St George Mining Achieves Record Drill Intercept at Brazilian Rare Earths Project
In a remarkable start to the year, St George Mining has announced its thickest intercept to date at the wholly owned Araxá rare earths project in Brazil, solidifying the deposit's status as a potential world-class mineral resource. The company's latest diamond drilling results have revealed an impressive 164.45 metres of continuous mineralisation, with grades reaching up to 17.15 per cent total rare earth oxides (TREO) and 4 per cent niobium.
Exceptional Drill Results Highlight Project Potential
The standout 164-metre hole, which began from the surface, averaged 2.93 per cent TREO and 0.39 per cent niobium, maintaining mineralisation throughout and only encountering fresh carbonate at 132 metres. Additionally, 16 other drill holes reported in the latest batch have further illuminated the Araxá footprint, featuring multiple long intercepts from the surface across the broader deposit area. Notable results include 110 metres at 4.16 per cent TREO, 90 metres at just over 5 per cent TREO, and more than 80 metres grading close to 5 per cent TREO.
In total, six of the holes identified mineralisation across 90 metres or more from the surface, suggesting the feasibility of a low-cost, low-strip mining plan. Near-surface high-grade material could provide immediate plant feed and cash flow, reducing risks associated with plant development and enabling rapid capital repayment. John Prineas, executive chairman of St George Mining, emphasised that the mineral system remains open both at depth and laterally, with further expansion of the mineralised footprint anticipated as drilling continues around the clock.
Growing Significance in the Critical Minerals Market
The timing of these results is particularly advantageous, as critical minerals like those found at Araxá are increasingly in demand for steelmaking, superalloys, and the rapidly expanding magnet manufacturing industry. This project directly addresses the US Administration's concerns regarding niobium access constraints, which are ranked as the second-most-important critical metal exposure to US trade disruption. Furthermore, American interest in the project is bolstered by key commercial partners such as REalloys Inc., a US-based magnet manufacturer with supply contracts with Washington agencies, including the Defense Logistics Agency and the Department of Energy, which is collaborating with St George to commercialise rare earths from Araxá.
As part of Brazil's broader 'mine-to-magnet strategy' and aligning with St George's downstream plans, the company has signed a Memorandum of Understanding with MagBras, a public-private magnet-making facility established to develop a magnet supply chain in Brazil. Located in a proven producing region that supplies 90 per cent of the world's niobium, the project boasts a TREO resource and grade profile comparable to other tier 1 deposits such as Mt. Weld and Mountain Pass. The Brazilian State of Minas Gerais offers robust transport infrastructure, affordable hydro renewable energy, and a favourable permitting and government environment.
Recent Developments and Future Prospects
The latest assays follow a series of positive developments from Brazil, including a strategic land purchase to site a process plant and avoid sterilisation. The company has also benefited from a newly signed tax deal with the State of Minas Gerais, which is expected to significantly reduce future development costs for Araxá. With drilling rigs operating continuously and the current mineral resource estimate modelled to just 100 metres below the surface, the next 20 holes with pending assays hold strong potential to attract further attention.
Backed by deep-pocketed supporters such as Hancock Prospecting, which holds a 6.24 per cent stake, and armed with a healthy cash balance, St George's Araxá project is rapidly emerging as a significant player in the critical minerals space. This development underscores the growing importance of secure and sustainable sources of rare earths and niobium in the global market.
