Araxá Project: 41Mt Resource at 0.68% Nb2O5 and 4.13% TREO Confirmed
St George Mining has unveiled a maiden JORC-compliant resource at its Araxá Niobium-Rare Earth Project, initiating an expanded drilling campaign backed by a $5 million capital raise to accelerate development.
- Maiden JORC Mineral Resource Estimate – 41.2Mt at 0.68% Nb2O5 and 40.6Mt at 4.13% TREO
- Drilling campaign expanded to over 10,000m with three diamond rigs deployed
- Strong local government and community support in Minas Gerais, Brazil
- Capital raising of $5 million at a 13.1% premium to fund exploration and development
- Araxá resource compares favourably with global rare earths producers like Lynas and MP Materials
A Milestone Resource for Araxá
St George Mining Limited (ASX, SGQ) has marked a significant step forward in its development of the Araxá Niobium-Rare Earth Elements (REE) Project in Brazil by announcing its maiden JORC-compliant Mineral Resource Estimate (MRE). The resource totals 41.2 million tonnes grading 0.68% niobium oxide (Nb2O5) and 40.6 million tonnes at 4.13% total rare earth oxides (TREO), positioning Araxá as a globally significant deposit in both sectors.
Notably, the resource includes high-grade zones with niobium grades reaching over 8% and rare earth grades approaching 33%, with mineralisation open in all directions. The deposit lies predominantly within 100 metres of surface and is free-digging, suggesting potential for low-cost open-pit mining.
Accelerated Drilling and Exploration
Complementing drilling efforts, a high-resolution magnetic survey and passive seismic studies are underway to refine geological models and identify new targets. These geophysical tools will help delineate structural controls and depth to fresh rock, critical for understanding grade distribution and guiding future exploration.
Strategic Support and Market Positioning
St George's progress at Araxá is bolstered by strong relationships with the Minas Gerais state government and local communities, including cooperation agreements aimed at expediting permitting processes. This alignment underscores the project's strategic importance amid global efforts to diversify critical mineral supply chains for clean energy technologies.
Benchmarking against established rare earth producers such as Lynas (Mt Weld, Australia) and MP Materials (Mountain Pass, USA) reveals Araxá's competitive resource size and grade. This is particularly relevant as geopolitical dynamics drive demand for secure, non-Chinese sources of rare earths and niobium.
Broader Exploration and Financial Position
Beyond Araxá, St George continues exploration at its Ajana, Mt Alexander, and Buningonia projects in Western Australia, targeting nickel, gold, lithium, and base metals. Recent drilling campaigns have been completed with assay results pending, while preparatory work is underway for upcoming programs.
Financially, the company strengthened its position through a $5 million placement at a 13.1% premium to the 30-day volume-weighted average price, attracting strategic European investors. Despite operating cash outflows consistent with exploration activities, the capital raise provides a runway exceeding one quarter, supporting ongoing development and exploration initiatives.
Looking Ahead
St George Mining's maiden resource and accelerated exploration at Araxá signal a pivotal phase in unlocking the project's potential. As drilling results and assay data emerge, market participants will be watching closely to assess the scale and quality of resource expansion, alongside progress in permitting and downstream processing partnerships.
Bottom Line?
With a solid resource base and fresh capital, St George is poised to deepen Araxá’s footprint amid rising global demand for critical minerals.
Questions in the middle?
- How quickly can St George upgrade inferred resources to indicated or measured categories?
- What are the timelines and hurdles for permitting and development approvals in Minas Gerais?
- How will the company leverage its new European strategic investors to advance processing and market access?
