St George Mining Ltd (ASX:SGQ, FRA:S0G, OTC:SGQMF) advanced the Araxá Niobium-Rare Earths Project during the June 2026 quarter, delivering encouraging metallurgical results, thick high-grade drill intersections and the appointment of Worley as feasibility technical adviser.
The company also strengthened its balance sheet through a A$60 million institutional-led capital raising, ending the quarter with A$80.7 million in cash and reporting a cash balance of about A$98 million following completion of the second placement tranche after quarter-end.
Hancock Prospecting increased its shareholding in St George to 10.3%, while global lithium-ion battery manufacturer Amperex Technology Limited agreed to become a shareholder through a restructure of St George’s Western Australian lithium subsidiary.
Metallurgy supports dual-product strategy
Initial beneficiation test work on near-surface material from Araxá successfully produced separate high-grade niobium and rare earth concentrates.
Niobium flotation generated concentrate grading about 39.6% Nb₂O₅ at a flotation recovery of 54.3%. When the preceding magnetic separation stage was included, the combined recovery was approximately 50.9%, within the typical range for Araxá-style pyrochlore-hosted niobium operations.
The results provide a foundation for further refining and ferroniobium test work, including evaluation of impurity removal and downstream processing options.
Rare earth test work on the niobium flotation tailings produced a concentrate grading 15.7% total rare earth oxides, or TREO, representing a 1.6-times upgrade from the 9.8% TREO feed grade.
St George said further locked-cycle, recycle and beneficiation studies were underway in Brazil and at SGS Lakefield in Canada, targeting higher grades and recoveries.
The approximately five-tonne test sample was collected from shallow saprolite mineralisation considered representative of material that could feed a processing operation during the early years of production.
Worley joins Araxá feasibility work
St George appointed Worley Engenharia, the Brazilian subsidiary of global engineering group Worley Ltd (ASX:WOR), to support development studies for a potential niobium and rare earths operation at Araxá.
The technical services agreement gives St George access to expertise across metallurgical engineering, process design, feasibility and cost studies, mine planning, tailings management, procurement and construction.
Worley will work alongside St George’s Brazilian leadership team, which includes former senior engineers and operational personnel from CBMM, the world’s leading niobium producer located next to the project within the Barreiro Carbonatite complex.
The appointment is intended to support an integrated development strategy as St George progresses engineering, metallurgy and economic studies.
Drilling points to further resource growth
Drilling continued to demonstrate the scale and continuity of the Araxá mineral system, with several holes returning thick zones of niobium and rare earth mineralisation from surface.
Among the standout results, hole AXDD120 intersected 199.5 metres at 2.86% TREO and 0.44% Nb₂O₅ from surface, including 60 metres at 3.96% TREO and 0.52% Nb₂O₅.
AXDD127 returned 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.
Other strong intersections included 96 metres at 4.19% TREO and 0.31% Nb₂O₅ in AXDD115 and 80.5 metres at 4.62% TREO and 0.33% Nb₂O₅ in AXDD131.
Several holes extended mineralisation by as much as 200 metres north of the existing mineral resource footprint, while infill drilling on nominal 40-metre spacing is expected to support resource conversion and future reserve estimation.
The system remains open laterally and at depth.
Niobium strengthens project economics
Broad niobium intersections reported during the quarter included 199.5 metres at 0.44% Nb₂O₅, 171.4 metres at 0.48%, 145.75 metres at 0.49% and 90 metres at 0.54%, all from surface.
Higher-grade intervals included 9.2 metres at 2.03% Nb₂O₅ and 25 metres at 1.24% Nb₂O₅.
St George said the results reinforced niobium as a major component of the Araxá mineral system and supported its strategy to evaluate production of both niobium and rare earth products.
Funding position strengthened
St George completed a A$60 million placement at A$0.10 per share, comprising A$40 million from North American, European and Australian investors and A$20 million from Hancock Prospecting.
The company received A$42.4 million before costs in the first tranche during the quarter and a further A$17.6 million after shareholders approved the second tranche in July.
Cash at June 30 stood at A$80.7 million, compared with A$43.7 million at the end of the previous quarter. Quarterly exploration and evaluation expenditure was A$3.4 million.
The company reported an estimated 15.6 quarters of funding based on its quarterly operating expenditure.
ATL becomes St George shareholder
St George also restructured Lithium Star Pty Ltd, its Western Australian lithium-focused subsidiary, by acquiring Amperex Technology Limited’s 10% interest and moving to full ownership.
Consideration was satisfied through the issue of 12.5 million St George shares to ATL at an agreed price of A$0.16 per share, valuing the transaction at A$2 million.
The arrangement brings ATL, described by St George as the world’s leading lithium-ion battery maker, onto the company’s register while consolidating ownership of Lithium Star’s portfolio of exploration licences.