St George Mining (ASX: SGQ) has reported growing positive engagement with local government and community leaders in relation to the development of the company’s 100%-owned Araxá niobium-REE Project in Minas Gerais, Brazil.
The region around the Araxá project has a long history of mining and includes CBMM’s world-leading niobium mining operation, which is located immediately adjacent to St George’s Araxá. The city of Araxá is 5km from these operations, with many mines in the district drawing on labour and other services from the city. The community in and around Araxá is experienced in the permitting of mining operations and working closely with mining companies to ensure sustainable project developments and long-term jobs, providing an expedited pathway to potential development.
St George continues to establish a close and open relationship with the local Government and community at Araxá, reinforcing its commitment to contribute to the community and develop the Araxá project with high regard to social and environmental practices.
In line with its commitment to caring for local issues, St George has initiated support for socio-environmental projects focused on the local Araxá community. The program is based on dialogue with local leaders to support proposals that can deliver a positive impact on the community at all levels.
The strong support of the local community follows the cooperation agreement signed with the State of Minas Gerais, under which the State will assist in expediting permitting approvals in recognition of the significant proposed investment by St George to develop Araxá.
St George met with representatives of the local council as well as community leaders in Araxá last week to deepen the Company’s relationship with the community and advance the company’s understanding of local community requirements.
St George has commmenced its maiden drill program at Araxá. Auger drilling is underway, with 16 drill holes completed for 210.65m drilled. Reverse circulation (RC) drilling is scheduled to commence in coming days followed by diamond drilling next month with the 10,000m drill program expected to take up to 16 weeks to complete. RC and diamond drilling will focus on resource expansion as well as upgrading the Inferred resource to the Indicated category. With mineralisation open in all directions and significant mineralisation below 100m from surface not yet included in the current Mineral Resource Estimate, there is potential for a substantial increase in the already globally significant resource defined by St George of 40.64Mt @ 4.13% TREO and 41.2 Mt @ 0.68% Nb₂O₅.
“We have a long-term commitment to work with and support the City of Araxá and are very pleased with the warm welcome and positive engagement we are receiving from the local government and community,” executive chairman John Prineas said.
“This demonstrates that our commitment to deliver positive outcomes for all is well received by the city and the broader community in and around this region.
“From the very start, our goal has been to build an open and respectful relationship with the city and the people who live there. Our Araxá project will be developed in consultation with the municipality to ensure a development with environmental, social and economic responsibility. It is clear to us that delivering shared success is the best outcome.
“In our on-the-ground meetings with community leaders in Araxá, we launched a program to assist with funding of local initiatives that will deliver positive social impacts in the areas of health and wellbeing, education, environment and other community projects.
“St George’s in-country team in Brazil is led by Thiago Amaral and Adriano Rios, who have a long-standing relationship with the communities in and around Araxá and continue to be residents in the area. Development of the Araxá project will put the City of Araxá as well as the State of Minas Gerais on the world map as a globally significant source of strategic minerals essential for the energy transition.
“The combination of local and state government support, a world-class resource, the location in an established mining region with access to infrastructure and a first-class in-country team of engineers experienced in mine construction and operation all contribute towards positioning St George very well to deliver on our vision for a globally significant rare earths and niobium mine at Araxá.”
