St George Mining reports exceptional drilling results at its Araxá Rare Earths and Niobium Project, significantly expanding its resource footprint, alongside a successful $72.5 million capital raise to fund ongoing development.
- Outstanding high-grade drilling results expand Araxá resource beyond current estimates
- New high-grade niobium zone discovered 400m west of existing resource
- Pilot plant initiative launched in partnership with CEFET University and government support
- Completed $72.5 million capital raising and $5.3 million from option exercises
- Full ownership of Araxá secured with deferred payments to Itafos settled
Drilling Success Drives Resource Growth
St George Mining Limited (ASX, SGQ) has delivered a strong quarterly update for its Araxá Rare Earths and Niobium Project in Brazil, highlighting a major drilling campaign that continues to reveal extensive high-grade mineralisation. The company’s latest results include thick intercepts of rare earth oxides (TREO) and niobium oxide (Nb₂O₅) from surface and at depth, extending well beyond the current Mineral Resource Estimate (MRE) footprint.
Notably, a new zone of exceptionally high-grade niobium mineralisation was discovered 400 metres west of the existing resource, with assays up to 7.2% Nb₂O₅. This discovery could potentially be developed as a separate mining area, underscoring the project’s expanding scale and value. Drilling remains ongoing with three diamond rigs operating around the clock, aiming to further delineate the resource boundaries.
Pilot Plant and Strategic Partnerships
In a significant step towards commercialisation, St George announced the establishment of the St George Technological Centre at the Araxá campus of CEFET University. This partnership with a leading Brazilian government-funded institution will focus on research and innovation in sustainable mining and mineral processing. The centre will house a new pilot plant capable of processing 200 to 300 kilograms per hour, producing sample products such as ferroniobium and rare earth concentrates.
This initiative builds on previous pilot plant studies and aligns with St George’s strategic alliances, including downstream processing collaborations with US-based REAlloys and magnet production testwork with MagBras. These efforts aim to advance the project’s value chain from resource to refined product.
Capital Raising and Corporate Developments
To support its accelerated development program, St George successfully completed a $72.5 million capital raising during the quarter, attracting strong interest from North American, European, and local institutional investors. This included a strategic placement to Hancock Prospecting, which now holds a 6.24% stake in the company. Additionally, the exercise of over 123 million options raised a further $5.3 million.
St George also fulfilled its deferred payment obligations to Itafos, securing 100% ownership of the Araxá Project free of debt and contingent liabilities. On the governance front, the company appointed Marina Spinola, a respected sustainability and institutional relations expert, as an advisor to the board, and approved remuneration increases for key executives and directors to reflect the company’s growth trajectory.
Outlook and Broader Portfolio
While the Araxá Project remains the company’s flagship asset, St George’s other Australian projects in lithium, nickel, and gold are poised for further exploration, particularly as commodity markets for lithium and nickel have improved recently. The company plans to announce detailed work programs for these assets in due course.
With an upgraded Mineral Resource Estimate expected in the first quarter of 2026, St George is well positioned to capitalise on its expanding resource base and strategic initiatives, potentially reshaping its standing in the rare earths and niobium sector.
Bottom Line?
St George’s expanding resource and strategic partnerships set the stage for a pivotal 2026 as it advances towards commercialisation.
Questions in the middle?
- How will the upcoming updated Mineral Resource Estimate impact project valuation and development timelines?
- What are the key milestones and expected timeline for the pilot plant’s commissioning and output?
- How might the recent capital raise and increased institutional backing influence St George’s market positioning and future funding needs?