St George Mining Ltd (ASX:SGQ, FRA:S0G, OTC:SGQMF) has delivered a major uplift to the Mineral Resource Estimate (MRE) for its 100%-owned Araxá rare earths-niobium project in Brazil, with total resources increasing 75% to 70.91 million tonnes (Mt) at 4.06% total rare earth oxides (TREO) and 0.62% niobium pentoxide (Nb₂O₅) at a 2% TREO cut-off.
The substantial upgrade not only expands the overall tonnage but also materially improves resource confidence, with Measured and Indicated resources surging 218% to 29.49Mt at 4.56% TREO and 0.75% Nb₂O₅. The Inferred category now stands at 41.42Mt at 3.71% TREO and 0.52% Nb₂O₅.
Total JORC 2012 MRE – Grade Tonnage Report using a 2% TREO cut-off.
The updated JORC 2012-compliant estimate was independently modelled by SRK Consulting and confirms Araxá as a large-scale, near-surface rare earths and niobium asset in the globally significant Barreiro carbonatite complex in Minas Gerais.
3D perspective of the new Araxá MRE – TREO (%) grades (looking north-east).
Strong uplift in scale and confidence
Under the updated estimate, Measured resources total 8.02Mt at 5.23% TREO and 1.06% Nb₂O₅, while Indicated resources comprise 21.46Mt at 4.31% TREO and 0.63% Nb₂O₅. Combined Measured and Indicated material now accounts for more than 40% of the total resource base, providing a significantly strengthened foundation for future economic studies.
Importantly, the resource is largely contained within the upper 120 metres from surface within a weathered saprolite profile. This geometry supports potential for low-strip, open-pit mining scenarios, with mineralisation modelled from surface to depths of 120–160 metres and remaining open in multiple directions.
“Today’s announcement of such a major upgrade to the size and quality of the resource at Araxá is a milestone in St George’s history because it confirms the world-class nature of our flagship asset,” said executive chairman John Prineas.
“This new Mineral Resource Estimate at the Araxá Project now compares even more favourably with the size and scale of rare earths and niobium deposits owned by some of the world’s largest, listed miners including MP Materials and Lynas Rare Earths.”
He added that the increased Measured and Indicated component “substantially de-risks the project and will underpin our economic studies into a potential mining development”.
East-West Long Section of the Araxá Project Updated MRE - TREO grades (looking north).
Additional niobium upside
In addition to the TREO-based resource, St George has separately modelled additional niobium mineralisation using a 0.2% Nb₂O₅ cut-off. This work identified a further 24.56Mt at 0.52% Nb₂O₅ and 1.20% TREO that sits outside the primary TREO resource blocks.
JORC 2012 MRE – Additional Grade Tonnage Report using a 0.2% Nb2O5 cut-off.
The additional niobium inventory enhances Araxá’s multi-commodity profile and provides optionality in future mine planning and processing pathways.
Drilling momentum and expansion potential
The current MRE incorporates drilling results announced up to February 15, 2026. However, 44 completed expansion drill holes — including 28 already at the laboratory pending assays — were not included in the new model, and a further 50 holes are planned over the next two months.
The recently discovered East Araxá prospect, located about 1 kilometre east of the main deposit, also sits outside the updated resource. Initial drilling at East Araxá returned high-grade intercepts including 48 metres at 5.71% TREO from 2 metres, with reverse circulation drilling continuing to support a maiden resource.
An updated MRE incorporating this ongoing work is expected in the September quarter of 2026.
Tier-1 setting in Brazil’s niobium heartland
Araxá is located adjacent to CBMM’s world-leading niobium operations in Minas Gerais, a region with long-established infrastructure, skilled labour and a track record of commercial production.
St George acquired 100% of the project in February 2025 and has since undertaken extensive infill and step-out drilling, combining historical MBAC data with its 2025–26 campaign to support the updated estimate.
The geological model confirms strong continuity of mineralisation through the weathered profile, with extensions into fresh rock at depth. The company believes the scale, grade and shallow geometry position Araxá as one of the more advanced rare earths-niobium development opportunities in the region.
With a substantially larger and more confidently classified resource base, ongoing drilling and clear expansion pathways, St George is now advancing technical studies aimed at unlocking the potential of the Araxá project.
