St George Mining Limited (ASX: SGQ) (St George or the Company) has announced a significant step forward at its 100%-owned Araxá Project in Minas Gerais, Brazil, with the first batch of reverse circulation (RC) assays confirming exceptionally high-grade rare earths and niobium mineralisation. The results underscore the Project’s potential to become one of the world’s most significant carbonatite-hosted deposits outside China.
Outstanding Drilling Results
The initial seven RC drill holes intersected thick, high-grade mineralisation from surface, with assays peaking at 13.98% Total Rare Earth Oxides (TREO) and 7% Nb₂O₅. Highlights include:
- 41m @ 4.52% TREO and 0.87% Nb₂O₅ from surface
- 13m @ 7.06% TREO and 1.45% Nb₂O₅ from 4m
- 11m @ 7.03% TREO and 0.91% Nb₂O₅ from 5m
- 5m @ 11.83% TREO and 3.12% Nb₂O₅ from 8m
These early results confirm both grade consistency and strike continuity. Importantly, mineralisation begins at the surface and is hosted in free-digging material, supporting potential for low-cost open-pit development.
New Discovery Expands Potential
Beyond the defined resource area, auger drilling one kilometre east of the existing Mineral Resource Estimate (MRE) confirmed a new high-grade discovery. Initial results included 13.5m @ 12.34% TREO, indicating to significant mineralisation outside the known envelope.
This extension demonstrates Araxá’s scale, with strong potential for resource growth well beyond the already substantial MRE of 40.6Mt at 4.13% TREO and 41.2Mt at 0.68% Nb₂O₅.
High-Value Rare Earth Distribution
The drilling also highlighted an excellent distribution of high-value REEs:
- NdPr values up to 89% (28,900ppm) with NdPr: TREO ratios as high as 42%.
- Elevated Heavy REEs, including dysprosium, terbium, gadolinium, and lutetium.
- Samarium averaging 6% of TREO, further enriching the deposit’s profile.
These favourable grades underscore Araxá’s potential to produce concentrates rich in magnet metals essential for electric vehicles and wind turbines.
Company Commentary
St George’s Executive Chairman, John Prineas, emphasised the significance of these results:
“These first RC assay results are an excellent start and show that we are on track to upgrade the large carbonatite-hosted MRE at the Araxá Project – the same style of deposit as the two major producing rare earths mines outside of China, Mountain Pass in California and Mt Weld in Western Australia.”
He has also mentioned, “When combined with the early-stage results of the auger drilling, which confirmed a very significant and exciting discovery of high-grade rare earths mineralisation to the east of the main deposit at Araxá, it is clear that our efforts on the ground are starting to showcase the outstanding endowment, scale and growth potential at the Project. And we are confident there is more good news to come.”
Mr. Prineas also highlighted Araxá’s competitive advantages, noting its proximity to existing niobium operations, strong government support, and favourable ESG credentials.
Figure 3: Aerial Earth image of the Barreiro carbonatite complex showing the Araxa Project
Strategic Significance of Niobium and REEs
The Araxá Project is located adjacent to CBMM’s world-leading niobium operations, underlining its strategic importance. The region’s established infrastructure and skilled workforce further strengthen its development pathway.
Niobium Market Outlook
According to Mordor Intelligence, the niobium market is projected to grow from 79.68 kilotons in 2025 to 99.10 kilotons by 2030, at a CAGR of 4.46%. This growth is driven by sustained demand for high-strength low-alloy (HSLA) steel in the construction and automotive industries. Niobium additions can increase tensile strength by up to 30% while preserving weldability, making it a critical input for lightweight and durable infrastructure.
Figure 4: Market size and prediction (from 2024 to 2030) of Niobium (In Kilotons)
Rare Earths Market Outlook
The global REE market, per Grand View Research, is expected to expand from USD 3.95 billion in 2024 to USD 6.28 billion by 2030, reflecting a CAGR of 8.6%. While prices spiked in 2022 amid supply disruptions and geopolitical tensions, the subsequent stabilisation has resulted in sustained revenue growth. With demand for permanent magnets continuing to accelerate, high-grade projects outside China are increasingly strategic.
Figure 5: Market size and prediction (from 2024 to 2030) for global rare earth elements.
Position Among Global Peers
St George has secured government backing through Brazil’s MAGBRAS initiative, which aims to develop an integrated rare earth supply chain within the country. With measured and indicated resources already established, the Project stands out as a globally significant undeveloped source of REEs and niobium.
Government and Community Support
St George has secured government backing through Brazil’s MAGBRAS initiative, aimed at developing an integrated rare earth supply chain within the country. A cooperation agreement with the State of Minas Gerais is also in place to streamline permitting.
Such institutional support not only enhances Araxá’s development timeline but also underscores its strategic role in Brazil’s ambition to become a key player in global rare earths supply chains.
Investor’s Outlook: Strong Momentum in Company’s Shares
The market has well received St George’s strong exploration results and stock momentum through 2025, demonstrating investors’ acknowledgment.
ASX Share Performance (as of 12:02 pm AEST, 3 September 2025):
- Last Price: $0.051 (+2.00%)
- 1 Week: +21.43%
- 1 Month: +27.50%
- YTD 2025: +104.00%
- 1 Year: +64.52%
- Market Cap: $146.08 million
Figure 6: The share price performance of St George Mining Limited over the last six months
The Company’s trajectory reflects investor confidence in Araxá’s potential to become a cornerstone supplier of both niobium and REEs at a time of growing global demand and heightened geopolitical focus on supply security.
Conclusion
The first RC assays from Araxá mark a pivotal step forward for St George Mining. With high grades of both niobium and rare earths, near-surface mineralisation, and a clear pathway to resource expansion, the Project is emerging as one of the most compelling critical minerals opportunities in the Western world.
Backed by strong government partnerships, global market growth, and investor confidence, Araxá positions St George at the forefront of the energy transition and next-generation manufacturing supply chains.
