feasibility Study, demonstration plant design, and early site access, ensuring disciplined capital management as the company advances.

Geopolitical Context Reinforces Strategic Importance

Subsequent to the quarter’s end, China’s Ministry of Commerce introduced tightened export restrictions on seven medium and heavy rare earth elements, including Dysprosium and Terbium, key components of Colossus’ resource. This move is expected to disrupt global supply chains and heighten demand for secure, non-Chinese sources of critical rare earths.

Viridis’ Colossus Project is thus strategically positioned to become a vital supplier in the evolving global rare earth landscape, reinforcing its significance amid geopolitical shifts and supply chain realignments.

Broader Portfolio and Outlook

Beyond Colossus, Viridis maintains a diversified portfolio with exploration projects in Canada and Australia, including gold prospects in Nunavut and kaolin-halloysite deposits in South Australia and New South Wales. While these projects remain in earlier stages, they contribute to the company’s long-term growth potential.

Viridis’ disciplined approach to exploration and development, combined with its recent capital raise and regulatory progress, positions it well for the next chapter of growth. The company’s focus on delivering a low-cost, environmentally sustainable rare earth operation aligns with global trends toward critical mineral security and green technologies.