St George Mining has added yet another highly-credentialled local advisor for its new niobium-rich Araxá rare earths project in Brazil by locking in the country’s former Minister of Mines, Adolfo Sachsida.
The well-known business leader will join two other recent in-country niobium industry expert additions as St George completes its acquisition of the Araxá project that sits in the State of Minas Gerais.
The company believes Sachsida will be able to provide strategic insights and advice that could prove crucial in the development of its new niobium operation in Brazil as he has sat at the highest level of mines experience in the Brazilian Government and served as a Professor of Economics at the Universities of Texas and Catolica de Brasilia.
On accepting the advisory appointment, Sashida says that as Brazil stands as the world leader in niobium production, St George has the potential to “join a small and elite group” of global producers of the light-grey metal through its acquisition of the Araxá project.
Araxá sits within the Barreiro carbonatite complex in Minais Gerais, adjacent to Companhia Brasileira de Metalurgia e Mineracao’s (CBMM) world-class Araxá mine that is also hosted by the carbonatite.
But CBMM’s 896 million-tonne Araxá niobium mine running at 1.49 per cent niobium pentoxide is not the only mine in the impressive complex. It neighbours The Mosaic Company’s Araxá phosphate mine that holds 519Mt grading 13.4 per cent.
CBMM – which produces 80 per cent of the world’s niobium – previously operated a tailings dam on St George’s tenement, which it closed in 1985. St George was recently moved to deny reports that a sizeable part of the mineralisation at the site resides underneath the old dam site and stressed that 500 recent intercepts reading more than 1 per cent niobium are from a different tenement.
St George Mining executive chairman John Prineas said: “Adolfo’s wealth of high-level experience in the government and business sectors of Brazil – including his leadership as Minister of Mines and Energy – will be of enormous value to St George as we strive to build a globally-significant niobium company. The addition of Adolfo as a key member of our team positions St George well to create real value as we progress the unique niobium-REE development opportunity at Araxá.”
In strategic moves designed to strengthen its credentials with in-country representation, St George has now appointed two former CBMM representatives and the country’s former top government mines official in the hope of better navigating the complicated approvals process for a potential mining operation.
The company acquired the Araxá niobium-rare earths project for US$21 million ($31 million) and 100 million shares from TSX-listed Itafos earlier this month. The transaction is due for completion late next month following an all-important shareholder meeting and approvals.
Management intends to launch a 5000m diamond drilling program at the project late next month, with an aim to confirm historical drill results and explore along known high-grade mineralisation to test its depth extents.
It will aim to produce a JORC-compliant mineral resource estimate in the near term – expected to be completed by the first half of next year – ahead of metallurgical studies and a eventual crucial feasibility studies.
The addition of Sachsida and its other and new in-country expertise to its Brazilian pursuits seems a shrewd move by St George as it sets its sights on joining the elite club of just three producing niobium miners globally.
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By Andrew Todd
