Araxá Project Drilling Yields Up to 13.98% TREO and 7% Niobium Oxide
St George Mining reports exceptional high-grade rare earth and niobium mineralisation at its Araxá Project in Brazil, alongside a strategic US partnership and a significant capital raise to fuel expansion.
- High-grade rare earths and niobium drilling results extend Araxá resource
- Four rigs active, targeting resource upgrade in late 2025
- Strategic MoU with US-based REAlloys for downstream processing
- Government-backed pilot plant collaboration in Brazil
- A$72.5 million capital raising completed, plus Frankfurt dual listing
Exploration Breakthrough at Araxá
St George Mining Limited (ASX – SGQ) has delivered a compelling update on its Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil, confirming the continuation and expansion of thick, high-grade mineralisation. Recent reverse circulation and diamond drilling results have revealed substantial new zones of rare earth elements (REE) and niobium, with assays showing grades up to 13.98% total rare earth oxides (TREO) and 7% niobium pentoxide (Nb₂O₅) from surface.
The company’s drilling campaign, which ran continuously through the September quarter with four rigs on site, has successfully extended mineralisation laterally and at depth beyond the current JORC-compliant Mineral Resource Estimate (MRE). Notably, diamond drilling intersected a 98.4-metre interval grading 3.07% TREO and 0.43% Nb₂O₅ approximately 230 metres west of the existing resource boundary, highlighting significant upside potential.
Strategic Partnerships and Downstream Development
Complementing this, the company has formalised a collaboration with Brazil’s CEFET University to establish a pilot plant capable of processing 200–300 kilograms of ore per hour. Supported by the Brazilian Federal Government, this facility will produce ferroniobium and rare-earth concentrates, leveraging existing infrastructure and technical expertise to reduce capital costs significantly.
Capital Raising and Market Expansion
Financially, St George completed a strongly supported capital raising of A$72.5 million during the quarter, attracting major North American and European institutional investors alongside strategic partner Hancock Prospecting. This injection of capital is set to underpin the ongoing drilling program and resource upgrade scheduled for late 2025.
In a move to broaden its investor base, St George also secured a dual listing on the Frankfurt Stock Exchange, enhancing access to European capital markets amid rising demand for critical minerals outside China. The company appointed Dr Reuter IR to spearhead investor relations across Germany, Austria, and Switzerland, signaling its intent to become a globally recognised player in the rare earths sector.
Outlook and Industry Positioning
With 100% of the resource within a weathered profile and most mineralisation less than 100 metres from surface, the Araxá Project offers promising potential for low-cost, open-pit mining. St George’s ongoing drilling and assay results are expected to further expand the resource base, supporting its ambition to become a key supplier of strategic minerals aligned with Western clean energy and defence priorities.
Participation in high-profile industry events such as EXPOSIBRAM 2025 has elevated the company’s profile, facilitating dialogue with US and EU government agencies and industry leaders on sustainable supply chains. As St George advances its exploration, development, and commercialisation activities, the company is well positioned to capitalise on the growing global demand for rare earths and niobium.
Bottom Line?
St George’s latest drilling success and strategic partnerships set the stage for a transformative resource upgrade and market expansion in 2025.
Questions in the middle?
- How will pending assay results from ongoing drilling impact the upcoming resource upgrade?
- What are the terms and timelines for potential offtake agreements with REAlloys Inc?
- How will the pilot plant development influence St George’s path to production and cash flow?
