How Far West Can St George Extend Araxá’s Rare Earth Riches?
St George Mining’s latest diamond drilling results at the Araxá Project confirm a significant westward extension of high-grade rare earth and niobium mineralisation, reinforcing the potential for a major resource upgrade.
- 87.7m intercept at 2.95% TREO and 0.41% Nb2O5 from near surface
- Mineralisation extends 150m beyond current JORC Mineral Resource Estimate
- High magnet rare earth content with NdPr, TREO ratio up to 31%
- Ongoing drilling with multiple rigs targeting resource expansion
- Strategic location adjacent to CBMM and supported by Brazilian government
Significant Step-Out Drilling Success
St George Mining Limited (ASX – SGQ) has reported compelling assay results from its second diamond drill hole (AXDD002) at the Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil. The drill hole intersected 87.7 metres of continuous high-grade mineralisation starting just 2 metres below surface, grading 2.95% total rare earth oxides (TREO) and 0.41% niobium pentoxide (Nb2O5). This intercept lies approximately 150 metres west of the existing JORC-compliant Mineral Resource Estimate (MRE), effectively expanding the known footprint of the deposit.
Enhancing a Globally Significant Resource
The Araxá Project already boasts one of the world’s highest-grade carbonatite-hosted rare earth and niobium resources, with a maiden MRE of 40.6 million tonnes at 4.13% TREO announced earlier this year. The new drilling results build on the initial diamond hole (AXDD001), which intersected 98 metres of high-grade mineralisation 230 metres west of the MRE boundary. Together, these step-out holes confirm the carbonatite system remains open laterally and at depth, suggesting substantial potential for resource growth.
Quality of Mineralisation and Strategic Importance
Notably, the mineralisation contains a high proportion of magnet rare earth oxides, with an NdPr to TREO ratio reaching 31%. This is significant because neodymium and praseodymium are critical elements for manufacturing permanent magnets, which are essential components in electric vehicles and renewable energy technologies. The Araxá Project’s proximity to CBMM’s established niobium operations and its location within a mining-friendly region of Brazil further enhance its strategic value.
Ongoing Drilling and Government Support
St George is aggressively advancing its drilling program with three diamond rigs and one reverse circulation rig operating around the clock. Additional assay results are anticipated within weeks, alongside detailed mineralogical studies aimed at refining the understanding of rare earth and niobium distribution. The project benefits from strong government backing, including participation in Brazil’s MAGBRAS Initiative, which seeks to develop a sustainable rare earth supply chain within the country. This support could accelerate permitting and development timelines.
Environmental and Regulatory Considerations
While the drilling results are promising, the Araxá Project faces environmental management challenges due to parts of the tenement being located in protected zones. Approvals for exploration and mining activities in these areas are subject to stringent regulatory scrutiny, and there is no guarantee of favorable outcomes. Additionally, the project’s economics will be influenced by a sliding scale royalty structure tied to the internal rate of return, which investors should monitor closely.
Bottom Line?
As drilling continues to unlock Araxá’s potential, investors will watch closely for further assay results and regulatory progress that could define the project’s next growth phase.
Questions in the middle?
- How will upcoming assay results influence the scale and grade of the updated resource estimate?
- What are the timelines and likelihood for securing environmental approvals in protected areas?
- How might the sliding scale royalty impact project economics under different development scenarios?
