St George Mining has confirmed high-grade total rare earths oxide (TREO) and niobium mineralisation in early results from reverse circulation (RC) resource expansion drilling at its Araxá project in Minas Gerais, Brazil.
Initial results have been returned from seven shallow holes drilled vertically to a maximum of 50 metres depth.
The results include grades up to 13.98 per cent TREO - including NdPr values up to 2.89% NdPr - and 7 per cent niobium pentoxide, highlighting the project’s potential for a significant resource upgrade.
Key RC drilling intercepts include one hole delivering 41m at 4.52 per cent TREO and 0.87 per cent niobium pentoxide from surface.
A second hole nailed 13m at 7.06 per cent TREO and 1.45 per cent niobium pentoxide from 4m, while a third hole produced 5m at 11.83 per cent TREO and 3.12 per cent niobium pentoxide from 8m depth.
St George’s current JORC-compliant mineral resource estimate stands at combined measured, indicated and inferred 40.64 million tonnes at 4.13 per cent TREO, including 0.78 per cent total magnet rare earth oxides (MREO) and 41.20 million tonnes at 0.68 per cent niobium pentoxide.
This was modelled to only 100m depth and represents drilling coverage of less than 10 per cent of the tenement area.
The RC drilling, aimed at refining and extending the mineral resource, has yielded results that exhibit consistent high-grade mineralisation from surface, indicating strong potential for an initial low-cost, open-pit mining operation.
The company’s planned 10,000m drilling program, including three diamond rigs and one RC rig, is still underway. St George has more than 9000m planned over the next 10–12 weeks and expects to receive assays from ALS Brazil every four weeks.
In a separate development, St George’s follow-up auger drilling at its new discovery, about one kilometre east of its principal Araxá mineral resource, has confirmed a new high-grade zone.
Grades in samples from the next 16 auger holes have delivered up to 13.5m going 12.34 per cent TREO from 0.5m depth, indicating significant resource expansion potential.
Many of the holes which averaged less than 16m depth have ended in thick, high-grade shallow mineralisation, including one hole which returned 13.4 per cent TREO in the last metre, indicating strong likelihood for continuity at depth.
The results have has prompted immediate follow-up RC drilling to test the depth, continuity and extent of the new eastern area.
The RC drilling also reveals elevated total MREO, with neodymium-praseodymium (NdPr) grades up to 2.89 per cent and NdPr:TREO ratios reaching 42 per cent and averaging 18–24 per cent.
St George Mining’s executive chairman John Prineas said: “These first RC assay results are an excellent start and show that we are on track to upgrade the large carbonatite-hosted MRE at the Araxá project – the same style of deposit as the two major producing rare earths mines outside of China - Mountain Pass in California and Mt Weld in Western Australia”.
Prineas added that Araxá is shaping up as a stand-out with many competitive advantages that make it a compelling rare earths and niobium development opportunity. He said that mineralisation starts from surface and is free-digging, which could support a potential low-cost open-pit mining operation.
The new East Araxá area also shows increased heavy rare earths, including lutetium, gadolinium, dysprosium and terbium. Gadolinium has reached 1.57 per cent of TREO and samarium at 2.6 per cent, further bolstering the project’s remarkable and diverse element suite and overall profile.
Samarium is a highly sought light rare earth element and with its relatively high average grade of 2.6 per cent of TREO, further enhances the overall rare earth profile of the mineralisation.
Being located about 2km north of global giant CBMM’s world-leading niobium mine, St George’s Araxá project benefits from robust local infrastructure, a strong mining culture and support, and a skilled local workforce.
St George has secured support from the Minas Gerais state government and local community through a cooperation agreement, which is expediting tenement and statutory permitting and provides other assistance.
The company is participating in Brazil’s MAGBRAS Initiative to develop a domestic magnet rare earths supply chain. With niobium prices above US$75 (A$115) a kilogram in late 2024, Araxá is well-positioned to meet global demand for critical minerals.
MAGBRAS is a government-backed public-private partnership aimed at developing an independent domestic supply chain for rare earth elements, particularly focusing on the production of rare earth permanent magnets in Brazil to reduce the nation’s import dependency and meet growing global demand.
The project involves Latin America’s SENAI education network and the Federation of Industries of Minas Gerais (FIEMG) and has significant partners such as automotive manufacturing giant Stellantis and Brazilian miner Vale.
As global electrification accelerates, St George’s Araxá project looks set to supply high-grade niobium and rare earths, which will contribute to powering electric vehicles, renewable energy and defence technologies, and strengthening secure, sustainable supply chains for a technology-driven future.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Doug Bright
