St George Mining (ASX: SGQ) has reported further outstanding assay results from diamond drilling at its 100%-owned Araxá rare earths and niobium project in Minas Gerais, Brazil.
Diamond drill hole AXDD002 intersected a broad zone of continuous mineralisation approximately 150m west of the current JORC-compliant Mineral Resource Estimate (MRE). The intercept comprises:
- 87.7m @ 2.95% TREO and 0.41% Nb₂O₅ from 2m, including:
- 70m @ 3.02% TREO and 0.43% Nb₂O₅ from 2m
- 9.65m @ 4.15% TREO and 0.55% Nb₂O₅ from 2m
- 3.05m @ 6.72% TREO and 0.73% Nb₂O₅ from 11.65m
- 14.55m @ 3.01% TREO and 0.50% Nb₂O₅ from 18.45m
- 1.00m @ 7.89% TREO and 0.95% Nb₂O₅ from 56.6m
Assays confirmed NdPr:TREO ratios up to 31%, highlighting the high proportion of magnet rare earth oxides.
The new intercept adds to the excellent assay results from diamond drill hole AXDD001, which was completed 230m west of the MRE and also delivered wide, high-grade mineralisation. The assay results of these first two diamond holes extend mineralisation well beyond the current MRE boundary, confirming the open nature of the carbonatite body to the west and demonstrating strong potential for a significant increase in resource tonnage.
At 40.6Mt @ 4.13% TREO, the Araxá MRE is already the largest and highest-grade carbonatite-hosted REE resource in South America and second-highest grade REE resource in the Western world.
“The results from hole AXDD002 continue to support the potential for a substantial increase in the scale of high-grade rare earths and niobium deposits at the Araxá project,” executive chairman John Prineas said.
“The thick, high-grade mineralised zone intersected in our second large step-out hole extends the carbonatite-hosted system further to the west, about 150m beyond the current footprint of the MRE.
“On top of our first diamond hole – a large step-out 230m west of the MRE that intersected 98m of high-grade rare earths from surface – we are off to a great start in proving up more resources at Araxá.
“The combination of high grades and consistent continuity support the potential for a large resource upgrade at the conclusion of the current drill campaign.
“With a world-class resource already confirmed and our location in an established mining region that supports a potential expedited pathway to development, the Araxá project is emerging as a stand-out opportunity to support efforts by the Western world to fast-track the establishment of new and secure supply rare earths outside of China.”
St George last week announced a $72.5 million equity raising that included a $22.5 million contribution from Hancock Prospecting. The raising will enable St George to progress Araxá towards a mine development final investment decision.
