Can St George’s 10,000m Drill Campaign Unlock Araxá’s Rare Earths Potential?

A New Chapter for Araxá

St George Mining Limited has embarked on a significant exploration phase at its 100%-owned Araxá Project in Minas Gerais, Brazil. The company has commenced a 10,000-metre drilling campaign, the first since acquiring the project earlier this year, with the goal of expanding and upgrading its globally significant rare earths and niobium mineral resource.

The campaign, expected to run for 12 to 16 weeks, employs a combination of auger, reverse circulation (RC), and diamond drilling techniques. This multi-pronged approach aims to test the fringes of the current resource footprint, explore extensions of known mineralised zones, and upgrade inferred resources to a higher confidence category.

Resource Scale and Quality

The Araxá Project already boasts a substantial maiden JORC-compliant resource of 40.64 million tonnes at 4.13% total rare earth oxides (TREO) and 41.2 million tonnes at 0.68% niobium pentoxide (Nb2O5). These grades compare favourably with some of the world’s leading hard-rock rare earth deposits, including Lynas Rare Earths’ Mt Weld mine in Western Australia.

Notably, mineralisation at Araxá begins at surface and is free-digging, which supports the prospect of a low-cost open-pit mining operation. Past drilling has revealed more than 500 intercepts of high-grade mineralisation starting from surface, with niobium grades reaching up to 8.3% Nb2O5 and rare earth oxides up to 33% TREO in some intervals.

Strategic Exploration and Targeting

Alongside drilling, St George is deploying a high-resolution airborne magnetic survey across the entire project area. This drone-based magnetometry program is designed to refine geological models, improve structural interpretations, and identify new targets for follow-up drilling. The survey’s results are expected to complement ongoing drilling efforts and accelerate resource expansion.

Executive Chairman John Prineas highlighted the project’s competitive advantages, including its location in a well-established mining region with existing infrastructure and a supportive regulatory environment. He emphasised Araxá’s potential to become a key supplier of critical metals amid growing global demand for rare earths and niobium, particularly for magnet applications.

Navigating Environmental and Regulatory Complexities

While the project benefits from expedited pathways for approvals and strong environmental, social, and governance (ESG) credentials, some areas within the tenure are classified as legal reserves or protected zones. These designations require careful environmental management and regulatory approvals, which introduce a degree of uncertainty to future development timelines.

Additionally, the project is subject to royalties payable to previous owners and government authorities, which will factor into economic assessments as development progresses.

Looking Ahead

As assay results from the drilling campaign begin to flow on a rolling four-week basis, investors and analysts will be watching closely for signs of resource growth and upgraded confidence levels. The combination of high-grade surface mineralisation, strategic location, and robust exploration program positions Araxá as a compelling asset in the critical minerals space.