New High-Grade Rare Earth Zone at Araxá Raises Resource Expansion Questions
St George Mining has announced a significant high-grade rare earth discovery at its Araxá Project in Brazil, with initial drilling revealing grades up to 13.4% TREO, expanding the known resource by about 1km. This breakthrough highlights the project's potential to become a major global rare earths supplier.
- Initial auger drilling assays show up to 13.4% TREO rare earth grades
- Discovery extends Araxá Project resource 1km east of existing deposit
- High ratio of magnet rare earths (NdPr) up to 35% of TREO
- Follow-up reverse circulation and diamond drilling underway
- Araxá Project benefits from strategic location and Brazilian government support
A Breakthrough Discovery at Araxá
St George Mining Limited (ASX, SGQ) has revealed a major advancement in its Araxá Project in Minas Gerais, Brazil, with the discovery of high-grade rare earth element (REE) mineralisation approximately 1 kilometre beyond the current mineral resource estimate (MRE). The initial batch of 22 auger drill holes returned exceptional grades, including a standout intercept of 13.5 metres at 12.34% total rare earth oxides (TREO) starting just half a metre from surface.
This discovery not only confirms the presence of a rich new mineralised zone but also suggests the Araxá Project’s scale and value could be significantly larger than previously understood. The high grades and shallow depth of mineralisation bode well for potential mining economics.
Rare Earths with a Magnetic Edge
Of particular note is the high proportion of neodymium and praseodymium (NdPr) within the TREO, reaching up to 35%. These elements are critical for manufacturing permanent magnets used in electric vehicles, wind turbines, and various high-tech applications. The presence of such magnet rare earth oxides enhances the strategic importance of the Araxá deposit amid global supply chain concerns.
St George’s Executive Chairman John Prineas emphasised the significance of these results, highlighting the discovery’s potential to add materially to the existing world-class JORC-compliant resource, which currently stands at over 40 million tonnes at 4.13% TREO.
Strategic Location and Ongoing Exploration
The Araxá Project is uniquely positioned adjacent to CBMM’s leading niobium operations, benefiting from established infrastructure and a skilled local workforce. The project is also integrated into Brazil’s MAGBRAS Initiative, a federal program aimed at developing a sustainable rare earth supply chain within the country.
Following these promising auger results, St George has mobilised five drill rigs conducting reverse circulation and diamond drilling to delineate the new mineralised zone’s extent and depth continuity. Early indications that many holes ended in high-grade mineralisation suggest a robust system extending below the shallow auger depths.
Global Context and Competitive Advantages
The Araxá deposit is a carbonatite-hosted rare earth system, a style shared by the world’s two major rare earth mines outside China, Mountain Pass in the USA and Mt Weld in Australia. These deposits are known for their relatively high grades and cost-effective production profiles, positioning Araxá competitively in the global market.
Recent strategic investments in Mountain Pass by the US Department of Defense and Apple underscore the geopolitical importance of securing rare earth supply chains. St George’s discovery at Araxá aligns with this global trend, potentially positioning the company as a key player in diversifying supply sources.
Looking Ahead
While the initial results are compelling, further drilling and resource modelling will be critical to fully quantify the new discovery’s size and grade continuity. Pending assays from additional auger holes and ongoing drilling programs will provide greater clarity on the resource expansion potential.
St George Mining’s strategic partnerships, government support, and technical expertise provide a strong foundation to advance the Araxá Project towards development, potentially reshaping the rare earths landscape in Brazil and beyond.
Bottom Line?
St George’s new high-grade discovery at Araxá could redefine its rare earths resource, but upcoming drilling results will be pivotal in confirming its full potential.
Questions in the middle?
- How extensive is the new high-grade rare earth mineralisation at depth beyond the shallow auger results?
- What impact will the expanded resource have on St George Mining’s valuation and project economics?
- How will evolving global rare earth supply chain dynamics influence Araxá’s development timeline and partnerships?
