St George Mining (ASX: SGQ) managing director John Prineas outlines the company’s announcement of a Resource Estimate delivered for its Araxa project in Brazil to Wally Graham of The Resources Roadhouse at the 2025 Tribeca Future Facing Commodities Conference in Singapore.
THE DRILL SERGEANT: St George Mining (ASX: SGQ) announced a maiden JORC 2012-compliant Mineral Resource Estimate (MRE for) the company’s 100 per cent-owned Araxá project in Brazil.
St George Mining’s Araxá project contains a substantive niobium and REE deposit located in what the company described as “the world’s premier niobium-producing region”.
Niobium
Total resource: 41.2 million tonnes at 0.68 per cent niobium
Rare Earths
Total resource: 40.6 million tonnes at 4.13 per cent total rare earth oxides (TREO)
St George explained that 100 per cent of the resource is constrained within the weathered profile at the Araxá project and 95.8 per cent of it is within 100m from surface.
The mineralisation is free digging, supporting potential for low-cost open-pit mining.
“The announcement of the initial JORC resource for the Araxá project firmly establishes St George as a significant player in the global niobium and rare earths sector,” St George Mining executive chairman John Prineas said in the company’s ASX announcement.
“Drilling at our project has intersected phenomenal grades exceeding 80,000ppm niobium oxide – or eight per cent Nb2O5 (niobium) – and around 330,000ppm or 33 per cent total rare earth oxide.
“It is no wonder that with these drill results the resource estimate now defined at the project also represents among the highest grade niobium and rare earth deposits in the world today.
“Notably, mineralisation remains open in all directions and at depth, presenting significant upside potential for resource expansion.
“The delivery of the JORC MRE marks a further significant de-risking milestone for the project by providing a strong foundation for permitting, mine planning and economic assessments and ensuring our Araxá project remains at the front of the next generation of potential niobium mining operations.”
THE CONFERENCE CALLER: St George Mining (ASX: SGQ) provided Diggers and Dealers delegates a good reason to get out of bed on Day Two of the conference with news of a Brazilian niobium asset acquisition.
St George Mining has entered a binding conditional agreement to acquire all the issued capital of Itafos Araxá Mineracao E Fertilizantes S.A, which owns 100 per cent of the advanced niobium-REE Araxá project in Minas Gerais, Brazil.
The Araxá project is in a good address, described by St George as the world’s ‘dress circle’ for niobium production that it considers providing the company with a great opportunity to become a global player in the niobium market.
In addition to niobium, high-grade rare earths mineralisation has been confirmed by drilling over a widespread area.
ST George Mining managing director and old friend of The Roadhouse John Prineas broke free of the crowd mulling around the company’s Diggers and Dealers booth to speak with us.
Resources Roadhouse: Why Niobium?
John Prineas: Niobium is a very stable market. There are only three primary producers in the world and the price of niobium has barely changed over the past four years
RR: Does being in Brazil provide better access to more markets?
JP: The beauty of Brazil is that it is the number one producer of niobium.
We are now in the same carbonatite geology as CBMM that produces approximately 80 per cent of the world’s niobium.
So, what it means is that we have the right geology and all the right infrastructure is already there
RR: How advanced is the project?
JP: The other strength of the project is its advanced nature. There are more than 500 intercepts of plus-one per cent niobium. That’s mineable grade.
Our job now is to go and drill it all out. Only ten per cent of the tenements has has been drilled out. We think there is an economic Resource there already that we can multiply with more drilling.
RR: What does this mean for the rest of the company’s portfolio?
JP: We’ll continue with our Western Australia assets. We remain very loyal to WA, but they are still early-stage projects.
Brazil offers a very clear pathway to monetise that asset with further drilling and development studies.
TO READ THE FULL ANNOUNCEMENT: CLICK HERE
