AUS
NZ
UK
CA
USA
IND
Viridis Mining and Minerals Limited (VMM) has revealed that its advanced Demonstration Plant is outperforming metallurgical recovery projections from its Pre-Feasibility Study (PFS), achieving July 2026 average recoveries of 79% for Magnetic Rare Earth Oxides (MREO) and 64% for Total Rare Earth Oxides (TREO), exceeding PFS estimates of 76% and 57% respectively. The plant’s continuous 24-hour automated operations have confirmed the robustness of the Colossus flowsheet and uncovered optimisation opportunities that could significantly enhance project economics as the company progresses towards its Definitive Feasibility Study (DFS) and Final Investment Decision (FID). These milestones bolster investor confidence in the rare earth processing facility’s viability.
Key Highlights
- Viridis Mining and Minerals Limited (VMM) is an Australian rare earth minerals company developing the Colossus Project, a mixed rare earth carbonate processing facility.
- The Demonstration Plant recorded July 2026 MREO recoveries of 79% and TREO recoveries of 64%, significantly surpassing PFS assumptions 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 and produces commercial-scale operational data.
- Product qualification efforts are advancing with strategic offtake partner Solvay, with high-grade MREC samples shipped to Solvay's La Rochelle facility in France.
- Run-of-mine feed from Northern Concessions provides representative recovery data for incorporation into the DFS and financial modeling.
- The company anticipates moving toward Final Investment Decision in upcoming months, with financing, permitting, and commercial negotiations progressing concurrently.
Recovery Rates Significantly Exceed Pre-Feasibility Study Benchmarks
Viridis Mining and Minerals Limited announced that its Demonstration Plant achieved an average MREO recovery of 79% in July 2026, with peak measurements up to 80.9%, outperforming the 76% recovery rate assumed in the PFS. Similarly, the plant attained an average TREO recovery of 64%, surpassing the PFS assumption of 57%. Median recovery rates for July 2026 stood at 80.3% for MREO and 65.1% for TREO, demonstrating consistent elevated performance.
These enhanced recovery rates have substantial implications for project economics, as each percentage point increase in metallurgical recovery directly boosts rare earth output from the same ore volume, potentially improving financial returns for the Colossus Project. Recovery data was derived from run-of-mine feed sourced from the Northern Concessions, which support the early years of the mine plan, ensuring commercially relevant performance metrics. Incorporation of these improved recoveries into the DFS is expected to materially revise production and financial forecasts.
Continuous 24/7 Automated Operation Confirms Flowsheet Reliability
Since its May 2026 start-up, the Demonstration Plant has operated continuously on a fully automated 24-hour basis using Programmable Logic Controller (PLC) systems to manage complex processing without human intervention. This milestone includes integrated water and reagent recycling and an on-site laboratory for optimising feed blends, ore types, and key process parameters affecting rare earth recovery. The successful automation validates the commercial-scale feasibility of the rare earth processing flowsheet.
Validation under continuous commercial-style operation confirms the robustness and repeatability of Mixed Rare Earth Carbonate (MREC) production, critical for lenders, strategic partners, and offtake customers requiring assurance of reliable, specification-compliant product output. The Demonstration Plant, designed to process 100kg/hr of clay feed, ranks among the largest semi-industrial continuous rare earth operations outside China, providing operationally relevant data that reduces technical execution risk 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 planned to enhance metallurgical recoveries beyond the July 2026 baseline. This phased approach enables incremental recovery improvements to be tested and validated in a controlled semi-commercial environment before integration into the final commercial plant design. Managing Director Rafael Moreno highlighted the Demonstration Plant as an exceptional platform for refining key operating parameters and identified multiple optimisation opportunities ahead of DFS finalisation.
Beyond recovery enhancements, the plant has validated critical process equipment and finalised capital and operating cost decisions. Counter Current Decantation (CCD) circuits met target solids content and clarity specifications; residue and MREC precipitation filters produced filter cakes at target moisture levels, de-risking residue backfill and product packaging; water treatment testing demonstrated zero liquid discharge and reagent recovery; and coupon testing confirmed materials of construction. These technical achievements reduce execution risk and capital cost uncertainties for the commercial facility.
Product Qualification Progresses with Strategic Offtake Partner Solvay
Viridis is advancing product qualification with Solvay, a global speciality chemicals and minerals processor. High-grade MREC samples produced by the Demonstration Plant have been shipped to Solvay’s La Rochelle facility in France for evaluation and commercial qualification, a critical step toward securing formal offtake agreements and confirming the commercial viability of production. Solvay’s strategic partnership provides technical expertise and marketing channels, mitigating market risk for the Colossus Project.
Having a qualified strategic offtake partner is vital for project financing and investment, as lenders and investors typically require binding or near-binding offtake commitments before capital allocation. Progress in product qualification with Solvay indicates alignment of commercial, technical, and financial workstreams supporting the DFS and FID, strengthening Viridis’s position in securing project financing and initiating commercial facility 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, serves strategic roles beyond pilot production. It has hosted independent lenders’ engineers conducting technical due diligence as part of project financing, providing direct evidence of operational performance and design compliance. This milestone signals advancement in banking consortium discussions toward detailed loan structuring and pricing.
The CPTR has also welcomed high-level government and institutional delegations, including EU Commissioner Jozef Síkelá, underscoring the Colossus Project’s strategic importance in rare earth security and supply chain diversification for the European Union and other stakeholders. Such engagement can facilitate permitting, reduce regulatory risks, and open pathways to strategic financing and support, reinforcing Viridis’s role in rare earth supply chain initiatives and geopolitical discussions.
Use of Northern Concessions Feed Ensures Representative Early Production Metrics
Processing run-of-mine feed from the Northern Concessions, which underpin early Colossus production years, ensures metallurgical recovery data accurately reflects commercial conditions. This approach allows recovery metrics to be directly applied to the project financial model without requiring adjustment factors, reducing financial modeling risk and enhancing DFS credibility with lenders, investors, and offtake partners. The July 2026 recovery data thus represents commercially relevant performance rather than laboratory results, a critical distinction for project financing where lenders prefer semi-commercial or commercial scale validation.
Advancement Toward Final Investment Decision Supported by Parallel Workstreams
Viridis expects to reach Final Investment Decision in the coming months, with financing, permitting, and commercial negotiations advancing simultaneously. Superior recovery performance versus PFS assumptions strengthens these efforts. Independent lenders’ engineers are conducting due diligence at the CPTR facility, while product qualification with Solvay progresses. Environmental performance, including zero liquid discharge and water recycling, supports permitting.
FID marks a pivotal transition from pre-development to development stage, representing board approval for commercial plant construction and financing commitments. The concurrent progress across financing, permitting, and commercial fronts suggests management aims to secure necessary approvals and agreements before FID. However, the company has not specified an exact FID timeline beyond "in the coming months," leaving precise timing uncertain.
Commercial-Scale Process Validation De-Risks Capital and Operating Costs
Data from the Demonstration Plant enables Viridis to finalise key capital and operating cost assumptions for the DFS and commercial plant design. Technical scopes replicating commercial plant elements validated CCD circuit performance, residue and MREC filter operations, water treatment processes including zero liquid discharge and reagent recovery, and materials of construction through coupon testing. These results reduce procurement risks and support accurate CAPEX and OPEX estimates.
Using operational data instead of vendor estimates or lab extrapolations enhances cost estimate credibility, crucial for rare earth projects in Western economies where cost uncertainties are high. This methodical validation reduces risk of cost overruns during construction and increases financial modeling confidence for lenders and investors assessing project economics.
Enhanced Recoveries Offer Significant Financial Upside
Each percentage point increase in metallurgical recovery directly raises rare earth oxide output from the same ore feed, potentially boosting project financial returns materially. The July 2026 average recoveries of 79% MREO and 64% TREO reflect improvements of 3 and 7 percentage points respectively over PFS assumptions. Assuming consistent ore supply from Northern Concessions, these gains increase annual rare earth production capacity without proportional cost increases.
The financial benefits will be integrated into the DFS and refined project financial model, enhancing previously published PFS economic metrics. Ongoing optimisation suggests July 2026 recovery figures represent a baseline with further upside possible. The ultimate financial impact will depend on rare earth oxide prices and recovery improvements included in the DFS, details of which were not disclosed.
