St George Mining Ltd (ASX:SGQ, FRA:S0G, OTC:SGQMF) earlier this week reported its thickest mineralised intercept to date at the Araxá Rare Earths and Niobium Project in Brazil, highlighting growing scale potential ahead of an updated mineral resource estimate.
Executive chairman John Prineas said the latest drilling returned the deepest mineralised intercept recorded at the project, extending to 164 metres from surface. He described the result as “a real milestone”, noting that the current resource model extends to 100 metres while high-grade mineralisation now continues well beyond that depth and remains open.
Prineas explained that mineralisation at Araxá begins at surface, which supports favourable development characteristics. While near-surface material is expected to underpin early mining operations, the deeper fresh rock intercepts enhance the overall valuation of the project by demonstrating additional scale and longevity. He added that drilling continues around the clock, with more than 20 holes currently at the laboratory awaiting assays.
Interview highlights
- Deepest mineralised intercept to date at Araxá: 164m from surface
- Mineralisation begins at surface; currently modelled to 100m
- High-grade mineralisation remains open at depth
- Lateral extension of high-grade zones to the west
- Updated mineral resource estimate expected, incorporating new drilling
- Over 20 drill holes currently awaiting assays
- Acquisition of 160+ hectare industrial landholding near project
- Processing facilities to be located off mineralised ground
- Scoping study underway for niobium
- Niobium highlighted as strategically important due to global supply concentration
- Strong potential strategic interest, particularly from the US market
Proactive: St George Mining has delivered its thickest intercept to date at the Araxá Rare Earths and Niobium Project in Brazil. Ongoing drilling continues to expand the footprint of high-grade mineralisation beyond the current resource model. Here with me to discuss the latest results is Executive Chairman John Prineas. John, it's good to see you.
John Prineas: Thank you. Good to be here.
Proactive: Talk us through these results — the standout intercept and how this extends beyond the current mineral resource estimate.
John Prineas: It's another round of fantastic results. We've been drilling for a few months now. Today we announced our deepest ever mineralised intercept — 164 metres from surface. That's a really important point of difference for us and compared to other developers. Mineralisation starts at surface, and the resource is currently modelled at 100 metres. We're seeing high-grade zones down to 164 metres and it's still open. We know other areas have been confirmed as mineralised to significant depths, so there is enormous depth extension potential. We're also extending the resource laterally to the west, with good extensions of the high-grade mineralisation. This should support a substantial resource upgrade and gives us a lot of optionality in future mine planning.
Proactive: Why does it matter that mineralisation continues into fresh rock below the current framework?
John Prineas: The mineralisation from surface likely already supports a long mine life. We're not going to be mining that fresh rock for a long time, but it boosts the overall valuation of the project by demonstrating additional mineralisation. We're constantly drilling — the rigs are operating 24/7. We have more than 20 holes currently at the laboratory awaiting assays, and we’re working to expand the resource as much as possible before finalising the updated mineral resource estimate.
Proactive: You've also secured a key industrial landholding. What does that mean for operations?
John Prineas: That was a very fortunate acquisition — more than 160 hectares less than two kilometres from the project tenure. The drilling results show the tenure is mineralised, so we don’t want to place processing facilities on top of high-quality mineralisation. This land is large enough to host all processing infrastructure. It reflects a development model similar to neighbouring CBMM, which also located facilities away from mineralised ground. It shows we’re serious about developing the project, alongside economic studies and metallurgical work underway.
Proactive: Niobium receives less attention than rare earths. Why is it so important?
John Prineas: Rare earths get a lot of publicity, but niobium is very special. There are only three primary producers globally, and one — CBMM — produces about 80% of world supply. That creates supply concentration. There are very few emerging projects. This makes us strategically interesting, particularly for the US market, which has no domestic niobium supply. It's the number two strategic metal the US wants to secure supply chains for, so it's a great opportunity for us.
Proactive: What milestones should investors look out for in the coming months?
John Prineas: All the drilling will culminate in a new resource upgrade. The original mineral resource was based on historical drilling; the update will incorporate our latest results. We expect a sizeable increase. A scoping study is underway for the niobium side of the business, supported by metallurgical test work. There’s plenty of news flow ahead.