St George Mining Unveils High-Grade Rare Earths and Niobium at Araxá

Exceptional Assay Results Confirm Araxá’s Potential

St George Mining Limited (ASX – SGQ) has announced highly encouraging assay results from its initial reverse circulation (RC) drilling campaign at the Araxá Project, located in Minas Gerais, Brazil. The first seven RC drill holes have delivered thick intervals of high-grade rare earth oxides (TREO) and niobium (Nb₂O₅) mineralisation starting from surface, with grades reaching as high as 13.98% TREO and 7% Nb₂O₅. These results underscore the exceptional quality and continuity of the mineralisation within this globally significant carbonatite deposit.

The Araxá Project already boasts a JORC-compliant Mineral Resource Estimate (MRE) of 40.6 million tonnes at 4.13% TREO and 41.2 million tonnes at 0.68% Nb₂O₅. The new drilling results suggest a strong potential for a substantial resource upgrade, particularly as the current MRE extends only to 100 metres depth and less than 10% of the tenure has been subjected to close-spaced drilling.

Discovery Beyond the Known Resource Boundary

Adding to the excitement, assays from auger drilling approximately 1 kilometre east of the existing resource boundary have confirmed a major new high-grade rare earth discovery. This area, previously untested, returned thick intervals of near-surface mineralisation with TREO grades exceeding 12%, including a standout intercept of 13.5 metres at 12.34% TREO from just half a metre depth. The presence of elevated heavy rare earth elements (HREEs) such as Terbium, Lutetium, Gadolinium, and Dysprosium further enhances the project's value proposition.

Notably, the NdPr (Neodymium and Praseodymium) content; a critical component for permanent magnet manufacturing; has shown impressive ratios up to 42% of TREO, with grades reaching 2.89% NdPr. This positions Araxá competitively alongside major rare earth producers like Lynas’s Mt Weld and MP Materials’ Mountain Pass mines.

Strategic Advantages and Development Outlook

The Araxá Project benefits from several strategic advantages. Mineralisation begins at surface and is free-digging, supporting the prospect of a low-cost open-pit mining operation. Situated in an established mining region adjacent to CBMM’s world-leading niobium operations, the project enjoys access to infrastructure and a skilled workforce. St George Mining has secured strong government backing, including participation in Brazil’s MAGBRAS Initiative, aimed at developing an integrated rare earth supply chain within the country.

The company’s multi-rig drilling campaign is ongoing, with three diamond drill rigs now operating alongside the RC rig. This intensive program is expected to deliver a steady flow of assay results and updates over the coming months, providing clarity on the scale and quality of the resource expansion. Metallurgical testwork is also underway to optimize downstream processing and recovery.

Positioning in the Global Rare Earths Landscape

Araxá is the largest and highest-grade carbonatite-hosted rare earth deposit in South America and ranks as the second highest grade globally outside China. Its deposit style aligns with the two major producing rare earth mines outside China; Mountain Pass in the USA and Mt Weld in Australia; both of which are hard-rock carbonatite deposits. With rare earths critical to green technologies and permanent magnets, Araxá’s development could play a pivotal role in diversifying global supply chains.

Executive Chairman John Prineas highlighted the significance of these results, emphasizing the project’s potential to deliver a substantial resource upgrade and its competitive advantages in permitting, ESG credentials, and mineralisation quality. The company’s ongoing work aims to unlock the full scale of Araxá’s mineral system and advance it towards development.