St George announced its acquisition of the Araxá niobium project last week. Pic: Getty Images
St George speaks on Araxá acquisition, rubbishes incorrect claims
Mining
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Special Report: St George Mining is progressing the acquisition of the world-class Araxá project in Brazil’s mining state of Minas Gerais that has historically defined high-grade niobium, rare earths and phosphate.
Historical drilling at the project, which is adjacent to and in the same carbonatite complex as the world’s largest niobium mine owned by CBMM, returned more than 500 intercepts of high-grade >1% niobium along with ultra-high grades of up to 8% Nb2O5, 33% total rare earth oxides and 32% P2O5.
Mineralisation starts at surface and is open in all directions, providing plenty of room for expansion given that less than 10% of Araxá has been effectively drilled and drilling beyond 50m from surface has been limited.
That the project sits within an established mining district with potential to access infrastructure and labour, which will make any near-term development that much more viable, is certainly another box tick for St George Mining (ASX:SGQ).
Refuting misinformation
The company was also quick to rubbish claims circulating in online chat rooms and social media that an active tailings dam is located within the project area and that the discovered high-grade mineralisation is below this dam.
It noted that while CBMM, which supplies more than 80% of the world’s niobium from its operations near Araxá, had operated – until 1985 – a tailings dam (Dam B4) at tenement 832.150/1989 within the project area, it had progressively rehabilitated and integrated it into the environment over time.
Based on CBMM’s disclosures – the most recent in its 2023 sustainability report – rehabilitation of B4 is believed to be complete or close to completion.
SGQ added that as the tailings dam no longer has a water reservoir, is dry, sealed and stable, it will not inherit any environmental liabilities as a result of Dam B4 being on a tenement that makes up the project.
Meanwhile, a small rainwater catchment dam (Dam D) that was designed to divert rainwater from Dam B4 is also being decommissioned.
The company also rejected claims that the high-grade mineralisation is below the dam, noting that the significant niobium intersections are actually in tenement 831.972/1985.
SGQ added that highly credentialled, independent technical consultants have indicated that open pit mining can be established on tenement 831.972/1985 with no impediments from Dam B4, though these findings are preliminary in nature and subject to final geotechnical studies, which are currently underway.
In progress of Araxá, SGQ plans to use the historical drill intersections to underpin a potential maiden JORC resource.
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.
