St George Mining (ASX: SGQ) has provided an update on drilling and development studies at its 100%-owned Araxá niobium-REE project in Minas Gerais, Brazil.
St George’s inaugural drill campaign at Araxá is progressing with 40 auger drill holes completed to date, reverse circulation (RC) drilling commencing on Friday and diamond drilling to begin shortly. A total of 404 samples have been sent to the laboratory for assaying, with first results expected this month.
The data capture for an airborne magnetic survey has been completed, with 270 line kilometres flown and detailed data processing, interpretation and 3D modelling in progress. Environmental studies are underway to expedite permitting. Fieldwork for the flora study and speleology study has been completed and fieldwork for monitoring air quality and noise commenced.
The Mineral Resource Estimate for Araxá for rare earths stands at 40.64Mt @ 4.13% TREO – a globally significant resource that offers a potential new source of supply of highly sought-after rare earths products and highlights the strategic value of the project. Favourable logistics further support an expedited pathway to development. Araxá is located in the Brazilian State of Minas Gerais, a Tier 1 mining jurisdiction, and within a region with a long history of commercial mining operations, ready access to power and transport infrastructure, a skilled workforce and a proven route to market.
The Araxá deposit starts at surface to support the potential for low-cost open-pit mining.
St George’s development studies for Araxá are advancing amid unprecedent global interest in rare earths. Significant recent transactions include a landmark public-private partnership between the US Government and MP Materials (NYSE: MP) and the MAGBRAS Initiative in Brazil – in which St George is participating – that aims to establish a permanent rare earth magnet manufacturing facility in Brazil.
“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 Defense in MP Materials,” executive chairman John Prineas said.
“St George’s Araxá project has a total JORC resource of 40.64Mt @ 4.13% TREO – a globally significant hard rock rare earths resource – that has potential to offer an alternative supply chain to the current market dominance of China.
“Field activities at Araxá are in full swing to progress development studies. A number of studies required for the environmental assessment have been completed with noise and air quality monitoring continuing. St George is committed to best practice environmental standards at Araxá and we are pleased to be progressing these critical steps for permitting of a potential mine operation.
“First assays from our expansion and resource definition drilling are due shortly, with the important diamond drilling to commence soon.
“These development activities are important milestones for our scoping and feasibility study of the project and for continuing to build value.
“We look forward to reporting project developments as they continue.”
