St George Mining (ASX:SGQ) reports a 155% increase to measured and indicated resources at its Araxá Rare Earths and Niobium Project in Brazil.
The updated mineral resource estimate (MRE) totals 111.2 million tonnes (Mt) at 3.57% total rare earth oxides (TREO) and 0.57% niobium pentoxide (Nb2O5), representing a 57% increase in total resources from the previous estimate.
Measured and indicated resources increased to 75.2Mt at 3.64% TREO and 0.58% Nb2O5, up from 29.49Mt in March.
The company says this provides a ‘high-confidence’ foundation for economic studies and mine planning work underway with feasibility adviser Worley.
Executive Chairman John Prineas says the upgrade further validates the credentials of Araxá as “the most significant undeveloped rare earths and niobium project worldwide”.
“Our Araxá MRE now compares even more favourably in scale and grade to the two largest-producing rare earths mines outside of China … both of which have the same carbonatite-hosted style of mineralisation as our Araxá deposit,” Prineas says.
The estimate contains 3.98Mt of TREO, including 760,000 tonnes of neodymium-praseodymium oxides and 630,000 tonnes of niobium pentoxide.
St George notes Araxá’s measured and indicated categories contain more neodymium-praseodymium tonnes than either MP Materials‘ (NYSE:MP) Mountain Pass or Lynas‘ (ASX:LYC) Mt Weld operations.
The Araxá resource also includes a higher-grade subset containing 830,000 tonnes of TREO above 6.29% grade and 120,000 tonnes Nb2O5 above 0.90% grade.
The entire resource within 120m of surface sits in weathered material amenable to open pit mining. Measured and indicated resources comprise 68% of the total estimate, with measured resources increasing 314% to 33.2Mt.
St George says drilling remains ongoing at the East Araxá discovery 1km from the main deposit, with five diamond rigs operating to deliver a maiden MRE in the December quarter.
The company targets completion of feasibility studies while advancing metallurgical testwork on representative material, including flotation testwork and evaluation of downstream product options such as mixed rare earth concentrate and separated neodymium-praseodymium oxide products.
Araxá sits within Brazil’s established niobium district, where more than 80% of global production occurs, benefiting from existing infrastructure, skilled workforce availability, and established regulatory frameworks in Minas Gerais.
St George Mining is a critical minerals exploration and development focused on building a globally significant portfolio of metals essential for the clean energy transition.
Write to Paula Fabe at Mining.com.au
Images: Mining.com.au
