Viridis Mining and Minerals Ltd
- ASX Code: VMM
- Market Cap: $533,925,362
Viridis Demonstration Plant Exceeds PFS Recovery Assumptions
Viridis Mining and Minerals (ASX: VMM) has confirmed that the Viridis Mining and Minerals Colossus Demonstration Plant recovery results are producing Mixed Rare Earth Carbonate (MREC) at metallurgical recovery rates that exceed the assumptions underpinning its Pre-Feasibility Study (PFS). The results, reported in accordance with JORC standards and independently reviewed, represent a significant step forward in the company's progress toward a Definitive Feasibility Study (DFS) and an eventual Final Investment Decision.
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Recovery Rates That Rewrite the Benchmark
According to the announcement, during the first stabilised continuous operating period — five days of 24-hour operation from 6 to 10 July 2026 — the Demonstration Plant delivered the following results:
| Metric | TREO Recovery | MREO Recovery |
|---|---|---|
| Mean | 64.0% | 78.7% |
| Median | 65.1% | 80.3% |
| Maximum | 68.8% | 80.8% |
| Minimum | 55.2% | 74.3% |
| Std. Deviation | 4.6 | 2.4 |
| CV (%) | 7.27 | 3.12 |
The PFS released on 9 July 2025 adopted recovery assumptions of 76% MREO and 57% TREO for the Northern Concessions. The Demonstration Plant reportedly surpassed both benchmarks during this stabilised window, averaging 78.7% MREO and 64% TREO — outperforming PFS MREO assumptions by approximately three percentage points and TREO assumptions by seven percentage points.
The feed material used during this period was sourced directly from the Northern Concessions, the same area underpinning the early years of the Colossus mine plan. Consequently, the recovery data is considered directly relevant to the DFS and associated financial modelling.
"The Demonstration Plant continues to exceed our expectations and marks another important milestone in the development of the Colossus Project. Every percentage point improvement in recovery translates directly into higher rare earth production from the same ore feed, creating the potential for meaningful improvements in project economics as we progress towards the DFS. Importantly, these results have been achieved while optimisation work remains ongoing." — Managing Director Rafael Moreno
What Is Metallurgical Recovery, and Why Does It Matter?
Metallurgical recovery is one of the more economically significant variables in any mining project. It measures what percentage of a target mineral in raw ore feed is successfully extracted into a saleable product.
In the case of the Colossus Project, rare earth elements are chemically attached to clay particles within the ore. The process flowsheet uses a reagent solution to draw these elements out of the clay, then progressively separates, purifies and precipitates them into MREC — a concentrated intermediate product that can be sold to downstream processors.
A higher recovery rate means more rare earths are captured per tonne of ore processed, which can translate into higher revenue from the same capital infrastructure.
Why every percentage point counts:
- Higher recovery may improve project economics without increasing ore throughput
- Strong recovery performance can support confidence among financiers and offtake partners
- Consistent, repeatable recovery across different operating days signals process robustness rather than a single favourable result
Furthermore, the low coefficient of variation in the results — 3.12% for MREO — is notably significant, indicating that recovery was not only high on average but also consistent from day to day. This quality signal is referenced in the announcement as directly relevant to commercial-scale confidence.
Glossary of Key Terms
| Term | Definition |
|---|---|
| MREO | Magnetic Rare Earth Oxides, the subset of rare earths used in permanent magnets, including Neodymium, Praseodymium, Dysprosium and Terbium |
| TREO | Total Rare Earth Oxides, the full suite of rare earth oxides present in the ore |
| MREC | Mixed Rare Earth Carbonate, the intermediate product produced by the process plant, ready for sale to downstream processors |
| PFS | Pre-Feasibility Study, an engineering and financial study establishing baseline project assumptions |
| DFS | Definitive Feasibility Study, a higher-confidence study used to support a Final Investment Decision |
| PLC | Programmable Logic Controller, an automated industrial control system used to manage continuous plant operations |
| CCD | Counter Current Decantation, a thickening process used to separate solids from liquids in mineral processing circuits |
Daily Performance in Detail
The table below sets out day-by-day feed grades and recovery results across the stabilised operating window, alongside the PFS life-of-mine (LOM) benchmark for reference.
| Operating Day | Feed TREO (ppm) | Feed MREO (ppm) | Residue TREO (ppm) | Residue MREO (ppm) | TREO Recovery | MREO Recovery |
|---|---|---|---|---|---|---|
| 6 July | 2,649 | 816 | 923 | 159 | 65.1% | 80.5% |
| 7 July | 2,383 | 728 | 1,067 | 186 | 55.2% | 74.4% |
| 8 July | 3,382 | 1,068 | 1,137 | 210 | 66.4% | 80.3% |
| 9 July | 3,382 | 1,068 | 1,052 | 204 | 68.9% | 80.9% |
| 10 July | 3,220 | 1,004 | 1,153 | 223 | 64.2% | 77.8% |
| Weighted Average | 3,061 | 957 | 1,086 | 201 | 63.9% | 78.7% |
| PFS LOM Assumption | 3,380 | 936 | — | — | 57% | 76% |
The data indicates that even on the lowest-performing day — 7 July — MREO recovery of 74.4% remained within three percentage points of the PFS assumption, with plant operation and refinement continuing. By 9 July, a single-day MREO recovery of 80.9% had been recorded.
The weighted average feed grade was lower in TREO terms than the PFS LOM average, which the company notes makes the recovery outperformance all the more meaningful.
A Process Flowsheet Validated at Scale
The Demonstration Plant processes 100 kg per hour of clay feed and is described in the announcement as among the largest continuous rare earth processing plants of its kind outside China. Its design mirrors the intended commercial plant flowsheet, meaning optimisation and validation work achieved at demonstration scale is intended to directly inform the DFS engineering basis.
Several process improvements have reportedly been implemented and validated in recent months:
1. MREC Precipitation
Refinements to shear, pH control and recycle rates have improved particle size distribution and filter cake quality, contributing to more consistent product recovery.
2. MREC Filtration
Better understanding of cycle times and cake discharge has produced filter cakes with consistent moisture content, considered a prerequisite for reliable product bagging at commercial scale.
3. Residue Filtration
Optimisation of cycle times, feed pressure and drying stages has generated stable residue filter cakes suitable for mine backfilling, aligned with sustainability standards referenced by the company.
4. CCD Circuit
Flocculation optimisation and feed management improvements have reportedly improved thickener underflow solids content and reduced clay carryover into the MREC product.
5. Water Treatment and Zero Liquid Discharge
Operation of the water treatment package skid has validated zero liquid discharge operation, water recycling and Ammonium Sulphate (Amsul) reagent recovery — both cited as sustainability and cost parameters relevant to the commercial plant.
6. Materials of Construction
Coupon testing has been completed to help confirm appropriate materials for construction of the commercial plant's process vessels and pipework.
In addition, data from an independent SGS laboratory in Belo Horizonte feeds directly into a Power BI platform used to support real-time decision-making by the operational team.
Strategic Partners and Project Stakeholders Taking Notice
The Demonstration Plant is described as serving a dual function — as both an engineering tool and a platform for stakeholder engagement.
Product qualification work is progressing with Solvay, the Belgian specialty chemicals group, with which Viridis signed a Strategic Offtake and Technical Partnership Letter of Intent in June 2026. High-grade MREC samples have been produced to specification and shipped to Solvay's La Rochelle facility in France for qualification testing.
The Rare Earth Research and Processing Centre facility, which hosts the Demonstration Plant, has also hosted independent lenders' engineers supporting the project financing scope of a banking consortium, along with institutional delegations including EU Commissioner Jozef Síkela.
For a project seeking project financing and offtake agreements, demonstrating reliable continuous production of specification-grade product to independent technical evaluators is a milestone the company considers directly relevant to reducing project risk.
What Comes Next: The Road to Final Investment Decision
Viridis has outlined a forward work programme for the Demonstration Plant and the broader project:
| Activity | Purpose |
|---|---|
| Additional reagent and process optimisation | Reduce operating costs; further improve recoveries ahead of DFS finalisation |
| Vendor and EPCM access to Demonstration Plant | Equipment design optimisation; performance guarantee testing |
| Additional MREC sample production | Continue product qualification programme with Solvay |
| Ongoing operator and maintenance training | Build commercial-scale operational capability |
| DFS finalisation | Incorporate Demonstration Plant recovery data into financial model |
| Final Investment Decision | Targeted by management in the coming months |
According to management, financing, permitting, commercial negotiations and DFS activities are progressing in parallel. The company has previously received its Preliminary Licence, and an application for the Installation Licence has been submitted to Minas Gerais environmental authority FEAM.
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Why Investors Should Watch This Closely
Viridis is approaching what management describes as an important stage in the project's development. The Viridis Mining and Minerals Colossus Demonstration Plant recovery results address one of the central uncertainties in any minerals processing project: whether laboratory-scale recovery results translate into commercial-scale performance.
Key points from the announcement include:
- Recovery outperformance: MREO recoveries averaging 78.7% against a PFS assumption of 76% suggest potential upside in project economics once the DFS is finalised
- Process repeatability: A coefficient of variation of 3.12% for MREO recovery is presented as evidence that performance has been stable across the reporting period
- Scale of validation: At 100 kg per hour, the Demonstration Plant is a continuously operating facility producing specification-grade product
- Partnership engagement: Ongoing MREC qualification work with Solvay indicates commercial interest from a downstream partner
- DFS and FID timeline: Management has indicated a Final Investment Decision target in the coming months, with financing and permitting activities advancing concurrently
- Resource base: The Colossus Project holds a Mineral Resource Estimate and Ore Reserve Estimate, with the Northern Concessions underpinning the early years of the mine plan
"Viridis Mining and Minerals has reported Demonstration Plant results that exceed the recovery assumptions on which its PFS economics were built. With a DFS incorporating these results, project financing activities underway, product qualification advancing with Solvay, and a Final Investment Decision targeted in the coming months, the Viridis Mining and Minerals Colossus Demonstration Plant recovery results add meaningfully to the development case for the Colossus rare earth project."
Want to Know More About Viridis Mining and the Colossus Project?
With Demonstration Plant recoveries exceeding PFS assumptions, a Definitive Feasibility Study incorporating these results on the horizon, and a Final Investment Decision targeted in the coming months, Viridis Mining and Minerals (ASX: VMM) is approaching a pivotal stage in the development of the Colossus rare earth project. Investors looking to understand the full scope of the project's progress, process validation results, and strategic partnerships can read the complete ASX announcement here.
