St George Mining Limited has confirmed a major new high-grade rare earths and Niobium discovery at its 100 % owned Araxá Project in Minas Gerais, Brazil. The first RC holes drilled outside the existing Mineral Resource delivered broad, high-value intercepts, including 48 m @ 5.71 % TREO, 32 m @ 1.04 % Nb2O5 with peak grades up to 16.78 % TREO and 4.06 % Nb2O5.
Image Credit: St George Mining Limited
Assays also confirm a strong mix of magnet rare earth, with NdPr values up to 3.96 % and the presence of heavvy rare earth including Lutetium (Lu), Gadolinium (Gd), Dysprosium (Dy) and Terbium (Tb). Samarium, at levels up to 2,600 ppm, reinforces Araxá’s potential role in global EV and defence supply chains.
These results highlight the expansion potential beyond the existing Mineral Resource and the project’s emerging position as a world-class source of critical minerals. With three diamond rigs drilling continuolsy, further assays are expected shortly, supporting strong near-term newsflow for investors.
St George Mining’s Executive Chairman John Prineas said:
“We are delighted with the results from the follow-up deeper drilling at East Araxá which has confirmed the continuity and depth extent of this near-surface, high-grade rare earths and Niobium discovery.
“The volume of mineralisation being defined by the RC drilling in this new area – located 1 km east of the MRE envelope – points to the potential for a significant addition to the Araxá MRE, already the highest grade undeveloped JORC-compliant rare earths resource globally.
“Our multi-rig campaign is continuing with diamond drilling focused on expansion and resource definition of the existing MRE and the RC rig progressing with resource definition at East Araxá. This promises strong newsflow for St George shareholders.
“With governments and private enterprise globally looking for secure and reliable new supplies of rare earths and Niobium, our Araxá Project – a carbonatite-hosted deposit in the same style as the two major producing rare earths mines outside of China, Mountain Pass in California and Mt Weld in Western Australia – is gaining recognition as a compelling development opportunity.
“The high proportion of magnet rare earths – both light and heavy REEs – at East Araxá is very impressive. The USA has relied on magnets – even for the powerful Samarium Cobalt magnets used in F-35 fighters – from China. St George, through its downstream strategic alliance in the US2, is perfectly positioned to contribute to establishing a US domestic supply chain for these important magnets.
“This is an incredibly exciting time for St George. We look forward to reporting further drill results and project milestones as we continue to build shareholder wealth from Araxá.”
MST Access Research Coverage
Independent equity research provider MST Access has released a new Research Report on St George Mining. MST highlights Araxá’s potential to become a new Niobium producer by CY27, with estimated EBITDA of ~US$130 m per annum at margins above 60 %.
The report cites Araxá’s strategic location next to CBMM (the world’s largest Niobium producer), the Company’s strengthened balance sheet following a A$5 m placement to European investors, and commercial validation through MoUs with SKI, Fangda, Xinhai and REAlloys.
MST has raised its valuation for SGQ to A$0.15/share (from A$0.12), reinforcing the project’s strong fundamentals and global significance.
St George Mining (ASX:SGQ) | Webinar with John Prineas | 03/09/25
Video Credit: St George Mining Limited
St George secures rare earths alliance and offtake deal with US player
Video Credit: St George Mining Limited