St George Mining has beefed up its in-country leadership in Brazil – and its environmental credentials – by securing a pair of renowned niobium experts as it completes the acquisition of the high-grade, niobium-rich Araxá rare earths project in the State of Minas Gerais.
The company says its new appointments add a combined four decades worth of experience in managing mining operations in Brazil. It says new director Thiago Amaral has been engaged for his technical and environmental skills, while mining operations consultant Adriano Rios will be in charge of mineral extraction and processing.
Both men will bring extensive experience from their time working with Companhia Brasileira de Metalurgia e Mineracao (CBMM) – the world’s biggest producer of niobium, with operations adjacent to the Araxá project in Brazil’s renowned Barreiro carbonatite complex.
Until 1985, CBMM – which produces 80 per cent of the world’s niobium – operated a tailings dam that sits on a tenement soon to be controlled by St George. Although CBMM is responsible for the dam area, which has been progressively rehabilitated, St George was recently moved to deny social media reports that a sizeable part of the mineralisation at the site resides underneath the old dam site and stressed that 500 recent intercepts reading more than 1 per cent niobium are actually from a different tenement.
It says any JORC-compliant resource will not extend into the historic dam site.
St George Mining executive chairman John Prineas said: “With these appointments, St George acquires more than 40 years’ experience in managing mining operations in the Barreiro Carbonatite – including expertise in mine management, mineral processing, product development and environmental management. The unique skill set that Thiago and Adriano bring to St George will be invaluable as we progress our aim of building a globally-significant niobium company.”
In a strategic move to strengthen its credentials as an environmentally-responsible company, St George has specifically appointed Amaral for his skills with the environmental, social and governance (ESG) aspects of a project and he will also oversee Araxá’s licensing and technical development.
Management says his previous leadership positions at CBMM, including head of sustainability and global quality and product regulation coordinator, reflect a deep understanding of the complexities involved in high-stakes mining operations and their environmental requirements. Notably, he spearheaded sustainability initiatives at CBMM, including the rehabilitation of critical project sites and advancing niobium’s application in emerging technologies.
Rios, with multi-year experience in mineral processing and mining operations, will provide additional strong insights into the metallurgical and feasibility planning needed for ensuring a successful outcome at the project. His stint at CBMM culminated in a role as director of operations at COMIPA – CBMM’s joint venture (JV) with the State Government – which was responsible for a significant portion of niobium and rare earths extraction in the region.
The company’s acquisition of the Araxá project for US$21 million (AU$32.3 million) and 100 million shares was revealed a fortnight ago and is due for completion late next month following a shareholders meeting.
Bought from TSX-listed Itafos, the project sits in the Barreiro carbonatite that is known as the world’s “dress circle” location for niobium. Of note and positioned in the same complex, is CBMM’s 896 million-tonne Araxá niobium mine running at 1.49 per cent niobium pentoxide and Mosaic’s Araxa phosphate mine that holds 519Mt grading 13.4 per cent.
St George plans to kick off a 5000m diamond drilling program at the project late next month, with an aim to confirm historical drill results and explore along known high-grade mineralisation to test depth extents.
The results, combined with historical data, will go towards a JORC-compliant mineral resource estimate that is expected to be completed by the first half of next year. Bulk samples will also be collected for metallurgical studies, with further drilling planned based on initial findings.
With only three primary niobium producers in the world, St George believes Araxá has the potential to be a “company-making” project.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By James Pearson
