Viridis Mining and Minerals has hit the ground running at the Colossus project since acquiring the project last August
In only nine short months the stock has entered into two key non-binding MoUs with state and local governments and has expanded its landholding
It is on track to completing a scoping study in Q3
Special report: Viridis Mining and Minerals is lending its expertise to secure the claim to Brazil’s REE crown at the Colossus project, one of the few ionic clay hosted rare earth projects outside China.
Viridis Mining and Minerals (ASX:VMM) hit the bourse with a bang in 2022, raising $5m in an IPO with five gold, nickel, copper, and PGE projects in Australia and Canada.
The scorching debut saw the stock jump from a low $0.26 to a high of $0.43 with much of its focus post-listing centred on drill target generation at the underexplored South Kitikmeot gold project.
But with the world’s high-speed drive into green energy playing out in the background, VMM started to look at ways it could capitalise.
Its leadership team quickly grew from two to seven in its search for critical mineral opportunities, and eventually landed on a winner in August 2023 with the Colossus project in Brazil, home of the world’s third-largest rare earths reserves (21Mt).
Colossus sits within the Poços de Caldas complex of Brazil’s pro-mining state, Minas Gerais, where some of the world’s highest grade ionic adsorption clay projects can be found.
IAC projects are very highly sought due to their potential to deliver low-cost, high-margin operations despite their lower grades compared to their hard rock counterparts.
These operations are characterised by simple processing methodology, non-radioactive waste and attractive mineralogy which are weighted towards magnet REEs such as neodymium-praseodymium and dysprosium-terbium).
Brazil – a snoozing rare earths giant
Even with a high endowment, Brazil’s REE output is currently just a fraction of its overall potential, shipping out just 80t of REEs in 2022 – a drop in the ocean compared to the 300,000t produced globally.
But signs of a paradigm shift are emerging.
A blueprint dubbed the ‘Mine Plan 2050’ is in the works for policies related to increased production while mineral resource requests continue to surge – up by 70% from the number in 2021 to 155.
As an early mover in the growing frenzy to snap up tenements in Brazil – it grabbed significant ground in the area prospective for IAC-hosted REE and has entered into two non-binding MoU’s with local and state governments to support a fast tracked environmental and regulatory approvals process..
At the end of 2023, the stock finished with a 560% gain, making it one of the year’s top performing ASX.
How did VMM get here?
Viridis Mining and Minerals’ share price growth since listing in 2022. Pic via Google
It is often said that the functioning of a board can be a powerful indicator of the future success of a business, and for Viridis, that is precisely the case.
VMM executive chairman Agha Shahzad Pervez has been on the board since the company listed in 2022.
From his point of view, VMM’s management team brings forward a diverse range of capabilities that are impactful at each unique stage of the mining lifecycle.
“Rafael Moreno, our CEO, has a background in project execution and strategic planning and contributes a strong understanding of capital markets and investor relations that is crucial for developing the Colossus project,” he says.
“Faheem Ahmed, one of our non-executive directors, brings a strong analytical background with ample experience in project management and corporate finance while Chris – a veteran geologist – has appraised the technical risks during exploration of any of VMM’s projects.
Collectively, the strengths and experiences of our board members create a well-rounded leadership team capable of addressing the multifaceted challenges of the Colossus project.”
REE genius’s
It also helps to have two of the best technical minds in ionic clay rare earths on the line-up, Tim Harrison and Jose Carlos Guedes.
As managing director of IXR, Agha Shahzad says Harrison brings a unique set of skills in rare earths processing with the Makuutu heavy rare earths project in Uganda recently producing its first mixed rare earth carbonate (MREC) from its newly commissioned demonstration plant.
“He oversaw the development of the first ASX-listed ionic clay project and took it from exploration through to DFS and downstream production,” he says.
“His expertise extends to the complete REE lifecycle as well as upstream development and mining processes and adds a layer of credibility to our operations.”
Before taking up the role as VMM non-executive director, Carlos Guedes served as chief operating officer at Serra Verde, the only commercial producer of Ionic Clay REEs outside of China and the only REE producer coming online in recent years at scale.
Having worked across the mining and chemical sectors in the EU, APAC, North America and Latin America regions, he knows a thing or two about how to operate a project in Brazil, which comes with its own set of intricacies.
On the ground knowledge and expertise
“He was Brazil based when he worked with Serra Verde and has a strong network within the government, permitting, metallurgy and rare earth development industries,” Pervez says.
“Both Harrison and Carlos Guedes have the technical and practical experience in producing rare earths which is required within any developer of a complex commodity.
“In fact, we have been fortunate to have three members in our executive team who have spent the majority of their careers orientated around Brazil including Dr Klaus Petersen and Dr Jose Braga – who worked as the principal geologist at the world’s largest niobium producer, CBMM.”
Agha Shahzad says the entire executive team – both in Australia and Brazil – works together tirelessly.
“Dr Jose Braga and Dr Klaus Petersen are on the ground daily, driving our operations and strategy,” he says.
VMM executives and industry figures post-signing ceremony with the state and local governments. Pic: Viridis Mining and Minerals
“Rafael, Faheem, Jose Guedes and I have visited the project numerous times, building relationships, securing the right contractors, negotiating expansions, and ensuring smooth operations.
“This collaborative effort has allowed us to drill more than 6.5km in just 8 months, a testament to the team’s dedication and effectiveness.”
In a league of its own
Agha Shahzad believes the acquisition of the Colossus project marked a corporate turning point for the explorer.
Consistent, impressive strides have been made since taking the asset under its wing, he says, which is partly helped by some of the characteristic it bears.
“The rare earths sector has seen its share of challenges,” he says.
“During the 2010 – 2011 boom only two projects reached production, one being Serra Verde because ionic clays were previously known to exist only in China, making funding and exploration challenging elsewhere.
“Taking hard rock to production has also been incredibly difficult and significantly more expensive in comparison,” Agha Shahzad says.
“But Colossus stands out due to its location, this time around we’ve discovered IACs outside of China.
“The experience our team possess in navigating the Brazilian government and reaching production truly sets ourselves apart from the rest,” he says.
“For starters, Harrison’s expertise in rare earth processing has guided our exploration efforts, making them both aggressive and strategic, homing in on areas with the highest potential for REE deposits.
“Moreno’s project management, negotiation, and strategic planning skills have been key in executing three successful capital raisings, ensuring we have the funds needed for
exploration and development activities,” he says.
“And the board’s collective experience in legal, environmental, and operational matters has been crucial in navigating the complexities of landholding expansions, ensuring compliance with regulatory and environmental standards while growing our landholdings.”
As VMM continues to advance the project and demonstrate the viability of its approach, it could potentially set a new standard for rare earth exploration and development.
The impact could be far-reaching, potentially attracting more investment and interest in rare earth projects globally.
This article was developed in collaboration with Viridis Mining and Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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