St George Mining (ASX: SGQ) has delivered a maiden Mineral Resource Estimate for its 100%-owned Araxá project in Minas Gerais, Brazil, just weeks since taking control of the project.
The maiden JORC 2012 MRE confirms a globally significant niobium and REE deposit located in the world’s premier niobium-producing region. It includes:
- a niobium total resource of 41.2 Mt at 0.68% Nb₂O₅ (6,800ppm Nb₂O₅); and
- a rare earths total resource of 40.6 Mt at 4.13% TREO (41,300ppm TREO).
The MRE contains 280kt of niobium oxide (Nb₂O₅) and 1.7 million tonnes of TREO – commodities which are highly sought after by end-users worldwide.
There is excellent potential for resource expansion. High-grade niobium and rare earths mineralisation – with grades up to 82,970ppm (8.29%) Nb₂O₅ and 329,800ppm (32.98%) TREO – remains open in all directions, which presents outstanding potential for an order of magnitude resource increase. Significant exploration potential is demonstrated below 100m from surface and in deeper fresh rock, and has not been included in the MRE.
All of the MRE is constrained within the weathered profile at Araxá and 95.8% of it is within 100m from surface. The mineralisation is free-digging, supporting the potential for low-cost, open-pit mining.
The rare earths mineralisation includes high-value magnet rare earths including neodymium (Nd), praseodymium (Pr), dysprosium (Dy) and terbium (Tb), which combined comprise 19.1% of the TREO measured resource estimate.
Araxá is located in an established mining district with access to infrastructure and skilled workforce, which supports project logistics for an expedited pathway to development. St George has already appointed a strategic partner for Araxá’s EPC+F contract.
St George is planning a significant drill program in 2025 to expand the resource and convert inferred resources to a higher confidence category to further support ongoing development studies for a potential mining operation at the project.
“The announcement of the initial JORC resource for the Araxá project firmly establishes St George as a significant player in the global niobium and rare earths sector,” executive chairman John Prineas said.
“Drilling at our project has intersected phenomenal grades exceeding 80,000ppm niobium oxide – or 8% Nb₂O₅ – and around 330,000ppm or 33% total rare earth oxide.
“It is no wonder that with these drill results the resource estimate now defined at the project also represents among the highest-grade niobium and rare earth deposits in the world today.
“Notably, mineralisation remains open in all directions and at depth, presenting significant upside potential for resource expansion.
“The delivery of the JORC MRE marks a further significant de-risking milestone for the project by providing a strong foundation for permitting, mine planning and economic assessments and ensuring our Araxá project remains at the front of the next generation of potential niobium mining operations.
“We have already attracted a global leader in EPC+F contracts to collaborate with St George on project development, which underscores the attractive near-term development opportunity at Araxá.
“The project’s enviable location in a region with a long history of commercial niobium production, access to existing infrastructure and availability of an experienced workforce strongly support our aim to accelerate development at Araxá and safely and sustainably unlock its world-class potential.”
