St George Mining Limited (ASX: SGQ) (“St George” or “Company”) is advancing development activities at its 100%-owned Araxá Project in Brazil, a rare earths and niobium asset gaining momentum amid growing global demand for critical minerals.
The global demand for rare earths is rising, and governments and industries work to reduce reliance on China for critical minerals. With rare earths being vital to electric vehicles, defence systems, clean energy infrastructure, and advanced manufacturing, securing stable supply chains has become a strategic priority worldwide.
On-Site Drilling Operations at Araxá Project [Resources Review]
While China still accounts for around 90% of global rare earth processing, new projects outside China are quickly gaining attention. Governments are backing exploration and development efforts to build alternative supply chains.
St George remains focused on advancing the project step by step, with a clear goal of building a long-term, high-value asset.
Maiden JORC Resource Estimate for Araxá Project (as of 1 April 2025) [St.George Mining Limited]
Globally Significant Resource with Strong Fundamentals
Located in Minas Gerais, one of Brazil’s top mining regions, the Araxá Project already boasts a JORC-compliant mineral resource of 40.64 million tonnes at 4.13% TREO, including 320,000 tonnes of contained neodymium and praseodymium (NdPr), two of the most in-demand rare earths used in permanent magnets.
In parallel, the project also holds a niobium resource of 41.2 million tonnes at 0.68% Nb₂O₅, supporting its potential as a dual-source critical minerals project.
The mineralisation starts at the surface, paving the way for low-cost, open-pit mining, a key advantage as companies seek scalable and efficient production to meet global needs.
The maiden JORC Mineral Resource Estimate, released on 1 April 2025, outlines a contained 1.7 million tonnes of TREO. The project has recorded exceptional grades, with assays returning up to 32.98% TREO and 8.29% Nb₂O₅ in high-grade zones.
Mineral Resource Tonnage [St.George Mining Limited]
Mineralisation remains open in all directions, and the current drilling program is aimed at growing the resource and strengthening Araxá’s potential as a future supplier of critical minerals.
Drilling and Assay Work Progressing Rapidly
St George has hit the ground running with field activities:
- 40 auger holes have been drilled to test areas beyond the current resource envelope
- 404 samples have been sent for laboratory analysis, with first assay results expected this month
- RC drilling is now underway as part of a 2,500m program focused on infill and metallurgical sampling
- Diamond drilling will begin in the coming weeks, with 7,200m planned in total.
A 270-line kilometre airborne magnetic survey has also been completed. The results, now being analysed, will help fine-tune drill targets and improve the project’s 3D geological model.
U.S. Rare Earths Push Reinforces Strategic Case for Araxá
China’s Ministry of Commerce announced fresh export controls on rare earth elements and magnets last month, heightening concerns over the global supply of critical minerals. The move triggered swift action from the U.S., with the Department of Defense signing a landmark deal with MP Materials, its only rare earths producer.
The agreement includes a US$400 million equity stake, a 10-year price floor for NdPr at more than double the current rate, and funding for a second processing facility independent of China.
This high-level intervention shows the increasing need to establish secure, non-Chinese supply chains for rare earths, providing strong tailwinds for emerging projects like St George Mining’s Araxá asset in Brazil.
How Will This Global Shift Impact St George Mining?
As geopolitical tensions continue to reshape critical mineral supply chains, St George Mining Limited is emerging as a key beneficiary through its 100%-owned Araxá Project in Brazil.
The project, which hosts 320,000 tonnes of contained neodymium-praseodymium (NdPr) and a total rare earths resource of 40.64Mt @ 4.13% TREO, can potentially serve as a reliable, non-Chinese supplier in a market increasingly focused on diversification and security of supply.
St George is also accelerating its regulatory and environmental groundwork. The company has completed fieldwork for flora and speleology (cave) studies at Araxá, with final reports now in preparation. Simultaneously, air quality and noise monitoring are ongoing and will continue throughout the drilling campaign, forming a key part of the permitting process.
In a significant endorsement of its domestic potential, St George has been selected to participate in Brazil’s MAGBRAS Initiative, a federally backed program aimed at developing an integrated rare earths and permanent magnet supply chain. Led by SENAI and the Federation of Industries of Minas Gerais (FIEMG), the initiative identifies Araxá as a potential feedstock source due to its high NdPr grade of 7,800ppm (0.78%).
What’s Next for Araxá?
With drilling now well underway, assays imminent, and regulatory groundwork in progress, St George is building momentum toward a future scoping and feasibility study.
Planned Drilling Outside Resource Zone [St.George Mining Limited]
Executive Chairman John Prineas said the company is seizing the opportunity presented by global market conditions.
“We are excited to be progressing development activities at a time when the geopolitical background is driving unprecedented interest to establish rare earths supply chains ex-China – as seen last Friday with a landmark multi-billion dollar investment by the US Department of Defense in MP Materials.
“St George’s Araxá Project has a total JORC resource of 40.64Mt @ 4.13% TREO1 – a globally significant hard rock rare earths resource – that has potential to offer an alternative supply chain to the current market dominance of China.
“Field activities at Araxá are in full swing to progress development studies. A number of studies required for the environmental assessment have been completed with noise and air quality monitoring continuing. St George is committed to best practice environmental standards at Araxá and we are pleased to be progressing these critical steps for permitting of a potential mine operation.
“First assays from our expansion and resource definition drilling are due shortly with the important diamond drilling to commence soon.
“These development activities are important milestones for our scoping and feasibility study of the Project, and for continuing to build value.
“We look forward to reporting project developments as they continue.”
Investor’s Outlook
With a robust pipeline of rare earths and niobium resources featuring near-surface mineralisation and increasing government support, St George Mining’s Araxá Project is positioned as a strategically critical development in the global minerals supply chain.
Environmental studies are advancing on schedule with flora and speleology fieldwork successfully completed, while continuous noise and air quality monitoring strengthens the pathway for expedited mining permitting.
The project’s shallow, high-grade mineralisation profile supports low-cost open-pit mining potential, making it an attractive proposition as global demand accelerates across defence, clean energy, and advanced manufacturing sectors.
As of July 14, 2025, St George Mining Limited (ASX: SGQ) is trading at AUD 0.04 per share, within a 52-week range of AUD 0.015 to 0.045. The Company’s current market capitalisation stands at approximately AUD 109 MILLION, with 2.7 BILLION shares on issue.
