81.5m at 1.27% Nb2O5 Discovery Expands Araxá Niobium Project

A Breakthrough Discovery at Araxá

St George Mining Limited (ASX, SGQ) has revealed a major new high-grade niobium discovery at its Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil. The discovery lies 400 metres northwest of the current Mineral Resource Estimate (MRE) boundary, with drill results showing an impressive 81.5 metres at 1.27% niobium pentoxide (Nb2O5) from surface, including a standout 43 metres grading 2.01% Nb2O5. Some sections even reached grades as high as 7.2% Nb2O5, underscoring the exceptional quality of the mineralisation.

This new zone is shaping up as a significant extension of the already world-class niobium and rare earth element (REE) system at Araxá, which sits within the renowned Barreiro Carbonatite complex. The project benefits from proximity to CBMM’s established niobium operations, the global leader in niobium production, highlighting the strategic importance of this discovery.

Strategic Importance of Niobium

Niobium is a critical metal used primarily to strengthen steel alloys, making them lighter and more durable; qualities essential in aerospace, defence, nuclear reactors, and advanced electronics. Brazil currently supplies over 90% of the world’s niobium, with no domestic production in major economies like the US or China. The US Department of Interior ranks niobium as the second most critical metal due to its potential economic impact if supply is disrupted.

St George’s Araxá Project is thus positioned to play a pivotal role in global supply security. The new discovery’s mineralisation starting from surface offers a potential commercial advantage, as it could facilitate more cost-effective open-pit mining compared to deposits requiring deeper extraction.

Expanding the Resource and Next Steps

The discovery was made through expansion drilling in previously untested ground northwest of the existing resource footprint. The company’s strategy of broad-spaced step-out drilling has successfully identified this new high-grade zone, which lies nearly 1.2 kilometres north of the current measured and indicated resource. This suggests the potential for multiple high-grade zones that could be developed independently or integrated into a larger mining operation.

Drilling continues around the clock with three diamond core rigs, and assays from 29 drill holes are pending. St George aims to incorporate these results into an updated MRE scheduled for release in the first quarter of 2026. This update is expected to reflect a significant increase in both niobium and rare earth elements, further enhancing the project’s scale and value.

Supportive Infrastructure and Government Cooperation

Araxá benefits from established infrastructure and a skilled local workforce, factors that reduce development risk. The project has also secured government support through the Federal Government’s MagBras Initiative, aimed at creating a sustainable rare earth supply chain within Brazil. Additionally, a cooperation agreement with the State of Minas Gerais is in place to expedite permitting processes, a critical step given the environmental and regulatory complexities involved.

While some tenements are subject to renewal and environmental approvals, St George’s experienced in-country team is actively managing these processes to mitigate risks. The company also acknowledges royalties payable to previous owners and government authorities, which will factor into project economics.

Looking Ahead

This discovery not only reinforces Araxá’s status as a globally significant niobium and rare earth project but also highlights the growing strategic importance of critical metals amid geopolitical supply concerns. As St George advances its drilling and resource definition, investors and industry watchers will be keenly observing the forthcoming MRE upgrade and regulatory progress, which will shape the project’s development trajectory.