St George Mining has tabled more stellar results in drilling from its Brazilian Araxa project, with a 98.4m hit going 3.07% TREO and 0.43% niobium pentoxide headlining the pack just 230m west of its resource. The company’s share price has been on a wild ride since September when its first batch of RC drill results from Araxa stunned the market.
St George Mining has tabled more stellar results in drilling from its Brazilian Araxa rare earths and niobium project, with a 98.4m hit going 3.07% total rare earth oxides (TREO) and 0.43% niobium pentoxide headlining the pack, 230m west of the existing resource.
The company’s share price has emulated a hockey stick since September when its first batch of RC drill results from Araxa stunned the market. In a spectacular market flurry, St George has run from 4c at the end of August to a high of 18c today and a market cap that is rapidly approaching half a billion dollars.
The 98m hit included a 10.4m slice averaging an even more impressive 5.48% TREO from 4.6m and another 12m going 4.04% TREO from 25m, indicating serious westward extension potential.
Additionally, a second batch of six holes put into the recently-discovered Eastern Araxa zone, east of the current main resource, hit a peak of 10.89% TREO and a another intercept of 25m assaying 4.42% TREO and 0.95% niobium pentoxide.
St George Mining executive chairman, John Prineas said: “These are exceptional results that deliver on two key objectives of our current drill program – to grow the existing MRE and to define the scale of our major new discovery to the east. The success of AXDD001 in proving mineralisation 230m beyond the current resource boundary is a fantastic development, demonstrating that the MRE remains open and has significant growth potential.”
The blockbuster results from St George’s ongoing diamond and reverse circulation drilling at the project confirm extensive high-grade mineralisation extensions which could dramatically swell the company’s already world-class resource.
The standout 98.4m intercept was logged in the first diamond drill hole which St George designed as a bold 230m step-out to the west of the current JORC-compliant mineral resource estimate, setting up possible serious resource extensions to both the east and west of the massive existing 40.6 million tonne resource grading 4.13% TREO. Notably Araxa also boasts 41.2Mt at 0.68% niobium pentoxide.
The combined resource is likely South America's largest and highest-grade carbonatite-hosted rare earths deposit and one of the most impressive globally.
Other big South American rare earths resources include Resouro Strategic Metals’ 1.7 billion tonne resource that comes in at just 0.39 per cent TREO at the Tiros deposit. While that deposit has more tonnes, its 0.39 per cent grade is about 10 times lower than at St George’s project.
Another contender would be Aclara Resources’ 27.5Mt at 0.23% TREO resource in Chile which is ionic clay–hosted and not carbonatite-hosted and is smaller and of lower grade.
Aclara Resources’ 298Mt Carina deposit in Brazil is also ionic-hosted and of lower grade.
Other South American rare earths prospects, such as those in Argentina, lack defined carbonatite-hosted resources at this level, according to the USGS and industry reports.
Among the cohort of big rare earths projects, St George’s near-surface saprolite profile at Araxa further enhances its standout status.
With the first diamond drillhole punching into fresh rock and assays pending, the results point to an as yet undefined potential at the project within a vast open area, with follow-up drilling likely to demonstrate lateral continuity back to the current main resource.
The East Araxa zone at Araxa is also shaping up to be a potential game changer for St George, where six RC holes have ballooned the footprint of a high-octane discovery one kilometre east of the main resource zone.
Intriguingly, all of the holes have delivered thick, near-surface high-grade mineralisation, underscoring potential open-pit access and viability. With all of them ending in mineralisation, the tested area is crying out for follow-up drilling with deeper holes.
Among the results, magnet rare earths shine, with high NdPr contents hitting up to 30% of TREO, making it prime material for the manufacture of high-powered industrial magnets that are in demand for electric vehicle motors, wind turbines and other modern electric engines.
The results, all of them from- or near- surface, align with Araxa's saprolite profile in which 95.8% of the mineral resource is shallower than 100m depth, promising potentially low-cost extraction.
The drilling campaign, which is now running 24/7 with five rigs, is targeting western step-outs, eastern infill and mineral resource extension and continuity to fuel an upgrade, with assays from fresh rock and more recent drilling pending and imminent.
Acquired outright in February 2025 adjacent to the Companhia Brasileira de Metalurgia e Mineração (CBMM) niobium powerhouse, Araxa benefits from Minas Gerais' mining heritage: roads, ports, hydro-power, and a ready workforce.
Notably, St George's has already locked in fast-track permits via a Minas Gerais cooperation pact and the federal MAGBRAS initiative for a homegrown magnet supply chain.
Metallurgical nods include a pilot plant at the new St George Technological Centre, backed by Brasília.
A significant boost for St George came two days ago with a A$72.5m capital raise, starring Gina Rinehart's Hancock Prospecting A$22.5m lead, coupled with a July A$5m placement at a premium to strategic investors.
As Western nations scramble for rare earths independence, St George’s Brazilian Araxa gem could redefine international supply chains - and its own fortunes. .
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
