Funding and Approvals Pose Next Hurdles for Viridis’ High-Value Colossus Rare Earth Project

Overview of Colossus Project Economics

Viridis Mining and Minerals Limited has unveiled the results of a detailed Pre-Feasibility Study (PFS) for its flagship Colossus Rare Earth Project located in Poços de Caldas, Brazil. The study confirms the project’s world-class economic potential, underpinned by a 20-year life of mine (LOM) and robust financial metrics. With an after-tax net present value (NPV8) of US $899 million and an internal rate of return (IRR) of 34%, Colossus stands out as a financially resilient rare earth development.

Operating costs are impressively low, with a C1 production cost of US $6.20 per kilogram of total rare earth oxides (TREO), placing Colossus among the lowest-cost producers globally. Capital expenditure is estimated at US $286 million (excluding contingency), reflecting a capital-efficient project design.

Strategic Resource and Processing Advantages

The project benefits from a substantial and high-grade resource base, with a JORC-compliant Mineral Resource of 493 million tonnes at 2,508 ppm TREO, including 601 ppm of magnetic rare earth oxides (MREO) such as neodymium, praseodymium, dysprosium, and terbium. The PFS mine plan conservatively utilizes only 20% of this resource, highlighting significant upside potential.

Colossus’ ionic adsorption clay mineralisation enables a simple, low-cost processing route using ammonium sulfate leaching at ambient conditions. This metallurgical advantage, validated by the Australian Nuclear Science and Technology Organisation (ANSTO), delivers high recoveries and a premium mixed rare earth carbonate (MREC) product with low impurities, enhancing market appeal and payability.

Robust Project Design and Environmental Credentials

The mining operation is designed as a low-impact, free-dig open-pit with a low strip ratio of 0.4, 1, integrating progressive backfilling of processed residue to mined-out pits. This approach minimizes surface disturbance and aligns with best-in-class sustainability standards. The project is powered entirely by renewable energy sources, further reducing its carbon footprint.

Viridis has made significant permitting progress, including submission of a comprehensive Environmental Impact Assessment and securing the Certificate of Regularity for Land Use from local authorities. These milestones de-risk the project’s development timeline, targeting production commencement in 2028.

Market Positioning and Funding Strategy

Colossus is strategically positioned to supply high-purity rare earth feedstock to Western markets seeking to diversify away from Chinese dominance. The project’s premium MREC product, combined with its competitive cost structure, makes it attractive to OEMs, rare earth separators, and strategic investors.

Viridis is actively engaging with a broad range of funding partners, including Brazilian government agencies, export credit agencies, and strategic industry players. The company aims to secure a balanced funding package with 50–75% debt financing complemented by strategic partner contributions and minimal equity dilution.

Outlook and Next Steps

Following the PFS, Viridis plans to advance the Definitive Feasibility Study (DFS), pilot plant testing, and finalize environmental approvals. The company is also progressing offtake negotiations and funding discussions to underpin project development.

With its strong technical foundation, robust economics, and strategic positioning, Colossus is poised to become a cornerstone of the Western rare earth supply chain, supporting critical technologies in electric vehicles, renewable energy, and advanced electronics.