Viridis Mining and Minerals has hit the ground running at the Colossus project since acquiring the project last August
\nIn only nine short months the stock has entered into two key non-binding MoUs with state and local governments and has expanded its landholding
\nIt is on track to completing a scoping study in Q3 <\/p>\n
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Special report:<\/em> Viridis Mining and Minerals is lending its expertise to secure the claim to Brazil\u2019s REE crown at the Colossus project, one of the few ionic clay hosted rare earth projects outside China. <\/strong><\/p>\n Viridis Mining and Minerals (ASX:VMM)<\/a> 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.<\/p>\n 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.<\/p>\n But with the world\u2019s high-speed drive into green energy playing out in the background, VMM started to look at ways it could capitalise.<\/p>\n 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\u2019s third-largest rare earths reserves (21Mt).<\/p>\n Colossus sits within the Po\u00e7os de Caldas complex of Brazil\u2019s pro-mining state, Minas Gerais, where some of the world\u2019s highest grade ionic adsorption clay projects can be found.<\/p>\n 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.<\/p>\n 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).<\/p>\n \u00a0<\/p>\n Even with a high endowment, Brazil\u2019s REE output is currently just a fraction of its overall potential, shipping out just 80t of REEs in 2022 \u2013 a drop in the ocean compared to the 300,000t produced globally.<\/p>\n But signs of a paradigm shift are emerging.<\/p>\n A blueprint dubbed the \u2018Mine Plan 2050\u2019 is in the works for policies related to increased production while mineral resource requests continue to surge \u2013 up by 70% from the number in 2021 to 155<\/a>.<\/p>\n As an early mover in the growing frenzy to snap up tenements in Brazil \u2013 it \u00a0grabbed significant ground in the area prospective for IAC-hosted REE and has entered into two non-binding MoU\u2019s with local and state governments to support a fast tracked environmental and regulatory approvals process..<\/p>\n At the end of 2023, the stock finished with a 560% gain, making it one of the year\u2019s top performing ASX.<\/p>\n \u00a0<\/strong><\/p>\n <\/strong><\/p>\n Viridis Mining and Minerals\u2019 share price growth since listing in 2022. Pic via Google<\/p>\n \u00a0<\/p>\n 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.<\/p>\n VMM executive chairman Agha Shahzad Pervez has been on the board since the company listed in 2022.<\/p>\n From his point of view, VMM\u2019s management team brings forward a diverse range of capabilities that are impactful at each unique stage of the mining lifecycle.<\/p>\n \u201cRafael 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,\u201d he says.<\/p>\n \u201cFaheem Ahmed, one of our non-executive directors, brings a strong analytical background with ample experience in project management and corporate finance while Chris \u2013 a veteran geologist \u2013 has appraised the technical risks during exploration of any of VMM\u2019s projects.<\/p>\n 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.\u201d<\/p>\n \u00a0<\/p>\n 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.<\/p>\n 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.<\/p>\n \u201cHe oversaw the development of the first ASX-listed ionic clay project and took it from exploration through to DFS and downstream production,\u201d he says.<\/p>\n \u201cHis expertise extends to the complete REE lifecycle as well as upstream development and mining processes and adds a layer of credibility to our operations.\u201d<\/p>\n 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.<\/p>\n 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.<\/p>\n \u00a0<\/p>\n \u201cHe was Brazil based when he worked with Serra Verde and has a strong network within the government, permitting, metallurgy and rare earth development industries,\u201d Pervez says.<\/p>\n \u201cBoth Harrison and Carlos Guedes have the technical and practical experience in producing rare earths which is required within any developer of a complex commodity.<\/p>\n \u201cIn 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 \u2013 who worked as the principal geologist at the world\u2019s largest niobium producer, CBMM.\u201d<\/p>\n Agha Shahzad says the entire executive team \u2013 both in Australia and Brazil \u2013 works together tirelessly.<\/p>\n \u201cDr Jose Braga and Dr Klaus Petersen are on the ground daily, driving our operations and strategy,\u201d he says.<\/p>\n \u00a0<\/p>\n\n VMM executives and industry figures post-signing ceremony with the state and local governments. Pic: Viridis Mining and Minerals<\/em><\/p>\n \u00a0<\/p>\n \u201cRafael, Faheem, Jose Guedes and I have visited the project numerous times, building relationships, securing the right contractors, negotiating expansions, and ensuring smooth operations.<\/p>\n \u201cThis collaborative effort has allowed us to drill more than 6.5km in just 8 months, a testament to the team\u2019s dedication and effectiveness.\u201d<\/p>\n \u00a0<\/p>\n Agha Shahzad believes the acquisition of the Colossus project marked a corporate turning point for the explorer.<\/p>\n 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.<\/p>\n \u201cThe rare earths sector has seen its share of challenges,\u201d he says.<\/p>\n \u201cDuring the 2010 \u2013 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.<\/p>\n \u201cTaking hard rock to production has also been incredibly difficult and significantly more expensive in comparison,\u201d Agha Shahzad says.<\/p>\n \u201cBut Colossus stands out due to its location, this time around we\u2019ve discovered IACs outside of China.<\/p>\n \u201cThe experience our team possess in navigating the Brazilian government and reaching production truly sets ourselves apart from the rest,\u201d he says.<\/p>\n \u201cFor starters, Harrison\u2019s 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.<\/p>\n \u201cMoreno\u2019s project management, negotiation, and strategic planning skills have been key in executing three successful capital raisings, ensuring we have the funds needed for<\/p>\n exploration and development activities,\u201d he says.<\/p>\n \u201cAnd the board\u2019s 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.\u201d<\/p>\n 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.<\/p>\n The impact could be far-reaching, potentially attracting more investment and interest in rare earth projects globally.<\/p>\n \u00a0<\/p>\n\n \ufeff<\/span>\u00a0<\/p>\n This article was developed in collaboration with Viridis Mining and Minerals, a Stockhead advertiser at the time of publishing. <\/em><\/p>\n \u00a0<\/em><\/p>\n This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.<\/em><\/p>\n <\/span><\/p>\n The post Viridis Mining and Minerals: The makings of a Brazilian REE king<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"Brazil \u2013 a snoozing rare earths giant <\/strong><\/h2>\n
How did VMM get here? <\/strong><\/h2>\n
REE genius\u2019s <\/strong><\/h2>\n
On the ground knowledge and expertise <\/strong><\/h2>\n
In a league of its own <\/strong><\/h2>\n