Viridis Mining and Minerals (ASX:VMM) has reached a key derisking milestone for its Colossus Ionic Adsorption Clay (IAC) project in Brazil with an updated mineral resource estimate, boosting confidence in project debt financing and highlighting several near-term catalysts, Euroz Hartleys said in a note on Thursday.
The company's infill drilling program increased the measured resource at the Colossus deposit to 31 million tonnes from 700,000 tonnes, grading 2,858 parts per million (ppm) total rare earth oxides (TREO) and 758 ppm magnet rare earth oxides (MREO).
Euroz Hartleys expects the project's first five years of plant feed to be sourced entirely from proven reserves within the northern concessions, meeting a key technical requirement for securing project debt financing.
The research firm noted that the updated global mineral resource comprises 473 million tonnes grading 2,505 ppm TREO and 592 ppm MREO, including 305 million tonnes in the measured and indicated category, with Colossus retaining its status as the world's highest-grade measured and indicated MREO IAC resource.
The research firm said the conservative estimate limited measured and indicated resources to regolith ore, with transitional material remaining inferred pending further metallurgical studies, while improved confidence in high-MREO northern concessions offset lower overall tonnage and grade.
Euroz Hartleys anticipates a catalyst-rich September quarter, driven by Colossus demonstration plant results, an updated ore reserve, the August definitive feasibility study, Solvay offtake progress, financing, and project execution milestones ahead of final investment decision in the second half.
Euroz Hartleys maintained a speculative buy rating on Viridis Mining and price target of AU$5.27.