Summary:
The Colossus Project is located within the Poços de Caldas Alkaline Complex, a globally significant geological formation spanning ~800 km². This unique caldera system, shaped by historic volcanic and intrusive activity, hosts some of the most promising REE deposits in the world.
At Colossus, critical REEs such as Nd, Pr, Dy, Tb are enriched within the regolith and saprolite zones. These elements are concentrated through natural weathering processes, where the breakdown of bastnaesite minerals releases REEs that bind ionically to clay minerals, creating high-value ionic adsorption clays.
This type of mineralisation is particularly attractive, as it supports low-impact, sustainable mining practices and enables efficient, cost-effective processing. Metallurgical testing confirms high REE recoveries using low molar concentrations of ammonium sulfate leaching under ambient conditions, significantly lowering capital and operating costs compared to hard rock and non-ionic clay-hosted REE projects.
The geology of the region where the deposit is located can be summarised as follows:
• Deposit Nature: The deposit is recognised as an IAC REE deposit. Its spatial positioning is within and adjacent to the renowned Poços De Caldas Alkaline Complex;
• Poços de Caldas Complex: This geological entity stands as one of the most extensive alkaline massif intrusions globally, enveloping an area of roughly 800km². It stretches across the Brazilian states of São Paulo and Minas Gerais. From a macro perspective, it portrays a near-circular structure with an approximate diameter of 30km. This formation resembles a collapsed caldera. Delving deeper, the dominant rocks within the alkaline complex encompass phonolite, nepheline syenites, sodalite syenites, and many volcanic rocks. This diverse geological setting has played a crucial role in dictating mineral occurrences and potential mining prospects;
• REE Mineralisation: The specific REE mineralisation highlighted in this disclosure leans towards the lonic Clay type. Evidence pointing to this is mainly derived from its occurrence within the saprolite/clay zone of the weathering profile of the Alkaline granite basement. The enriched MREO (Magnetic Rare Earth Oxides) composition also attests to this classification. Additionally, previously announced metallurgical recovery data using ammonium sulfate at ambient temperature and pH 4 by Viridis demonstrated recoveries exceeding 60% for the MREO;
• Relevant Additional Information: The IAC REE deposits, particularly in regions like Poços de Caldas, have recently gained significant attention due to the global demand surge for rare earth elements. These elements, especially the magnetic rare earth, have vital applications in modern technologies such as renewable energy systems, electronics, and defence apparatus. The ability of these deposits to offer relatively environmentally friendly mining prospects compared to traditional hard rock REE mines further enhances their appeal;
• In general, the target areas show higher concentrations of rare earth elements in the regolith horizon.
The Mineral Resource is spread across three prospects over a ~21 km strike in the NS direction and ~11 km in the E-W direction. Individual dimensions are:
• Northern Concession: 5,800m x 3,600m;
• Southern Concessions: 11,250m x 6,600m.
The top of the rare earth mineralisation seam is the topographic surface or base of the soil layer. Its base of the mineralisation is saprolite rock.