St George Mining Ltd (ASX:SGQ, OTC:SGQMF) has delivered its thickest mineralised intercept to date at the 100%-owned Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil, reinforcing the scale, continuity and open-pit potential of the high-grade system.
The standout result came from diamond hole AXDD120, which intersected 199.5 metres of continuous mineralisation from surface at 2.86% total rare earth oxides (TREO) and 0.44% niobium oxide (Nb₂O₅), including 60 metres at 3.96% TREO and 0.52% Nb₂O₅ from surface.
Thick, continuous mineralisation from surface
The latest assays cover 23 diamond drill holes and confirm extensive high-grade rare earths and niobium mineralisation from surface across the Araxá system.
Other notable results include
- AXDD127: 121.55 metres at 3.47% TREO and 0.39% Nb₂O₅ from surface, including 15.5 metres at 8.07% TREO and 0.75% Nb₂O₅ from surface
- AXDD115: 96 metres at 4.19% TREO and 0.31% Nb₂O₅ from surface, including 22.95 metres at 8.93% TREO.
St George entered fresh rock at 198 metres, supporting the substantial vertical extent of the weathered mineralised profile and the potential for a large-scale open-pit development. End-of-hole mineralisation of 1 metre at 4.8% TREO from 198.5 metres also indicates the system remains open at depth.
Footprint expands north
Executive chairman John Prineas said the AXDD120 result highlighted the “tremendous scale and consistent high grade” of the mineral system, noting that several holes in the latest batch returned more than 150 metres of mineralisation from surface.
Eight of the 23 holes were drilled outside the current mineral resource estimate area, extending the known mineralised footprint by up to 200 metres to the north. The company said this northern area was emerging as an important zone for resource growth and definition, while remaining open.
St George has now completed about 14,500 metres of drilling in the current campaign at Araxá, excluding East Araxá, targeting both resource definition within the current MRE footprint and expansion outside it.
Dual commodity opportunity
The latest results also strengthen Araxá’s dual commodity profile, with rare earths and niobium both showing strong continuity.
Broad niobium intercepts included 90 metres at 0.54% Nb₂O₅ from surface in AXDD117, 145.75 metres at 0.49% Nb₂O₅ from surface in AXDD123, 171.4 metres at 0.48% Nb₂O₅ from surface in AXDD126 and 199.5 metres at 0.44% Nb₂O₅ from surface in AXDD120.
The project already hosts what St George describes 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.
St George Mining has secured firm commitments to raise A$60 million, strengthening its balance sheet as it advances the high-grade Araxá rare earths and niobium project in Minas Gerais, Brazil.
Next Steps
The latest drilling will be incorporated into an MRE upgrade scheduled for this quarter, which St George says will provide the platform for advancing economic studies for a potential mining operation at Araxá.
Drilling at the main Araxá deposit is expected to pause soon, with the company shifting focus to East Araxá, a discovery 1 kilometre east of the main deposit. Resource definition drilling at East Araxá is expected to support a further MRE upgrade in the fourth quarter of 2026.