St George Mining Limited (ASX: SGQ) has announced a major exploration breakthrough at its flagship Araxá Rare Earths and Niobium Project in Brazil, revealing high-grade rare earth mineralisation from shallow auger drilling, located just one kilometre east of its existing JORC-compliant resource area. This new zone, yet to be included in the resource estimate, has the potential to materially expand the Project’s scale and significance.
The results, released on 31 July 2025, confirm a continuous and strongly mineralised rare earth zone across a 0.5 square kilometre footprint, underscoring the geological richness and upside potential of Araxá.
Figure 1: Plan view illustrating the Project area with the position of the recent auger drilling in relation to the existing Mineral Resource Estimate (MRE).
High-Grade Rare Earths Confirmed in First Batch of Auger Drilling
The Company’s first batch of results came from 22 auger holes totalling 291 metres, with standout assays highlighting thick, high-grade rare earth intersections from near surface. Importantly, mineralisation remains open at depth and in all directions. One of the most notable results came from hole AXAG022. According to the Company, the hole ended with mineralization of 13.4% TREO, measuring 13.5m @ 12.34% TREO from 0.5m.
All 22 holes intercepted rare earths mineralisation, with TREO grades peaking at 13.4% and NdPr content reaching 3.33%, a significant proportion of the total rare earth oxides. These results are critical because neodymium and praseodymium are key inputs in the global permanent magnet market, used extensively in electric vehicles, wind turbines, and defence technology.
Figure 2: Cross-section displaying high-grade TREO intercepts (using a 1% TREO cut-off) from the recent auger drilling alongside the current JORC-compliant Mineral Resource Estimate.
“We Could Not Have Hoped for Better Results,” Says Chairman
Executive Chairman John Prineas expressed strong confidence in the potential of the new discovery:
“We could not have hoped for better results from the initial drilling with assays received for the first batch of 22 holes confirming high-grade rare earths from surface across a broad area of 0.5 sq km,” Mr Prineas said.
“The exceptionally high grades of TREO and NdPr are impressive and suggest we have discovered an area which is very rich in rare earths mineralisation.”
He added that a follow-up program of reverse circulation and diamond drilling would soon commence to test the vertical extent of mineralisation and begin delineating a potential expansion to the current JORC resource.
Resource Expansion on the Horizon
The mineralised zone is situated approximately 1km east of the current JORC-compliant mineral resource estimate (MRE), published in April 2025. The new intercepts lie on the eastern edge of the Barreiro Carbonatite, a large intrusive complex that hosts both niobium and rare earths mineralisation.
Many of the holes ended in mineralisation, suggesting strong vertical continuity. The area was previously untested, making the discovery both geologically and commercially significant.
The current MRE already positions Araxá as a globally significant resource:
JORC-2025 Resource Snapshot:
- Rare Earth Oxides (TREO): 40.64Mt @ 4.13%
- Niobium (Nb₂O₅): 41.2Mt @ 0.68%
The Company believes that with further drilling, the new zone could meaningfully increase both the size and grade of the overall project resource.
Rare Earth Market Outlook Supports Long-Term Potential
The timing of the discovery aligns well with global market trends. The Rare Earth Oxides market was valued at US$6.2 billion in 2024 and is projected to reach US$18.2 billion by 2034, reflecting a CAGR of 12.6%. These materials are critical to clean energy technologies, electric vehicles, electronics, and defence systems.
In particular, demand for NdPr is being driven by booming EV sales and the expansion of offshore wind projects, both of which rely on permanent magnets made with rare earths.
Niobium Sector Also Experiencing Growth
Alongside rare earths, niobium remains a key focus for the Company. According to industry forecasts, the global niobium market is projected to grow from 117.45 kilotons in 2025 to 188.47 kilotons by 2030, at a CAGR of 9.92%. Demand stems from the steel industry and increasingly from next-generation batteries.
In 2022, the demand for lithium-ion batteries surged by 65%, with major manufacturers now exploring niobium-based chemistries to enhance battery performance. The Company’s niobium resource, already part of its MRE, could play a role in this growing segment.
Brazil Government Support Enhancing Project Momentum
The Araxá Project continues to benefit from strong government and institutional backing in Brazil. The federal MAGBRAS initiative and a Cooperation Agreement with the State of Minas Gerais have created a favourable environment for development.
St George is positioning Araxá as a potential cornerstone project in Brazil’s ambitions to create a vertically integrated rare earth supply chain, reducing reliance on Chinese exports and adding value domestically.
“Our exploration success, combined with our strategic partnerships in Brazil, sets Araxá apart as a project of national and global importance,” Mr Prineas noted.
Accelerated Drilling Campaign Underway
To maintain momentum, the Company is deploying five drill rigs at Araxá — including auger, RC, and diamond rigs. These are focused on:
- Testing depth extensions at the newly discovered zone
- Resource infill drilling
- Step-out holes to the north and east of the current MRE boundary
Assay results from additional auger holes are pending, and the Company expects a steady news flow in the coming weeks.
Investor’s Outlook: Market Reacts to Discovery
St George Mining shares are currently trading at $0.04, reflecting strong investor interest in light of recent exploration success.
Share Price Activity (as of 1:23 pm, 31 July 2025):
- Last Price: $0.04
- 1 Week: +2.56%
- 1 Month: +21.21%
- YTD 2025: +60.00%
- 1 Year: +17.65%
- Sector Outperformance (1yr): +19.74%
- ASX 200 Outperformance (1yr): +9.72%
- Market Cap: $106.9 million
The market’s positive response underlines confidence in both the short-term exploration upside and the longer-term strategic value of Araxá. With continuous drilling and assay reporting in motion, further share price momentum may be expected, especially as resource expansion becomes more quantifiable.
