St George Mining Limited (ASX:SGQ) confirmed a major new discovery of high-end rare earths and niobium following assay results from drilling at the 100%-owned Araxá Project in Brazil.
The company reported thick intervals of up to 48m of high-grade mineralization from surface in the first three follow-up RC drill holes from a previously unexplored region, east of the MRE. These include:
- 48m @ 5.71% TREO from 2m, including 15m @ 12.61% TREO from 4m
- 32m @ 1.04% Nb₂O₅ from 11m, including 6m @ 2.41 % TREO from 11m
- 40m @ 2.62% TREO and 1.05% Nb₂O₅ from surface, including 8m @ 4.38% TREO from 35m
The company also reported higher grades of NdPr, heavy rare earths and samarium at East Araxá, which were higher than in the existing MRE, including:
- NdPr values up to 3.96% NdPr (39,600ppm NdPr)
- More Dysprosium (Dy), Terbium (Tb), Lutetium (Lu) and Gadolinium (Gd) making up 1,500ppm of TREO
- High Samarium up to 2,600ppm of TREO – the main material in Samarium Cobalt magnets used in F-35 fighter planes and other military equipment
John Prineas, St George Mining’s Executive Chairman, commented, “We are delighted with the results from the follow-up deeper drilling at East Araxá which has confirmed the continuity and depth extent of this near-surface, high-grade rare earths and niobium discovery.
“The volume of mineralisation being defined by the RC drilling in this new area – located 1km east of the MRE envelope – points to the potential for a significant addition to the Araxá MRE, already the highest grade undeveloped JORC-compliant rare earths resource globally.
“Our multi-rig campaign is continuing with diamond drilling focused on expansion and resource definition of the existing MRE and the RC rig progressing with resource definition at East Araxá. This promises strong newsflow for St George shareholders.
“With governments and private enterprise globally looking for secure and reliable new supplies of rare earths and niobium, our Araxá Project – a carbonatite-hosted deposit in the same style as the two major producing rare earths mines outside of China, Mountain Pass in California and Mt Weld in Western Australia – is gaining recognition as a compelling development opportunity.
“The high proportion of magnet rare earths – both light and heavy REEs – at East Araxá is very impressive. The USA has relied on magnets – even for the powerful Samarium Cobalt magnets used in F-35 fighters – from China. St George, through its downstream strategic alliance in the US2, is perfectly positioned to contribute to establishing a US domestic supply chain for these important magnets. “This is an incredibly exciting time for St George. We look forward to reporting further drill results and project milestones as we continue to build shareholder wealth from Araxá.”
First assay results from deeper diamond drilling are still pending. The company currently has three diamond drill rigs operating 24/7, focusing on expansion targets along strike of the existing MRE.
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