Highlights

• Viridis Mining's Colossus Project is located in Brazil.
• The project boasts a large JORC-compliant rare earth resource.
• Notable magnet rare earth oxide grades are present.
• Credible metallurgical test results have been demonstrated.
• There is early-stage government support for the project.
• The project indicates strong development potential.
• Careful investor scrutiny is required for:
  • Permitting risks
  • Economics
  • Competitive positioning in the rare earth market

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Viridis Mining & Minerals’ Colossus Project in Brazil is indeed a large ionic adsorption clay (IAC) rare earth resource, with reported JORC-compliant figures of 493Mt @ 2,508ppm TREO, including a Measured& Indicated 329Mt @ 2,680ppm TREO. The grades for magnet rare earth oxides (MREO)—the Nd, Pr, Dy, Tb suite—are significant by global IAC standards. ANSTO’s confirmation of metallurgical test results lends credibility to the claim that the mineralization is “true ionic,” which supports simpler, lower-cost leaching compared to hard-rock REE deposits.

Rare Earth Exchanges (REEx) has reported that the U.S. Department of Defense may be on the hunt for heavy rare earth element (HREE) sources.

The project’s partnerships—with Invest Minas, local municipalities, and Ionic Rare Earths via the Viridion JV—are verifiable and align with Brazil’s policy drive for domestic REE supply chain development. The funding lines cited, including Brazilian public financing channels (BNDES, FINEP) and AU$11.5M raised in July 2025, are on public record.

Fault Lines: Where Questions Emerge

The headline claim—_“highest-grade MREO ionic clay resource globally”_—is bold and would require an apples-to-apples comparison across multiple jurisdictions’ IAC projects, factoring cut-off grades and resource classification methods. Without independent benchmarking, this remains a marketing assertion.

The Pre-Feasibility Study’s metrics (NPV8 US$1.41B, IRR 43%, C1 cost US$6.20/kg TREO) are eye-catching but depend on commodity price assumptions, recovery rates, and scale-up risk from lab to commercial plant. The article does not disclose the TREO basket price used—critical context for investors evaluating the robustness ofthose numbers in a price downturn.

Tilted Veins: Bias in the Narrative

The recent Discovery Alert (opens in a new tab) piece reads like a corporate investor deck, not an independent analysis. Every data point is positioned to reinforce an “industry-leading” storyline. There is no discussion of potential permitting delays in Brazil, community concerns beyond the cited “strong support,” or competition from other emerging IAC projects in South America and Africa. The JV with Ionic Rare Earths is portrayed as a lock on refining capacity, but refining economics, capital intensity, and downstream offtake arrangements are not explored.

InvestorDrill Core: Questions That Matter

1. Global Rank Reality: Has an independent body validated Colossus’ “highest-grade” MREO status? Ionic ranks seventh on the REEx HREE Project/Deposit Ranking Database.
2. PFS Sensitivity: How do NPV/IRR shift under lower price decks or higher operating cost scenarios?
3. Permitting & ESG: Are there risks from Brazilian environmental or indigenous land regulations?
4. JV Economics: What portion of refining margins does Viridis actually capture under the Viridion arrangement?

Bottom Line for REE Investors:

Colossus is a significant IAC discovery with verified scale, credible metallurgy, and early-stage government backing. But the hyperbolic framing masks the normal risks of developing a multi-billion-dollar rare earth operation in an emerging jurisdiction. For now, this looks like a promising deposit with solid fundamentals—just one that deserves a sober cut through the promotional gloss.

Source: Discovery Alert – Author: William Hadrian