St George Mining Ltd (ASX:SGQ) made significant recent progress at its Araxá Niobium-REE Project in Brazil during the June quarter, announcing a maiden JORC-compliant Mineral Resource Estimate (MRE) of 41.2 million tonnes (Mt) at 0.68% niobium oxide (Nb₂O₅) and 40.6Mt at 4.13% Total Rare Earth Oxides (TREO).
Alongside the resource update, the company has launched a 10,000-metre drilling campaign to expand and upgrade the resource, while securing A$5 million through a capital raise to fund ongoing exploration.
Araxá MRE highlights significant resource potential
The maiden MRE for Araxá represents a major milestone, highlighting the potential for both niobium and rare earths at the project. With high-grade mineralisation extending to exceptional levels of up to 8.29% Nb₂O₅ and 32.98% TREO, the resource presents significant upside.
East-West Long Section of the Araxá Project MRE – TREO grades (looking north, 20m window)
Mineralisation remains open in all directions, and exploration beneath 100 metres from surface has not yet been incorporated into the current estimates, indicating further expansion potential. The company's exploration team has already identified high-grade zones that could lead to a major increase in the resource as drilling continues.
Major drill campaign under way to expand high-grade zones
In June 2025, St George commenced its first drill campaign at Araxá, with more than 10,000 metres of auger, reverse circulation (RC) and diamond drilling planned. The campaign will focus on testing unexplored fringe areas and expanding the known resource by upgrading the Inferred resource to the Indicated category.
An additional 9,000 metres of diamond drilling will be conducted, upscaling the original plan. The focus will be on expanding the high-grade zones, which were previously identified with exceptional intercepts, such as 43 metres at 1.5% Nb₂O₅ from surface and 60 metres at 11.1% TREO, with assays showing mineralisation starting from surface.
Plan view map of the project tenure showing planned drill hole collars.
Geophysical surveys to enhance target generation
As part of its resource expansion efforts, St George has commenced a high-resolution magnetic survey and passive seismic survey at Araxá. The geophysical program, launched in July, will help refine geological interpretations and improve targeting for future drilling.
The integrated geophysical data will further improve the accuracy of the geological model, supporting St George’s exploration strategy and increasing confidence in its resource estimations.
Corporate and financial update
In July 2025, St George raised A$5 million through a placement of 131.6 million new shares, supported by strategic investors from Europe.
This funding will be used to advance key exploration initiatives at Araxá, including the ongoing drill campaign, as well as exploration at other projects.
The placement was arranged following significant interest from European-based investors, attracted to the growing potential of the Araxá Project.