St George Mining Limited (ASX: SGQ) has announced a significant development in its growth strategy by entering into a binding agreement to acquire the advanced Araxá Niobium-REE Project in Minas Gerais, Brazil.
This strategic acquisition positions St George to become a major player in the global niobium market, leveraging the project’s impressive mineralisation and prime location.
The Araxá Project is notable for its extensive high-grade mineralisation, with historical drilling revealing over 500 intercepts of niobium exceeding 1 per cent Nb2O5.
Some of these intercepts showcase ultra-high grades, reaching up to 8 per cent Nb2O5, 33 per cent Total Rare Earth Oxides (TREO), and 32 per cent Phosphate (P2O5).
The mineralisation begins at the surface and is open in all directions, indicating substantial potential for resource expansion.
Strategically located, the Araxá Project is adjacent to CBMM’s niobium mine, which produces approximately 80 per cent of the world’s niobium.
Being part of the same carbonatite complex as CBMM’s operation enhances the project’s significance and potential for development.
The established mining district surrounding Araxá offers excellent infrastructure, including access to sealed roads, grid power, and a skilled workforce, all of which are favourable for near-term project advancement.
In a strong show of investor confidence, St George has secured firm commitments totalling $21,250,000.
This capital will be allocated towards acquisition costs, exploration expenses, and working capital, ensuring that the company is well-positioned to leverage the advanced status of the Araxá Project.
John Prineas, Executive Chairman of St George Mining, expressed his excitement about the acquisition, stating: “The Araxá Project is located in the world’s ‘dress circle’ for niobium production and presents a tremendous opportunity for St George to become a global player in the niobium market.”
He highlighted the extensive high-grade niobium mineralisation already discovered at the project, which provides a solid foundation for rapid resource definition.
Prineas further noted the project’s location advantages, emphasising that less than 10 per cent of the project area has been effectively drilled, with limited exploration beyond 50 metres from the surface.
This leaves vast potential for further discovery.
He also welcomed Itafos Inc (TSX-V: IFOS), the vendor of the Araxá Project, as a new and substantial shareholder of St George.
The Araxá Project is situated just five kilometres south of the town of Araxá, approximately 375 kilometres from Belo Horizonte, the capital of Minas Gerais.
The local infrastructure is robust, with sealed roads, grid power, and water supply readily available. Additionally, the project is in proximity to other mining operations, enhancing logistical efficiency.
Geologically, the Araxá Project lies within the Barreiro Carbonatite Intrusive Complex, part of the Alto Paranaiba suite of alkaline carbonatites and kimberlites.
This complex, which intruded into surrounding sediments approximately 87 million years ago, has been subject to weathering that has enriched niobium, rare earth elements, and phosphates into high-grade concentrations.
Looking ahead, St George plans to initiate a diamond drill program upon completion of the acquisition, focusing on confirming historical drill results and exploring the extent of the known high-grade mineralisation.
The inaugural drill program will comprise up to 5,000 metres of diamond drilling and is expected to commence shortly after receiving the necessary approvals.
The results from this drilling, combined with historical data, will be used to complete a mineral resource estimate in accordance with the 2012 JORC Code, targeted for delivery in the first half of 2025.
In summary, the acquisition of the Araxá Niobium-REE Project represents a pivotal moment for St George Mining, setting the stage for the company to solidify its position in the niobium and rare earth elements sector and drive future growth.
