St George Mining Confirms Araxá as World-Class Rare Earths and Niobium Deposit with 57% Resource Boost

Araxá Project Scales Up to Tier 1 Global Status

St George Mining Limited (ASX:SGQ) has announced a significant leap in the scale and confidence of its Araxá rare earths and niobium project in Minas Gerais, Brazil. The updated Mineral Resource Estimate (MRE) now stands at 111.2 million tonnes grading 3.57% total rare earth oxides (TREO) and 0.57% niobium pentoxide (Nb₂O₅), marking a 57% increase from the previous March 2026 estimate. Notably, the combined measured and indicated categories have surged by 155% to 75.2 million tonnes, underpinning a robust foundation for advancing feasibility and mine planning studies with technical adviser Worley.

Executive Chairman John Prineas highlighted Araxá’s elevated position among global peers, noting the project hosts the largest undeveloped measured niobium resource worldwide and boasts a rare earths inventory with more contained neodymium and praseodymium (NdPr) than the Mountain Pass mine (MP Materials, NYSE: MP) and Mt Weld (Lynas Rare Earths, ASX:LYC); the two largest rare earth producers outside China. This dual commodity exposure strengthens Araxá’s strategic appeal amid intensifying global supply concerns for magnet rare earths and niobium.

Resource Expansion and Grade Profile

The MRE update incorporates extensive drilling data from 238 holes, blending historical and recent campaigns to refine geological models and confirm continuity. The resource is shallow, with 100% of the MRE contained within 120 metres of surface in the weathered saprolite profile, making it amenable to low-cost open-pit mining. A high-grade subset within the resource contains 830,000 tonnes of TREO above 6.29% grade and 120,000 tonnes of Nb₂O₅ above 0.90%, offering optionality for targeting premium zones in early mining years.

The total contained TREO is estimated at 3.98 million tonnes, including 760,000 tonnes of NdPr oxides, alongside 630,000 tonnes of Nb₂O₅. While average grades have moderated slightly compared to the previous estimate, the substantial increase in tonnage and upgrade in resource classification to measured and indicated categories (68% of total) significantly de-risks the project and enhances its economic potential.

East Araxá Drilling to Add Further Resources

Importantly, the new MRE excludes the East Araxá discovery located about 1 kilometre east of the main deposit. This area has demonstrated high-grade rare earth mineralisation with assays up to 12.34% TREO from surface. Drilling is ongoing with five diamond rigs operating around the clock, aiming to deliver a maiden resource estimate by Q4 2026. This presents a material upside opportunity to further expand Araxá’s resource base beyond the current 111.2 million tonnes.

Metallurgical and Mining Considerations

Historical metallurgical testwork and recent beneficiation studies support the project’s amenability to established processing routes. Past pilot plant programs achieved rare earth recoveries near 90% and produced high-purity rare earth oxalate products, while recent flotation testwork yielded niobium concentrates grading over 40% Nb₂O₅ with recoveries exceeding 50%. These results underpin St George’s dual commodity strategy and provide confidence in refining pathways for both rare earths and niobium.

Mining assumptions focus on conventional selective open-pit methods, leveraging Araxá’s favourable location within a well-established mining district with access to infrastructure and skilled workforce. The project’s proximity to CBMM’s operations; the world’s largest niobium producer; further validates the district’s credentials.

Comparative Positioning and Next Steps

When benchmarked against major hard-rock rare earth projects, Araxá’s scale and contained NdPr tonnage stand out, despite a market capitalisation significantly smaller than peers like Lynas and MP Materials. The resource upgrade, combined with ongoing drilling and technical studies, lays the groundwork for advancing the project toward development decision points.

St George’s recent capital raise and appointment of Worley as feasibility adviser provide the financial and technical momentum to progress economic studies and mine planning. The market will be watching closely for the maiden East Araxá resource and further metallurgical results that could unlock additional value.