St George Mining Limited (ASX: SGQ) (“St George” or the “Company”) has delivered its most spectacular drilling result yet at its 100%-owned Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil, a record-breaking 178.7 metres at 4.34% Total Rare Earth Oxides (TREO) and 0.75% Nb₂O₅ from surface, reinforcing the Project’s standing as the most significant undeveloped rare earths and niobium project in the world.
Figure 1: Map highlighting the location of Minas Gerais, Brazil, alongside an aerial view of the Barreiro carbonatite complex, showing the Araxá Project (outlined in red) and its proximity to the CBMM niobium mine and the Mosaic phosphate mine. [Google Earth and St George Mining Limited]
Record Intercept Rewrites the Araxá Story
The headline result comes from drill hole AXDD086, which returned the thickest mineralised interval ever recorded at Araxá to date. Within the 178.7-metre intercept, the hole delivered standout sub-intervals including:
- 3.15m @ 12.27% TREO and 1.61% Nb₂O₅ from 8.05m depth
- 55.7m @ 6.16% TREO and 0.95% Nb₂O₅ from 14m depth
- 86.45m @ 0.97% Nb₂O₅ from 7m depth for niobium
The Company released assay results for a total of fifteen diamond drill holes in this announcement, with multiple holes delivering thick, high-grade mineralisation commencing directly from surface. Other standout intercepts include:
- AXDD092: 165.3m @ 4.28% TREO and 0.61% Nb₂O₅ from surface, including 110.5m @ 5.29% TREO and 0.75% Nb₂O₅ from 32m, and 4m @ 14.14% TREO and 0.77% Nb₂O₅ from 46m
- AXDD088: 150.2m @ 4.64% TREO and 0.59% Nb₂O₅ from surface, including 92m @ 5.37% TREO and 0.64% Nb₂O₅ from 46m, and 17m @ 12.16% TREO and 1.00% Nb₂O₅ from 59m
- AXDD080: 163.65m @ 3.29% TREO and 0.45% Nb₂O₅ from surface, with peak grades reaching 27.88% TREO within a 0.7m sub-interval
- AXDD082: 81.05m @ 5.14% TREO and 0.64% Nb₂O₅ from surface, including a high-grade zone of 13.08m @ 9.38% TREO and 0.56% Nb₂O₅ from 51.65m
These results further demonstrate the remarkable consistency and grade of mineralisation across the Araxá deposit — and the mineral system remains open in all directions, including at depth, with the 24/7 drill campaign ongoing.
Figure 2: Oblique section diagram showing the latest diamond drill holes across the Araxá Project, with colour-coded TREO grades. The latest drill holes are labelled red. [St George Mining Limited]
A Commercial Advantage Without Parallel
Executive Chairman John Prineas highlighted the unique commercial proposition that thick, near-surface mineralisation delivers to the Araxá Project:
“The drilling results continue to show huge true widths from surface paired with very high grades. This unique combination is unrivalled among emerging rare earths and niobium developers. The commercial advantage of high-grade mineralisation starting from surface — as opposed to 50m or even more than 100m below surface — cannot be underestimated.”
The free-digging nature of the mineralisation supports a simple open-pit mining operation, dramatically reducing the capital intensity of potential mine development. This near-surface profile also supports an expedited pathway to production — a critical differentiator in a sector where many peers face deeply buried ore bodies requiring costly underground infrastructure.
The mineralisation is carbonatite-hosted — the same deposit style underpinning two of the world’s largest rare earths producers outside China: MP Materials’ Mountain Pass mine in the United States (NYSE: MP) and Lynas Rare Earths’ Mt Weld mine in Australia (ASX: LYC). This well-understood style of mineralisation carries a long track record of commercial production.
Figure 3: Section A–A’ illustrating high-grade TREO intercepts (using a 1% cut-off) and high-grade Nb₂O₅ intercepts (using a 0.2% cut-off), alongside the current MRE boundary. [St George Mining Limited]
Araxá Stacks Up Against Global Peers
According to the Company’s latest Mineral Resource Estimate (MRE) — announced on 3 March 2026 — the Araxá resource now stands at a total of 70.91 million tonnes (Mt) at 4.06% TREO and 0.62% Nb₂O₅ using a 2% TREO cut-off. The Measured and Indicated portion alone totals 29.49Mt at 4.56% TREO.
When compared to global hard-rock rare earths peers, Araxá holds its own convincingly:
- Contained NdPr: 0.55Mt at Araxá versus 0.65Mt (Lynas Mt Weld) and 0.38Mt (MP Materials Mountain Pass)
- NdPr grade: 0.77% total — competitive with Mt Weld (0.61%) and Mountain Pass (0.93%)
- Total resource: 70.91Mt, larger than Mountain Pass (40.6Mt) and Arafura’s Nolans project (56Mt)
Mr Prineas underscored the trajectory the Company is on:
“Our Araxá MRE is already comparable in scale and grade to these two world leaders in rare earths mining, with potential for our resource to be even larger as ongoing drill results — including the record results announced today — are incorporated into our resource model.”
Figure 4: Table showing St George’s Araxá resource versus Lynas, MP Materials, and Arafura, highlighting resource tonnage, TREO grade, NdPr grade, market capitalisation and more. [St George Mining Limited]
Niobium: A Strategic Kicker the Market Cannot Ignore
The niobium component at Araxá is shaping up to be a potentially transformational revenue stream. Located in the Barreiro Carbonatite, directly adjacent to CBMM’s world-leading niobium mine, the Project benefits from geological and jurisdictional proximity to the world’s premier niobium-producing region.
The record AXDD086 intercept alone contains 178.7m @ 0.75% Nb₂O₅ from surface, with a sub-interval of 86.45m @ 0.97% Nb₂O₅ from 7m and a peak grade of 2.83% Nb₂O₅. Similarly strong niobium values appear across most of the fifteen holes reported, confirming large-scale grade consistency.
The strategic significance of niobium extends well beyond the mine gate. The United States Department of Interior ranks niobium as number two in strategic importance among all critical metals. Neither the United States nor China maintains domestic primary production of niobium, a supply gap that St George is uniquely positioned to address.
Mr Prineas reinforced the market opportunity:
“Neither the US nor China have domestic primary production of niobium, which leaves St George in an enviable position to benefit from very favourable market dynamics. Our study work for a potential mining operation at Araxá is based on niobium being produced separately to a rare earths product, creating two revenue streams at Araxá — a huge boost to our potential economics and another major point of difference with stand-alone rare earths developers.”
A scoping study for a potential niobium mining operation is currently underway, and the Company’s in-country team carries a long history of niobium mining experience in the Araxá region.
Magnet Rare Earths Profile Attracts Global Interest
The mineralisation at Araxá consistently delivers a high proportion of magnet rare earths — the materials most critical to the production of permanent magnets used in electric vehicles and wind turbines. The NdPr: TREO ratio across the latest batch of drill holes averages around 20%, reaching as high as 26% in AXDD089 and AXDD091.
This profile has already attracted the attention of global magnet supply chain operators, including REalloys of the United States, a growing mine-to-magnet operator with major contracts with the US Government, and MagBras in Brazil.
Figure 5: Section B–B’ highlighting high-grade TREO intercepts (1% cut-off) and high-grade Nb₂O₅ intercepts (0.2% cut-off), together with the current MRE outline, demonstrating its expansion. [St George Mining Limited]
Investors’ Outlook
St George Mining’s share price has performed strongly over the past twelve months, reflecting the growing market recognition of the Araxá Project’s world-class credentials:
- Last Price: $0.1225
- Change (Day): +$0.0025 (+2.08%)
- 1 Week: +6.52%
- 2026 YTD: +23.74%
- 1 Year: +600%
- Market Capitalisation: ~$474.4 million
The Company’s market capitalisation of approximately $474 million represents a significant growth opportunity, as the Araxá MRE already compares favorably in scale and grade to peers such as Lynas Rare Earths ($19.5 billion) and MP Materials (US$8.8 billion).
Figure 6: St George Mining Limited’s performance on the ASX in the past 12 months, with the stock price increasing nearly 600%. [St George Mining Limited Company Overview]
With a scoping study for niobium underway, ongoing drilling continuing to expand and upgrade the resource, and growing strategic interest from US and Brazilian offtake partners, SGQ presents a compelling de-risking story for investors seeking exposure to the global critical minerals thematic.
Figure 7: A plan view map showing the Araxá tenement boundary, MRE outline, and drill hole collar locations with TREO colour coding. [St George Mining Limited]
The dual revenue potential from rare earths and niobium, combined with near-surface, free-digging ore; an established mining jurisdiction; government support for expedited approvals; and existing infrastructure in Minas Gerais, positions Araxá as one of the most strategically valuable undeveloped critical minerals projects globally.
Disclaimer: This editorial is for informational purposes only and does not constitute financial or investment advice. Past share price performance is not indicative of future performance. Investors should seek professional advice before making any investment decision.
Last modified: April 7, 2026
