St George Hits 207m of Rare Earths From Surface in Record Araxá Intercept
St George posts most spectacular Araxá drill results yet, including record 207m intercept from surface
St George Mining has reported its best-ever assays from the 100%-owned Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil. The latest batch of 37 diamond holes confirms thick, high-grade mineralisation from surface, headlined by a new record of 207m continuous mineralisation from surface (AXDD142). Peak individual grades reached up to 30% TREO (Total Rare Earth Oxides) and niobium up to 6% Nb₂O₅.
This near-surface, high-grade material is exactly what feeds a low-cost open-pit operation in the early mine years, reinforcing the project’s development advantage. ASX: SGQ shares reacted positively to the announcement.
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Thick, high-grade hits from surface across both commodities
The latest assays demonstrate exceptional rare earth and niobium mineralisation from surface within the weathered profile — the free-digging material most amenable to open-pit extraction. All intercepts remain within this zone, avoiding the need for expensive pre-stripping or underground operations.
| Hole | Intercept | TREO Grade | From | Key Higher-Grade Zone |
|---|---|---|---|---|
| AXDD142 | 207.0m | 2.60% | surface | incl 45.0m @ 4.68% |
| AXDD166 | 135.1m | 4.86% | surface | incl 20.0m @ 12.65% |
| AXDD165 | 150.5m | 3.66% | surface | incl 67.0m @ 5.46% |
| AXDD167 | 150.2m | 3.49% | surface | incl 104.0m @ 4.25% |
| AXDD155 | 100.6m | 4.39% | surface | incl 25.2m @ 6.21% |
| AXDD160 | 101.0m | 3.99% | surface | incl 25.2m @ 7.08% |
Standout niobium intercepts include:
- AXDD167: 150.2m @ 0.72% Nb₂O₅ from surface, incl 50.7m @ 0.87% Nb₂O₅ from 32.9m and 19.0m @ 1.32% Nb₂O₅ from 85.0m
- AXDD147: 90.5m @ 0.94% Nb₂O₅ from surface, incl 43.0m @ 1.35%
- AXDD165: 150.5m @ 0.70% Nb₂O₅ from surface, incl 5.6m @ 2.09%
- AXDD151: 90.3m @ 0.71% Nb₂O₅ from surface, incl 13.3m @ 2.03%
Why near-surface grades and dual commodities matter
For investors unfamiliar with the technical terminology, TREO refers to Total Rare Earth Oxides — the combined concentration of all rare earth elements within a rock sample. Nb₂O₅ is the chemical formula for niobium pentoxide, the oxide form of niobium, a critical metal used in high-strength steel alloys, superconductors and aerospace applications.
Both are classified as critical minerals, meaning they are essential to modern technology and vulnerable to supply-chain disruption. Neither China nor the US has a domestic supply of niobium, and both rely on imported feedstock. This geopolitical dynamic heightens the strategic importance of new niobium sources.
The open-pit advantage is straightforward. When mineralisation begins at surface rather than 50m or more below ground, the company does not need to remove massive volumes of overburden before reaching economic material. This translates to lower capital and operating costs, faster payback and simpler permitting. Management emphasised this point verbatim: the company does not need to remove “50m or more of overburden” and can avoid “complex and expensive underground operations.”
Araxá sits within the Barreiro Carbonatite, directly adjacent to CBMM — the world’s leading niobium producer. This geological setting confirms the district-scale prospectivity and suggests the mineralised system may extend well beyond the current resource boundary.
Drilling extends the footprint ahead of resource upgrade
The latest drilling programme has achieved three key outcomes that feed directly into the upcoming Mineral Resource Estimate upgrade:
- 6 of the 37 holes were drilled outside the current MRE boundary, extending the known mineralised footprint by up to 140m to the north.
- 13 holes intercepted mineralisation deeper than the current modelled MRE depth (~120m from surface), confirming the deposit remains open at depth.
- Many holes were drilled at 40m spacing, supporting an upgrade to higher-confidence resource categories and enabling detailed mine scheduling.
The updated MRE is due for completion this quarter. Management stated assays from the latest batch will be incorporated into the model, with results expected in the coming weeks.
The existing MRE, announced on 3 March 2026, provides the baseline for this upgrade:
| Classification | Tonnes (Mt) | TREO % | MREO % | Nb₂O₅ % |
|---|---|---|---|---|
| Measured | 8.02 | 5.23 | 0.95 | 1.06 |
| Indicated | 21.46 | 4.31 | 0.80 | 0.63 |
| M&I | 29.49 | 4.56 | 0.84 | 0.75 |
| Inferred | 41.42 | 3.71 | 0.72 | 0.52 |
| Total | 70.91 | 4.06 | 0.77 | 0.62 |
This resource is described by the company as “the largest and highest-grade carbonatite-hosted rare earth resource in South America”. The ongoing drill campaign is designed to both expand this tonnage and convert Inferred resources into higher-confidence Indicated and Measured categories — a critical step toward reserve definition and project financing.
What management is saying
John Prineas, Executive Chairman
“The latest drill results are arguably the best results so far in our drill campaign – including a new record thick intercept from surface of 207m… We can get into high-grade material directly from surface, which speaks to the very significant commercial advantage we have – both in cost and speed to development.”
Prineas highlighted the dual-commodity angle as a strategic advantage: “The latest results again highlight the dual commodity focus at Araxá – rare earths and niobium, two of the most sought-after critical metals.”
He emphasised the near-surface high-grade intercepts — such as 20.0m @ 12.65% TREO from surface and 43.0m @ 1.35% Nb₂O₅ from surface — as material that will be “readily accessible from surface, providing a significant development advantage because of the reduced pre-strip requirements.”
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The road ahead: resource upgrade and economic studies
The high-grade, near-surface, dual-commodity nature of Araxá positions it as a potential fast-track open-pit development. The combination of thick intercepts from surface, favourable metallurgy and strategic location adjacent to CBMM’s infrastructure supports a compelling investment thesis.
Key catalysts for shareholders in the coming months:
- Updated MRE for Araxá — due this quarter, with news expected in the coming weeks.
- Economic studies — progressing through the remaining part of the year, including assessment of open-pit scenarios.
- Scoping study for a niobium operation — underpinned by the near-surface, free-digging mineralisation confirmed in these latest results.
Management has signalled that shareholders can expect a steady flow of news as the project advances through the resource definition and study phases.
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