St George Mining (ASX: SGQ) has confirmed a major new discovery of high-grade rare earths and niobium following the receipt of the latest assays from drilling at its 100%-owned Araxá Project in Minas Gerais, Brazil.
Assays for RC drilling to the east of Araxá’s current Mineral Resource Estimate (MRE) confirmed the new discovery. Thick intervals of high-grade mineralisation from surface in the first three follow-up reverse circulation drill holes in the previously unexplored eastern portion of the Araxá Project, now called East Araxá, included:
- 48m @ 5.71% TREO from 2m
- including 15m @ 12.61% TREO from 4m
- 32m @ 1.04% Nb₂O₅ from 11m
- including 6m @ 2.41 % TREO from 11m
- 40m @ 2.62% TREO and 1.05% Nb₂O₅ from surface
- including 8m @ 4.38% TREO from 35m
The magnet and heavy rare earths grades at East Araxá are higher than in the existing MRE with:
- NdPr values up to 3.96% NdPr (39,600ppm NdPr)
- more Dysprosium (Dy), Terbium (Tb), Lutetium (Lu) and Gadolinium (Gd) making up 1,500ppm of TREO
- high Samarium up to 2,600ppm of TREO – the main material in Samarium Cobalt magnets used in F-35 fighter planes and other military equipment
The new discovery at East Araxá is 1km east of Araxá’s existing MRE and was first recognised by auger drilling completed by St George earlier this year, which intersected near-surface, high-grade rare earths over a 1,000 sq m area – including 13.5m @ 12.34% TREO from 0.5m in AAXG022.
St George is continuing the RC drilling at East Araxá with an inferred resource targeted for Q4 2025, which will add to the project’s world-class carbonatite-hosted TREO and niobium JORC-compliant MRE.
Diamond drilling of expansion targets is also continuing 24/7, with first assays due in 2-3 weeks.
“We are delighted with the results from the follow-up deeper drilling at East Araxá, which has confirmed the continuity and depth extent of this near-surface, high-grade rare earths and niobium discovery,” executive chairman John Prineas said.
“The volume of mineralisation being defined by the RC drilling in this new area – located 1km east of the MRE envelope – points to the potential for a significant addition to the Araxá MRE, already the highest grade undeveloped JORC-compliant rare earths resource globally.
“Our multi-rig campaign is continuing with diamond drilling focused on expansion and resource definition of the existing MRE and the RC rig progressing with resource definition at East Araxá. This promises strong newsflow for St George shareholders.
“With governments and private enterprise globally looking for secure and reliable new supplies of rare earths and niobium, our Araxá Project – a carbonatite-hosted deposit in the same style as the two major producing rare earths mines outside of China, Mountain Pass in California and Mt Weld in Western Australia – is gaining recognition as a compelling development opportunity.
“The high proportion of magnet rare earths – both light and heavy REEs – at East Araxá is very impressive. The USA has relied on magnets – even for the powerful Samarium Cobalt magnets used in F-35 fighters – from China. St George, through its downstream strategic alliance in the US, is perfectly positioned to contribute to establishing a US domestic supply chain for these important magnets.
“This is an incredibly exciting time for St George. We look forward to reporting further drill results and project milestones as we continue to build shareholder wealth from Araxá.”
