St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) has announced a significant milestone at its 100%-owned Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil. Assays from the first diamond drill hole, AXDD001, have confirmed a 98.4m interval of high-grade mineralisation approximately 230m west of the current Mineral Resource Estimate (MRE).
Mr John Prineas, Executive Chairman of St George Mining, stated:
“These are exceptional results that deliver on two key objectives of our current drill program – to grow the existing MRE and to define the scale of our major new discovery to the east.”
Western Extension of the Araxá MRE
Step-Out Drill Hole AXDD001
Figure 1 – Diamond drill hole AXDD001 was strategically drilled 230 meters west of the current MRE to test the extent of mineralisation beyond the known resource boundary. The results have exceeded expectations, with a continuous high-grade intercept from surface measuring 98.4 meters at 3.07% TREO and 0.43% Nb₂O5.
Key High-Grade Intervals:
- 10.4 meters @ 5.48% TREO and 0.48% Nb₂O5 from 4.6 meters
- 12 meters @ 4.04% TREO from 25 meters
This confirms that the mineralised carbonatite body continues beyond the current MRE. The drill hole reached the fresh rock horizon, and assays for this portion are pending.
On these encouraging findings, Mr John Prineas further stated that
“The success of AXDD001 in proving mineralisation 230m beyond the current resource boundary is a fantastic development, demonstrating that the MRE remains open and has significant growth potential. The broad intercept of nearly 100m from surface speaks to the significant volume of mineralisation here.
To the east, the results from the second batch of RC holes continue to build the case for a second, very large-scale deposit. Particularly encouraging is the high proportion of magnet rare earths we are seeing in this new zone – a great discovery at a time when governments and private enterprise outside of China are looking for new reliable sources of supply for these sought-after rare earths.”
Implications for the MRE
The AXDD001 intercept shows the near-surface continuity and thickness of mineralisation, which is favourable for potential open-pit mining. This western extension provides a clear pathway to expand the existing 40.6Mt @ 4.13% TREO resource.
East Araxá Discovery: A New High-Grade Zone
Follow-Up RC Drilling
Figure 2 – East Araxá RC drill sections highlighting multiple high-grade TREO and Nb₂O₅ intercepts.
The East Araxá discovery, located approximately 1 kilometre east of the MRE, continues to deliver outstanding results. Six new reverse circulation (RC) drill holes (AXRC011 to AXRC016) significantly expanded the known footprint of high-grade rare earths and niobium.
Notable Intercepts (AXRC014):
- 25m @ 4.42% TREO and 0.95% Nb₂O5 from 25m
- 11m @ 5.55% TREO and 1.29% Nb₂O5 from 35m
- 2m @ 10.89% TREO and 1.62% Nb₂O5 from 47m
These results show high grades and consistent mineralisation from surface, pointing to East Araxá as a possible second large deposit.
High-Value Magnet Rare Earths
Of particular importance is the proportion of magnet rare earths (NdPr), which can account for up to 30% of TREO. These elements are crucial for permanent magnets used in electric vehicles, wind turbines, and other clean energy technologies. High-grade magnet rare earths position the Araxá project as a strategic asset amid growing global supply concerns.
Strategic Importance for St George Mining
Resource Expansion and Project Development
The confirmation of thick, high-grade mineralisation in both western and eastern zones enhances St George’s ability to upgrade and expand its MRE. The company is targeting a larger, higher-confidence JORC resource through ongoing step-out and infill drilling. This is crucial for progressing the project towards a potential Feasibility Study and eventual mining operation.
Figure 3 – Night-shift drilling underway at the Araxá Project.
Low-Cost Open-Pit Potential
Drilling results indicate near-surface mineralisation within a weathered saprolite horizon, which is typically amenable to low-cost open-pit mining. This adds to the economic attractiveness of the project by reducing potential mining costs while maintaining high-grade output.
Industry Context: Rare Earths and Global Supply
Rare earth elements, particularly magnet rare earths such as neodymium and praseodymium, are critical to the global shift towards clean energy. Demand is projected to grow substantially due to their use in electric vehicles, permanent magnets, and wind turbines.
China currently dominates global rare earth supply, leading to geopolitical and supply risks. Projects like Araxá offer non-Chinese, high-grade sources of TREO and Nb₂O
, making them strategically important for governments and manufacturers seeking secure, diversified supply chains.
Global Niobium Market and its Market Significance
Figure 4- Global Niobium Market
The Global Niobium Market is poised for substantial expansion, projecting a Compound Annual Growth Rate (CAGR) of 6.00% to grow from a market size of USD 2.08 Billion in 2024 to USD 3.23 Billion by 2032. This significant growth underscores Niobium’s critical role as a strategic material in modern high-performance engineering.
The core of this demand is its irreplaceable utility as a micro-alloying agent, primarily in the production of High-Strength Low-Alloy (HSLA) steel, where trace additions of Niobium dramatically enhance strength, toughness, and weldability, making it indispensable for major global infrastructure, construction, and pipeline projects. Furthermore, its market significance extends to high-tech sectors, driven by the escalating need for superalloys in aerospace and defense components like jet engines (due to its high-temperature strength), and increasingly, in next-generation electric vehicle (EV) batteries for enhanced charging speed and longevity.
Niobium, used in high-strength steel alloys and superconductors, is also a valuable component of the Araxá mineralisation. The combination of high-grade rare earth elements (REEs) with significant niobium content adds both economic value and industrial relevance to the project.
Investor Outlook: Growth and Returns
St George Mining’s latest drilling results at Araxá have confirmed strong, high-grade rare earths both west and east of the current resource. The results confirm the project’s potential, and the next drilling results are highly anticipated.
The Company has strengthened its position with the recent A$72.5 million equity raise, including A$22.5 million from Hancock Prospecting. The funds will support resource expansion, feasibility studies, and permitting, providing a clear path toward a Final Investment Decision.
Commenting on the continued success and growing confidence in the Araxá Project, Executive Chairman John Prineas said:
“We are consistently hitting thick zones of high-grade mineralisation from surface within a favourable weathered saprolite horizon, which points towards the potential for a simple, low-cost open-pit operation. We look forward to reporting further results from our ongoing drill program as we continue to unlock the immense value of this globally significant project.”
Market Performance
- Current price: 0.168 (4.69%)
- 52-week range: 0.015 – 0.180
- Market Cap: $493.41 million
Demand for rare earths is rising globally due to electric vehicles, renewable energy, and electronics, creating a supportive backdrop for the St George. Early results could boost confidence in Araxá as a significant deposit, and any expansion of the resource may increase the Company’s value.
