Araxá Drilling Yields Up to 15% TREO and 2.7% Niobium Oxide from Surface

Exceptional Drill Results Redefine Araxá Resource

St George Mining Limited (ASX – SGQ) has delivered another round of outstanding drill results from its 100%-owned Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil. The latest assays from ten diamond drill holes confirm thick intervals of high-grade mineralisation starting right from surface, with some intercepts boasting up to 15% Total Rare Earth Oxides (TREO) and 2.7% niobium oxide (Nb2O5).

These results underscore the remarkable continuity and thickness of the mineralised zones, which remain open in all directions. Notably, some drill holes have intersected mineralisation well beyond the current 100-metre depth model, hinting at a substantial increase in the resource volume. For example, hole AXDD042 returned 135.2 metres at 3.37% TREO and 0.58% Nb2O5 from surface, illustrating the potential scale of the deposit.

A World-Class Rare Earth and Niobium Asset

The Araxá Project already holds the distinction of being the largest and highest-grade carbonatite-hosted rare earth element resource in South America, and the second highest grade in the Western world. The deposit’s unique combination of very high grades, mineralisation starting at surface, and abundant volumes of both niobium and rare earth elements sets it apart from many peers.

St George’s Executive Chairman John Prineas highlighted the significance of the ongoing drill campaign, which operates around the clock with multiple rigs. He emphasised that the system’s limits have yet to be found, and the company expects further exceptional intercepts that could materially enhance the resource base.

Strategic Positioning and Government Support

Located adjacent to CBMM’s world-leading niobium operations, Araxá benefits from established infrastructure and a skilled local workforce. St George has secured government support to expedite project approvals and is a participant in Brazil’s MagBras Initiative, aimed at developing a fully integrated and sustainable rare earth supply chain within the country.

This strategic alignment not only facilitates smoother permitting but also positions Araxá as a key player in the emerging global rare earths market, which is critical for technologies ranging from electric vehicles to renewable energy systems.

Looking Ahead – Drilling and Resource Growth

The current drilling campaign is ongoing, with 31 drill holes at the laboratory awaiting assay results. The increased drill density is expected to convert inferred resources to higher confidence indicated categories and expand the overall resource footprint. St George’s methodical approach to sampling, assaying, and resource modelling adheres to rigorous industry standards, ensuring reliability and transparency for investors.

While environmental and permitting challenges remain, including areas designated as legal reserves and preservation zones, the company’s proactive engagement with authorities and local stakeholders aims to mitigate these risks.