St George Mining Limited (ASX: SGQ) (the “Company” or “St George Mining”) is accelerating its push into the critical minerals sector with the 100% acquisition of the high-grade Araxá Niobium-REE Project in Minas Gerais, Brazil. This pivotal acquisition positions the company in one of the world’s premier niobium-producing regions, directly alongside industry leader CBMM, which dominates nearly 80% of the global niobium market.
Since finalising the deal on February 27, 2025, St George Mining has swiftly initiated metallurgical testwork. This study, a key component of the company’s development strategy, focuses on optimising the recovery of niobium and rare earth elements (REE) through flotation processing. It is being conducted in collaboration with Brazil’s leading scientific institutions, EMBRAPII and SENAI.
Located within the Barreiro Carbonatite Complex, the Araxá Project benefits from well-established infrastructure, including road access, power, and a skilled local workforce. Although only 10% of the project area has been drilled, the site presents considerable exploration upside, providing St George Mining with a strong foundation for future growth in the high-demand niobium and REE markets.
Figure 1: St George mining mineral projects
On this acquisition, St George Mining’s Executive Chairman, Mr John Prineas, said, “Today is a landmark day for St George as we enter a new era. The high-grade niobium-REE Araxá Project represents a tremendous opportunity for St George to potentially become a globally significant player in the niobium sector.”
“The Project is positioned as a de-risked, world-class project with extensive high-grade niobium and REE mineralisation confirmed by historical drilling, a long history of commercial niobium production in the region, access to existing infrastructure and availability of an experienced workforce.
“We look forward to providing all shareholders with exciting news as we move quickly to prove the development potential at Araxá.”
Investment and Development Plan
St George has raised A$20 million to fund exploration and development activities for 2025. Key plans include:
- A 5,000-metre drilling program starting in March 2025.
- A JORC-compliant Mineral Resource Estimate is targeted for March 2025.
- Metallurgical testing and production of sample niobium and REE products.
- Environmental, heritage, and geotechnical studies.
- Early-stage feasibility studies.
St George has also signed a Memorandum of Understanding (MoU) with Xinhai Group, a global engineering services company, to collaborate on project development. Partnerships with SENAI/FIEMG aim to develop rare earth magnets and optimise niobium processing. Xinhai (and its nominees) invested A$8 million in the A$20 million equity fundraising completed by St George to support the Project acquisition.
Figure 2: Xinhai Group, a global engineering services company
This investment shows confidence in the project’s potential and St George’s ability to develop it efficiently. Furthermore, in 2024, St George signed a non-binding MoU with the State of Minas Gerais (Invest Minas). The State will assist with accelerated regulatory approvals to recognise St George’s significant proposed investment in the Araxá niobium-REE Project.
Figure 3: MoU signed to expedite project approvals
Metallurgical Testwork Underway
St George has selected three large representative samples (>60kg each) from historical drill holes at Araxá for comprehensive bench-scale testing. These samples from different lithological units provide a robust basis for evaluating processing efficiency. The testwork aims to define flotation parameters, recovery rates, and the potential for by-product extraction, including magnetite, phosphate, and barite.
Key highlights of the testwork process include:
- Initial Grinding Stage: Optimising particle size for enhanced recovery.
- Magnetic Separation: Extracting iron-bearing minerals to produce a magnetite concentrate.
- Desliming: Removing ultra-fine particles to improve flotation efficiency.
- Flotation: Separating non-niobium minerals to refine the high-purity niobium concentrate.
Figure 4: Location of drill holes selected for metallurgical testwork (Datum: SAD69 UTM Zone 23S)
The tailings stream will also undergo further assessment for REE, phosphate, iron ore, and barite recovery, supporting St George’s commitment to maximising resource utilisation.
Pathway to Commercial Production
St George is committed to fast-tracking development at Araxá, leveraging its technical expertise and strong scientific partnerships. The bench-scale testwork will provide crucial data to refine the processing flowsheet, reduce costs, and support the final plant design and construction.
St George’s Executive Chairman, John Prineas, stated, “With our technical team and world-class scientific collaborators, we are positioned to unlock the full potential of Araxá’s high-grade niobium and REE mineralisation. Our structured testwork program ensures we optimise recoveries while exploring innovative processing solutions to enhance efficiency and sustainability.”
With the first test results expected in Q2 2025, St George remains on track to deliver a robust production strategy for high-value niobium and REE products, further solidifying its presence in the global critical minerals market.
Financial and Shareholder Impact
St George has paid Itafos Inc. (TSX-V: IFOS) an initial US$6.97 million, with further payments totalling US$11 million over the next 18 months. In return, Itafos has acquired a 10% stake in St George, aligning its interests with the project’s success.
St George has also issued 86.1 million options at A$0.04 and 11.1 million performance rights, which will convert to shares upon meeting a JORC resource milestone of 25 Mt @ 3.5% TREO.
About Araxá Project
The Araxá Project is situated within the renowned Barreiro Carbonatite Complex, a 5km-wide geological formation hosting extensive hard-rock niobium, rare earth elements (REE), and phosphate mineralisation. The project is strategically positioned alongside world-class mining operations, including CBMM’s Araxá niobium mine, which boasts a resource of 896 Mt @ 1.49% Nb₂O₅, and Mosaic’s Araxá phosphate mine with 519 Mt @ 13.4% P₂O₅.
Figure 5: Satellite view of the Barreiro Carbonatite Complex highlighting the Araxá Project (red outline) alongside the neighbouring CBMM niobium and Mosaic phosphate mine.
Recognised as the ‘dress circle’ of the global niobium industry, the Barreiro Carbonatite Complex contributes approximately 80% of the world’s niobium supply.
Historical exploration at the Araxá Project has confirmed widespread, high-grade niobium, REE, and phosphate mineralisation in near-surface weathered ore and deeper primary ore deposits. These results reinforce the project’s potential as a significant source of critical minerals essential for modern industries.
Niobium and REE Industrial Opportunity
Niobium and rare earth elements are central to the global clean energy transition. Niobium strengthens steel alloys, making it vital for infrastructure, automotive, and aerospace industries. Meanwhile, REEs like neodymium and praseodymium (NdPr) are crucial for permanent magnets used in wind turbines and EV motors.
The global niobium market, valued at $2.5 billion in 2023, is controlled by just three producers: CBMM, CMOC, and Niobec. This limited supply creates a significant opportunity for St George, especially with the rising demand for niobium in battery technologies. The Araxá Project’s high-grade mineralisation positions the Company to capitalise on this growth.
Similarly, the rare earth market is booming and is driven by the EV and renewable energy sectors. With NdPr prices hitting record highs, St George’s Araxá Project, which boasts NdPr grades of up to 5.5%, is set to become a key supplier.
Figure 6: Niobium in its natural state
About Mr John Prineas, Executive Chairman, St George Mining Limited
Figure 7: Mr John Prineas | Executive Chairman
With over 25 years of banking, law, and corporate governance expertise, Mr John Prineas is a driving force behind St George Mining’s strategic growth. A founding shareholder, he began his career at Allen, Allen & Hemsley, specialising in commercial transactions across Australia and the Asia-Pacific. He later held key roles at Dresdner Bank AG, including General Counsel and Country Head, focusing on project finance for resources and infrastructure.
With a Bachelor’s degree in Economics and Law, Prineas blends financial acumen with legal precision, positioning St George Mining as a prominent player in the global critical minerals sector. His leadership continues to steer the Company toward innovation and success.
Looking Ahead
St George Mining is forging ahead with its plans to establish a strong foothold in the niobium sector. The Araxá Project could be a game-changer, bolstering the company’s exposure to critical minerals essential for aerospace and energy storage industries. Key permitting milestones are progressing as planned, with an Environmental Impact Study (EIS) underway and major approvals anticipated by late 2026. This acquisition underscores St George’s commitment to expansion in the mining industry, reinforcing its reputation as an ambitious and forward-thinking player in the critical minerals space.
St George Mining presents a strategic opportunity for investors in the critical minerals sector. With 2.67 billion shares on issue and an average daily trading volume of 11 million shares, the Company offers liquidity and accessibility. Trading in a 52-week range of 0.016 to 0.045, St George’s current price of $0.018 reflects a potential entry point for growth-focused investors.
