St George Mining Limited (ASX: SGQ) (“St George Mining” or the “Company”) has delivered a landmark exploration update from its 100%-owned Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil. The latest diamond drilling results confirm thick, high-grade mineralisation from surface and extend well beyond the current 100-metre modelled depth of the Mineral Resource Estimate (MRE) envelope which spans nearly 2 kilometres laterally.
These results strengthen Araxá’s position as one of the highest-grade carbonatite-hosted rare earths projects in the Western world while reinforcing its strategic importance in the growing electric vehicle, renewable energy, and advanced technology supply chains.
Figure 1: Aerial view of the Barreiro carbonatite complex highlighting the Araxá Project (marked in red), alongside the neighbouring CBMM niobium operation and the Mosaic phosphate mine. [St George Mining]
Exceptional Drill Results from Surface
The latest batch of assays covers ten new diamond drill holes, and every hole intersected thick, high-grade mineralisation starting from surface, a critical advantage for future mining economics.
Standout results include:
- AXDD042: 135.2m @ 3.37% TREO and 0.58% Nb₂O₅ from surface
- AXDD043: 99.2m @ 4.63% TREO and 0.61% Nb₂O₅ from surface
- AXDD044: 85.8m @ 5.16% TREO and 0.72% Nb₂O₅ from surface
- AXDD045: 108m @ 3.42% TREO and 0.48% Nb₂O₅ from surface
- AXDD047: 81.2m @ 4.51% TREO and 0.72% Nb₂O₅ from surface
- AXDD048: 100.6m @ 3.92% TREO and 0.48% Nb₂O₅ from surface
These results are not isolated hits but part of a consistent, continuous mineral system.
Figure 2: An oblique 3D view displaying recent diamond drill holes together with other key holes from the current drilling program, overlaid on the existing Mineral Resource Estimate (MRE) model, with the most recent holes highlighted in red. [St George Mining]
Leadership Perspective: Non-Stop Drilling, Non-Stop Results
St George Mining’s Executive Chairman, Mr John Prineas, framed the momentum clearly: “Its non-stop drilling at Araxá with exceptional results continuing to roll in.”
The Company has committed to an aggressive drilling program designed to expand the resource footprint and increase geological confidence. Rather than slowing down after a maiden resource, St George Mining has intensified activity.
Redefining the Araxá Resource
The current Araxá MRE is modelled to just 100 metres from the surface. However, multiple drill holes, particularly AXDD042 at 135.2 metres, have extended well beyond this limit while maintaining strong mineralisation.
This suggests the existing resource could be materially larger than currently defined.
Major implications of the results include:
- Expansion of the total resource volume
- Potential upgrade of Inferred material to Indicated
- Greater confidence in future development studies
- Stronger case for a long-life mining operation
The mineralisation remains open along strike, at depth, and laterally, meaning the system is still not fully delineated.
John Prineas emphasised this upside potential: “Significantly, with mineralisation open in all directions, we still have not found the limits of the system. The ongoing drill campaign will, we believe, deliver more tremendous intercepts that have potential to have a very positive impact on the volume of the resource.”
Figure 3: Section A–A’ illustrating high-grade rare earth (TREO) zones above a 1% cut-off and high-grade niobium (Nb₂O₅) zones above a 0.2% cut-off, shown together with the current MRE boundary, highlighting both in-fill drilling and the extension of the resource along strike and to greater depths. [St George Mining Limited]
What Makes Araxá Stand Out Globally
Araxá distinguishes itself from many rare earth projects due to three key geological advantages:
- Very high grades: Multiple intervals exceed 7% TREO, with spot samples reaching up to 15% TREO.
- Mineralisation from surface: Reduces stripping costs and simplifies future mining.
- Strong niobium content: Provides valuable by-product revenue potential.
Mr Prineas highlighted these strengths directly: “The latest results again highlight three of the favourable features that distinguish Araxá from other projects in development – very high grades, a resource that starts from surface and abundant volumes of both niobium and rare earths. These features have potential to be huge value drivers for Araxá as we move towards development studies.”
The project also shows a stable NdPr:TREO ratio of around 20%, which is critical for permanent magnet production in electric vehicles, wind turbines, and defence technologies.
Relentless 24/7 Drilling Program
St George Mining is currently operating:
- Three diamond core rigs
- One reverse circulation (RC) rig
- Continuous drilling, day and night
A total of 31 drill holes remain at the laboratory with assays pending, meaning investors can expect a steady flow of results throughout 2026.
The Company has confirmed that drilling will continue indefinitely into 2026, underlining its confidence in Araxá’s growth potential.
Figure 4: Section B–B’ displaying high-grade TREO zones above a 1% cut-off and high-grade Nb₂O₅ zones above a 0.2% cut-off, overlaid on the current MRE boundary, demonstrating the extension of the resource to the west. [St George Mining Limited]
Strategic Location and Infrastructure Advantage
Araxá is located in Minas Gerais, Brazil, adjacent to CBMM — the world’s leading niobium producer. This provides several strategic advantages:
- Established mining infrastructure
- Skilled local workforce
- Strong government support
- Expedited permitting pathways
St George Mining has also been selected to participate in Brazil’s MagBras Initiative, aimed at developing an integrated domestic rare earths supply chain, including permanent magnet production.
This positions Araxá as not just a mining project, but a potential cornerstone of Brazil’s critical minerals strategy.
Existing Mineral Resource – A Strong Foundation
On 1 April 2025, St George Mining announced a globally significant maiden MRE for Araxá:
Niobium Resource
- 41.2 million tonnes @ 0.68% Nb₂O₅
Rare Earth Resource
- 40.6 million tonnes @ 4.13% TREO
These figures already place Araxá among the world’s most compelling rare earth projects, but the latest drilling suggests this resource is likely to grow materially.
Figure 5: Plan view map of the Araxá area illustrating the position of the diamond drill holes in relation to the current MRE, and indicating the locations of Section A–A’ (Figure 3) and Section B–B’ (Figure 4). [St George Mining Limited]
Why This Matters for the Energy Transition
Rare earth elements, particularly neodymium and praseodymium, are essential for:
- Electric vehicle motors
- Wind turbine generators
- Defence systems
- Consumer electronics
- Robotics and automation
With global supply chains under pressure, projects like Araxá are becoming increasingly strategic.
The added niobium content also strengthens the economic case, as niobium is widely used in high-strength steel, aerospace, and battery applications.
Share Price Performance – Market Recognition
Investors have already responded strongly to St George Mining’s progress:
- Last Price: $0.094
- 1-Year Performance: +620%
- vs Sector (1yr): +192.16%
- vs ASX 200 (1yr): +222.06%
- Market Capitalisation: $380.93 million
This performance reflects growing confidence in Araxá as a high-quality, scalable rare earths and niobium asset.
What Comes Next?
In the coming months, St George Mining is likely to:
- Release additional drilling results
- Expand and refine the resource model
- Advance metallurgical test work
- Begin early-stage development studies
- Strengthen government and industry partnerships
John Prineas reinforced this commitment: “We look forward to reporting further assay results over the coming weeks and keeping shareholders updated as we continue to advance our work at Araxá.”
Investors Outlook
St George Mining now stands at a critical inflection point.
The Company has moved beyond early exploration and is firmly in the resource expansion and development phase. The latest drill results suggest that Araxá could evolve into a much larger, higher-grade project than originally anticipated with very significant indicated resources to underpin an attractive economic study.
Key positives for investors include:
- Consistent high-grade results from surface
- Mineralisation open in all directions
- Strong government backing in Brazil
- Growing global demand for rare earths and niobium
- Ongoing 24/7 drilling into 2026
While junior mining stocks always carry risk, the geological evidence at Araxá continues to strengthen with each new drill hole. If St George Mining can translate these exploration successes into an expanded resource and future development pathway, the project could emerge as a globally significant supplier of critical minerals.
