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Viridis Mining eyes expansion of Brazilian rare earths project

Updated: Apr 17


Viridis Mining & Minerals is looking to expand its holdings at the company’s Colossus clay-based rare earths project in Brazil. Credit: File

Viridis Mining & Minerals will likely almost double the size of its Colossus clay-based rare earths project in Brazil after signing option agreements to secure additional mining rights to tenements next to its current licence.


The option covers more than 10,000 hectares and would take the company’s holdings in the Poços De Caldas alkaline complex in the Brazilian state of Minas Gerais out to an impressive 22,863 hectares.


Situated in the north-west of its current holdings, three of the new licences will be known as the Tamoyo prospect where surface grab samples have already revealed results of up to an impressive 3848 parts per million total rare earth oxides (TREO) and 2019ppm TREO.


The Bandeira prospect sits on the eastern edge of the alkaline complex and includes four exploration licences and an additional two exploration licence requests. Previous auger drilling conducted by the vendors returned positive results including 7m at 1627ppm TREO from just 1m and 3.6m grading 1924ppm TREO from 1.4m.


As part of the latest deal, the company has entered into two binding agreements with two separate vendors which will grant Viridis the option to acquire 100 per cent of the mining rights in the rare earths within the licences, in addition to all geological information. The number of licences ultimately acquired by Viridis will determine the value of the acquisition payments, with the completion of the agreement still subject to due diligence.


Management plans to kick off a preliminary geological survey across both prospects as part of its due diligence in a bid to exercise the most prospective licences within the exclusive option period.


Earlier this year the company recorded its best results to date from auger drilling at the Capão da Onça prospect. Highlights show a 7m intercept going 8227ppm TREO from just 1m down-hole including a 4m hit at 9447ppm TREO from 3m which ended in mineralisation at a grade of 8275ppm TREO. The 4m section also included 35 per cent of the more lucrative magnetic rare earth oxides (MREO) of the total TREO grade.


Further diamond drilling at Viridis’ Fazenda and Cupim South prospects shows mineralisation at the targets extends beyond previous auger results with a 48.5m hit at 2662ppm TREO from surface including 33.5m going 3091ppm TREO – the best result to date at Fazenda. A second diamond hole revealed a 62.5m segment going 2218ppm TREO from surface including 27m grading 2903ppm TREO.


The company says the impressive assays from auger and diamond drilling at its rare earths project in Brazil prove widespread ionic-adsorption clay (IAC) mineralisation at the operation.


As Viridis kicks off work on its maiden resource estimate and gears up for the next phase of project advancement, I’m extremely excited about the potential opportunity these new tenements present the Company and how they support the overall development strategy for the Colossus IAC rare earth project. Viridis Mining & Minerals chief executive officer Rafael Moreno

Just last week, the company announced it had signed a formal contract with BNA Mining Solutions to prepare a maiden mineral resource estimate for its potentially aptly named Colossus project.


The upcoming resource will cover four prospect areas including the Northern Concessions, Cupim South, Capao da Onca and Ribeirão das Antas targets and is expected to be completed next quarter.


The company’s first two phases of drilling are coming to an end at its highly prospective Cupim South prospect with only three reverse-circulation (RC) and three diamond drill holes still to be completed.


Colossus already has impressive neighbours including rare earths market darling Meteoric Resources’ Caldeira rare earths project, which hosts a JORC-compliant mineral resource of a massive 409 million tonnes at 2626ppm TREO.


Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au

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