St George Mining Uncovers Massive High-Grade Rare Earths Expansion at Araxá
St George Mining’s latest drilling results reveal a thick, high-grade rare earth and niobium mineralisation extending well beyond the existing resource at its Araxá project in Brazil, hinting at a major resource upgrade.
- Diamond drill hole AXDD001 intersects 98.4m at 3.07% TREO and 0.43% Nb2O5 west of current resource
- Six RC drill holes at East Araxá expand new high-grade discovery 1km east of existing MRE
- High magnet rare earth element grades with NdPr ratios up to 30% of TREO reported
- Current JORC MRE stands at 40.6Mt @ 4.13% TREO and 41.2Mt @ 0.68% Nb2O5
- Drilling ongoing to define resource extensions and support low-cost open-pit mining potential
Significant Western Extension of Mineral Resource
St George Mining Limited (ASX – SGQ) has announced compelling assay results from its Araxá rare earths and niobium project in Minas Gerais, Brazil. A standout diamond drill hole, AXDD001, has intersected a substantial 98.4-metre interval of high-grade mineralisation starting from surface, located approximately 230 metres west of the current Mineral Resource Estimate (MRE) boundary. This intercept grades 3.07% total rare earth oxides (TREO) and 0.43% niobium pentoxide (Nb2O5), including a higher-grade 10.4-metre section at 5.48% TREO. The results confirm that the mineralised carbonatite extends significantly beyond the previously defined resource, opening a promising new zone for resource growth.
East Araxá Discovery Continues to Impress
Meanwhile, six new reverse circulation (RC) drill holes at the East Araxá discovery, located about 1 kilometre east of the existing MRE, have further expanded this emerging high-grade zone. Drill hole AXRC014 notably intersected 25 metres at 4.42% TREO and 0.95% Nb2O5 from 25 metres depth, including intervals with TREO grades exceeding 10%. The East Araxá area is distinguished by exceptional magnet rare earth element grades, with neodymium and praseodymium (NdPr) ratios reaching up to 30% of TREO, underscoring the deposit’s strategic value given the demand for these critical magnet metals.
Robust Resource Base and Strategic Positioning
The Araxá project already hosts the largest and highest-grade carbonatite-hosted rare earth element resource in South America, with a JORC-compliant MRE of 40.6 million tonnes at 4.13% TREO and 41.2 million tonnes at 0.68% Nb2O5. The new drilling results from both the western extension and East Araxá discovery zones are expected to materially increase this resource base. Importantly, mineralisation is consistently intersected from or near surface within a weathered saprolite horizon, suggesting potential for a straightforward, low-cost open-pit mining operation.
Ongoing Drilling and Development Outlook
Drilling continues around the clock to delineate the extent and continuity of mineralisation, with further step-out and infill drilling planned to upgrade resource confidence and support an updated MRE. St George benefits from strong government support, including participation in Brazil’s MAGBRAS Initiative aimed at developing a domestic rare earth supply chain, and proximity to CBMM’s world-leading niobium operations. These factors enhance the project’s development prospects and strategic importance amid global efforts to diversify critical mineral supply.
Environmental and Regulatory Considerations
While the project enjoys a de-risked status with established infrastructure and a skilled local workforce, some tenements require renewal or mining concessions are pending, with environmental approvals needed for certain protected areas. The company has negotiated expedited permitting support with the State of Minas Gerais and the Federal Government, but uncertainties remain regarding final approvals and conditions. Additionally, royalty structures tied to project returns could influence future economics.
Bottom Line?
As St George Mining advances its drilling campaign, the Araxá project is poised for a significant resource upgrade that could reshape the rare earths and niobium landscape in South America.
Questions in the middle?
- How will pending assay results for fresh rock portions impact the overall resource estimate?
- What is the timeline and likelihood for securing all necessary environmental and mining approvals?
- Could the royalty structure and land access conditions affect project economics or development pace?