St George Mining’s latest drilling at the Araxá project in Brazil reveals thick, high-grade rare earth and niobium mineralisation extending beyond existing resource boundaries, reinforcing its status among the world’s leading deposits.
- Wide, continuous high-grade mineralisation from surface
- Significant step-out drilling extends resource footprint northward
- Resource now comparable to Mountain Pass and Mt Weld mines
- 75% increase in resource and 218% rise in measured and indicated category
- Ongoing drilling supports feasibility study and resource expansion
Thick High-Grade Intercepts Confirm Resource Scale
St George Mining Limited (ASX:SGQ) has unveiled a fresh tranche of diamond drilling results from its 100%-owned Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil, underscoring the project's impressive scale and grade. Noteworthy intercepts include 62.95 metres at 5.80% total rare earth oxides (TREO) and 0.57% niobium pentoxide (Nb₂O₅) from surface in hole AXDD103, featuring a high-grade core of 21 metres at 10.61% TREO. Another standout, AXDD104, returned 150.85 metres at 2.48% TREO, highlighting extensive mineralisation over a large vertical interval.
Executive Chairman John Prineas emphasised the significance: "Highest grades were 25.37% TREO in AXDD103 and 3.26% Nb₂O₅ in AXDD108." These results not only confirm the presence of very high-grade mineralisation from surface but also demonstrate exceptional thickness and continuity, critical for future mining and reserve modelling.
Resource Expansion Beyond Previous Boundaries
Step-out drilling continues to push the boundaries of the known mineralisation. Hole AXDD107, drilled approximately 200 metres north of the existing resource, intersected 19.35 metres at 5.65% TREO within a broader 100.35-metre mineralised envelope. This extends the mineralised footprint by roughly 240 metres northward, confirming the system remains open and ripe for further growth.
These expansion results build on the recent major resource upgrade announced in March 2026, which delivered a 75% increase in the maiden Mineral Resource Estimate (MRE) to 70.91 million tonnes at 4.06% TREO and 0.62% Nb₂O₅. The drilling campaign has also boosted the Measured & Indicated category by 218%, providing a robust dataset for ongoing feasibility studies. The resource density, with drill spacing averaging 40 metres, supports confident reserve estimation and mine planning.
Araxá’s Position Among Global Rare Earth Giants
St George is positioning Araxá alongside the world’s premier rare earth mines, namely MP Materials’ Mountain Pass in the US and Lynas Rare Earths’ Mt Weld in Australia. Both are carbonatite-hosted deposits, like Araxá, and serve as benchmarks for scale and grade. The project’s Nb₂O₅ inventory totals approximately 95.47 million tonnes when combining TREO and niobium-specific cut-offs, affirming its dual revenue potential.
Infrastructure and local support further strengthen the project’s prospects. Situated adjacent to CBMM’s leading niobium operations, Araxá benefits from established logistics and a skilled workforce. The company has secured government backing for expedited approvals and assembled an experienced in-country team to advance exploration and development.
Ongoing Drilling and Strategic Partnerships
Drilling remains continuous, focusing on both resource definition and expansion. The campaign has already delivered a 75% increase in the resource and is expected to further upgrade the MRE as assays come in. The mineralisation features a consistent rare earth profile, with a typical neodymium-praseodymium (NdPr) to TREO ratio around 20%, critical for magnet applications.
This momentum follows St George’s recent boost to Araxá resource and complements its strategic alliances with technology partners such as Boston Metal and Tecnicas Reunidas, which aim to enhance processing and commercialisation pathways. These collaborations could unlock additional value from the rare earth and niobium streams.
Environmental and Regulatory Considerations
The Araxá project operates within a complex regulatory environment, including areas designated as legal reserves and water resource protection zones. While St George has negotiated government support and access agreements, some tenements are subject to renewal and environmental approvals, which carry inherent uncertainties. The project also incurs royalties payable to previous owners and government authorities, structured on net smelter returns and internal rate of return thresholds.
Given the project's scale and strategic importance in the global rare earths supply chain, navigating these regulatory and environmental challenges will be crucial as St George advances towards feasibility and development milestones.
Bottom Line?
Araxá’s expanding high-grade footprint and thick mineralisation underscore its potential to join the ranks of global rare earth leaders, but regulatory hurdles and feasibility outcomes remain key milestones to watch.
Questions in the middle?
- How will ongoing drilling results influence the upcoming feasibility study and reserve estimates?
- What impact will the royalty structure and environmental approvals have on project economics and timelines?
- Can St George’s processing partnerships accelerate Araxá’s path to production in a competitive rare earths market?