St George Mining has reported exceptional drilling results at its Araxá Rare Earths and Niobium Project in Brazil, including a record 164.45m mineralised intercept from surface. These results expand the known resource footprint well beyond current estimates, signalling significant growth potential.
- Record 164.45m drill intercept with up to 17.15% total rare earth oxides (TREO) and 4% niobium oxide (Nb2O5)
- High-grade mineralisation confirmed beyond the current 100m depth Mineral Resource Estimate (MRE)
- Ongoing 24/7 drilling campaign with multiple rigs expanding resource confidence
- Project benefits from government support and strategic location adjacent to CBMM’s niobium operations
- April 2025 MRE shows globally significant resource, 41.2 Mt at 0.68% Nb2O5 and 40.6 Mt at 4.13% TREO
Exceptional Drilling Results Expand Araxá's Resource Footprint
St George Mining Limited (ASX, SGQ) has announced a major milestone in its exploration campaign at the Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil. The company reported a record thick mineralised intercept of 164.45 metres from surface, featuring high grades of total rare earth oxides (TREO) up to 17.15% and niobium oxide (Nb2O5) reaching 4%. This intercept, from drill hole AXDD055, is the thickest recorded to date at Araxá and significantly extends the known mineralisation beyond the current Mineral Resource Estimate (MRE), which is modelled only to a depth of 100 metres.
Alongside this standout result, assays from 17 additional drill holes reveal consistent high-grade mineralisation across broad intervals, reinforcing the continuity and quality of the deposit. Notable intercepts include 110 metres at 4.16% TREO and 0.34% Nb2O5 from surface in AXDD051, and 90.1 metres at 5.07% TREO and 0.55% Nb2O5 in AXDD054. These results demonstrate the potential for both lateral and depth extensions of the resource, with mineralisation remaining open in all directions.
Strategic Location and Government Support Bolster Project Prospects
The Araxá Project benefits from its strategic adjacency to CBMM’s world-leading niobium mining operations, situating it within a well-established mining district with access to infrastructure and skilled labour. St George Mining has secured government backing through Brazil’s Federal MagBras Initiative, aimed at developing an integrated rare earth supply chain within the country. Additionally, a cooperation agreement with the State of Minas Gerais promises to expedite permitting processes, a critical factor in advancing the project towards development.
Executive Chairman John Prineas highlighted the significance of the drilling results, noting that the mineral system remains open and that ongoing 24/7 drilling with multiple rigs is unlocking further growth potential. He emphasized that expanding the resource base could enhance mine life and provide greater flexibility in mine planning, which are key considerations in the economic studies underway.
Robust Mineral Resource Estimate Underpins Project Value
The April 2025 MRE for Araxá already positions the project as a globally significant resource, with 41.2 million tonnes at 0.68% Nb2O5 and 40.6 million tonnes at 4.13% TREO. The rare earth component includes a strong magnetic rare earth oxide fraction, with a neodymium-praseodymium (NdPr) ratio around 20%, aligning with the high-value elements sought for permanent magnet production.
The recent drilling results not only confirm the quality of the existing resource but also suggest substantial upside potential as mineralisation extends beyond the current modelled limits. The thick weathered profile and presence of high-grade mineralisation in fresh rock further enhance the project's attractiveness.
Looking Ahead, Continued Drilling and Development Studies
St George Mining is maintaining an intensive drilling program with three diamond core rigs and one reverse circulation rig operating continuously. With 20 drill holes currently at the laboratory awaiting assay results, the company anticipates further updates that could refine and expand the resource estimate. Concurrently, economic studies are progressing to evaluate the project's development pathways, incorporating the expanded resource data and potential mine planning options.
While the project enjoys strong technical and strategic foundations, it faces typical industry challenges including environmental approvals and regulatory uncertainties. The company’s proactive engagement with Brazilian authorities and local stakeholders aims to mitigate these risks and facilitate timely project advancement.
Bottom Line?
St George Mining’s record drill intercept at Araxá signals a new phase of resource growth, setting the stage for critical economic studies and potential project advancement.
Questions in the middle?
- How will upcoming assay results influence the next Mineral Resource Estimate update?
- What are the timelines and risks associated with environmental and mining approvals in Brazil?
- How will participation in the MagBras Initiative impact Araxá’s development and market positioning?