St George Mining Limited (ASX: SGQ) has announced exceptional diamond drilling results from its Araxá Rare Earths and Niobium Project in Brazil, including the thickest intercept to date of 178.7m at 4.34% TREO and 0.75% Nb2O5 from surface. These results reinforce Araxá's status as a world-class undeveloped resource with potential for dual revenue streams from rare earths and niobium.
- Record intercept of 178.7m @ 4.34% TREO and 0.75% Nb2O5 from surface
- High-grade mineralisation starting from surface supports favourable mining logistics
- Araxá’s carbonatite-hosted mineralisation comparable to major global rare earth mines
- Growing niobium resource adjacent to CBMM’s mine with scoping study underway
- Strong interest from strategic partners and government support for project development
Record Thick Intercept Highlights Araxá’s Resource Potential
St George Mining Limited (ASX:SGQ) has reported further diamond drilling results from its 100%-owned Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil. The standout result is a 178.7-metre intercept from surface grading 4.34% total rare earth oxides (TREO) and 0.75% niobium pentoxide (Nb2O5), marking the thickest high-grade mineralised interval recorded at the project to date.
This intercept, from drill hole AXDD086, includes higher-grade zones such as 3.15m at 12.27% TREO and 1.61% Nb2O5, and 55.7m at 6.16% TREO and 0.95% Nb2O5. Other drill holes also returned significant thick intervals of mineralisation starting from surface, with grades reaching up to 28% TREO and 6.5% Nb2O5 in some assays.
Project Scale and Mineralisation Characteristics
The Araxá Project hosts a carbonatite-hosted supergene style deposit, a mineralisation type shared with the Mountain Pass mine (MP Materials, NYSE: MP) and Mt Weld mine (Lynas Rare Earths, ASX: LYC), two of the world’s largest rare earth producers outside China. St George’s Executive Chairman John Prineas highlighted that the combination of very thick, high-grade mineralisation commencing at surface is unusual among emerging rare earth and niobium projects, potentially offering commercial advantages in mining logistics and cost.
The mineral resource estimate (MRE) for Araxá, updated in March 2026, reports a total of 70.91 million tonnes at 4.06% TREO and 0.62% Nb2O5 using a 2% TREO cut-off, with an additional 24.56 million tonnes at 1.2% TREO and 0.52% Nb2O5 using a 0.2% Nb2O5 cut-off. The resource remains open at depth and laterally, with ongoing drilling continuing 24/7 to further define and expand the resource base.
Niobium Resource and Market Context
Araxá’s niobium mineralisation is significant, with broad intervals of high-grade Nb2O5 starting from surface. The project is located adjacent to the world-leading niobium mine operated by CBMM, positioning St George to potentially become a major niobium producer. A scoping study is underway to assess a potential fast-track development, with plans to produce niobium separately from rare earths, creating two revenue streams.
Niobium is considered a critical metal by the US Department of Interior, ranked second in strategic importance due to its impact on GDP if supply is disrupted. Neither the US nor China currently have domestic primary niobium production, which may influence market dynamics and investor interest in Araxá.
Strategic Partnerships and Development Outlook
The project has attracted attention from global players in the rare earths and magnet materials sectors, including US-based REalloys and Brazilian firm MagBras. St George has also secured government support for expedited project approvals and assembled an experienced in-country team to advance exploration and development studies.
Recent strategic alliances, such as trials with Boston Metal for niobium processing and partnerships with Tecnicas Reunidas and Nanum Nanotecnologia for rare earths processing and value enhancement, complement the drilling progress and resource growth at Araxá. These collaborations aim to unlock market access and improve product value, supporting the project’s commercial potential.
Technical and Regulatory Considerations
The drilling program employs industry-standard diamond core sampling and assay techniques, with rigorous quality control measures including certified reference materials, blanks, duplicates, and umpire checks. Drill hole locations are surveyed with high precision, and geological logging supports resource estimation under JORC 2012 guidelines.
While the project benefits from existing infrastructure and a skilled workforce in Minas Gerais, certain tenements are subject to renewal, environmental approvals, and land access agreements. These regulatory and environmental factors present risks that could affect project timelines and development feasibility.
Bottom Line?
While the latest drilling results reinforce Araxá’s world-class rare earths and niobium potential, the project remains at the development study stage with regulatory and market uncertainties to monitor.
Questions in the middle?
- How will ongoing drilling results influence the upcoming feasibility studies and resource upgrades at Araxá?
- What are the potential timelines and challenges for securing environmental and mining approvals in Brazil for the Araxá Project?
- How might global rare earths and niobium market dynamics, including geopolitical factors, impact the commercial prospects of Araxá?