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Viridis Mining and Minerals Limited (VMM) has revealed that its advanced Demonstration Plant is outperforming metallurgical recovery estimates from its Pre-Feasibility Study (PFS), achieving average recoveries in July 2026 of 79% for Magnetic Rare Earth Oxides (MREO) and 64% for Total Rare Earth Oxides (TREO), exceeding PFS assumptions of 76% and 57% respectively. The plant’s continuous 24-hour automated operation has confirmed the robustness of the Colossus flowsheet and uncovered optimisation opportunities that could significantly enhance project economics as Viridis progresses towards its Definitive Feasibility Study (DFS) and Final Investment Decision (FID). These operational successes bolster investor confidence in the rare earth processing facility’s viability.
Key Points
- Viridis Mining and Minerals Limited (VMM) is an Australian rare earth minerals firm developing the Colossus Project, a mixed rare earth carbonate processing plant.
- The Demonstration Plant recorded July 2026 MREO recoveries of 79% and TREO recoveries of 64%, significantly surpassing PFS benchmarks of 76% and 57%, respectively.
- Operating reliably on a continuous 24-hour automated basis since May 2026, the plant processes 100kg/hr of clay feed, generating commercial-scale operational data.
- Viridis is advancing product qualification with strategic offtake partner Solvay, shipping high-grade MREC samples to Solvay’s La Rochelle facility in France.
- Run-of-mine feed from the Northern Concessions has provided representative recovery data for inclusion in the DFS and financial modeling.
- The company anticipates progressing toward Final Investment Decision in the coming months, with financing, permitting, and commercial discussions underway.
Recovery Rates Significantly Exceed Pre-Feasibility Study Projections
Viridis Mining and Minerals Limited announced that its Demonstration Plant achieved an average MREO recovery of 79% in July 2026, with peak measurements reaching 80.9%, outperforming the 76% MREO recovery forecasted in the Pre-Feasibility Study. Similarly, average TREO recoveries reached 64%, surpassing the PFS assumption of 57%. Median recoveries for July were 80.3% for MREO and 65.1% for TREO, demonstrating consistent elevated performance.
These improved recovery rates have substantial implications for project economics, as each percentage point gain directly increases rare earth output from the same ore volume, potentially enhancing the Colossus Project’s financial returns. The recovery data was derived from run-of-mine feed sourced from the Northern Concessions, which form the basis of the early mine plan, offering representative and commercially relevant performance metrics. Incorporation of these enhanced recoveries into the DFS is expected to materially revise production and financial forecasts.
24/7 Automated Operation Confirms Flowsheet Reliability at Commercial Scale
Since its startup in May 2026, the Demonstration Plant has operated continuously on a fully automated 24-hour basis, utilizing Programmable Logic Controller (PLC) systems to manage complex processing without manual intervention. This milestone, coupled with integrated water and reagent recycling and an on-site laboratory for optimizing feed blends and process parameters, proves the feasibility of automating rare earth processing at commercial scale.
Validation of the flowsheet under sustained commercial-style operation confirms the robustness and repeatability of Mixed Rare Earth Carbonate (MREC) production. This de-risking is vital for lenders, strategic partners, and offtake customers requiring evidence of reliable performance and product quality. The plant processes 100kg/hr of clay feed, making it one of the largest semi-industrial continuous operations outside China, providing data that significantly reduces technical execution risks ahead of full commercial production.
Ongoing Optimisation Efforts Aim to Boost Recoveries Further
Viridis continues optimisation work at the Demonstration Plant, with several process improvements and operational initiatives pending that are expected to enhance metallurgical recoveries beyond the July 2026 baseline. This phased approach enables validation of incremental recovery gains in a controlled semi-commercial environment before finalising the commercial plant design. Managing Director Rafael Moreno highlighted the plant’s exceptional role in refining key operating parameters and identifying further recovery enhancement opportunities prior to DFS completion.
Additionally, the plant has validated critical process equipment and operating parameters, finalising capital and operating cost decisions. Counter Current Decantation (CCD) circuits met target solids and clarity specifications; residue and MREC precipitation filters produced filter cakes at target moisture, de-risking residue backfill and product packaging; water treatment demonstrated zero liquid discharge and reagent recovery; and coupon testing confirmed materials of construction. These technical validations reduce execution risk and capital cost uncertainty for the commercial facility.
Product Qualification with Solvay Advances Toward Commercial Offtake Agreements
Product qualification efforts are progressing with strategic offtake partner Solvay, a global specialty chemicals and minerals processor. High-grade MREC samples produced to specification have been shipped to Solvay’s La Rochelle facility in France for evaluation and commercial qualification. This process is essential for securing binding offtake agreements and confirming the commercial viability of Viridis’s production pathway. Solvay’s involvement provides technical expertise and market access, mitigating market risks for the Colossus Project.
Having a qualified strategic partner is a key de-risking factor for project financing, as lenders and investors typically require binding or near-binding offtake commitments before funding. Progress in product qualification alongside technical and financial workstreams for the DFS and FID strengthens Viridis’s position in securing financing and commencing commercial plant construction.
Rare Earth Research and Processing Centre Supports Due Diligence and Institutional Engagement
The Rare Earth Research and Processing Centre (CPTR), housing the Demonstration Plant, plays a strategic role beyond pilot production. It has hosted independent lenders’ engineers conducting technical due diligence for project financing, providing direct evidence of operational performance and process reliability. This marks a significant advancement in financing discussions, moving toward detailed loan structuring and pricing.
The CPTR has also welcomed high-level government and institutional delegations, including EU Commissioner Jozef Síkela, highlighting the Colossus Project’s strategic importance in EU rare earth security and supply chain diversification policies. Such engagement supports permitting, reduces regulatory risks, and opens pathways to strategic financing or support, reinforcing Viridis’s role in rare earth supply initiatives and geopolitical supply security.
Northern Concessions Feed Ensures Representative Early Production Recovery Data
The Demonstration Plant processes run-of-mine feed from the Northern Concessions, which underpin early production years in the mine plan. Using this representative feed is critical for generating metallurgical recovery data that accurately reflects commercial production conditions, enabling direct application to the DFS financial model without adjustment factors.
This approach reduces financial modeling risk and enhances DFS credibility with lenders, investors, and offtake partners. Unlike laboratory test results, these semi-commercial scale recovery metrics provide validated performance data essential for project financing, as lenders require evidence beyond lab data before committing capital. The use of Northern Concessions feed supports de-risking of technical assumptions in the DFS model.
Advancing Toward Final Investment Decision with Parallel Financing, Permitting, and Commercial Negotiations
Viridis expects to move toward Final Investment Decision in the coming months, with financing, permitting, and commercial negotiations progressing concurrently. The superior recovery performance provides a strong foundation for these efforts. Independent lenders’ engineers are conducting technical due diligence at the CPTR, commercial negotiations with Solvay advance through product qualification, and permitting benefits from the Demonstration Plant’s environmental performance, including zero liquid discharge and water recycling.
Reaching FID represents a pivotal transition from pre-development to development-stage execution, signaling board commitment to commercial plant construction and financing partner loan documentation. While the exact FID timing remains unspecified, the company’s parallel workstreams indicate management’s intent to secure necessary approvals and agreements ahead of this milestone.
Commercial-Scale Process Validation De-Risks Capital and Operating Costs
The Demonstration Plant has produced operational data enabling Viridis to finalize capital and operating cost assumptions for the DFS and commercial plant design. Technical scopes replicating commercial plant elements yielded positive outcomes: CCD circuits met design specifications, residue and MREC filters produced target moisture filter cakes, water treatment confirmed zero liquid discharge and reagent recovery, and coupon testing validated construction materials. These results reduce procurement risk and support accurate CAPEX estimates.
Using Demonstration Plant-derived data instead of vendor or laboratory estimates enhances the credibility of DFS cost assumptions, crucial for rare earth projects that face significant cost uncertainties in Western markets. This methodical validation lowers the risk of cost overruns during construction and increases financial modeling confidence among lenders and investors.
Enhanced Recoveries Offer Significant Financial Upside to Colossus Project
Each percentage point increase in metallurgical recovery directly boosts rare earth oxide output from the same ore feed, potentially improving project financial returns. The July 2026 average recoveries of 79% MREO and 64% TREO represent increases of 3 and 7 percentage points, respectively, over PFS assumptions. Assuming steady ore supply from the Northern Concessions, these gains translate into higher annual production capacity without proportional cost increases.
The financial benefits of these recovery improvements will be integrated into the DFS and refined financial model, providing meaningful upside to previously published PFS economic metrics. With optimisation work ongoing and further enhancements anticipated, the July 2026 results may serve as a baseline, suggesting additional upside as improvements are validated and incorporated. Investors should note that the magnitude of financial gains depends on rare earth oxide price assumptions and final recovery figures incorporated into the DFS, which were not disclosed.
