St George Mining Ltd (ASX:SGQ, FRA:S0G) has delivered another strong set of drilling results at its Araxá Rare Earths and Niobium Project in Brazil, with new assays confirming thick, high-grade mineralisation well beyond the boundaries of the current Mineral Resource Estimate (MRE).
The latest diamond drilling has returned multiple broad intersections of total rare earth oxides (TREO) and niobium (Nb₂O₅) from surface, including a standout 99.1 metres at 5.62% TREO and 0.42% Nb₂O₅ from surface in hole AXDD038. Several holes also recorded exceptionally high-grade zones, with assays peaking at up to 22.42% TREO, underscoring the scale and strength of the mineral system.
St George said the results continue to expand the footprint of what is already a world-class resource at Araxá, which hosts a 40.6-million-tonne MRE grading 4.13% TREO, making it the largest and highest-grade carbonatite-hosted rare earth deposit in South America.
Plan view map of Araxá area showing the location of the diamond drilling relative to the MRE
High grades from surface and beyond the resource
The new results include long, continuous mineralised intervals starting at or near surface across multiple drill holes, both within and outside the existing MRE. Highlights include:
- 100.6m at 4.82% TREO and 0.64% Nb₂O₅ from surface in AXDD036, including 25.5m at 6.55% TREO and 1.17% Nb₂O₅.
- 120.25m at 3.33% TREO and 0.42% Nb₂O₅ from surface in AXDD037.
- 69.2m at 6.08% TREO and 0.60% Nb₂O₅ from surface in AXDD041, including 30m at 8.49% TREO.
Importantly, several holes intersected very high-grade mineralisation at or near the end of hole, such as 1m at 22.42% TREO and 0.66% Nb₂O₅ at 66m in AXDD041, highlighting that the system remains open at depth as well as laterally.
Oblique section showing the latest diamond drill holes as well as other significant drilling completed in the current campaign. The latest drill holes with red labels.
Emerging northwest zone adds optionality
Much of the recent focus has been on an emerging high-grade zone located around 1.2 kilometres northwest of the existing Measured and Indicated resource. Drilling in this previously untested area continues to deliver thick mineralised intervals from surface, raising the possibility of a separate mining area that could add flexibility to future mine scheduling.
St George noted that the geometry and consistency of mineralisation in this northwest zone suggest it could be mined independently of the southern part of the resource, adding optionality as development studies progress.
The company said further step-out and infill drilling is planned to support the inclusion of this growing zone in the next resource update.
Path to a larger resource and development studies
Executive chairman John Prineas said the latest results are consistent with the exceptional drilling delivered to date and are expected to support a substantial upgrade to the MRE planned for release this quarter.
He also highlighted the significance of mineralisation starting from surface, with very high grades commonly appearing in the top 20 metres, which could underpin a low-cost open-pit mining scenario.
“This style of deposit, we believe, will be very likely to support a low-cost open pit mine which can quickly access high-value mineralisation,” Prineas said, noting that shallow, high-grade material can have a material impact on project economics.
Drilling at Araxá is continuing around the clock with three diamond rigs on site, while assays remain pending for more than 30 additional drill holes. The company has extended the campaign indefinitely into 2026 as it continues to test the limits of the mineral system.
Located in Brazil’s Minas Gerais state adjacent to CBMM’s globally significant niobium operations, Araxá benefits from established infrastructure, a skilled workforce and strong government support. St George is also participating in Brazil’s MagBras initiative, aimed at developing a domestic rare earth supply chain, further strengthening the project’s strategic positioning.