St George Mining Ltd (ASX:SGQ) has confirmed a new high-grade rare earths discovery at its Araxá Project in Brazil, with auger drilling intersecting mineralisation with grades up to 13.4% total rare earth oxides (TREO) just 1 kilometre from its existing JORC-compliant resource.
Initial assays from 22 shallow auger holes revealed widespread, high-grade rare earths mineralisation across a 0.5-square-kilometre area east of the current 40.64-million-tonne resource, which averages 4.13% TREO. The standout hole (AXAG022) returned 13.5 metres at 12.34% TREO from just 0.5 metres depth and ended in mineralisation.
Importantly, the assays also confirmed high values of critical battery metals neodymium-praseodymium (NdPr), with ratios of NdPr to TREO of up to 35%.
“We could not have hoped for better results from the initial drilling,” said St George executive chairman John Prineas. “The exceptionally high grades of TREO and NdPr are impressive and suggest we have discovered an area which is very rich in rare earths mineralisation.
“With an existing JORC-compliant rare earths resource that is already world-class, we are excited by the growth potential that this new discovery highlights.”
Magnet metals drive upside
The auger results confirmed NdPr grades up to 3.33%, with the high NdPr-to-TREO ratio reinforcing the discovery’s potential for magnet rare earths — critical components in electric vehicles, wind turbines and other clean technologies.
St George said many of the auger holes ended in mineralisation, indicating strong potential for depth continuity. Follow-up reverse circulation (RC) and diamond drilling is being prioritised as part of the company’s broader campaign involving five active rigs across the project.
Expansion potential at world-class carbonatite deposit
The new discovery lies within the eastern portion of the Araxá Project, interpreted to sit on the fringe of the Barreiro Carbonatite — a host rock style shared with two of the world’s largest rare earths mines outside China: Mountain Pass in the US and Mt Weld in Western Australia.
The company believes the broader mineral system may continue toward the centre of the carbonatite, where high-grade niobium has previously been confirmed. Niobium levels in the auger results were lower, but St George attributes this to the location and drilling depth and will target the central zone in future programs.
Araxá’s strategic value in the global REE race
St George’s 100%-owned Araxá Project has already been defined as a major resource for both rare earths and niobium:
- Niobium resource: 41.2 Mt at 0.68% Nb₂O₅
- Rare earths resource: 40.64 Mt at 4.13% TREO
High-grade mineralisation starts from surface, and more than 500 drill intercepts across the project have previously returned niobium grades above 1% and rare earths up to 33% TREO.
The project is located near CBMM’s world-leading niobium operations and benefits from strong infrastructure and government support. St George is participating in Brazil’s MagBras Initiative, which aims to establish a fully domestic supply chain for permanent magnets, and has a cooperation agreement in place with the state government of Minas Gerais.
The company says these partnerships and the latest discovery mark an important step in building a globally competitive rare earths project and strengthening Brazil’s critical minerals value chain.