St George Mining Forges Strong Community and Government Partnerships
St George Mining (ASX: SGQ) is rapidly advancing its 100%-owned Araxá Rare Earths and Niobium Project in Brazil, backed by unprecedented levels of government and community support. The company has established a close relationship with the City of Araxá and launched community social programs focused on local needs, reinforcing its commitment to responsible development.
Executive Chairman John Prineas highlighted the significance of these partnerships:
"We have a long-term commitment to work with and support the City of Araxá and are very pleased with the warm welcome and positive engagement we are receiving from the local government and community. This demonstrates that our commitment to deliver positive outcomes for all is well received by the city and the broader community in and around this region."
This local support builds on the cooperation agreement signed with the State of Minas Gerais in October 2024, under which the state government will expedite permitting approvals in recognition of St George's significant investment plans.
World-Class Resource Already Established
The St George Mining Araxá Project, acquired in February 2025, has already delivered a globally significant maiden resource estimate comprising:
Niobium Resource (0.2% Nb₂O₅ cut-off):
| Classification | Million Tonnes | Nb₂O₅ (%) |
|---|---|---|
| Measured | 1.90 | 1.19 |
| Indicated | 7.37 | 0.93 |
| Inferred | 31.93 | 0.59 |
| Total | 41.20 | 0.68 |
Rare Earths Resource (2% TREO cut-off):
| Classification | Million Tonnes | TREO (%) | MREO (%) |
|---|---|---|---|
| Measured | 1.90 | 5.44 | 1.04 |
| Indicated | 7.37 | 4.76 | 0.90 |
| Inferred | 31.37 | 3.90 | 0.74 |
| Total | 40.64 | 4.13 | 0.78 |
What makes this resource particularly attractive is its location adjacent to CBMM's world-leading niobium mining operations, with mineralisation starting at surface and featuring more than 500 intercepts of high-grade exploration success with niobium (>1% Nb2O5) with grades up to 8% Nb₂O₅ plus rare earths with grades up to 33% TREO.
Understanding Carbonatite Deposits: The Key to Araxá's Potential
The St George Mining Araxá Project's mineral wealth comes from its carbonatite deposit, a relatively rare geological formation that hosts some of the world's most important sources of critical minerals.
Carbonatites are igneous rocks containing more than 50% carbonate minerals, formed through complex magmatic processes. These deposits are prized for their enrichment in rare earth elements, niobium, phosphates, and other critical minerals essential for clean energy technologies and advanced manufacturing.
What makes carbonatite deposits particularly valuable to investors is their typically high grades, large size, and near-surface mineralisation—all characteristics present at the Araxá Project. These geological attributes translate to potentially lower mining costs and higher recovery rates compared to other mineral deposit types.
Major Drilling Campaign Underway
St George has wasted no time advancing the project, with a major drilling campaign underway:
- 16 auger drill holes completed for 210.65m
- Reverse circulation (RC) drilling scheduled to commence within days
- Diamond drilling to begin next month
- 10,000m drill program expected to take up to 16 weeks to complete
The drilling will focus on resource expansion and upgrading the Inferred resource to the Indicated category, with assay results expected on a 4-week rolling basis. Furthermore, the technical team is also reviewing historical samples, which were primarily assayed for niobium and rare earths but not for the full suite of critical metals.
Strategic Partnerships Advancing Downstream Processing
Beyond resource development, St George Mining has established key partnerships with leading Brazilian scientific and industry agencies to advance innovative production processes:
- EMBRAPII (Brazilian Association for Research and Industrial Innovation)
- SENAI (National Industrial Education Services)
- MAGBRAS Initiative (aimed at establishing Brazil's first permanent magnet-making facility)
These partnerships demonstrate St George's strategic approach to enhancing resource potential through exploration targets and developing not just a mine, but potentially an integrated critical minerals supply chain.
Why Investors Should Watch St George Mining
St George Mining presents a compelling investment opportunity in the critical minerals sector for several key reasons:
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World-class resource with significant scale – The maiden resource establishes the Araxá Project as a globally significant deposit for both niobium and rare earth elements, with 41.2 Mt at 0.68% Nb₂O₅ and 40.6 Mt at 4.13% TREO.
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Exceptional government support – The cooperation agreement with the State of Minas Gerais for expedited permitting is a major de-risking factor that could significantly accelerate development timelines.
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Strategic location and infrastructure – Located adjacent to CBMM's world-leading niobium operation, with access to established infrastructure and a skilled mining workforce in a region with a long history of commercial niobium production.
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Experienced in-country team – Led by Thiago Amaral and Adriano Rios, who have long-standing relationships with local communities and continue to be residents in the area.
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Multiple near-term catalysts – With drilling program highlights potential discoveries, there are numerous potential value-driving announcements in the pipeline.
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Vertical integration strategy – Strategic partnerships focused on downstream processing demonstrate the company's vision beyond mining toward higher-value products.
The combination of a world-class resource, strong government backing, strategic location, and clear development pathway positions St George Mining's Araxá Project to potentially become a globally significant supplier of critical minerals essential for the energy transition—a sector experiencing rapidly growing demand with limited new supply coming online.
As major economies continue to prioritise secure supply chains for these strategic materials, the St George Mining Araxá Project represents one of the few advanced development opportunities with the scale and grade to make a meaningful impact on global supply.
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