Viridis Mining Completes Colossus Rare Earth Project Definitive Feasibility Study

Viridis Mining Delivers Definitive Feasibility Study for Colossus Rare Earth Project

Viridis Mining and Minerals (ASX: VMM) has completed the Viridis Mining Colossus rare earth project definitive feasibility study in Brazil, confirming what the company describes as a technically robust and commercially advanced development pathway. The study, led by engineering firm Hatch, sets out project economics, a cost structure positioned at the lower end of the global industry cost curve, and a schedule targeting a Final Investment Decision by late 2026.

For investors tracking the rare earth sector, the announcement is notable given Colossus is positioned as one of a limited number of near-term sources of non-Chinese rare earth supply to Western markets. The project's revenue is anchored by neodymium-praseodymium (NdPr), dysprosium (Dy) and terbium (Tb), the key inputs for permanent magnets used in electric vehicles and wind turbines.

Headline Financial Metrics

According to the DFS, the project's financials hold up under two distinct pricing scenarios: current Chinese spot prices and a more conservative Western floor price framework. This dual-scenario approach is intended to demonstrate that the investment case is not dependent on a single pricing environment.

The company states the near-identical outcomes across both scenarios reflect the strength of Colossus' diversified rare earth basket. When NdPr prices are lower under the Western floor scenario, higher Dy and Tb prices largely compensate, which the DFS presents as evidence of basket resilience.

What Is Ionic Adsorption Clay, and Why Does It Matter?

Understanding the underlying geology helps explain the project's reported cost advantages. Ionic adsorption clay (IAC) mineralisation forms through prolonged tropical weathering of alkaline bedrock. Rainwater releases rare earth elements from parent rocks, and these migrate downward through the soil profile, becoming weakly attached, or "adsorbed", onto the surfaces of clay minerals, predominantly kaolinite.

The processing implications are significant for investors. Because the rare earth ions are loosely bound to clay particles rather than locked inside hard rock, they can reportedly be released using a low-energy leach solution — in Colossus' case, a 0.3M ammonium sulphate solution at ambient temperature. This avoids the high-temperature roasting, acid baking, or energy-intensive crushing and grinding typically required for hard-rock deposits.

According to the company, the resulting advantages include:

• Lower energy consumption and a reduced environmental footprint
• A simpler processing flowsheet with fewer major processing steps
• Lower capital and operating costs relative to hard-rock peers
• Free-dig mining, requiring only excavators and trucks rather than drilling and blasting

Furthermore, Viridis states that Colossus hosts the highest-grade Magnetic Rare Earth Oxide (MREO) Measured and Indicated IAC resource reported globally, meaning the ore is comparatively enriched in higher-value rare earths rather than diluted with lower-value lanthanum and cerium.

Glossary of Key Terms

A Cost Profile Positioned at the Lower End of the Industry Curve

According to independent market specialist Project Blue, Colossus is positioned at the lowest end of the first quartile of the global rare earth industry cost curve on a total REO basis.

The company attributes this cost position to several factors:

1. Free-dig ionic clay mining, which eliminates blasting costs and reduces equipment intensity
2. Ambient-temperature ammonium sulphate leaching, avoiding energy-intensive processing
3. A high MREO-to-TREO ratio of approximately 25%, meaning a greater share of production comes from higher-value rare earths
4. Progressive pit backfilling using residue classified as non-hazardous, removing the need for a conventional tailings dam
5. Established regional infrastructure in Poços de Caldas, reducing offsite infrastructure requirements

The C1 estimate was supported by a third-party energy broker for power pricing, independent logistics studies, regional labour benchmarking and specialist reagent market assessments, according to the DFS.

An Upgraded MREC Product Designed for Stronger Marketability

The DFS incorporates a refining circuit that selectively removes lower-value lanthanum from the crude MREC stream — an enhancement relative to the earlier Pre-Feasibility Study (PFS).

The upgraded product is reported to contain approximately 63.9% NdPr oxides and 2.8% DyTb oxides, compared with 37.4% NdPr and 1.5% DyTb under the PFS. Viridis states this concentrated product should consequently command stronger payability and reduced transport costs per payable unit.

The refining strategy draws on Solvay's rare earth separation expertise under a Letter of Intent signed in June 2026. Solvay has operated in Brazil for more than 100 years through its Paulínia manufacturing complex, and has agreed key commercial and technical principles for a broader partnership with Viridis. MREC samples produced at the Colossus Demonstration Plant have been shipped to Solvay's La Rochelle facility in France for product qualification.

Demonstration Plant Results Reported to Exceed DFS Assumptions

A notable feature of the Viridis Mining Colossus rare earth project definitive feasibility study is that the process flowsheet has been tested at what the company describes as the largest known semi-industrial, continuous rare earth operation outside China, using representative Colossus ore.

During stabilised continuous operation from 6 to 31 July 2026, the Demonstration Plant reportedly achieved:

• Average MREO recoveries of 78.1%, with a median of 79.9%, exceeding the DFS design assumptions of 76 to 78%, whilst processing comparatively difficult-to-leach shallow material
• CCD (counter-current decantation) underflow densities of 41 wt.% solids and rare earth precipitation recoveries exceeding 98%
• Overflow clarities below 10 ppm solids, compared with the DFS design target of 50 ppm
• Filtration results meeting DFS targets of less than 25 wt.% moisture
• Spent solution concentration meeting targets for ammonium sulphate concentration and 65% water recovery

"The completion of the Colossus DFS is a defining milestone for Viridis. It confirms not only the industry-leading economics and resilience of Colossus, but importantly the significant maturity the Project has achieved across engineering, metallurgy, commercial arrangements and execution," said Rafael Moreno, Managing Director. "Our Demonstration Plant is outperforming the recoveries assumptions underpinning the DFS, the majority of the first five years is supported by Proved Ore Reserves, key offtake commercial terms have been finalised, Goldman Sachs is leading an advanced financing process, and we are positioned to award the EPCM contract and place orders for critical long-lead equipment."

Despite these outperforming results, the DFS economic model conservatively retains the metallurgical recovery assumptions derived from testwork by the Australian Nuclear Science and Technology Organisation (ANSTO), meaning the Demonstration Plant performance represents unbooked upside to the reported economics.

Ore Reserve and Resource Base

The DFS Ore Reserve is intended to provide the geological foundation for project financing discussions.

Ore Reserve Summary, August 2026

Key points from the Ore Reserve statement include:

• The 200.1Mt Ore Reserve supports approximately 41 years of potential mine life at 5Mtpa, with the 25-year Production Target representing a conservative subset of this schedule
• 27.4Mt of Proved Ore Reserves underpin the majority of the first five years of production
• Colossus is reported to hold one of the largest contained TREO inventories, at approximately 579kt, among publicly disclosed ex-China IAC rare earth projects
• The Production Target uses approximately 26% of the 473Mt Mineral Resource
• The Mineral Resource covers only approximately 12% of Viridis' 240km² landholding within the Poços de Caldas Alkaline Complex

TREO grade increased by 9.7% between the PFS and DFS reserve estimates, lifting contained TREO from approximately 530kt to 579kt whilst total reserve tonnage remained broadly unchanged.

Financing Progress Led by Goldman Sachs

Completion of the DFS is described by the company as the pivotal technical milestone enabling the debt financing process to progress toward credit approvals and term sheets.

Target Funding Structure

• Debt/equity target ratio: approximately 70% debt / 30% equity
• Indicative equity requirement: approximately US$135M
• Covered by existing cash and Ore & Regia agreement: approximately US$39M (cash of approximately US$14M as at 30 June 2026, plus US$25M remaining under a subscription agreement)
• Remaining equity to be secured: approximately US$96M via strategic investors

Debt Financing Process

• Goldman Sachs and Cutfield Freeman & Co. are leading the international project debt financing process
• An Independent Technical Expert has been appointed, with due diligence reported to be well advanced across technical, environmental, social and execution matters
• Term sheets and credit approvals are targeted by end of September 2026
• Financial close is targeted for Q4 2026

Export Credit and Development Finance Engagement

The DFS estimates the project could generate approximately US$3.83 billion of cash flow available for debt service over the 25-year Production Target, averaging approximately US$153M per annum against initial development capital of US$449M. The average EBITDA margin is projected at approximately 70%.

Execution Activities Already Under Way

Viridis states it has advanced engineering, procurement and contractor engagement in parallel with the DFS to reduce the time between FID and construction start.

Activities Reported as Under Way

1. EPCM contract: A preferred contractor has been identified through an international tender process, with final negotiations under way. A Limited Notice to Proceed is targeted for late August 2026, with mobilisation planned for 1 September 2026.

2. Long-lead equipment: Five critical long-lead packages have progressed through competitive tendering and vendor metallurgical testwork using Colossus ore. Purchase orders are expected to be placed in Q3 2026.

3. Grid connection: The 138 kV high-voltage power connection contract has been awarded to DME, with 27MW of capacity secured and energisation targeted for December 2027.

4. Environmental licensing: The Preliminary Licence was granted in December 2025, and the Installation Licence application was submitted in May 2026. The Certificate of Regularity for Land Use and Occupation from the Municipality of Poços de Caldas has been received.

5. First production is targeted for 2H 2028, with steady-state production targeted for October 2028.

Project Schedule Summary

Upside Not Reflected in the DFS Base Case

Viridis has identified several factors it says could add value beyond the reported economics underpinning the Viridis Mining Colossus rare earth project definitive feasibility study in Brazil:

• Resource growth: Only around 12% of the 240km² landholding is currently within the JORC Resource. Drilling has reportedly confirmed the high-grade MREO corridor extends eastward, with an intercept of 8m at 9,118ppm TREO and 4,002ppm MREO at the eastern boundary of the Northern Concessions
• Mine life extension: The full Ore Reserve supports approximately 41 years at 5Mtpa, whilst only 25 years are included in the DFS economic evaluation
• Metallurgical recovery upside: The Demonstration Plant has consistently reported recoveries above the DFS's conservative ANSTO-derived assumptions
• Throughput expansion: The 473Mt resource and 240km² landholding are said to provide optionality to assess processing capacity beyond 5Mtpa in future studies
• Tax incentives: The DFS applies Brazil's full 34% corporate tax rate and does not include the potential benefit of federal income tax incentives currently under assessment, or the full benefit of the state-level fiscal agreement with Minas Gerais
• Capital optimisation: As detailed engineering progresses, further value engineering and procurement efficiencies may be identified

In conclusion, the company has indicated its near-term focus will be on finalising binding offtake arrangements, progressing the senior debt financing process, mobilising the EPCM contractor, and advancing the Installation Licence application toward approval, as it works toward a targeted Final Investment Decision.

Want to Dig Deeper Into the Colossus Project Economics?

The Viridis Mining Colossus DFS outlines a compelling investment case — from a first-quartile cost position and a US$1.19 billion after-tax NPV8, to Goldman Sachs-led financing and a clear pathway to first production in 2H 2028. For investors seeking to understand the full scope of the project's financials, ore reserve, execution strategy, and commercial arrangements, the complete DFS announcement is available now. Click here to access the full ASX announcement and explore what Viridis Mining (ASX: VMM) is building at Colossus.