St George Mining Limited (ASX: SGQ) (“St George” or the “Company”) has delivered another set of exceptional drilling results from its 100%-owned Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil. The latest assays confirm the expansion of high-grade mineralisation both within and beyond the existing Mineral Resource Estimate (MRE), reinforcing Araxá’s position as a world-class critical minerals deposit.
The standout result came from drill hole AXDD038, which intersected 99.10m @ 5.62% Total Rare Earth Oxides (TREO) and 0.42% Nb₂O₅ from surface. This intercept lies outside the current MRE boundary, indicating substantial resource growth potential in the project area’s northwest zone.
Individual sample grades reached spectacular levels, with the highest returning 22.42% TREO and 0.66% Nb₂O₅ from 66m in hole AXDD041. These results demonstrate the exceptional grade profile that sets Araxá apart in the global rare earths landscape.
Thick, High-Grade Zones Define Latest Results
The Company announced assay results from six diamond drill holes on 19th January 2026, with multiple broad intersections of continuous mineralisation from surface. Key highlights include:
- AXDD036: 100.6m @ 4.82% TREO and 0.64% Nb₂O₅ from surface, including 25.5m @ 6.55% TREO and 1.17% Nb₂O₅ from 15m
- AXDD037: 120.25m @ 3.33% TREO and 0.42% Nb₂O₅ from surface
- AXDD038: 99.10m @ 5.62% TREO and 0.42% Nb₂O₅ from surface, including 7.95m @ 9.55% TREO from 8.35m
- AXDD039: 80m @ 3.78% TREO and 0.66% Nb₂O₅ from surface, including 3m @ 9.92% TREO and 1.07% Nb₂O₅ from 17m
- AXDD041: 69.20m @ 6.08% TREO and 0.60% Nb₂O₅ from surface, including 30m @ 8.49% TREO from 39.2m
Figure 1: Oblique section showing the latest diamond drill holes and significant previous drilling at the Araxá Project, with latest results highlighted in red [St George Mining]
Northwest Zone Emerges as High-Priority Target
The results from AXDD038 add to a growing body of evidence for a coherent high-grade zone approximately 1.2km north of the existing measured and indicated component of the MRE. This northwest zone has now delivered multiple drill holes intersecting over 80 metres of high-grade niobium and rare earths from surface.
Previous drilling in this area included:
- AXDD031: 81.5m @ 1.27% Nb₂O₅ from surface, including 43m @ 2.01% Nb₂O₅ and 10.5m @ 3.41% Nb₂O₅ from 17m
- AXDD025: 100.15m @ 2.16% TREO from surface, including 19m @ 4.17% TREO from 58m
The location of this emerging high-grade zone is significant. It may represent an area that can be mined separately from the resource in the south, adding optionality to potential mine scheduling and development plans.
Open System Points to Expansion at Depth
Most drill holes in the latest batch returned very high-grade mineralisation at or near the bottom of the hole, highlighting the potential for expansion at depth. Notable examples include:
- 1m @ 22.42% TREO and 0.66% Nb₂O₅ from 66m in AXDD041 (end of hole at 69.2m)
- 3m @ 7.90% TREO from 106m in AXDD040 (end of hole at 110.65m)
- 2.45m @ 8.50% TREO and 0.73% Nb₂O₅ from 75m in AXDD039 (end of hole at 80m)
These results confirm that the mineral system remains open at depth and laterally in all directions. The current resource envelope extends only to 100m below the surface, suggesting strong potential for high-grade mineralisation below this level.
Figure 2: Cross section showing high-grade Nb₂O₅ and TREO intercepts with existing MRE outline, demonstrating resource extension potential [St George Mining]
World-Class Resource Base
St George acquired 100% of the Araxá Project on 27th February 2025. The project already hosts a maiden JORC-compliant Mineral Resource Estimate:
Niobium Resource (0.2% Nb₂O₅ cut-off):
- Total: 41.2 million tonnes @ 0.68% Nb₂O₅
Rare Earths Resource (2% TREO cut-off):
- Total: 40.6 million tonnes @ 4.13% TREO
This positions Araxá as the most significant and highest-grade carbonatite-hosted REE deposit in South America and as the second-highest-grade in the Western world.
Figure 3: Araxá Project Location [St George Mining]
The project sits adjacent to CBMM’s globally recognised niobium operations, benefiting from established infrastructure, a skilled local workforce, and access to renewable power. The region has a long-standing history of niobium production dating back to the 1950s.
Critical Minerals Market Dynamics
Global demand for rare earths and niobium continues to strengthen, driven by their essential role in clean energy, defence, and advanced manufacturing.
According to Grand View Research, the global rare earth metals market was valued at USD 3.95 billion in 2024 and is projected to grow at a CAGR of 8.6% from 2025 to 2030. Neodymium and praseodymium, the rare-earth magnets crucial for electric vehicles and wind turbines, are experiencing robust demand growth.
Figure 4: Global rare earth metals market projection [Grand View Research]
The niobium market is forecast to expand from 79.68 kilotons in 2025 to 103.18 kilotons by 2031, according to Mordor Intelligence, reflecting a CAGR of 4.4%. Beyond traditional steel applications, niobium is gaining traction in next-generation battery technologies, with companies such as CBMM and Toshiba collaborating to incorporate it into high-performance battery systems.
Figure 5: Niobium Market Forecasts [Mordor Intelligence]
Brazil controls approximately 95% of global niobium production, with CBMM’s Araxá operation dominating supply. St George’s neighbouring position provides significant strategic and logistical advantages.
Aggressive Drilling Campaign Extended Into 2026
Exploration and resource definition drilling continues 24/7 at Araxá with three diamond core rigs currently on site. Assays are pending for 32 drill holes at the laboratory, with the drilling campaign now extended indefinitely into 2026, further to test the limits of the growing mineralised footprint.
The Company expects to release an upgraded MRE during the current quarter, incorporating results from the ongoing drilling programme.
John Prineas, St George Mining’s Executive Chairman, commented:
“Our latest assay results are consistent with the exceptional drill results delivered by our drill campaign to date and stand to support a substantial increase to the upgraded MRE planned for release this quarter.
Drilling to the north-west of the existing MRE has again delivered outstanding results, highlighting the emergence of this area as a coherent high-grade zone of mineralisation that could potentially be mined separately from the measured and indicated resource already established in the south of the MRE.
“We are very pleased to see rare earths and niobium mineralisation consistently starting from surface and with very high grades prominent in the top 20m from surface. This style of deposit, we believe, will be very likely to support a low-cost open pit mine which can quickly access high-value mineralisation.”
Figure 6: John Prineas at the Araxá site, inspecting auger drilling samples
Strategic Government Support
St George has secured significant backing from Brazilian authorities. The Company has been selected to participate in the Federal Government’s MagBras Initiative, a programme aimed at establishing an integrated and sustainable supply chain for rare earth products, including the production of permanent magnets entirely within Brazil.
In October 2024, St George signed a cooperation agreement with the State of Minas Gerais pursuant to which the State will assist in expediting permitting approvals for the Araxá Project. This government support positions St George favourably for accelerated development timelines.
Investor’s Outlook
St George Mining Limited (ASX: SGQ) is trading at $0.0117 per share as of 9th January 2026, according to ASX data. The stock has demonstrated strong momentum with a 52-week range of A$0.015 to A$0.180. The Company’s current market capitalisation stands at approximately A$418.39 million.
Figure 7: SGQ Price Chart [ASX]
The latest drilling results reinforce several key investment considerations:
- Near-Surface, High-Grade Mineralisation: Consistent intercepts from surface support potential for low-cost open pit mining with immediate access to high-value material.
- Resource Expansion Potential: Discovery of high-grade zones outside the current MRE, combined with mineralisation open at depth and laterally, points to substantial resource growth.
- World-Class Scale and Grade: Araxá already ranks as the most significant and highest-grade carbonatite-hosted REE deposit in South America, with the second-highest grade in the Western world.
- Strategic Location: Adjacency to CBMM’s operations provides access to established infrastructure, skilled workforce, and proven development pathway.
- Government Support: Federal and state-level backing through the MagBras Initiative and expedited permitting arrangements de-risk development timelines.
- Market Tailwinds: Growing global demand for rare earths and niobium, driven by electrification, clean energy, and defence applications.
With three drill rigs operating around the clock, 32 holes awaiting assay results, and an upgraded resource estimate due this quarter, St George Mining is positioned for continued newsflow and value creation as it advances Araxá toward development.
The combination of exceptional grades, thick mineralisation starting from surface, resource expansion potential, and strategic government support makes Araxá an increasingly compelling asset in the critical minerals space.
