St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) has reported further outstanding drilling results from its 100%-owned Araxá Rare Earths and Niobium Project in Brazil. The latest assays demonstrate thick, high-grade mineralisation from surface across multiple drill holes.
The Company announced that diamond drilling continues to intersect extensive zones of rare earth and niobium mineralisation, with the standout result being 128.6 metres @ 4.87% TREO and 0.85% Nb₂O₅ from surface in drill hole AXDD027.
Thick Mineralised Zones Confirm Deposit Scale
The recent batch of assays reinforces the exceptional scale and consistency of mineralisation at Araxá. Significant intercepts include:
- AXDD027: 128.6m @ 4.87% TREO and 0.85% Nb₂O₅ from surface, including 31.25m @ 6.09% TREO from 44m
- AXDD021: 100.6m @ 4.25% TREO and 0.73% Nb₂O₅ from surface, including 19.6m @ 8.16% TREO from surface
- AXDD032: 81.1m @ 5.33% TREO and 0.78% Nb₂O₅ from surface, including 23m @ 6.59% TREO from 36m
- AXDD035: 81.3m @ 4.81% TREO and 0.48% Nb₂O₅ from surface, including 13.95m @ 6.99% TREO from 18.3m
These results demonstrate continuous high-grade mineralisation from surface over very broad intervals. The consistency of grades strengthens confidence in the resource modelling and indicates strong potential for a substantial increase to the current Mineral Resource Estimate of 40.6Mt @ 4.13% TREO.
Figure 1: Oblique section showing the latest diamond drill holes at Araxá Project, with the latest results highlighted [St George Mining]
High-Grade Niobium Mineralisation Strengthens Strategic Value
The latest assays also highlight exceptional niobium grades, with intercepts including 10.75m @ 2.61% Nb₂O₅ from 77m in AXDD027 and 73.6m @ 1.04% Nb₂O₅ from 55m in the same hole. These results underscore the project’s location within the Barreiro Carbonatite, adjacent to CBMM’s globally recognised niobium operations.
Figure 2: Araxá Project’s location within the Barreiro Carbonatite Intrusive Complex [St George Mining]
Niobium is a critical mineral used in steel production, aerospace applications, and increasingly in advanced battery technologies. The Araxá Project benefits from its position in the world’s premier niobium mining district, with established infrastructure and a skilled local workforce.
Araxá Project: World-Class Resource in Established Mining Region
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.
The current Mineral Resource Estimate comprises:
Rare Earths (2% TREO cut-off):
- 40.6Mt @ 4.13% TREO, including significant magnet rare earth elements (MREO)
Niobium (0.2% Nb₂O₅ cut-off):
Importantly, mineralisation remains open in all directions, including at depth. Most drill holes ended in high-grade mineralisation, with AXDD027 recording 11.6m @ 5.61% TREO in the final metres.
Figure 3: Section showing high-grade TREO intercepts (cut-off 1% TREO) and high-grade Nb₂O₅ intercepts (cutoff 0.2% Nb₂O₅) [St George Mining]
Favourable Magnet Rare Earths Profile
The mineralisation contains a high proportion of magnet rare earths, with the NdPr:TREO ratio consistently around 20% and reaching as high as 29% in some holes. Neodymium and praseodymium are essential for permanent magnets used in electric vehicles, wind turbines, and consumer electronics.
Figure 4: Uses of Neodymium and Praseodymium
Critical Minerals Market Dynamics
The global rare earths market is experiencing strong demand driven by the energy transition and technological advancement. The rare earths market is forecast to reach USD 16.1 billion by 2034, with electric vehicle motors being a primary growth driver.
Niobium demand is similarly robust. The niobium market is projected to grow from 79.68 kilotons in 2025 to 103.18 kilotons by 2031, reflecting a CAGR of 4.4%. Beyond traditional steel applications, niobium is gaining traction in advanced battery technologies, with industry leaders like CBMM and Toshiba collaborating on high-performance battery systems.
Figure 5: Niobium Market Size and Share [Mordor Intelligence]
Executive Commentary
John Prineas, St George Mining’s Executive Chairman, commented: “It’s drill, drill, drill at Araxá. We are focused on expanding the resource and defining an even more impressive world-class resource of high-grade rare earths and niobium.”
He added: “The consistency of the results is very impressive. Together with the new mineralisation discovered beyond previously defined limits, the drilling is transforming the scale of the MRE and further positioning St George as one of the leaders in the rare earths and niobium sectors.”
Aggressive Drilling Campaign Continues
St George is operating three diamond drill rigs 24/7 at Araxá. A further 28 diamond drill holes are currently at the laboratory awaiting assays, with the next batch of results expected later this week. The Company is systematically testing extensions to the known mineralisation and exploring deeper zones below the current 100-metre resource envelope.
Investor’s Outlook
St George Mining (ASX: SGQ) is trading at $0.102 per share as of 6 January 2026, within a 52-week range of $0.015 – $0.180. The Company’s market capitalisation stands at approximately $380.15 million.
Figure 6: SGQ Price Chart [ASX]
The latest drilling results reinforce Araxá’s position as one of the largest and highest-grade carbonatite-hosted rare earth deposits in South America. With mineralisation open in all directions, established infrastructure, and support from Brazilian authorities through the MagBras Initiative, St George appears well-positioned to deliver ongoing resource growth.
The combination of thick, high-grade mineralisation from surface, favourable magnet rare earth ratios, and significant niobium credits creates a compelling development proposition in a region with proven mining credentials.
