Colossus emerges as ‘economically robust’ for Viridis

Viridis is an ASX-listed rare earths explorer and developer focused on advancing high-grade, low-cost, and sustainable assets within the Poços de Caldas Alkaline Complex in Brazil.

Viridis Mining and Minerals (ASX:VMM) has unveiled a transformative Prefeasibility Study (PFS) for its Colossus Project in Brazil, positioning the asset as one of the most economically viable and strategically significant rare earths projects globally.

According to the PFS, the Colossus Project boasts a 20-year mine life with a low capital intensity compared to global peers. The study outlines a capital expenditure of US$286 million (A$438.2 million) and forecasts total revenue of US$5.643 billion, assuming an average price of US$90 per kg of neodymium-praseodymium.

The economic metrics are compelling:

• Pre-tax Net Present Value (NPV): US$1.41 billion
• Internal Rate of Return (IRR): 43%

Even under a conservative spot price scenario of US$63 per kg, Colossus maintains a pre-tax NPV of US$773 million and a 30% IRR, highlighting its resilience in varying market conditions.

CEO Rafael Moreno says the project’s high-grade magnet rare earth oxide (MREO) profile, scalable resource base, and low-cost metallurgy underpin its standout economics. “In under two years, Viridis has transformed Colossus from an acquisition into a PFS-stage asset through disciplined drilling, metallurgy, ESG groundwork, and engineering,” Moreno stated.

“This PFS delivers a de-risked, sustainable operation with a globally competitive cost curve. We now focus on advancing offtake and funding discussions, backed by a high-quality mixed rare earth carbonate product and growing strategic interest,” he added.

Colossus is the first rare earth project in South America to reach the PFS stage, marking a key milestone in regional development and global rare earth diversification. Located in Minas Gerais, Brazil, the project is an ionic adsorption clay (IAC) rare earth asset, a rare deposit type outside of China.

Viridis Mining, with a market capitalisation of A$44.4 million, is also exploring further upside at Colossus, including extending mine life, increasing throughput, and enhancing grades. High-grade zones such as Tamoyo, averaging 770 parts per million MREO, offer further development potential.

Ongoing metallurgical and engineering studies aim to cut costs, boost recovery rates, and refine process flowsheets. Viridis targets initial production by 2028, aligning with global supply chain diversification efforts in critical minerals.