St George Mining Ltd has fielded a maiden mineral resource estimate (MRE) for the Araxá Project in Brazil of 41.2 million tonnes at 0.68% niobium (6,800 parts per million or ppm) and 40.6 million tonnes at 4.13% total rare earth oxides (TREO) (41,300 ppm TREO).
The high-grade deposit translates to 280,000 tonnes of contained niobium and 1.7 million tonnes of TREO, at a time when both commodities are rising in relevance and rare earths have experienced material price increases.
The company says Araxá has strong potential for resource expansion due to its high grades, with mineralisation remaining opening in all directions and “presenting outstanding potential for an order of magnitude resource increase” as few exploration efforts have penetrated below 100 metres of depth as yet.
Among highest-grade deposits in the world
"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,” St George Mining executive chair 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.”
At present the entire MRE is constrained within the weathered profile of rock (upper layers) at the Araxá Project and 95.8% of it is within 100 metres from surface, representing a free-digging deposit that has high potential for low-cost open-pit mining.
The deposit’s value is also underscored by its composition, being chiefly made up of high-vale magnet rare earth oxides (MREOs) including neodymium, praseodymium, dysprosium and terbium, which account for 19.09% of the TREO measured resource estimate.
The majority of these metals have experienced material increases in price since 2020, rising between 32.06% and 119.94% since January that year, bar dysprosium, which has fallen 2.62% to US$336.20 per kilogram in the same period.
Accelerating development
“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."
SGQ is confident the Araxá Project is well placed to be rapidly developed to production status, as it sits within an established mining district with ready access to necessary infrastructure, including commercial niobium production facilities.
The company intends to undertake an extensive drilling program in 2025 to both expand the resource at Araxá and upgrade it to higher confidence categories within the JORC