Viridis Mining & Minerals Advances Toward 2026 Production Readiness for Brazil’s Colossus Rare Earths Project

• Viridis Mining Minerals (ASX:VMM) is developing the Colossus IAC (Ionic Adsorption Clay) Project in Brazil's Minas Gerais state, targeting high-grade NdPr (neodymium, praseodymium, dysprosium, terbium) production with exceptionally low radioactive content.
• The project demonstrates strong economics with an NPV of US$1.41 billion and operating cash flow of US$197 million annually at current prices, supported by grades 4-6 times higher than Chinese competitors and simple extraction processes requiring no blasting.
• Regulatory advantages include radiological exemption from Brazil's nuclear regulator, keeping environmental approvals at state level rather than federal, significantly accelerating the permitting timeline and reducing operational complexity.
• The financing pathway is advancing with backing from leading Brazilian asset managers (up to US$30 million), discussions with Brazil's development bank BNDES, and multiple offtake conversations across Europe, North America, and Brazil.
• Near-term catalysts include environmental approval expected within weeks, demonstration plant operational by Q1 2026, updated mineral resource in Q2 2026, and definitive feasibility study (DFS) completion by June 2026.

The global rare earth market is witnessing a strategic shift as companies outside China seek to establish commercially viable production capabilities. Viridis Mining Minerals, led by Managing Director & CEO Rafael Moreno, is advancing one of the most promising ionic clay rare earth projects globally through its Colossus development in Brazil. With a background spanning 21 years in oil and gas development across four continents before transitioning to critical minerals, Moreno brings deep project execution expertise to a sector where technical and commercial competence often determines success or failure.

Project Fundamentals

The Colossus project, located in Brazil's Minas Gerais state, represents a significant departure from conventional rare earth extraction challenges. The deposit's ionic clay formation allows for remarkably simple extraction processes that leverage natural geological processes.

"The mining part is a free dig. So we obviously use diggers but the fact is that's why they call it shovel and dig. Our deepest pit that we go into is 20-25 meters." 

The geological formation stems from bastnäsite source rock, creating what the company describes as "true ionic clay" where rare earth elements are weakly bonded to clay particles. This formation enables extraction using basic salt solutions at atmospheric temperature and pressure, eliminating the need for complex processing typically associated with hard rock rare earth projects. The consistency of grades across the 250-square-kilometer land package further enhances operational predictability, with drilling results showing uniform mineralization regardless of location or depth.

Critically, the project focuses on the "accumulation zone" within the clay profile, which offers optimal grades and extraction efficiency while avoiding less amenable zones at surface and depth. This selective approach demonstrates technical discipline that prioritizes economic returns over resource size, with the company transparently excluding less suitable material from its resource calculations.

Superior Grade Profile

Viridis has established a compelling competitive position through exceptional grade quality that significantly exceeds global benchmarks. The project's feed grade approaches 1,000 parts per million (ppm) of magnetic rare earth oxides (MREO), with Moreno noting that "our grade is four, five, six times higher than the ones they're mining" when comparing to Chinese operations. This grade advantage provides substantial cost competitiveness, enabling robust economics even at commodity prices that render many competitors uneconomical.

The company's product composition heavily favours high-value elements, with 93-94% of the rare earth basket comprising neodymium, praseodymium, dysprosium, and terbium (NdPr-DyTb). This concentration in permanent magnet elements aligns directly with growing demand from electric vehicle motors, wind turbine generators, and other clean energy applications. 

"Our basket or my product is dominated roughly around 93 to 94% with just those four rare earth elements and not the rest of it." 

Regulatory and Environmental Advantages

A critical differentiator for Colossus lies in its exceptionally low radioactive content, which has secured radiological exemption from Brazil's nuclear regulator. This exemption addresses multiple operational and commercial challenges simultaneously. 

"Our MREC showing that we've got less than 1% uranium and thorium, and there's not many projects globally, if any, that could compete with that level of impurities in their final MREC." 

The regulatory implications extend beyond processing efficiency. Projects with economic-grade uranium face federal-level environmental approvals in Brazil, potentially adding five or more years to development timelines. By maintaining state-level approval jurisdiction, Colossus expects environmental approval within weeks rather than years. Additionally, the low radioactive content enables market access to jurisdictions like the European Union and North America, where regulatory barriers typically restrict entry of higher radioactivity rare earth products.

From an environmental perspective, the project incorporates significant sustainability measures including 100% renewable power supply, 75% water recycling, and immediate site rehabilitation using processed clay materials. These characteristics position the project favorably for ESG-focused investors and offtake partners increasingly emphasizing supply chain sustainability.

Interview with Rafael Moreno, CEO of Viridis Mining & Minerals

Economic Framework

The recently completed pre-feasibility study (PFS) established robust project economics using conservative assumptions. At $90 per kilogram NdPr pricing - approximately current market levels - the project generates a net present value of US$1.41 billion with annual operating cash flow approaching US$200 million. The 5-million-ton-per-annum processing plant supports a 14-year mine life based on current reserves, though the company estimates potential for 60-year operations from existing northern concessions alone.

Operating cost advantages stem from multiple factors including high-grade ore requiring minimal processing, renewable power availability, competitive Brazilian labor costs, and simple metallurgical flowsheets. The project's leverage to commodity pricing provides significant upside potential, with Moreno noting that "every dollar that NdPr goes up, we probably go up around 7 million" in annual cash flow.

Capital expenditure requirements remain moderate relative to project scale and economics, though specific figures await the definitive feasibility study (DFS) expected by June 2026. The company has secured US$11.5 million in recent equity funding plus access to up to US$30 million through strategic partnerships with Brazilian investment managers.

Strategic Partnerships and Financing Pathway

Viridis has established multiple pathways toward project financing through a combination of strategic partnerships, development bank support, and offtake arrangements. The company has secured backing from two leading Brazilian asset managers - Ore Investments and Régia Capital - following extensive due diligence processes. 

"We've been selected by the two leading asset managers in Brazil who've done close to a year's worth of due diligence, who run a very big fund and have selected us not just as the best rare earth project but the best commodity project in Brazil." 

Parallel discussions with BNDES, Brazil's development bank, have progressed to final-stage negotiations for significant project financing. The company has also maintained partnership arrangements with Ionic Rare Earths for downstream processing technology, leveraging established solvent extraction capabilities to advance toward individual rare oxide production.

Offtake discussions span multiple jurisdictions including Europe, North America, and Brazil, with some negotiations linked to specific export credit agency financing arrangements. The company's approach prioritizes integrated financing and offtake solutions that optimize both project returns and execution certainty.

Operational Timeline

The path toward production follows a clearly defined timeline with multiple near-term catalysts. Environmental approval for the EIA remains imminent, expected within weeks according to management guidance. A demonstration plant will commence operations by Q1 2026, providing proof-of-concept validation beyond laboratory-scale testing while satisfying potential conditions precedent for project financing and offtake arrangements.

Resource drilling resumed yesterday following the interview, targeting both infill drilling within designed pit areas and exploration of newly acquired tenements. An updated mineral resource estimate incorporating 46% additional land in northern concessions will support the DFS process, with results expected in Q2 2026 alongside reserve updates and the completed feasibility study.

The company maintains funding through early execution phases, positioning for final investment decision (FID) timing that aligns with market conditions and financing availability. Construction readiness depends primarily on environmental approval completion and demonstration plant results, both achievable within the next 12 months.

Market Context

Global rare earth supply dynamics increasingly favor projects capable of competing with Chinese production while meeting Western supply chain requirements. Colossus addresses multiple market needs simultaneously: grade competitiveness with Chinese ionic clay operations, regulatory compliance for Western market access, and operational simplicity supporting reliable production schedules.

The project's positioning benefits from growing demand for permanent magnet materials driven by electric vehicle adoption, renewable energy deployment, and defense applications. Simultaneously, geopolitical tensions around supply chain security create preference for non-Chinese sources among Western consumers and governments.

"The price can sit down at $50-$60 as we showed in our PFS recently for NdPr and we are making very robust returns."

The Investment Thesis for Viridis Mining & Minerals

• Grade Premium: Feed grades 4-6 times higher than Chinese competitors provide sustainable cost advantages and robust economics across commodity price cycles
• Regulatory Fast-Track: Radiological exemption enables state-level environmental approvals (weeks rather than years) and unrestricted market access to Europe and North America
• Operational Simplicity: Shallow, free-dig mining with atmospheric pressure processing minimizes technical risk and capital requirements compared to hard rock alternatives
• Strategic Element Focus: 93-94% of production concentrated in high-value permanent magnet elements (NdPr-DyTb) directly serving growing EV and renewable energy markets
• Financing Pathway Secured: Backing from leading Brazilian institutions, development bank discussions, and multiple offtake negotiations provide clear route to production
• ESG Advantages: 100% renewable power, 75% water recycling, immediate rehabilitation, and low radioactive content appeal to sustainability-focused investors and customers
• Scale and Longevity: 60-year potential mine life from northern concessions alone provides long-term cash flow visibility supporting premium valuations
• Near-Term Catalysts: Environmental approval (weeks), demonstration plant (Q1 2026), resource update (Q2 2026), and DFS completion (June 2026) offer multiple value inflection points

The global transition toward electrification and renewable energy is fundamentally reshaping rare earth demand dynamics, with permanent magnet elements experiencing the strongest growth trajectory. Electric vehicle adoption alone is projected to drive neodymium and praseodymium demand growth exceeding 15% annually through 2030, while offshore wind deployment requires substantial dysprosium and terbium quantities for high-performance generators. Simultaneously, geopolitical tensions around supply chain security are creating urgent requirements for non-Chinese rare earth sources among Western manufacturers and governments.

China currently dominates both mining and processing of ionic clay rare earths, the preferred source for permanent magnet production due to their favorable element distributions and processing characteristics. However, Chinese environmental regulations and resource depletion are constraining supply growth while global demand accelerates. This supply-demand imbalance, combined with strategic supply chain diversification requirements, creates exceptional opportunities for high-quality projects capable of competing with Chinese production costs while meeting Western regulatory and ESG standards.

Brazil's emergence as a rare earth jurisdiction offers unique advantages including abundant renewable energy, established mining expertise, favourable regulatory frameworks, and strategic proximity to both North American and European markets. Projects like Colossus that combine geological advantages with operational excellence can capture premium valuations by addressing critical supply security needs while delivering superior investment returns.