Viridis Achieves Financing Milestone with Colossus Resource Upgrade

Measured Resource Upgrade Advances Financing Prospects

Viridis Mining and Minerals Limited (ASX:VMM) has hit a major milestone at its Colossus ionic adsorption clay rare earth project in Brazil, announcing a significant upgrade to its Mineral Resource Estimate (MRE). The standout is the leap in high-confidence Measured Mineral Resources to 31 million tonnes grading 2,858ppm total rare earth oxides (TREO) and 758ppm magnetic rare earth oxides (MREO). This upgrade not only boosts geological confidence but also satisfies a key technical condition for project debt financing, moving the company closer to a Final Investment Decision (FID) targeted in the second half of 2026.

The overall Colossus resource now stands at 473 million tonnes at 2,505ppm TREO and 592ppm MREO, maintaining its position as the world's highest-grade and largest ionic adsorption clay (IAC) rare earth resource. The emphasis on MREO, elements like neodymium, praseodymium, dysprosium, and terbium, is crucial as these magnet rare earth oxides drive project economics more than TREO alone.

High-Grade Feedstock and Robust Project Economics

Viridis has delineated a premium-grade inventory of 97 million tonnes exceeding 4,000ppm TREO and 1,000ppm MREO, providing a substantial feedstock for the early years of production. This high-grade material underpins expectations for strong early cash flows and rapid capital payback, essential for attracting and securing financing.

Managing Director Rafael Moreno highlighted that the resource upgrade was precisely aligned with the company’s objectives, delivering a solid foundation for the highest-value production years. He noted that despite the resource covering only around 12% of the company’s landholding, Colossus already boasts nearly half a billion tonnes of mineralisation with industry-leading MREO grades.

Technical Rigor and Metallurgical Excellence

The updated resource incorporates data from 1,684 drill holes, including auger, reverse circulation, and diamond drilling, with infill drilling reducing spacing to as close as 75m×75m in priority zones. The resource model applies conservative cut-offs and excludes oxidised and leached clays to focus on economically viable mineralisation.

Metallurgical test work by SGS Geosol and the Australian Nuclear Science and Technology Organisation (ANSTO) confirms exceptional recoveries of magnetic rare earth oxides, up to 78% in key zones, using a cost-effective ammonium sulfate leach at near-neutral pH and ambient conditions. This environmentally friendly process supports the production of a Mixed Rare Earth Carbonate (MREC) product with up to 60% TREO and over 39% MREO, enhancing the project's economic competitiveness.

Advancing Toward Definitive Feasibility and Production

With the resource upgrade in place, Viridis is finalising an updated Ore Reserve estimate to convert Measured Resources into Proven Reserves, a critical step for project financing. The Definitive Feasibility Study (DFS) is nearing completion, with a planned release in August 2026 to provide a detailed technical and economic framework for engineering and financing.

The company is also progressing long-lead equipment procurement, targeting orders for four key packages in the third quarter of 2026, and aims to award the Engineering, Procurement and Construction Management (EPCM) contract shortly thereafter. Binding offtake and technical services agreements with strategic partner Solvay are expected to be finalised in the same quarter, further de-risking the project.

Sustainability and Environmental Stewardship

Colossus is situated within Brazil’s Atlantic Forest biome, a protected area with high biodiversity value. Viridis has secured its Preliminary License following comprehensive environmental impact assessments and has submitted its Installation License application. The project incorporates rigorous environmental management programs, including erosion control, water quality monitoring, flora and fauna conservation, and operational controls to minimize dust and noise.

Water use is managed with a 75% recirculation target supported by advanced treatment systems, and tailings will be backfilled into mined-out pits to expedite environmental recovery. These measures demonstrate a commitment to sustainable mining practices aligned with regulatory requirements.

Global Benchmark and Growth Potential

Colossus now sets a global benchmark for IAC rare earth projects, combining world-class scale with exceptional grade and metallurgical recoveries. Its MREO content and high-value feedstock position it in a tier-one league among global peers, capable of supporting a long-life mine plan with robust economics.

Importantly, the updated resource covers only a fraction of the project area, with significant exploration upside remaining. Viridis plans ongoing step-out and infill drilling campaigns to expand and upgrade resources further, alongside metallurgical studies to optimise recoveries in transitional zones.

As the company advances toward first production in the first half of 2028, the Colossus Project is poised to play a pivotal role in critical rare earth supply chains, supporting green energy, electric vehicles, and high-tech industries globally.