How Did St George Mining Hit a Record 139m Rare Earths Intercept at Araxá?

Record-Breaking Drill Results

St George Mining Limited (ASX – SGQ) has announced a landmark milestone at its 100%-owned Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil. The company reported a record intercept of 139.45 metres grading 4.05% total rare earth oxides (TREO) and 0.55% niobium pentoxide (Nb2O5) from surface, the thickest and highest-grade intersection recorded to date at the site.

This intercept, from drill hole AXDD004, includes an impressive 53.9 metres at 5.44% TREO and 0.79% Nb2O5 starting just 9 metres below surface, underscoring the exceptional grade and continuity of mineralisation. Additional assay results from nine other diamond drill holes reinforce the presence of extensive, high-grade mineralisation beginning at surface, with intervals such as 80.15 metres at 5.11% TREO and 0.76% Nb2O5 in AXDD007.

Redefining a World-Class Resource

The Araxá Project is already recognised as the largest and highest-grade carbonatite-hosted rare earth element resource in South America and the second highest grade in the Western world. These new drill results suggest the mineral resource estimate (MRE) could be significantly expanded, as mineralisation extends beyond the current resource boundaries and remains open in all directions, including at depth.

Executive Chairman John Prineas highlighted the strategic advantage of the deposit’s near-surface mineralisation, which could offer considerable commercial benefits over other emerging rare earth and niobium projects. The ongoing drill campaign, now extended into 2026, aims to unlock further resource growth and enhance the project’s valuation.

Geological Validation and Metallurgical Potential

A key technical breakthrough was the visual identification of primary pyrochlore mineralisation within the carbonatite host rock. Pyrochlore is the principal niobium-bearing mineral, and its presence confirms a stable magmatic environment conducive to grade continuity. This discovery also supports the geological model that niobium is hosted within the primary rock fabric, providing a solid foundation for further exploration targeting the primary carbonatite.

The coarse-grained nature of pyrochlore within the carbonate matrix suggests favourable metallurgical properties, potentially facilitating efficient mineral liberation and processing. This bodes well for the development of a large-scale, economically viable resource.

Strategic Location and Government Support

Located adjacent to CBMM’s world-leading niobium operations, the Araxá Project benefits from established infrastructure and a skilled local workforce. St George has secured government backing through the Federal Government’s MagBras Initiative, aimed at creating a sustainable rare earth supply chain within Brazil, including permanent magnet production.

Additionally, the company has signed a cooperation agreement with the State of Minas Gerais to expedite permitting approvals, a critical factor in accelerating project development. While some environmental and land tenure approvals remain pending, the company is actively managing these risks.

Looking Ahead

With the mineral system open and drilling continuing around the clock, St George Mining is poised to redefine the scale and grade of the Araxá resource. The combination of exceptional drill results, geological validation, and supportive regulatory environment positions the project as a globally significant source of rare earths and niobium, critical materials for clean energy and advanced technologies.