St George Mining Ltd (ASX:SGQ, FRA:S0G, OTC:SGQMF) has delivered its thickest and most compelling drill result yet from the Araxá Rare Earths and Niobium Project in Brazil, with a standout intercept of 178.7 metres at 4.34% total rare earth oxides (TREO) and 0.75% niobium oxide (Nb₂O₅) from surface.
The result — the thickest mineralised interval recorded at Araxá to date — underscores the scale, grade and near-surface continuity of the deposit, reinforcing its status as one of the most significant undeveloped rare earths and niobium projects globally.
It forms part of a broader batch of assay results from 15 diamond drill holes, with multiple wide, high-grade intercepts continuing to demonstrate consistency across the system.
Oblique section showing the latest diamond drill holes as well as other significant drilling completed in the current campaign. The latest drill holes with red labels.
Among the highlights:
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165.3m at 4.28% TREO and 0.61% Nb₂O₅ from surface
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150.2m at 4.64% TREO and 0.59% Nb₂O₅ from surface
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163.65m at 3.29% TREO and 0.45% Nb₂O₅ from surface
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81.05m at 5.14% TREO and 0.64% Nb₂O₅ from surface
These results continue to highlight a defining feature of Araxá — very thick, high-grade mineralisation starting at surface, supporting the potential for a low-strip, open-pit mining operation.
Section A – A' showing high-grade TREO intercepts (cut-off 1% TREO) and high-grade Nb2O5 intercepts (cut-off 0.2% Nb2O5) along with the existing MRE outline.
Executive chairman John Prineas said the combination of scale and grade, particularly from surface, sets Araxá apart from comparable projects.
"The drilling results continue to show huge true widths from surface paired with very high grades," he said.
"This unique combination is unrivalled among emerging rare earths and niobium developers," he added. "The commercial advantage of high-grade mineralisation starting from surface — as opposed to 50 metres or even more than 100 metres below surface — cannot be underestimated."
Section B – B' showing high-grade TREO intercepts (cut-off 1% TREO) and high-grade Nb2O5 intercepts (cut-off 0.2% Nb2O5) along with the existing MRE outline, showing the expansion of the existing MRE.
High-grade system continues to expand
Drilling at Araxá has now been running continuously for more than six months, with the current program designed to both expand and upgrade the mineral resource estimate.
The latest results demonstrate strong grade continuity over broad intervals and suggest further upside, with the mineral system remaining open in all directions and at depth.
Importantly, the new record intercept sits both within and beyond the existing resource footprint, pointing to potential resource growth as drilling continues.
Plan view map of Araxá area showing the location of the diamond drilling relative to the MRE.
The project's carbonatite-hosted mineralisation — the same style as major producing assets such as Mt Weld and Mountain Pass — adds further confidence around metallurgical performance and development pathways.
Magnet rare earths profile strengthens strategic appeal
The latest assays also confirm a favourable distribution of magnet rare earths, with neodymium-praseodymium (NdPr) ratios averaging around 20% and reaching as high as 26% in some holes.
This positions Araxá as a potentially significant future supplier of materials used in permanent magnets — a critical component in electric vehicles, wind turbines and advanced electronics.
St George said the magnet rare earths profile compares favourably with global peers, reinforcing the project's strategic importance amid growing Western demand for secure supply chains.
Major hard-rock rare earths deposits (ex-China).
Interest from downstream and "mine-to-magnet" players has already emerged, with engagement from US-based REalloys and Brazil's MagBras initiative highlighting the project's potential relevance to emerging supply chains.
Niobium adds a second value driver
Alongside rare earths, the latest drilling continues to confirm extensive, high-grade niobium mineralisation across the project.
The record intercept alone includes 178.7 metres grading 0.75% Nb₂O₅ from surface, with multiple higher-grade zones exceeding 1% Nb₂O₅.
Araxá is located within Brazil's Barreiro carbonatite, adjacent to CBMM's world-leading niobium operation, placing it in the premier global jurisdiction for the metal.
With no primary domestic niobium supply in either the US or China, St George believes the project is well positioned to benefit from tightening supply dynamics and strategic demand.
A scoping study is already under way assessing the potential for a standalone niobium operation, which could provide a second revenue stream alongside rare earths production.
Building momentum towards development
The latest drilling success comes as St George continues to build out a broader development and downstream strategy for Araxá.
Recent initiatives include partnerships targeting rare earths processing, as well as a collaboration with US-based Boston Metal to explore next-generation niobium processing technologies and engagement with European groups to refine processing pathways.
These efforts are aimed at moving beyond resource definition towards an integrated development model — spanning mining, processing and value-added products.
With a rapidly growing resource base, strong grades from surface and multiple parallel workstreams underway, Araxá is increasingly shifting from exploration success to a development-ready critical minerals project.
