Globally Significant Maiden MRE for Colossus IAC Project
Summary
- Viridis Mining and Minerals has announced a maiden JORC-Compliant Mineral Resource Estimate (MRE) for the Colossus Rare Earth Ionic Adsorption Clay (IAC) Project.
- The MRE is 201Mt @ 2,590ppm total rare earth oxide (TREO) at a 1,000ppm TREO cut-off.
- The Magnet REO (MREO) content is 668ppm across the Colossus resource, ranking as one of the highest globally, resulting in 26% MREO.
- The initial indicated category resources at Colossus are 62Mt @ 2,590ppm TREO.
- Cupim South has an initial resource of 28Mt @ 3,061ppm, composed from only ~15% of the Cupim South Area.
- At a higher cut-off of 3,000ppm TREO, the MRE is 50Mt @ 3,917ppm TREO with 1,144ppm MREO content.
- Only 7% of the Colossus Project Area has been included within the Maiden MRE.
Sentiment
Score: 9
Explanation: The announcement is highly positive due to the significant maiden resource estimate, high grades, favorable location, and potential for future expansion. The management's comments further reinforce the positive outlook.
Positives
- The Colossus Project has a globally significant maiden mineral resource estimate.
- The project boasts high grades of TREO and MREO.
- The project is located in a favorable location with access to infrastructure and support from local and state governments, which will allow Colossus to be fast-tracked through permitting towards production.
- Cupim South ranks as one of the highest-grade individual deposits on the globe.
- The company has identified 47Mt above 4,000ppm TREO and 1,180ppm MREO, which bodes extremely well for project economics.
- The project has enormous potential at Cupim South, having a remarkable grade of 3,061ppm TREO.
- The project has industry-leading Bulk-Sample MREO Metallurgical Recoveries.
Negatives
- Oxidised and leached clays were not considered as part of the resources due to low recoveries from these horizons.
- Transitional material has been excluded until further metallurgical work is completed.
- Blocks with less than 300ppm of MREO were not included in the resource model.
Risks
- The resource estimate excludes leached/soil clays, transitional horizon, and material under 300ppm MREO*.
- The company needs to conduct further metallurgical work on transitional material to include it in future resource upgrades.
- The company needs to conduct further infill drilling at Capo Da Ona and Cupim South in areas where erosion has occurred.
Future Outlook
The company plans to upgrade the resource estimate to include Centro Sul, Tamoyo, Cupim South extensions, Fazenda Cocal and higher indicated portions from Northern Concessions, with a focus on increasing the indicated portion of the current MRE and expanding the Cupim South resource into its Mining License extensions.
Management Comments
- The maiden JORC-Compliant MRE represents an outstanding outcome for the Company, having been defined within only 10 months of the Project acquisition.
- The key highlight and what differentiates our Ionic Adsorption Clay project from our peers is the high levels of Magnet Rare Earth content.
- Cupim South has shown to be one of the highest-grade IAC deposits globally and has a spectacular 857ppm MREO.
- Having already identified 47Mt above 4,000ppm TREO and 1,180ppm MREO, and having extensive untested tenements around the highest-grade global deposit at Cupim South bodes extremely well for project economics.
Industry Context
This announcement positions Viridis Mining and Minerals as a significant player in the rare earth elements sector, particularly in the Ionic Adsorption Clay space, with a focus on high-value magnet rare earth oxides.
Comparison to Industry Standards
- The Colossus Maiden MRE places the project in a tier-1 league of IAC Rare Earth projects.
- The project's advantageous location, high content of valuable MREOs, exceptional recoveries, and access to proximal brownfield infrastructure positions Colossus as the premier development IAC REE asset.
- Compared to peers like Serra Verde Pela Ema, Ionic Rare Earths Makuutu, and Meteoric Resources Caldeira, Colossus demonstrates competitive TREO grades and a high MREO content.
- At a higher cut-off of 3,500ppm, the MREO grade reached an outstanding 1,339ppm (Nd, Pr, Dy, Tb Oxide).
Stakeholder Impact
- Shareholders will likely react positively to the news of the maiden resource estimate and the potential for future growth.
- Employees may benefit from increased job security and opportunities as the project progresses.
- Customers in the rare earth elements supply chain may gain access to a new source of high-quality materials.
- Local communities may benefit from economic development and job creation.
- Suppliers may benefit from increased demand for their products and services.
Next Steps
- Infill drilling (200m x 200m) at Northern Concessions and Cupim South Extension to define an Indicated Resource at both concessions.
- Step-out drilling at Cupim South Extensions and Fazenda Cocal Prospect and further resource development drilling at Capo Da Ona.
- Metallurgical test work program with the Australian Nuclear Science and Technology Organisation (ANSTO) to optimise leaching conditions and kick off Impurity Removal and Mixed Rare Earth Carbonate (MREC) precipitation testing.
- Look to complete the Scoping Study with Hatch Engineering in Q3 2024 and move straight into the Prefeasibility Study.
- Complete Environmental Baseline survey and studies.
- Downstream study and product testing with Ionic Rare Earths Ltd (ASX:IXR) for selective separation to produce Rare Earth Oxides.
Key Dates
- 04 June 2024: ASX Release date for the Colossus Rare Earth Ionic Adsorption Clay Project Maiden Mineral Resource Estimate
Keywords
Filings with Classifications
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.
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.
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.
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.
Interim Financial Report
- The company's net loss after tax decreased compared to the previous year, indicating improved financial performance.
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.
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.
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.
Trading Halt Request
- The company has requested a trading halt pending an announcement regarding a capital raising.
Environmental and Regulatory Update
- The company is continuing to focus on project financing discussions.
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.
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.
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.
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.
Annual General Meeting Results
- Approval of a 10% placement facility was granted.
- Ratification of prior share issues (April and October placements) was approved.
Investor Presentation
- The high-grade nature of the MRE, exceeding expectations, and the exceptional metallurgical recoveries are significantly better than anticipated.
Investor Presentation
- $4 million capital raise completed on 14 October 2024
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.
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.
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.
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.
Trading Halt Announcement
- The company is undertaking a capital raising.
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
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.
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.
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.
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.
Missing type for ID: 2009
- ASX:VMM announces better than expected results.
Missing type for ID: 3480
- ASX:VMM announces worse than expected results.
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.
Exploration Update
- The drilling results have exceeded expectations by discovering higher grades and extending the mineralized zones beyond the previously known resource area.
Mineral Resource Estimate
- The Colossus project has a high MREO content compared to its peers.
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.
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.
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.
Trading Halt Request
- The company is undertaking a capital raising.
- The details of the capital raising will be released in a subsequent announcement.
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.
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.
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.
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.