St George Mining Limited (ASX: SGQ) has discovered a new zone of high-grade niobium mineralisation 400 metres northwest of its existing resource at the Araxá Project in Brazil. The Company intersected mineralisation from surface in an area that had never been drilled before, confirming the system extends well beyond the current Mineral Resource Estimate.
Figure 1: Oblique 3D section showing high-grade TREO distribution and diamond drill intercepts across the Araxá Project discovery area [Source: St George Mining]
Three diamond rigs are now drilling 24/7 across the broader tenement. The discovery positions St George Mining to deliver a resource upgrade in Q1 2026, with 29 holes currently at the laboratory awaiting results. The Araxá Project sits immediately adjacent to CBMM’s industry-leading niobium operation within the Barreiro Carbonatite.
High-Grade Discovery Extends Mineralised Footprint
The recent drilling results confirm extensive niobium mineralisation well beyond the current resource boundary. Significant intercepts include:
- AXDD031: 81.5m @ 1.27% Nb₂O₅ from surface including:
- 43m @ 2.01% Nb₂O₅ from surface, and
- 10.5m @ 3.41% Nb₂O₅ from 17m
- AXDD026: 80m @ 0.61% Nb₂O₅ from surface
- AXDD029: 80.15m @ 0.43% Nb₂O₅ from surface
- AXDD028: 84.4m @ 0.49% Nb₂O₅ from surface
These results demonstrate continuous mineralisation from surface over broad intervals. The discovery sits nearly 1.2 kilometres north of the existing measured and indicated resource component, suggesting potential to establish separate high-grade mining zones across the broader tenement package.
Figure 2: Cross-section illustrating niobium and rare earth mineralisation from surface across the northwest discovery zone at Araxá [Source: St George Mining]
Executive Chairman John Prineas said
“These latest results again underscore the large scale and extensive continuity of the mineral system at Araxá and reinforce the setting of our project in the world’s leading niobium location. 80m of high-grade niobium from surface is an outstanding result and demonstrates the world-class status of the niobium mineralisation at St George’s Araxá Project. With mineralisation open in all directions, we still have not found the limits of the system. Further large step-out drill holes are planned in the area of the new discovery and we expect to see even more mineralisation uncovered.”
Rare Earths Extend Across Discovery Area
The latest drilling also confirmed rare earths mineralisation within the new zone. Hole AXDD025 returned 100.15m at 2.16% TREO from surface, including 19m at 4.17% TREO from 58m. Other holes intersected consistent mineralisation across both niobium and rare earths.
The findings support a multi-commodity resource increase in the upcoming upgrade. St George Mining is advancing follow-up drilling northwest of the discovery hole. Infill drilling will support inclusion of the new mineralisation in the Q1 2026 resource update.
Figure 3: Plan view map showing St George Mining tenements, drill hole locations and mineral resource outline at the Araxá Project [Source: St George Mining]
Araxá Project: World-Class Resource in Premier Niobium District
St George acquired 100% ownership of the Araxá Project on 27 February 2025. The project sits adjacent to CBMM’s world-leading niobium mine in Minas Gerais, Brazil, within the Barreiro Carbonatite.
The current Mineral Resource Estimate comprises:
Niobium (0.2% Nb₂O₅ cut-off):
Figure 4: JORC (2012) niobium Mineral Resource Estimate summary for the Araxá Project by classification [Source: St George Mining]
Rare Earths (2% TREO cut-off):
Figure 5: JORC (2012) rare earths Mineral Resource Estimate summary for the Araxá Project by classification [Source: St George Mining]
Importantly, mineralisation remains open in all directions. The new discovery 400 metres northwest of the existing resource demonstrates the scale potential of the mineral system.
Strategic Position in Critical Minerals Supply
The niobium market was valued at US$3.4 billion in 2025 and is projected to reach US$6.5 billion by 2035. Brazil produces more than 90% of the world’s niobium, with neither China nor the US having a domestic supply. The metal is essential in F-35 fighter jets, aerospace applications and high-strength steel alloys.
Figure 6: Overview of niobium applications.
The US Department of Interior ranks niobium as number 2 in strategic importance among all critical metals. This reflects the adverse impact on the US GDP if the country was denied supply. The rating emphasises the high risk of supply security for global superpowers.
Figure 7: Comparison of critical mineral supply concentration highlighting global reliance on dominant producing countries [Source: St George Mining]
Rare earth elements from Araxá are equally strategic. Samarium represents up to 2,600ppm of TREO at the Project, an exceptionally high grade for this magnet rare earth element. Samarium-Cobalt magnets are critical components in F-35 fighter jets and advanced military systems.
Alliance with US Defence Supply Chain
The Company has been selected to participate in the Federal Government’s MagBras Initiative. This program aims to establish an integrated and sustainable rare earth products supply chain, including permanent magnet production entirely within Brazil.
St George Mining signed a co-operation agreement with the State of Minas Gerais in October 2024. Under this agreement, the State will assist in expediting permitting approvals for the Araxá Project.
Resource Definition Continues Across Multiple Rigs
St George Mining believes the potential for continuation of high-grade mineralisation to the northwest is very high. The increased drill density could identify thick, high-grade zones consistent with what the Company sees in other parts of the system where infill drilling has been completed.
Although drilling will continue indefinitely into 2026, the Company is aiming to upgrade the Mineral Resource Estimate based on drilling completed this month. This will enable an MRE upgrade to be issued in Q1 2026.
The successful discovery of high-grade mineralisation from surface will be followed up with further step-out drilling. Infill drilling will support the inclusion of resources in the update.
Investor Outlook
St George Mining (ASX: SGQ) continues to generate interest as a high-grade niobium and rare earths developer in Brazil’s Barreiro Carbonatite. The Company’s systematic approach to exploration at Araxá, combined with government support and proximity to CBMM’s operation, positions it well for value creation.
Share Price Activity (as of 8 January 2026):
- Last Price: $0.107 per share
- 52-Week Range: $0.015 to $0.180 per share
- Market Capitalisation: $418.17 million
Figure 8: St George Mining share price performance over the past year [Source: ASX]
The Company’s next catalysts include assay results from the 29 drill holes expected in the coming weeks, continuation of the systematic drilling campaign, and the Q1 2026 Mineral Resource Estimate upgrade. The potential for further high-grade discoveries remains strong as the system is open in all directions.
