St George’s Araxá project gains scale as testing and permitting accelerate

Araxá resource reaches 111.2Mt

St George Mining Limited (ASX:SGQ) is taking its Araxá niobium and rare earths project from resource expansion towards development studies, after reporting a 155% increase in higher-confidence resources during the September quarter. The updated estimate stands at 111.2 million tonnes grading 3.57% total rare earth oxides, 0.68% NdPr and 0.57% niobium oxide, including 75.2Mt of Measured and Indicated material.

“Comparison of rare earth deposits based on mineral tonnage. Source: Terra Studio.”

“Plan view map of Araxá area showing the location of the diamond drilling relative to the MRE as well as the sections in Figures 3 and 4 above.”

Caption and image © St George Mining Limited. From “Quarterly Activities and Cashflow Report”, 30 Oct 2026.

The estimate contains about 3.98Mt of TREO, including 760,000 tonnes of NdPr oxides, and 630,000 tonnes of niobium oxide. The company says the entire resource lies within about 120 metres of surface and that the weathered material in that zone is potentially free-digging. Those characteristics may support an open-pit development concept, but Araxá remains a Mineral Resource rather than an Ore Reserve: no detailed mine design or economic study result was reported.

“Section A – A’ showing high-grade TREO intercepts (cut-off 1% TREO) and high-grade Nb2O5 intercepts (cut-off 0.2% Nb2O5) along with the existing MRE outline, showing both…”

The upgrade, previously outlined in the September resource upgrade, also leaves the main deposit open in all directions. East Araxá, about one kilometre away, is excluded from the estimate and is being drilled ahead of a potential maiden resource.

Drilling continues to show thick surface mineralisation

Drilling supplied some of the quarter’s strongest technical evidence. Hole AXDD166 returned 135.1 metres at 4.86% TREO from surface, including 69 metres at 7.33% and 20 metres at 12.65%. Other reported results included 207 metres at 2.60% TREO in AXDD142, 150.5 metres at 3.66% TREO in AXDD165 and 150.2 metres at 3.49% TREO in AXDD167.

“Oblique section showing significant drilling completed in the current campaign.”

Caption and image © St George Mining Limited. From “Quarterly Activities and Cashflow Report”, 30 Oct 2026.

Niobium results were similarly broad, with AXDD167 returning 150.2 metres at 0.72% niobium oxide from surface, including 19 metres at 1.32%. St George says drilling has extended mineralisation beyond the current resource boundary and should help improve resource confidence in areas with previously limited drilling. The results are encouraging for geological continuity, though they do not by themselves establish recoveries, mine economics or reserves.

Permitting and processing work move in parallel

The company has lodged an Environmental Impact Assessment and Environmental Impact Report with Minas Gerais’ State Environmental Foundation, beginning the multi-stage licensing process for a potential open-pit mine and processing complex. The proposed facilities would include mineral processing, refining and metallurgical plants, as well as waste, tailings and supporting infrastructure. The submission follows 14 months of environmental baseline studies and fieldwork, while feasibility work led by Worley continues alongside the licensing process.

“Schematic diagram showing the areas assessed for the potential mining operation and industrial complex at Araxá.”

“Photo of the St George team at the CIT-SENAI pilot plant in Belo Horizonte.”

Caption and image © St George Mining Limited. From “Quarterly Activities and Cashflow Report”, 30 Oct 2026.

Metallurgical work has also moved from laboratory testing into a pilot study using about nine tonnes of near-surface saprolite. The CIT-SENAI program is testing grinding, magnetic separation and flotation to produce separate niobium and rare earth concentrates, with further work aimed at ferroniobium and mixed rare earth carbonate. Results are expected in the fourth quarter of 2026. The company’s Araxá pilot plant study is intended to inform a larger facility being built at CEFET’s Araxá campus, where operations are scheduled to begin in January 2027.

“Signing Ceremony for the Minas Gerais Rare Earths Processing Centre (left to right): Milena Andrade Pedrosa, Invest Minas President; Mila Batista Leite Corrêa da Costa,…”

St George has also agreed to collaborate with the State of Minas Gerais and Lima & Pergher on a proposed rare earths processing centre in Uberlândia. The centre is intended to process feedstock from projects in the state and produce materials for downstream magnet manufacturing. At this stage, it is a collaboration and proposed development rather than an operating facility or binding production arrangement.

A$86.2m cash balance funds the next work programs

St George finished the quarter with A$86.195 million in cash and cash equivalents, up from A$80.652 million. The balance was supported by A$17.555 million in placement proceeds and A$929,000 from option exercises, partly offset by A$7.777 million in operating cash outflows and A$4.362 million in investing outflows. The company reported an estimated 11.08 quarters of funding based on its quarterly cash use.

The completed A$60 million placement issued 600 million shares at A$0.10 each, with Hancock’s holding rising to 10.3%. That funding provides room for feasibility, permitting, drilling and processing programs, but the company has not reported an Ore Reserve, a development decision or project economics. The next meaningful tests are therefore practical ones: whether pilot work produces commercially relevant products, whether feasibility studies support a mine, and how much capital Araxá would require beyond the current exploration and study phase.