VMM
Viridis Mining and Minerals Limited
ASX
Colossus Hits Largest M&I and Highest-Grade MREO Resource
Sentiment:
Exploration Update
21 January 2025 5:27 PM
Viridis Mining and Minerals' Colossus project has significantly increased its JORC-compliant mineral resource estimate, establishing itself as a global leader in high-grade rare earth deposits.
Better than expected
The resource estimate has increased by 140%, which is better than expected.
The project has the largest and highest-grade MREO resource in the Measured & Indicated categories globally, which is better than expected.
Metallurgical recoveries are industry-leading, which is better than expected.
Summary
- Viridis Mining and Minerals has announced a major upgrade to the Mineral Resource Estimate (MRE) at its Colossus project.
- The updated MRE shows a 140% increase in size, now totaling 493 million tonnes at 2,508 ppm total rare earth oxide (TREO) using a 1,000 ppm TREO cut-off.
- The Colossus project is now considered to have the largest and highest-grade accumulation of critical magnetic rare earth oxides (MREO) in the Measured & Indicated categories globally, with 329 million tonnes at 2,680 ppm TREO and 659 ppm MREO.
- A high-grade zone of 106 million tonnes at over 4,000 ppm TREO and over 1,000 ppm MREO has been identified, which is expected to provide a long-life feedstock for the project.
- The Tamoyo prospect has reported the highest MREO content among Viridis' prospects, with 770 ppm MREO within an initial inferred resource of 18 million tonnes at 2,896 ppm TREO.
- The resource update only covers 11% of the total Colossus Project area, indicating substantial room for further exploration and growth.
- Metallurgical testing has shown high ore to MREC recoveries using a near-neutral pH solution.
Sentiment
Score: 9
Explanation: The document is overwhelmingly positive, highlighting significant resource upgrades, high grades, and strong metallurgical results. The management's comments are also very optimistic, and the project is positioned as a global leader in the sector. The only minor negatives are the exclusion of some materials from the resource model and the need for further studies, which are typical for this stage of development.
Positives
- The Colossus project has a significantly increased resource size and grade.
- The project has the largest and highest-grade MREO resource in the Measured & Indicated categories globally.
- There is a substantial high-grade feed zone that will support robust project economics.
- The Tamoyo prospect shows very high MREO content.
- The project has enormous potential to expand the resource with only 11% of the land holding explored.
- Metallurgical testing shows high recoveries using a cost-effective and environmentally friendly process.
- The project is well-positioned to withstand fluctuations in rare earth pricing cycles.
Negatives
- The document notes that metallurgical studies have shown low recoveries from oxidised and leached clays, which are excluded from the resource model.
- Transitional material has lower recoveries than the ore at the accumulation zone, requiring a more stringent cut-off.
- While portions of the transitional zone have sufficient drill spacing to be classified as Indicated Resources, they have been conservatively kept as Inferred due to the need for additional metallurgical studies.
Risks
- The project is located within the Atlantic Forest biome, requiring comprehensive Environmental Impact Assessments and compliance with local environmental standards.
- The project's water requirements must be met using existing and nearby reservoirs, and water recycling is necessary to avoid industrial effluent discharge.
- Tailings management requires backfilling into mined-out pits to promote ecological recovery.
- The document mentions that the resource model excludes leached/soil clays and transitional ore under 330ppm MAG_REO, which could impact the overall resource size if these materials are not economically viable.
- The project is still in the development phase, and the scoping study is yet to be released, which could reveal further challenges or risks.
Future Outlook
The company expects significant growth upon completing exploration across the Southern Complex, greenfield concessions, and infill drilling. They are also progressing with mine planning, a scoping study, and environmental impact assessments.
Management Comments
- Rafael Moreno, Chief Executive Officer, stated he is very proud of the exceptional work and results achieved by the team with this updated resource estimate.
- He highlighted the immense potential of the Colossus Project to deliver a mine plan of ultra-high grade ore for many years.
- He also mentioned that the project has the potential to reset the cost curve due to its cheap and benign flowsheet.
- He is excited to release the Scoping Study, showcasing the results at the current spot price.
Industry Context
This announcement positions Viridis as a major player in the rare earth sector, particularly in the Ionic Adsorption Clay (IAC) space. The high MREO content and large resource size are significant advantages in a market where these elements are critical for green energy and high-tech applications. The project's ability to withstand pricing fluctuations is also a key differentiator.
Comparison to Industry Standards
- The Colossus project's MREO grade of 601ppm across 493Mt is higher than most of its peers, including Serra Verde's Pela Ema project (242ppm MREO across 911Mt) and Ionic Rare Earths' Makuutu project (152ppm MREO across 617Mt).
- The Measured & Indicated resource of 329Mt @ 659ppm MREO is also the highest among comparable IAC projects, surpassing Meteoric Resources' Caldeira project (630ppm MREO across 308Mt) and Aclara's Penco Module (523ppm MREO across 28Mt).
- The project's high MREO content is a key factor in determining profitability, as these elements are more valuable than other rare earth elements.
- The document highlights that Colossus has industry-leading MREC recoveries from a cost-effective and environmentally friendly flowsheet, which is a significant advantage over other projects.
Stakeholder Impact
- Shareholders will likely see a positive impact due to the significant increase in the resource estimate and the project's strong positioning in the market.
- Employees may benefit from job security and potential growth opportunities as the project advances.
- Customers will have access to a reliable supply of high-quality rare earth elements.
- Suppliers may see increased business opportunities as the project moves towards production.
- Creditors may view the project more favorably due to the increased resource size and potential profitability.
Next Steps
- Detailed mine planning will be completed in the coming weeks.
- The company will finalize its Scoping Study.
- The company is focused on finalizing the Environmental Impact Assessment for the Preliminary Environmental Licence (LP) submission.
- Step-out drilling at the Southern Complex to expand the high-grade deposit.
- Infill drilling at the Northern Concessions to upgrade high-grade zones from Indicated to Measured categories.
- Metallurgical studies to refine recoveries within transitional zones and at depth.
- Scout auger drilling to explore untested concessions.
Key Dates
- 12 December 2024: Maiden MREC Product from Southern Complex was announced.
- 22 January 2025: Date of the ASX release announcing the updated Mineral Resource Estimate.
Keywords
Rare Earth Elements, MREO, TREO, Mineral Resource Estimate, JORC, Colossus Project, Ionic Adsorption Clay, Metallurgical Recoveries, Exploration, Mining
VMM
Viridis Mining and Minerals Limited
ASX
Sector: Materials
Filings with Classifications
Capital raise
26 May 2025 7:16 PM
Operational Update
- Viridis and Viridion are well-placed to capitalize on significant funding opportunities provided by two FINEP / BNDES Public Calls, which total R$8 Billion (approximately US $1.4 Billion) for strategic mineral transformation and R&D centers.
- The potential funding available will fast-track the Colossus and Viridion development timelines, indicating a future capital injection to accelerate project progress.
Better than expected
26 May 2025 7:16 PM
Operational Update
- The document highlights 'exceptional project economics even at todays cyclical low rare earth prices', indicating strong performance despite challenging market conditions.
- The successful delivery of the first locally sourced rare earth oxides to Latin America's only magnet manufacturer is described as a 'significant milestone', surpassing typical expectations for project development.
- The unique positioning of Viridion as the 'only local source of oxides to Brazil and broader Latin America' provides a strategic advantage that exceeds standard market positioning.
Better than expected
30 April 2025 12:14 AM
Quarterly Activity Report
- The JORC Mineral Resource Estimate (MRE) at the Colossus Project increased by 140%, reaching 493Mt @ 2,508ppm TREO and 601ppm MREO, which is better than previous estimates.
Capital raise
13 March 2025 12:50 AM
Interim Financial Report
- The company completed a $3.5 million placement on February 4, 2025, at $0.33 per share.
- The company completed a placement to raise A$4 million through an equity issue at $0.52 per share in October 2024.
Better than expected
13 March 2025 12:50 AM
Interim Financial Report
- The company's net loss after tax decreased compared to the previous year, indicating improved financial performance.
Better than expected
24 February 2025 10:08 PM
Scoping Study Announcement
- The Colossus project's economics, including a pre-tax NPV8 of US$1.43 billion and an IRR of 43%, suggest better than expected results.
Better than expected
12 February 2025 9:14 PM
Project Update
- The Colossus project boasts the largest and highest-grade MREO Measured & Indicated IAC resource globally.
- Metallurgical testing shows industry-leading MREO recoveries of 76-78% using a cost-efficient and environmentally friendly process.
Capital raise
3 February 2025 5:27 PM
Reinstatement Announcement
- The reinstatement of trading is directly linked to an announcement regarding a capital raising.
- The company is expected to announce details of the capital raising soon.
Capital raise
29 January 2025 5:16 PM
Trading Halt Request
- The company has requested a trading halt pending an announcement regarding a capital raising.
Capital raise
27 January 2025 4:32 PM
Environmental and Regulatory Update
- The company is continuing to focus on project financing discussions.
Better than expected
21 January 2025 6:35 PM
Resource Upgrade Announcement
- The resource size increased by 140%, which is significantly better than expected.
- The Measured & Indicated resource is now the largest and highest grade globally, which is better than industry standards.
Better than expected
21 January 2025 5:27 PM
Exploration Update
- The resource estimate has increased by 140%, which is better than expected.
- The project has the largest and highest-grade MREO resource in the Measured & Indicated categories globally, which is better than expected.
- Metallurgical recoveries are industry-leading, which is better than expected.
Better than expected
11 December 2024 5:56 PM
Exploration Update
- The results are better than expected due to the industry-leading 78% MREO recoveries, which exceed typical recoveries in similar projects.
- The low impurity level of approximately 0.7% is significantly better than global benchmarks for public IAC projects.
- The high TREO content of 58% in the final MREC product, along with a 38% MREO/TREO ratio, surpasses expected values and indicates a high-quality deposit.
Better than expected
3 December 2024 5:35 PM
Exploration Update
- The drill results were significantly better than expected due to the discovery of multiple exceptionally thick and high-grade rare earth intercepts, exceeding previous expectations for both grade and width.
Capital raise
28 November 2024 11:38 PM
Annual General Meeting Results
- Approval of a 10% placement facility was granted.
- Ratification of prior share issues (April and October placements) was approved.
Better than expected
19 November 2024 5:19 PM
Investor Presentation
- The high-grade nature of the MRE, exceeding expectations, and the exceptional metallurgical recoveries are significantly better than anticipated.
Capital raise
19 November 2024 5:19 PM
Investor Presentation
- $4 million capital raise completed on 14 October 2024
Better than expected
13 November 2024 5:44 PM
Metallurgical Test Results
- The ionic recoveries achieved at the Southern Complex significantly exceeded expectations, surpassing all previous results at the Colossus project and demonstrating a superior economic profile.
Capital raise
29 October 2024 9:17 PM
Annual General Meeting Notice
- Resolution 4 seeks shareholder approval for a 10% placement facility, potentially raising additional capital.
- Resolution 10 seeks approval to issue 1,712,308 October Placement Shares to Tranche 2 participants, potentially raising approximately $0.9 million.
Better than expected
29 October 2024 6:51 PM
Exploration Update
- The drilling results significantly exceeded expectations, with multiple intersections revealing exceptionally high grades and thicknesses of rare earth elements, particularly MREOs, far surpassing previous models.
Better than expected
13 October 2024 6:22 PM
Capital Raise Announcement
- The successful A$4 million placement exceeded expectations, demonstrating strong investor confidence in the company and its Colossus project.
- The exceptional maiden MREC results from the Colossus project significantly exceeded expectations, showcasing superior economics and potential to disrupt the industry.
Capital raise
9 October 2024 6:42 PM
Trading Halt Announcement
- The company is undertaking a capital raising.
Capital raise
20 September 2024 4:22 AM
Annual Report
- The company's ability to issue additional shares under the Corporation Act 2001 to raise further capital. The Group has a history of successfully raising funds from equity raisings in the past
Worse than expected
20 September 2024 4:22 AM
Annual Report
- The company reported a significant net loss after tax of $8,314,168 for FY2024, substantially exceeding the previous year's loss of $814,226, indicating worse than expected financial performance.
Better than expected
12 August 2024 7:21 PM
Exploration Update
- The company acquired new tenements at a low cost, expanding its landholding in key prospects.
- Drilling results indicate high-grade mineralisation in the Cupim South Extension.
Better than expected
31 July 2024 12:51 AM
Quarterly Activity Report
- The company announced a globally significant maiden MRE for the Colossus IAC Project of 201Mt @ 2,590ppm TREO with 668ppm MREO.
- Metallurgical test work at the Colossus IAC Project achieved high bulk composite sample recoveries globally, averaging 79% recovery in a 30-minute leach cycle.
Better than expected
29 July 2024 7:28 PM
Exploration Update
- The drilling results are better than expected due to the high TREO grades and MREO concentrations discovered at the Cupim South extension.
- The infill drilling at the Northern Concessions returned grades over twice the block model estimates, indicating a significant improvement in the resource potential.
Better than expected
16 July 2024 7:15 PM
Missing type for ID: 2009
- ASX:VMM announces better than expected results.
Worse than expected
10 July 2024 9:28 PM
Missing type for ID: 3480
- ASX:VMM announces worse than expected results.
Better than expected
2 July 2024 6:58 PM
Market Announcement
- The granting of the Cupim South mining licenses and Centro Sul exploration licenses is better than expected as it secures critical tenements for the company's development strategy.
Better than expected
11 June 2024 7:13 PM
Exploration Update
- The drilling results have exceeded expectations by discovering higher grades and extending the mineralized zones beyond the previously known resource area.
Better than expected
3 June 2024 6:55 PM
Mineral Resource Estimate
- The Colossus project has a high MREO content compared to its peers.
Better than expected
8 May 2024 7:27 PM
Investor Presentation
- The document highlights better than expected results due to the high grades of rare earth elements found near the surface.
- The document highlights better than expected results due to the high recoveries achieved in initial metallurgical testing.
- The document highlights better than expected results due to the strategic partnerships and government support secured.
Better than expected
7 May 2024 6:31 PM
Exploration Update
- The drilling results at Ribeirao encountered significantly higher grades than previously anticipated, improving the potential resource estimate.
- The mineralized footprint at Cupim South has doubled, indicating a larger resource potential than initially expected.
Better than expected
29 April 2024 6:14 PM
Quarterly Activity Report
- The drilling results exceeded expectations with high-grade zones and new discoveries.
- Metallurgical testing showed exceptional ionic adsorption recoveries.
- The company secured additional mining rights and expanded its land position.
Capital raise
17 April 2024 7:49 PM
Trading Halt Request
- The company is undertaking a capital raising.
- The details of the capital raising will be released in a subsequent announcement.
Better than expected
17 April 2024 6:26 PM
Metallurgical Test Results Announcement
- The maiden bulk met test work completed at Colossus exceeded expectations.
- The average ionic recoveries of magnet rare earth elements (MREE), including Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy), and Terbium (Tb), outperformed every publicly known IAC prospect and deposit globally.
Better than expected
9 April 2024 6:30 PM
Exploration Update
- The discovery of the highest peak grade publicly reported by any company within the entire Complex of 27,087ppm TREO is better than expected.
Capital raise
2 April 2024 6:07 PM
Joint Venture Announcement
- The Parties acknowledge and agree that on and from the Commencement Date (being the date the JV Co is incorporated), a detailed budget and funding model will be developed to inform future funding requirements, which must be agreed by both Parties.
Better than expected
2 April 2024 6:07 PM
Joint Venture Announcement
- The joint venture aims to be the first producer of refined Rare Earth Oxides (REO) in Brazil, utilizing innovative separation and recycling technologies, which is better than the current industry standard.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.