St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) has reported the best intercept to date from its 100%-owned Araxá Rare Earths and Niobium Project in Brazil. The Company announced that diamond drilling returned 139.45 metres @ 4.05% Total Rare Earth Oxides (TREO) and 0.55% Nb₂O₅ from surface.
This result, from drill hole AXDD004, marks a significant milestone for the project and reinforces Araxá’s position as a globally significant rare earths and niobium deposit.
Figure 1: Oblique section showing latest diamond drill holes with high-grade intercepts at Araxá Project
Multiple High-Grade Zones Confirmed
Beyond the headline result, assays from nine additional diamond drill holes have confirmed thick, high-grade mineralisation across the project area. Standout intercepts include:
- 80.15m @ 5.11% TREO and 0.76% Nb₂O₅ from surface in AXDD007, including 43.9m @ 6.18% TREO and 1.05% Nb₂O₅
- 82.55m @ 3.90% TREO and 0.59% Nb₂O₅ from surface in AXDD014, including 56.55m @ 4.97% TREO and 0.72% Nb₂O₅
- 81.45m @ 4.52% TREO and 0.56% Nb₂O₅ from surface in AXDD018, including 4.55m @ 8.87% TREO and 0.78% Nb₂O₅
The extensive high-grade mineralisation over broad intervals, both within and outside the current Mineral Resource Estimate (MRE) envelope, points to substantial resource growth potential.
Figure 2: Plan view map of Araxá area showing the location of the diamond drilling relative to the MRE
Redefining a World-Class Resource
Executive Chairman John Prineas highlighted the significance of the results:
“The drilling results continue to confirm world-class mineralisation, demonstrating exceptionally high grades over huge true widths. These ongoing remarkable results are indicating strong potential for a very substantial increase to the overall tonnage of the Araxá MRE.”
The Araxá Project currently hosts a Mineral Resource Estimate of 40.64 million tonnes @ 4.13% TREO for rare earths and 41.20 million tonnes @ 0.68% Nb₂O₅ for niobium. This makes it the largest and highest-grade carbonatite-hosted REE resource in South America and the second-highest grade REE resource in the Western world.
The mineralisation at Araxá begins at surface and remains open in all directions, including at depth. Historical drilling has returned high-grade zones of up to 8% Nb₂O₅ and 33% TREO.
Figure 3: Cross-section showing high-grade TREO and Nb₂O₅ intercepts with MRE outline
Primary Pyrochlore Discovery Unlocks Deeper Potential
A significant technical milestone was achieved with the identification of primary pyrochlore mineralisation within carbonatite units at depth. This discovery provides direct visual confirmation of the host mineralogy for niobium.
The presence of disseminated, subhedral pyrochlore crystals within a carbonatite dolomite matrix indicates a stable magmatic mineralising environment. This is fundamental to understanding the high-grade supergene enrichment zones at Araxá.
As tropical weathering dissolves the dolomite matrix, the chemically resistant pyrochlore remains and becomes concentrated in the residual saprolitic regolith. This process can upgrade niobium content by several orders of magnitude.
The coarse-grained nature of the pyrochlore within a carbonate groundmass suggests favourable metallurgical properties for mineral liberation, supporting the potential for large-scale resource development.
Figure 4: Pyrochlore occurrence within carbonatite intercepted in drillhole AXDD019
Critical Minerals Driving Global Technology
Rare earth elements and niobium are increasingly recognised as critical to the future of global technology, energy, and defence systems. These materials serve as the backbone for advanced industrial and high-tech applications.
Figure 5:Infographic displaying applications of Rare Earths & Niobium
Rare earths are essential for magnets, batteries, catalytic converters, and electronics. Their unique properties support advanced defence systems, including sonar, radar, and gamma-ray detectors.
Niobium strengthens steel for infrastructure, aerospace, and automotive use. It is also vital for superconducting materials used in quantum computing, medical imaging, and particle accelerators.
According to Grand View Research, the global rare earth metals market is forecast to reach USD 6.28 billion by 2030, driven by soaring demand for neodymium in electric vehicle motors. The niobium market is also experiencing rising demand amid the shift toward electrification and advanced materials.
Figure 6: Global rare earth elements market forecast
Strategic Location and Government Support
The Araxá Project sits adjacent to CBMM’s globally recognised niobium operations in Minas Gerais, Brazil. The region has a long-standing history of niobium production spanning decades.
Advantages of Araxá’s location include established transport infrastructure, skilled local workforce, ready access to renewable power, and support from local and federal Brazilian authorities.
St George has been selected to participate in Brazil’s Federal Government MagBras Initiative, a programme aimed at establishing an integrated and sustainable rare earth products supply chain, including permanent magnet production entirely within Brazil.
The Company has secured government backing for fast-tracked permitting and assembled a seasoned in-country project team.
Investor’s Outlook
St George Mining’s share price has responded positively to the Company’s consistent delivery of high-grade drill results from Araxá. The ongoing diamond drilling campaign, which continues 24/7 and will extend into 2026, is systematically testing expansion zones to the west, north, and east of the existing MRE.
As of 18 December 2025, St George Mining Limited (ASX: SGQ) shares are trading at approximately $0.088, with the stock showing strong momentum over recent months. The Company’s market capitalisation sits at around $342.11 million.
The 52-week trading range of $0.015 – $0.180 reflects growing investor recognition of Araxá’s strategic value in the global critical minerals supply chain.
Figure 7: St George Mining share price performance chart
Key catalysts ahead include:
- Further assay results from ongoing drilling campaign
- Resource expansion and upgrade studies
- Metallurgical testwork results
- Development studies and permitting progress
- Strategic partnership discussions
With mineralisation confirmed open in all directions, high-grade results continuing from surface, and primary source rock identified at depth, St George Mining is well-positioned to deliver a major re-rating through substantial expansion of the Araxá MRE.
The Company’s decision to extend drilling into 2026 reflects management’s confidence in the project’s growth potential. For investors seeking exposure to the critical minerals sector, St George offers leveraged exposure to rare earths and niobium in a tier-one mining jurisdiction with established infrastructure and government support.
