St George Mining Ltd has wasted no time in beginning mine development studies for the Araxá Niobium-REE Project in Brazil, poised to kick off a 5,000-metre drilling program in March now that the acquisition of the project is complete.
The company also intends to produce a maiden JORC mineral resource estimate next month and conduct metallurgical test work, niobium and rare earth element (REE) sample production for potential offtakers as well as environmental, heritage and geotechnical studies.
SGQ’s development work will culminate in a feasibility study for the project, which St George is keen to advance swiftly.
“Tremendous” niobium opportunity
“Today is a landmark day for St George as we enter a new era,” St George Mining executive chair John Prineas said.
“The high-grade niobium-REE Araxá Project represents a tremendous opportunity for St George to potentially become a globally significant player in the niobium sector.
“The project is positioned as a de-risked, world-class project with extensive high-grade niobium and REE mineralisation confirmed by historical drilling, a long history of commercial niobium production in the region, access to existing infrastructure and availability of an experienced workforce.”
Araxá sits within the same carbonatite complex as the CBMM niobium mine, which currently produces about 80% of the world’s niobium from directly next door to SGQ’s tenure.
Strong in-country relationships
“We have assembled a first-rate in-country management team – which counts decades of combined experience in niobium mining and mineral production at Araxá – to drive development work,” Prineas continued.
“We have also established a relationship with the State Government to support expedited project approvals.
“We have been working hard to build the foundations from which we can accelerate development of the project and safely and sustainably unlock its world-class potential.
“We welcome the vendor of the Araxá Project – Itafos Inc (TSX-V: IFOS), a global fertiliser company – as a new and substantial shareholder of St George with a shareholding of 10%.
“We look forward to providing all shareholders with exciting news as we move quickly to prove up the development potential at Araxá.”
The project has already produced drilling results of up to 8% niobium, 33% total rare earth oxides and 32% potassium, with an extensive history of drilling (more than 500 intercepts) offering a strong foundation from which to expand the mineralisation footprint at Araxá.