St George Mining Hits Record 199m High-Grade Rare Earths at Araxá

Record Intercept Highlights Araxá's Scale

St George Mining (ASX:SGQ) has smashed previous benchmarks at its Araxá Rare Earths and Niobium Project in Brazil, reporting a staggering 199.5 metres of continuous mineralisation from surface in drill hole AXDD120. This intercept, grading 2.86% total rare earth oxides (TREO) and 0.44% niobium pentoxide (Nb2O5), is the thickest recorded to date and underscores the exceptional scale and continuity of the Araxá mineral system.

The intercept includes high-grade internal zones such as 60 metres at 3.96% TREO and 0.52% Nb2O5 from surface, and remains open at depth with mineralisation continuing beyond 198 metres. This vertical extent supports the potential for a large-scale open-pit mining operation, a key commercial advantage given the flat-lying nature of the deposit.

Expanding Footprint and Thick Mineralisation

Beyond AXDD120, the latest batch of 23 diamond drill holes confirmed multiple thick, high-grade intersections from surface, including 121.55 metres at 3.47% TREO and 0.39% Nb2O5 in AXDD127, and 96 metres at 4.19% TREO and 0.31% Nb2O5 in AXDD115. Seven of these holes returned over 150 metres of mineralisation, signalling robust grade continuity across the northern resource area.

Importantly, eight drill holes were placed outside the current Mineral Resource Estimate (MRE) boundary, extending the known mineralised footprint by approximately 200 metres to the north. This expansion is a promising sign of resource growth potential, with the deposit remaining open both laterally and at depth. The current MRE models mineralisation to only 120–160 metres depth, indicating substantial upside.

Dual Commodity Strength with Rare Earths and Niobium

Araxá’s dual commodity nature continues to be a standout feature, with niobium intercepts complementing the rare earths grades. Notable broad niobium intervals include 90 metres at 0.54% Nb2O5 in AXDD117 and 199.5 metres at 0.44% Nb2O5 in AXDD120. High-grade niobium zones such as 9.2 metres at 2.03% Nb2O5 in AXDD123 bolster the project's commercial appeal, offering multiple revenue streams.

The rare earth profile remains favourable for magnet metals, with neodymium-praseodymium (NdPr) ratios typically between 20% and 26%, crucial for permanent magnet production. This profile, combined with the significant niobium content, positions Araxá as a strategic supplier for Western economies seeking secure sources of these critical minerals.

Advancing Towards Resource Upgrade and Development

St George Mining plans to incorporate these latest results into a Mineral Resource Estimate upgrade scheduled for this quarter. This updated resource will underpin ongoing economic studies and feasibility work aimed at advancing Araxá toward production. The company also intends to shift drilling focus to the East Araxá discovery, located one kilometre east of the main deposit, with further resource definition drilling expected to feed into a subsequent MRE update in Q4 2026.

Executive Chairman John Prineas highlighted the significance of these results, noting the "combination of thickness, grade and flat-lying near-surface mineralisation" that supports open-pit mining potential and the "compelling positive point of difference for Araxá." He also pointed to the strong interest from private investors and governments, reflecting the project's scale and expedited development pathway.

With approximately 14,500 metres drilled in the current campaign and a highly experienced in-country team managing regulatory and technical workstreams, St George is positioning Araxá as a world-class rare earths and niobium project. The region's existing infrastructure and mining heritage further de-risk the project’s development trajectory.