St George Mining Limited (ASX: SGQ) has achieved a major milestone at its 100%-owned Araxá Rare Earths-Niobium Project in Brazil, releasing a substantially upgraded Mineral Resource Estimate (MRE) that marks a decisive step toward becoming a significant non-Chinese supplier of rare earth elements and niobium.
The new MRE totals 70.91Mt @ 4.06% TREO and 0.62% Nb₂O₅ using a 2% TREO cut-off. That figure represents a 75% increase over the previous MRE.
The Numbers That Matter: Resource Breakdown
The upgrade is highlighted by a 218% surge in the higher-confidence Measured & Indicated (M&I) categories. These categories now total 29.49Mt at 4.56% TREO and 0.75% Nb₂O₅, while Inferred resources account for 41.42Mt at 3.71% TREO and 0.52% Nb₂O₅, providing a robust foundation for upcoming economic studies.
The Measured category alone delivers 8.02Mt at 5.23% TREO and 1.06% Nb₂O₅, reflecting a high degree of geological confidence in the highest-grade zones. An additional niobium-rich resource, calculated on a separate 0.2% Nb₂O₅ cut-off for zones outside the TREO-based resource, adds 24.56Mt at 0.52% Nb₂O₅, comprising 2.60Mt M&I and 21.95Mt Inferred.
Figure 1: Araxá Project MRE Summary [St George Mining]
Significant Growth Potential Remaining
Despite this massive upgrade, the Araxá deposit remains open in all directions and at depth. Several high-impact factors suggest further increases in the near future:
- Excluded Assays: Results from 44 completed expansion drill holes were not ready in time to be included in this MRE.
- East Araxá Discovery: The discovery made in September 2025—which included a spectacular intercept of 48m @ 5.71% TREO from just 2m depth—is not yet part of the resource.
- Ongoing Drilling: A 24/7 drilling program continues, with 50 additional holes planned over the next two months.
- Next Update: A further MRE update is expected in Q3 2026.
What the Ground Tells Us: Geology and Open-Pit Potential
The Araxá deposit sits within the Barreiro Carbonatite Complex in Minas Gerais, Brazil, a geological formation roughly 90 million years old and approximately 5 km in diameter. The mineralisation is hosted in a deeply weathered carbonatite profile, with rare earths primarily occurring in monazite and niobium in pyrochlore.
One of the most commercially significant attributes of the resource is its depth profile. The bulk of the mineralisation sits within 120 metres of surface, entirely within the weathered (saprolite) zone. Weathered carbonatite of this type is generally free-digging material, which means it can be mined without blasting. That substantially reduces upfront capital costs and operating complexity compared with hard-rock deposits.
Figure 2: Geology of Araxá Barreiro Carbonatite Complex (adapted from Biondi, 2004) [St George Mining]
Drilling Momentum: 127 Holes Completed, More on the Way
The current MRE draws on 127 drill holes totalling 9,259.5 metres, including 121 diamond drill holes and 6 aircore holes. Of those, 67 holes were completed during historical MBAC drilling between 2011 and 2012, while St George’s own 63-hole programme was conducted between July 2025 and February 2026.
A 24/7 drilling programme continues at the Project. Over the next two months alone, the Company plans to drill 50 additional holes, targeting further resource expansion and East Araxá resource definition through RC drilling.
Figure 3: 3D view of the Araxá Project MRE showing TREO% grade distribution and open resource extensions. [St George Mining]
Executive Chairman Draws Peer Comparisons
John Prineas, Executive Chairman of St George Mining, described the MRE as confirmation of the world-class nature of the Company’s flagship asset. He drew direct comparisons to MP Materials (NYSE: MP) and Lynas Rare Earths (ASX: LYC), two of the leading rare earth producers operating outside China today, positioning Araxá as a near-term rare earths and niobium development opportunity.
Prineas noted that the Trump Administration and the broader Western world are actively establishing secure critical minerals supply chains independent of Chinese supply. He stated the aggressive, fully funded drill programme has validated that strategic direction and de-risked the Project for the economic studies that will follow.
Strategic Location Adds Infrastructure Advantage
The Araxá Project sits adjacent to CBMM’s globally recognised niobium operations in Minas Gerais, one of the world’s most established niobium-producing jurisdictions. That proximity translates directly into practical advantages: established transport infrastructure, access to a skilled local workforce, a grid with renewable power connectivity, and support from both local and federal Brazilian authorities.
Figure 4: Satellite image of the Barreiro Carbonatite [St George Mining]
St George Mining acquired 100% ownership of the Araxá Project on 27 February 2025, across 211.35 hectares spanning three exploration permits.
Why the Market Timing Could Not Be Better
The upgrade comes at a time when Western governments are taking the question of rare-earth supply more seriously than at any point in recent memory.
China accounts for nearly 60% of the world’s rare earth mining and more than 90% of magnet manufacturing, and its willingness to deploy that dominance as a geopolitical lever has become increasingly apparent. China’s Announcement in April 2025 introduced sweeping export controls covering medium and heavy rare earths, including terbium, dysprosium, samarium, and yttrium, along with related oxides, alloys, and permanent magnets.
The US response was swift and substantial. The Pentagon became the largest shareholder of MP Materials, the only fully integrated rare earth magnets producer in the US, to enable increased manufacturing, and the Department of Defence committed US$400 million to expand processing capacity. Beyond that, the Trump administration launched a US$12 billion critical minerals stockpile programme, signalling a clear shift from market-driven concern to national security imperative.
Meanwhile, the rare earth metals market was valued at over US$7.2 billion in 2025 and is Projected to reach US$12.6 billion by 2035, expanding at a CAGR of 6.5%. The Rare Earth Elements market size is estimated at 208.02 kilotons in 2026 and is expected to reach 273.30 kilotons by 2031, growing at a CAGR of 5.61%, driven by demand from EV motors, wind turbines, defence systems, and electronics.
Figure 5: Rare Earth Elements Market Size and Share [Mordor Intelligence]
Brazil, importantly, sits entirely outside the web of Chinese production, making Araxá a strategically attractive address for downstream buyers seeking supply chain diversification.
Investor’s Outlook
St George Mining Limited (ASX: SGQ) currently trades at $0.135 per share as of 3rd March 2026 with a 52-week range of $0.015 – $0.180 per share, and its market capitalisation stands at approximately $609.53 million.
Figure 6: SGQ Price Chart [ASX]
Over the past 12 months, SGQ shares have delivered a return of approximately +600%, significantly outperforming the broader ASX All Ordinaries Index. The continued delivery of exploration results, a resource growing in both size and confidence, and an expanding global appetite for non-Chinese rare earths supply are each contributing to the Company’s market momentum.
The next major catalysts include incoming assay results from the 44 expansion holes not yet reflected in the current MRE, the maiden East Araxá resource estimate, and the start of formal economic studies as the resource base reaches the scale required to underpin them.
