Araxá Drilling Yields 99m at 5.62% TREO, Upgrading Resource Potential
St George Mining reports outstanding new drill results from its Araxá Rare Earths and Niobium Project, revealing thick, high-grade mineralisation beyond the current resource boundary. These findings underpin a significant resource upgrade and bolster the project's economic prospects.
- Exceptional drill intercepts with up to 22.42% TREO and substantial niobium grades
- High-grade mineralisation starting from surface, supporting potential low-cost open pit mining
- Expansion of mineral resource footprint outside existing JORC Mineral Resource Estimate
- Ongoing drilling campaign extended indefinitely with 32 assays pending
- Strong government and local support facilitating expedited permitting in Brazil
Exceptional Drill Results Expand Araxá’s Resource Footprint
St George Mining Limited (ASX – SGQ) has announced a fresh tranche of impressive diamond drill assay results from its 100%-owned Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil. These latest assays reveal thick intervals of very high-grade rare earth oxides (TREO) and niobium oxide (Nb₂O₅) mineralisation extending beyond the boundaries of the current Mineral Resource Estimate (MRE), signalling a significant expansion of the project’s resource footprint.
Notably, drill holes such as AXDD041 returned 99.10 metres at 5.62% TREO from surface, including spectacular grades reaching 22.42% TREO over 1 metre. Other holes demonstrated similarly robust grades and thicknesses, with mineralisation consistently starting at or near surface. This characteristic is particularly promising as it suggests the potential for a low-cost, open pit mining operation that can access high-value mineralisation quickly.
Resource Upgrade and Economic Implications
The Araxá Project already hosts a world-class JORC-compliant resource of 40.6 million tonnes at 4.13% TREO, making it the largest and highest-grade carbonatite-hosted rare earth deposit in South America. The new drilling results support a substantial upgrade to this resource, expected to be released imminently. Executive Chairman John Prineas highlighted the emergence of a coherent high-grade zone northwest of the existing resource, which could be mined separately, adding valuable optionality to mine scheduling.
These developments are timely as St George advances economic studies for Araxá, with the expanded resource base likely to enhance project economics. The mineralisation remains open both laterally and at depth, with some drill holes ending in high-grade mineralisation, underscoring the potential for further resource growth.
Strategic Location and Government Support
The Araxá Project benefits from its strategic location adjacent to CBMM’s established niobium operations, providing access to infrastructure and a skilled workforce. St George has secured government backing through the Federal Government’s MagBras Initiative, aimed at developing a sustainable rare earth supply chain within Brazil. Additionally, a cooperation agreement with the State of Minas Gerais promises expedited permitting processes, a critical factor in advancing the project toward production.
Drilling continues around the clock with three diamond rigs on site, and assays are pending for 32 drill holes. The campaign has been extended indefinitely into 2026 to fully delineate the growing mineral system.
Looking Ahead
While the results are highly encouraging, the project still faces typical development risks, including the granting of mining concessions and environmental approvals. Nonetheless, the combination of exceptional drill results, strategic partnerships, and government support positions Araxá as a compelling rare earth and niobium project on the global stage.
Bottom Line?
St George Mining’s expanding high-grade resource at Araxá sets the stage for a major upgrade and potential low-cost mining operation.
Questions in the middle?
- How will the pending assays from 32 drill holes influence the final Mineral Resource Estimate?
- What are the timelines and risks associated with securing mining concessions and environmental approvals in Brazil?
- Could the emerging northwest high-grade zone be developed as a standalone mining operation?
