St George Mining has delivered a stunning resource upgrade at its already giant Araxá rare earths and niobium project in the Barreiro carbonatite complex in Minas Gerais, Brazil, lifting the project’s mineral resource by a hefty 75 per cent and reinforcing its credentials as a potential Tier‑1 global rare earths asset.
The company’s updated JORC-compliant 2012 mineral resource estimate now stands at 70.91 million tonnes grading a whopping 4.06 per cent total rare earth oxides (TREO).
Importantly, 0.77 per cent are the more lucrative magnet rare earths oxides (MREO) used in electric motors and 0.62 per cent is niobium pentoxide, an increasingly sought after critical mineral.
The company’s confidence in the resource’s eventual suitability for mining has also taken a major step forward, with the measured and indicated component of the total resource surging 218 per cent to 29.49 million tonnes at 4.56 per cent TREO, 0.84 per cent MREO and 0.75 per cent niobium pentoxide.
The remainder of the resource resides in the inferred category at 41.42 million tonnes at 3.71 per cent TREO and 0.52 per cent niobium pentoxide, providing a substantial pipeline from which future drilling will upgrade confidence levels and support development studies.
The new estimate was completed by independent geotechnical expert SRK Consulting and is largely confined to the upper 120 metres from surface and within a softer weathered profile.
The resource geometry, with mineralisation starting at surface and extending to the order of 160 metres depth, supports the company’s envisioned possibility for low‑cost, open‑pit mining.
Adding further upside, St George says the updated resource does not yet include results from 44 completed resource expansion drill holes and the company is planning to put in a further 50 holes over the next two months.
Another significant exclusion from the latest resource upgrade figuring is St George’s September 2025 East Araxá discovery which sits one kilometre east of the main deposit. That discovery has already delivered strong rare earths grades and drilling is currently ongoing with the object of defining a maiden resource in that location, setting the scene for another significant resource hike.
Notably, the new mineral resource estimate is modelled as a TREO resource at a cut-off grade of 2 per cent TREO and it includes niobium pentoxide that occurs in the same modelling cells as the TREO at that cutoff.
However, separate modelling undertaken at a lower cut‑off grade of 0.2 per cent niobium pentoxide has also outlined an additional 24.56 million tonnes of niobium‑rich material at 0.52 per cent niobium pentoxide and a still respectable 1.2 per cent TREO.
The extra material is outside the 2 per cent TREO cutoff cells and showcases Araxá’s appealing multi‑commodity potential and future planning options.
St George executive chairman John Prineas said: “Today’s announcement of such a major upgrade to the size and quality of the resource at Araxá is a milestone in St George’s history because it confirms the world-class nature of our flagship asset. This new Mineral Resource Estimate at the Araxá Project now compares even more favourably with the size and scale of rare earths and niobium deposits owned by some of the world’s largest, listed miners including MP Materials (NYSE: MP) and Lynas Rare Earths (ASX: LYC).”
Located in Brazil’s premier niobium‑producing region and adjacent to other world‑leading operations, Araxá benefits from established infrastructure, an experienced workforce and strong regional mining credentials.
With drilling continuing around the clock and plenty of growth potential still on the table, Araxá is quickly shaping as a cornerstone asset for St George as it pushes toward becoming a globally-significant rare earths and niobium producer in a market place that is reaching fever pitch for both.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Doug Bright
