St George Mining Ltd (ASX:SGQ) earlier this week outlined further progress at its Araxá rare earths project in Brazil, with new drill results and a strategic alliance aimed at commercialising its rare earth production for the US market. Executive chairman John Prineas discussed.
Highlights
- St George Mining is conducting a 10,000-metre drill program at its 100%-owned Araxá rare earths project in Brazil.
- Shallow drilling at the Oga target identified a new high-grade rare earth zone, with intercepts of 13% and 12% TREO.
- Extension drilling in the main deposit area returned thick intercepts over 40 metres, confirming economic potential.
- The company is targeting a significant upgrade to its existing JORC resource of 40.60 million tonnes at 4.13% TREO.
- Drilling is expanding in all directions — east, west, and north — over the next 10–12 weeks.
- A strategic alliance has been formed with US-based REAlloys, a government-backed supplier of magnet materials.
- Rare earth oxide samples will be sent for metallurgical testing to assess suitability for downstream magnet production.
- Results from this work are expected to inform flowsheet design and advance commercialisation plans.
St George Mining Ltd (ASX:SGQ) is currently executing a 10,000-metre drill campaign, with two key components — extension drilling at the main deposit and first-pass drilling at the Oga target to the east. Executive Chairman John Prineas said initial results from the Oga area had revealed a new zone of high-grade rare earths, with shallow intercepts returning 13% and 12% total rare earth oxide (TREO). He said the company was hopeful this area could become a standalone rare earths deposit.
Extension drilling in the main deposit area also continued to deliver broad mineralised zones exceeding 40 metres in thickness. The company said these results reinforce the economic potential of Araxá. It plans to use the current program to upgrade its resource base, which currently stands at 40.60 million tonnes at 4.13% TREO.
Comparable to leading producers
Prineas said the scale and grade of the deposit is comparable to other leading rare earth producers outside China, including Mountain Pass and Lynas. He added that resource expansion drilling is underway in all directions, and that further updates are expected in the coming weeks.
Strategic alliance
A notable development during the week was a new strategic alliance with US-based REAlloys Inc., a government-backed supplier of critical magnet materials. The company highlighted that REAlloys is a leader in rare earth separation and has contracts with the US defence and aerospace sectors.
Under the alliance, St George will supply rare earth oxide samples to REAlloys for metallurgical testing. The company said feedback from this testing will help inform its downstream processing flowsheet and support potential commercial operations. It sees the alliance as a pathway into the US rare earth supply chain, which is seeking new sources of material amid increasing demand for critical minerals.
Prineas said: “We’re going to leverage their technology to make sure we can maximise the value of our rare earths.”
The company expects further updates on both exploration and commercialisation progress in the coming months.