St George Mining has development studies in full swing at its Araxa niobium and rare earth elements project in Brazil’s premier mining state of Minas Gerais, as part of a global push to find new supplies.
The company’s inaugural drilling campaign is charging ahead, with 40 auger holes on a 500-metre grid completed for 512m as part of a reconnaissance program to test areas beyond the current resource envelope.
A total of 404 samples have been sent for assay, with initial results expected this month. The results from the first 100 samples are slated to be available by the end of the month.
St George also launched a reverse circulation drilling program last Friday, comprising a planned 2500m, focused on infill drilling for its JORC-compliant mineral resource estimate of 40.64 million tonnes averaging 4.13 per cent total rare earth oxides (TREO), containing 1.7Mt TREO.
The resource includes 320,000 tonnes of high-demand neodymium-praseodymium at a combined grade of 7800 parts per million (ppm). The key rare earths are used to manufacture permanent magnets.
A 7200m diamond drilling campaign is set to begin in three weeks to further delineate high-grade zones and provide metallurgical samples.
St George has completed a 270-line-kilometre drone-borne aeromagnetic survey.
Brazilian processing company Geoscan is mapping the structural features, lithological boundaries and mineralised zones to refine the geological model of the host carbonatite and locate new drill targets.
St George has also advanced its environmental studies to expedite open-pit mine permitting through which the company hopes it can leverage early development of the deposit’s near-surface high-grade niobium, which is up to 8.29 per cent niobium pentoxide and rare earths mineralisation up to 32.98 per cent TREO.
The environmental work includes flora and cave studies, alongside ongoing air quality and noise monitoring, to further support the company’s permitting obligations.
Araxa’s strategic location near Brazilian explorer Companhia Brasileira de Metalurgia e Mineração’s (CBMM) world-leading niobium operations ensures access to robust infrastructure, including power and transport, and a skilled workforce, which will ease St George’s development pathway.
CBMM specialises in processing niobium from its pyrochlor near the city of Araxa and just a few kilometres south of St George’s Araxa operation.
St George’s project hosts high-grade mineralisation, which remains open in all directions, positioning it for a significant mineral resource expansion and enhancing its status as a globally significant niobium and rare earths resource.
Global demand for rare earths is surging, driven by China’s April 2025 export controls on rare earths and Chinese-manufactured rare earths magnets, which until recently have supplied up to 90 per cent of global demand.
In response, the United States Department of Defence has invested US$400 million (A$610 million) in MP Materials’ Mountain Pass mine, the US’s only operating rare earths mine.
The investment, which includes a 15 per cent stake and a US$150 million (A$229 million) loan for a new processing facility, underscores Western efforts to secure non-Chinese rare earths supply chains.
St George Mining’s executive chairman John Prineas said: “We are excited to be progressing development activities at a time when the geopolitical background is driving unprecedented interest to establish rare earths supply chains ex-China – as seen last Friday with a landmark multi-billion-dollar investment by the US Department of Defence in MP Materials.”
In Brazil, St George participates in the MAGBRAS initiative, a Brazilian government-backed program focused on establishing a domestic supply chain for rare earth products, including permanent magnets. St George Mining is participating as a potential supplier.
The company is also working with leading Brazilian scientific agency SENAI and the Federation of Industries of Minas Gerais to establish a sustainable rare earths supply chain, including for magnet production.
Araxa’s high neodymium-praseodymium content aligns it with the initiative and positions St George as a key supplier. It opens the possibility of government support for expedited approvals and, with an experienced in-country team, puts the project in a rare position to capitalise on favourable logistics and current global market dynamics.
If the stars align favourably, the opportunity to meet critical supply chain vulnerabilities and support the clean energy and defence sectors could boost St George’s profile and fortunes.
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By Doug Bright
