St George Mining (ASX: SGQ) has commenced a 10,000-meter drilling campaign at its 100%-owned Araxá niobium-REE Project in Minas Gerais, Brazil, marking its first drill program since acquiring the project in February 2025. The campaign, expected to last 12 to 16 weeks, will utilize auger, reverse circulation (RC), and diamond drilling across the project. The primary goal is to expand the existing mineral resource estimate (MRE), which currently stands at 40.64Mt @ 4.13% TREO and 41.2 Mt @ 0.68% Nb₂O₅. Mineralisation remains open in all directions, including significant mineralisation below 100m from surface not included in the current MRE, thus there is potential for substantial increase.
Drilling will target high-grade zones of mineralisation identified in past drill results, which included over 500 intercepts of high-grade mineralisation starting from surface, with grades up to 8% Nb₂O₅ and 33% TREO. Specific intercepts include 43m @ 1.5% Nb₂O₅ from surface and 60m @ 11.1% TREO from surface. Three drill rigs will be active, with samples submitted to ALS Brazil for regular laboratory assays.
In addition to drilling, a project-wide airborne magnetic survey will commence next week to identify further rare earths and niobium targets for drilling. St George’s Executive Chairman, John Prineas, highlighted the project’s competitive advantages, including mineralisation starting from the surface, potentially supporting a low-cost open-pit mining operation, and its location in an established mining region with well-understood permitting and environmental management. St George compares the Araxá project’s resource favorably to Lynas Rare Earths’ Mt Weld mine, noting the potential value upside as development studies and resource expansion drilling progress.
The company emphasizes that Araxá is well-positioned to deliver sustained value for shareholders amid growing global demand for critical metals.
