St George Mining Ltd (ASX:SGQ) has reported another strong intercept from diamond drilling at its 100%-owned Araxá rare earths and niobium project in Minas Gerais, Brazil, with results pointing to a material extension of mineralisation west of the current resource, pointing to potential resource growth.
Araxá hosts a JORC-compliant MRE of 40.6 million tonnes at 4.13% TREO, which positions Araxá as the largest and highest-grade carbonatite-hosted rare earths resource in South America and the second-highest grade rare earths resource in the Western world. The latest drilling aims to test the lateral extent of the mineralised body and provide further definition for future resource updates.
The latest hole, AXDD002, was drilled about 150 metres west of the JORC-compliant mineral resource estimate (MRE) and cut a broad, continuous zone of near-surface mineralisation grading 87.7 metres at 2.95% total rare earth oxides (TREO) and 0.41% Nb₂O₅ from 2 metres downhole. Within this, St George reported multiple high-grade segments:
- 70m @ 3.02% TREO and 0.43% Nb₂O₅ from 2m
- 9.65m @ 4.15% TREO and 0.55% Nb₂O₅ from 2m
- 3.05m @ 6.72% TREO and 0.73% Nb₂O₅ from 11.65m
- 14.55m @ 3.01% TREO and 0.50% Nb₂O₅ from 18.45m
- 1.00m @ 7.89% TREO and 0.95% Nb₂O₅ from 56.6m
Section showing high-grade TREO intercepts (cut-off 1% TREO) and high-grade Nb2O5 intercepts (cut- off 0.2% Nb2O5) along with the existing MRE outline showing the extension of mineralisation to the west.
Assays from AXDD002 also returned NdPr:TREO ratios of up to 31%, indicating a high proportion of magnet rare earth oxides within the carbonatite-hosted system. NdPr (neodymium-praseodymium) content is a key value driver for rare earths projects due to its use in high-performance permanent magnets for electric motors and wind turbines.
Core photograph for drill hole AXDD002 showing the mineralised intervals. This interval is part of the broader interval of 87.73m @ 2.95% TREO and 0.41% Nb2O5 from 2m, including 9.65m @ 4.15% TREO and 0.55% Nb2O5 from 2m and 3.05m @ 6.72% TREO and 0.73% Nb2O5 from 11.65m.
“The results from hole AXDD002 continue to support the potential for a substantial increase in the scale of high-grade rare earths and niobium deposits at the Araxá Project,” St George Mining’s executive chairman, John Prineas, said.
“The thick, high-grade mineralised zone intersected in our second large step-out hole extends the carbonatite-hosted system further to the west, about 150m beyond the current footprint of the MRE.
“On top of our first diamond hole — a large step-out 230m west of the MRE that intersected 98m of high-grade rare earths from surface — we are off to a great start in proving up more resources at Araxa.
“The combination of high grades and consistent continuity support the potential for a large resource upgrade at the conclusion of the current drill campaign," Prineas added. “With a world-class resource already confirmed and our location in an established mining region that supports a potential expedited pathway to development, the Araxá Project is emerging as a stand-out opportunity to support efforts by the Western world to fast-track the establishment of new and secure supply rare earths outside of China.”
Extended mineralisation
The new intercept follows results from the project’s first diamond hole, AXDD001, drilled some 230 metres west of the existing MRE, which also delivered wide zones of high-grade mineralisation. Together, the first two diamond holes extend mineralisation well beyond the current boundary and confirm that the Araxá carbonatite remains open to the west. St George says the step-out hits support the potential for a significant increase in resource tonnage as drilling progresses.
The combination of near-surface, high-grade hits, elevated NdPr ratios and associated niobium mineralisation continues to emphasise the project’s scale and quality. With mineralisation remaining open and step-out holes now intersecting broad zones of rare earths-niobium outside the defined resource envelope, St George’s ongoing drilling program is now focused on delineating the western extension and assessing the potential for growth beyond the current 40.6Mt inventory.
Ongoing drilling and next steps at Araxá
Round-the-clock drilling is underway with three diamond rigs and one reverse-circulation (RC) rig focused on step-out and expansion targets.
Additional assay results are expected in about two weeks. Follow-up work will include detailed mineralogical analyses to clarify the distribution of magnet rare earths and niobium. These programs are designed to advance the understanding of the system and support Araxá’s development as a significant rare earths and niobium project.