St George Mining Ltd (ASX:SGQ) has reported strong assay results from its first diamond drilling at the Araxá rare earths and niobium project in Brazil, confirming thick, high-grade mineralisation beyond the boundaries of the existing mineral resource estimate (MRE).
The new results highlight expansion potential both to the west and east of the current 40.6 million tonne at 4.13% total rare earth oxides (TREO) resource — already the largest and highest-grade carbonatite-hosted rare earth deposit in South America.
Plan view map of the Project area showing the location of the RC drilling relative to the MRE.
Western extension proves major step-out success
Diamond drill hole AXDD001, located about 230 metres west of the current MRE, intersected a broad 98.4-metre zone grading 3.07% TREO and 0.43% niobium oxide (Nb₂O₅) from surface. High-grade intervals included:
- 10.4 metres at 5.48% TREO and 0.48% Nb₂O₅ from 4.6 metres, and
- 12 metres at 4.04% TREO from 25 metres.
Section showing high-grade TREO intercepts (cut-off 1% TREO) and high-grade intercepts Nb2O5% (cut-off 0.2% Nb2O5) along with the existing MRE outline showing the extension of mineralisation to the west.
The company said the intercept confirms the mineralised carbonatite extends significantly beyond the resource boundary, opening a substantial new area for resource growth. Further drilling is under way to test the extent and continuity between the MRE and this western step-out hole.
East Araxá discovery gains scale
In parallel, assays from six new reverse circulation (RC) holes at the East Araxá discovery — about 1 kilometre east of the MRE — have significantly expanded the known mineralised footprint.
Notably, hole AXRC014 returned 25 metres at 4.42% TREO and 0.95% Nb₂O₅ from 25 metres, including:
- 11 metres at 5.55% TREO and 1.29% Nb₂O₅ from 35 metres, and
- 2 metres at 10.89% TREO and 1.62% Nb₂O₅ from 47 metres.
Section showing high-grade TREO intercepts (cut-off 1% TREO) and high-grade intercepts Nb2O5% (cutoff 0.2% Nb2O5). Note that drill holes AXRC011, AXRC015 and AXRC016 are projected from adjacent cross section.
St George said the results demonstrate high grades of magnet rare earths — with neodymium and praseodymium (NdPr) ratios up to 30% of TREO — and confirm the continuity of mineralisation from surface, strengthening the case for a second large-scale deposit in the east.
Discovery growth strengthens global supply potential
Executive chairman John Prineas said the dual success of the western step-out and eastern discovery drilling demonstrates the global scale and strategic importance of the Araxá project.
“These are exceptional results that deliver on two key objectives of our current drill program — to grow the existing MRE and to define the scale of our major new discovery to the east,” Prineas said.
“The success of AXDD001 in proving mineralisation 230 metres beyond the current resource boundary is a fantastic development, demonstrating that the MRE remains open and has significant growth potential,” he added.
“To the east, the results from the second batch of RC holes continue to build the case for a second, very large-scale deposit. Particularly encouraging is the high proportion of magnet rare earths we are seeing in this new — a great discovery at a time when governments and private enterprise outside of China are looking for new reliable sources of supply for these sought-after rare earths.”
He added that the shallow, high-grade nature of the mineralisation supports the potential for a simple, low-cost open-pit operation.
Continuous drilling and funding momentum
Diamond and RC drilling continue 24/7 as St George targets both lateral extensions and deeper mineralisation. The results will underpin an upcoming MRE update aimed at capturing these new extensions and improving resource confidence.
Photo of night-shift drilling under way at the Araxá Project.
Yesterday, the company also announced a $72.5 million capital raise that brought Hancock Prospecting on board as a strategic investor, providing strong backing as St George advances Araxá toward a final investment decision.
Read more: St George raises A$72.5M, adds Hancock as strategic investor to advance Araxá towards FID