St George Mining Limited (ASX: SGQ) has released assay results from 37 diamond drill holes at its wholly owned Araxá Rare Earths and Niobium Project in Brazil.
The results extend a run of thick, high-grade hits from surface at the project, which lies in the state of Minas Gerais in the country’s south-east.
Taken together, the numbers sharpen the case for a shallow, low-cost open-pit development, and set the stage for a resource upgrade the Company expects to complete this quarter.
Record 207-Metre Intercept Leads the Drill Results
The headline result is a 207-metre intercept from surface in hole AXDD142, grading 2.60% Total Rare Earth Oxides (TREO). It is the thickest continuous intersection returned so far at Araxá.
Within that same hole, the top 45 metres graded 4.68% TREO, a reminder that the richest material tends to sit closest to surface.
AXDD142 was one of six holes in the batch to return mineralisation more than 150 metres thick from surface.
Standout rare earths results from surface
- AXDD166: 1m at 4.86% TREO, including 20.0m at 12.65% TREO
- AXDD165: 5m at 3.66% TREO, including 67.0m at 5.46% TREO
- AXDD142: 0m at 2.60% TREO, including 45.0m at 4.68% TREO
- AXDD167: 2m at 3.49% TREO, including 104.0m at 4.25% TREO
- AXDD155: 6m at 4.39% TREO, including 25.2m at 6.21% TREO
- AXDD143: 0m at 2.50% TREO, including 41.3m at 3.96% TREO
- AXDD160: 0m at 3.99% TREO, including 46.1m at 5.49% TREO
Individual rare earth samples graded as high as 30% TREO.
Figure 1: Oblique 3D view of the latest Araxá diamond drill holes set against the current resource model, with the newest holes marked in red. [Source: St George Mining Limited]
Thick Niobium Grades Start at Surface
The same holes returned broad zones of niobium, again beginning at surface. Niobium is reported here as Nb₂O₅, its oxide form, and the metal is valued for the strength it lends to steel.
Standout niobium results from surface
- AXDD167: 2m at 0.72% Nb₂O₅, including 50.7m at 0.87% Nb₂O₅
- AXDD165: 5m at 0.70% Nb₂O₅, including 53.0m at 1.21% Nb₂O₅
- AXDD166: 1m at 0.64% Nb₂O₅, including 54.0m at 0.77% Nb₂O₅
- AXDD147: 5m at 0.94% Nb₂O₅, including 43.0m at 1.35% Nb₂O₅
- AXDD129: 6m at 0.36% Nb₂O₅, including 43.0m at 1.13% Nb₂O₅
- AXDD151: 3m at 0.71% Nb₂O₅, including 33.0m at 1.29% Nb₂O₅
- AXDD160: 0m at 0.61% Nb₂O₅, including 30.8m at 1.12% Nb₂O₅
Individual niobium samples graded as high as 6% Nb₂O₅.
Figure 2: Cross section showing high-grade TREO and niobium intercepts from surface, with the deposit remaining open in all directions. [Source: St George Mining Limited]
Results Point to a Simple Open-Pit Mine
All of the mineralisation reported sits within the weathered profile at Araxá, the soft, near-surface rock that is cheapest to move. The Company describes the ore as free-digging and well suited to open-pit extraction.
“The latest drill results are arguably the best results so far in our drill campaign, including a new record thick intercept from surface of 207m,” Executive Chairman John Prineas said.
He pointed to the commercial edge of having grade at surface rather than at depth.
“We can get into high-grade material directly from surface, which speaks to the very significant commercial advantage we have, both in cost and speed to development,” he said.
Because the high-grade zones start at surface, little waste rock needs to be stripped before mining begins, which trims early capital costs.
Six Holes Extend the Known Deposit
Several holes in the batch tested ground beyond the current resource outline, and the mineralisation held up on every front.
Key takeaways from the program
- Six of the 37 holes were drilled outside the current resource, extending it up to 140m to the north
- 13 holes intersected high-grade mineralisation below the current modelled depth
- Much of the drilling was completed on 40m spacing, tight enough to lift confidence in the resource
The Company said the results should support both higher-confidence resource categories and early mine scheduling.
The Araxá Resource Base
The new data will feed into an updated Mineral Resource Estimate for Araxá, due for completion this quarter.
The current estimate, announced on 3 March 2026, already ranks the project among the largest of its kind.
| Resource Category | Million Tonnes | TREO (%) | MREO (%) | Nb₂O₅ (%) |
|---|---|---|---|---|
| Measured | 8.02 | 5.23 | 0.95 | 1.06 |
| Indicated | 21.46 | 4.31 | 0.80 | 0.63 |
| Measured & Indicated | 29.49 | 4.56 | 0.84 | 0.75 |
| Inferred | 41.42 | 3.71 | 0.72 | 0.52 |
| Total | 70.91 | 4.06 | 0.77 | 0.62 |
Figure 3: Araxá Mineral Resource Estimate at a 2% TREO cut-off, from the Company’s 3 March 2026 upgrade. [Source: St George Mining Limited]
Araxá hosts 70.91 million tonnes at 4.06% TREO, with a separate niobium count adding 24.56 million tonnes at 0.52% Nb₂O₅.
The Company describes Araxá as the largest and highest-grade carbonatite-hosted rare earth resource in South America, a nod to the unusual carbonate-rich rock that carries its grades.
Why Rare Earths and Niobium Matter
Araxá’s appeal rests on two metals that have moved to the centre of the critical minerals debate.
Rare earths are the building blocks of the permanent magnets inside electric vehicles, wind turbines and advanced defence systems. Demand is climbing as economies electrify and rearm.
Supply, by contrast, is concentrated. China refines the bulk of the world’s rare earths, a chokepoint that has pushed Western governments and manufacturers to hunt for alternatives.
Niobium tells a similar story from a different angle. Most of it goes into high-strength steel, and Brazil supplies the lion’s share of global output. Araxá sits alongside CBMM, the world’s dominant niobium producer.
That geography matters. As Mr Prineas noted, neither China nor the United States mines its own niobium.
“Neither China nor the US has a domestic supply of niobium and rely on imported niobium feedstock,” he said.
Figure 4: How rare earths and niobium underpin the case for Araxá.
About the Araxá Project
St George acquired full ownership of Araxá on 27 February 2025. The project lies within the Barreiro Carbonatite in Minas Gerais, a district with a long record of niobium production.
It comes with the infrastructure a developer wants early: sealed roads, grid power and a skilled local workforce. The Company has also secured government backing for faster permitting and assembled an in-country team.
The result has been steady momentum through 2026, from earlier drill hits at Araxá to high-grade niobium results and a A$60 million capital raise.
Investors’ Outlook
With a resource upgrade in sight, attention now turns to how the latest drilling reshapes the size and confidence of Araxá.
| Metric | Value (Verify Live Before Publishing) |
|---|---|
| Last Price | $0.075 |
| 1 Year | +82.93% |
| vs Sector (1 Year) | +48.53% |
| vs ASX 200 (1 Year) | +81.61% |
| Market Cap | $347,833,199 |
- Updated Mineral Resource Estimate for Araxá, due this quarter
- Economic studies on a potential open-pit operation, expected through the rest of the year
- Further assay results from ongoing drilling
“Shareholders can expect news of the resource upgrade in the coming weeks and economic studies through the remaining part of the year,” Mr Prineas said.
Disclaimer
This article has been prepared by Colitco in collaboration with Prospect Resources as part of a commercial content and investor communications arrangement. Colitco may receive compensation for the production and distribution of this content. This article is intended for informational purposes only and does not constitute financial product advice, investment advice, or a recommendation to buy or sell any securities. The content reflects information available at the time of publication and may not be updated. All figures, data and statements have been sourced from Prospect Resources’ official ASX announcements and publicly available sources. Readers should conduct their own independent research and seek professional financial advice before making any investment decisions. Past performance is not a reliable indicator of future results. Exploration results are not a guarantee of future resource definition or commercial production.
Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
