In a barnstorming start to the year, St George Mining has delivered its thickest intercept to date at the company’s wholly owned Araxá rare earths project in Brazil, reinforcing the deposit’s credentials as a potential world-class minerals play.
The company’s latest diamond drilling has punched out a whopping 164.45 metres of continuous mineralisation, delivering solid grades of up to 17.15 per cent total rare earth oxides (TREO) and 4 per cent niobium.
The entire standout 164-metre hole, which started from surface, averaged 2.93 per cent TREO and 0.39 per cent niobium, remaining mineralised the whole way down and only hitting fresh carbonate at 132m.
A further 16 drill holes reported in the latest batch continued to light up the Araxá footprint, with multiple long intercepts from surface across the broader deposit area. Results included 110m at 4.16 per cent TREO, 90 metres at just over 5 per cent TREO and more than 80 metres grading close to 5 per cent TREO.
In total, six of the holes picked up mineralisation across 90 metres or more from surface, hinting that a low-cost, low-strip mine plan could be on the cards. Near-surface high-grade material could provide immediate plant feed and cash flow, de-risking plant development and quickly paying down capital.
St George Mining executive chairman John Prineas said: “The mineral system clearly remains open – both at depth and laterally – with further growth in the mineralised footprint expected as we continue drilling 24/7.”
What has really got the geos sitting up and taking notice, though, is the mineralised footprint. The deposit now has a thickness of at least 165m, with continuous high-grade TREO and niobium, and remains open at depth and laterally.
The timing of the latest results could hardly be better. Critical minerals such as those hosted at Araxá continue to dominate the news as in-demand ingredients for steelmaking, superalloys, and the rapidly growing magnet manufacturing industry.
This project also directly addresses the US Administration's focus on niobium access constraints, which are rated the second-most-important critical metal exposure to US trade disruption.
This is in addition to American interest in the project through key commercial partners such as REalloys Inc. The US-based magnet manufacturer, which holds supply contracts with Washington agencies including the Defense Logistics Agency and the Department of Energy for high-performance magnets, is working with St George to help commercialise rare earths from Araxá.
As part of Brazil’s broader ‘mine-to-magnet strategy’ and fitting into St George’s downstream plans, the company has signed a Memorandum of Understanding with MagBras, a public-private magnet-making facility established to deliver a magnet supply chain in Brazil.
Nestled in a proven producing region and country that supplies 90 per cent of the world’s niobium, the project has a TREO resource and grade profile similar to other tier 1 deposits such as Mt. Weld and Mountain Pass. The Brazilian State of Minas Gerais is endowed with transport infrastructure, cheap hydro renewable energy and a favourable permitting and government environment.
The latest assays follow on from a slew of positive news flow from Brazil, including a strategic land purchase to site a process plant to avoid sterilisation. The company has also received welcome news from a freshly inked tax deal with the State of Minas Gerais, which will significantly reduce the future development costs of Araxá.
With the rigs spinning 24/7 and the current mineral resource estimate modelled to just 100m below surface, the next 20 holes with assays pending have every chance of turning more heads.
Backed by deep-pocketed supporters such as Hancock Prospecting, which holds a 6.24 per cent stake and armed with a healthy cash balance, St George’s Araxá project is fast shaping up as the real deal in the critical minerals space.
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