Resource Growth Hinges on Approvals as Araxá Drilling Uncovers Open-Ended Mineralisation
St George Mining reports exceptional diamond drilling results from its Araxá Rare Earths and Niobium Project in Brazil, revealing thick, high-grade mineralisation from surface that supports a significant resource upgrade.
- 128.6m @ 4.87% TREO and 0.85% Nb2O5 from surface in latest drill hole
- Mineralisation remains open at depth and laterally beyond current resource limits
- Araxá hosts one of the world’s largest and highest-grade carbonatite rare earth and niobium deposits
- Strong magnet rare earths profile with NdPr ratio up to 29%, key for permanent magnets
- Ongoing 24/7 drilling campaign with multiple rigs and assays pending
Exceptional Drilling Results Reinforce Araxá’s World-Class Status
St George Mining Limited (ASX – SGQ) has delivered another round of impressive assay results from its ongoing diamond drilling campaign at the Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil. The latest data includes a standout intercept of 128.6 metres grading 4.87% total rare earth oxides (TREO) and 0.85% niobium pentoxide (Nb2O5) starting from surface. This thick, high-grade mineralisation further strengthens the case for a substantial increase in the project’s Mineral Resource Estimate (MRE), which currently stands at 40.6 million tonnes at 4.13% TREO.
Resource Expansion Potential Remains Open
Crucially, the mineralised system remains open in all directions, including at depth, with many drill holes ending in high-grade mineralisation. This suggests that the current resource, modelled only to 100 metres depth, could be significantly expanded both laterally and vertically. The Araxá deposit is hosted within the Barreiro Carbonatite complex, adjacent to CBMM’s world-leading niobium mine, underscoring its strategic location in a premier niobium mining district.
High-Grade Niobium and Rare Earths with Strategic Magnet Profile
The latest assays also highlight outstanding niobium grades, with intercepts as high as 3.57% Nb2O5 within broad mineralised zones from surface. Alongside niobium, the rare earth profile is notable for its strong magnet rare earth oxide (MREO) content, with the neodymium-praseodymium (NdPr) ratio consistently around 20% and reaching up to 29% in some holes. This composition is highly sought after for manufacturing permanent magnets, a critical component in electric vehicles and renewable energy technologies.
Ongoing Drilling and Supportive Infrastructure
St George is operating three diamond drilling rigs around the clock, with 28 holes awaiting assay results expected imminently. The company benefits from a supportive local environment, existing infrastructure, and government backing through Brazil’s MagBras Initiative, which aims to develop an integrated rare earth supply chain. This positions Araxá as a potential expedited pathway to production in a globally strategic sector.
Looking Ahead
With consistent high-grade results from surface and expanding mineralisation beyond previous limits, St George Mining is well placed to redefine Araxá’s resource base. The combination of scale, grade, and strategic location makes Araxá a standout project in the rare earths and niobium space, attracting attention from investors and industry alike.
Bottom Line?
As drilling continues to reveal more high-grade mineralisation, Araxá’s resource upgrade could reshape St George Mining’s market position and Brazil’s rare earths landscape.
Questions in the middle?
- How quickly can St George convert the expanded mineralisation into an updated Mineral Resource Estimate?
- What are the timelines and risks associated with securing the necessary environmental and mining approvals in Brazil?
- How will evolving rare earths and niobium market dynamics impact the project’s development and valuation?
