St George Mining Ltd finalised the 100% acquisition of the Araxá niobium-rare earth elements (REE) Project in Brazil in February 2025, positioning the company at the forefront of global critical minerals development. The project lies within the same carbonatite complex as CBMM’s operation, which supplies 80% of the world’s niobium, offering logistical advantages including access to infrastructure and skilled labour.
A maiden JORC 2012 Mineral Resource Estimate (MRE) for the project was announced in April, comprising 41.2 million tonnes (Mt) at 0.68% niobium oxide (Nb₂O₅) and 40.6Mt at 4.13% total rare earth oxides (TREO). The estimate includes a significant portion of high-value magnet REEs (MREOs), with 19.09% of the measured TREO resource made up of neodymium, praseodymium, dysprosium, and terbium. The mineralisation is contained within the weathered profile and predominantly within 100 metres of surface, supporting the potential for low-cost, open-pit mining.
Grades up to 8.29% Nb₂O₅ and 32.98% TREO remain open in all directions, suggesting strong upside potential. The resource provides a solid base for permitting, economic studies and mine development. St George is also advancing a scoping-level metallurgical testwork program in partnership with leading Brazilian research agencies SENAI and EMBRAPII.
Strategic partnerships and in-country development team enhance project execution
To expedite development of the Araxá Project, St George entered a binding Memorandum of Understanding (MoU) with Shandong Xinhai Mining Technology & Equipment Inc, a global EPC+F contractor with a portfolio exceeding 2,000 mining projects. Xinhai will contribute expertise in plant design, metallurgical testing and non-dilutive financing, and has invested A$8 million in St George’s A$20 million placement.
St George has also built a highly credentialed in-country team with over 80 years of combined experience in niobium operations, many from CBMM. Key recruits include Ricardo Nardi (ex-CBMM Head of Mineral Processing), Carlos Araujo (former engineering lead at CBMM), Adriano Rios (ex-CBMM production manager), and Thiago Amaral (sustainability lead at CBMM). This team strengthens project governance and de-risks the development timeline.
Additionally, strategic partnerships have been formed with EMBRAPII and SENAI to advance downstream processing, and with Liaoning Fangda Group—one of the world’s largest steelmakers—on offtake and development collaboration. These initiatives place St George in a strong position to progress Araxá from exploration to production.
Progress across Western Australian exploration portfolio
At the Destiny Project in the Eastern Goldfields, an airborne magnetic survey is planned for Q2 2025 to map structures related to mineralisation, particularly across tenements covering the Mt Ida Fault. During the quarter, the company opted not to proceed with certain tenements under option with Belres Pty Ltd and WA Mining Partners Pty Ltd, retaining tenure over 495 square kilometres prospective for gold, nickel and lithium.
In the south-east Yilgarn, auger drilling at the Buningonia Project identified a lithium anomaly with up to 145 parts per million (ppm) lithium oxide (Li₂O), along with elevated levels of rubidium and caesium in over 130 samples. An aircore program of 125 holes is scheduled for Q2 2025 to follow up these promising results.
At the Mt Alexander Project, 2,000 metres of aircore drilling is also planned in Q2 2025, targeting strong magnetic anomalies. Sixty holes will test gold, nickel, and lithium targets in tenement P29/2680, with the aim of refining geological interpretations and informing follow-up campaigns.
Corporate update and financial position
St George shareholders unanimously approved the acquisition of the Araxá Project at an Extraordinary General Meeting held on February 18, 2025. Following this, the company completed a placement of A$20 million, issuing 1 billion shares at A$0.02 each. Investors also received one free attaching option (A$0.04 strike, two-year expiry) for every two shares subscribed.
Cash at quarter-end totalled A$5.26 million, an increase from A$4.49 million in the previous quarter. The company raised A$19.5 million in Q1 through equity funding and incurred A$15.9 million in tenement acquisition and related costs. Operational outflows included A$1.36 million on exploration and evaluation, A$249,000 in staff costs, and A$483,000 in corporate administration.
St George reports sufficient funding for 2.44 quarters of activity at current burn rates and no borrowings. Payments of A$155,000 were made to related parties during the period, primarily as director remuneration.
The company is fully funded to advance exploration and development programs across its portfolio.