St George aims for REE and niobium resource growth in maiden Araxá drilling

• SGQ starts 10,000m drilling campaign at Brazilian REE and niobium project
• Aim is to grow resources with mineralisation open at depth and in all directions
• Assays expected on a rolling four week basis

Special Report: St George Mining has kicked off 10,000 metres of auger, reverse circulation and diamond drilling at its Araxá project in Minas Gerais, Brazil

The goal is to grow the project’s resource, which sits at 40.64Mt at 4.13% TREO and 41.2 Mt at 0.68% niobium.

The company is confident the program can achieve this aim with mineralisation at Araxá open in all directions and significant mineralisation below 100m from surface yet to be included in the resource estimate.

The project is adjacent to CBMM’s world-leading niobium mining operations and sits in a region with a long history of commercial niobium production – with an appropriately skilled and experienced workforce.

This drilling program will be the first for St George Mining (ASX:SGQ) since securing ownership of the project in February.

The plan is to follow up on extensive high-grade and niobium hits from past drilling, with more than 500 intercepts of niobium with grades up to 8% plus rare earths with grades up to 33% TREO.

“We expect to add significantly to this tally by the time we complete our 10,000m drilling campaign,” executive chairman John Prineas said.

Next generation REE and niobium project

Three drill rigs will be active and samples from all drilling will be submitted to ALS Brazil for laboratory assay on a regular basis with results expected on a four-week rolling basis.

The company will also complete an airborne magnetic survey to identify further targets for drilling.

“Araxá’s key feature, of course, is the large, high-grade resource – an enviable development opportunity at a time when global economies are scrambling to establish new supply chains for critical metals, particularly magnet rare earths,” Prineas said.

“One of the largest producing hard-rock rare earths mines outside of China is the Mt Weld mine owned by the $8 billion Lynas Rare Earths with a total resource of 106Mt at 4.1% TREO.

“St George’s Araxá project already has a total JORC resource of 40.64Mt at 4.13% TREO, illustrating the potential value upside for St George as we progress through development studies and resource expansion drilling to demonstrate the potential for a commercial rare earth mining operation.

“At a time when investors are increasingly looking to Brazil for the next generation of quality, hard-rock rare earths and niobium development opportunities, Araxá is in pole position to deliver sustained value for St George shareholders.”

Among the advantages making Araxá a standout project in the rare earths and niobium space are that mineralisation starts from surface and is free-digging – supporting a potential low-cost open-pit operation.

“The project is in an established mining region with well-understood permitting and environmental management, providing an expedited pathway to potential development and strong ESG credentials,” Prineas said.

This article was developed in collaboration with St George Mining, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.