What is the story about?
What's Happening?
St George Mining Limited has confirmed a major new high-grade rare earths and Niobium discovery at its Araxá Project in Minas Gerais, Brazil. The first RC holes drilled outside the existing Mineral Resource delivered significant intercepts, including 48 meters at 5.71% TREO and 32 meters at 1.04% Nb2O5. The assays reveal a strong mix of magnet rare earths, with NdPr values up to 3.96% and the presence of heavy rare earths. This discovery highlights the expansion potential beyond the existing Mineral Resource, positioning Araxá as a world-class source of critical minerals.
Why It's Important?
The discovery at Araxá is significant for the global supply chain of rare earths and Niobium, which are essential for electric vehicles and defense applications. The high proportion of magnet rare earths at Araxá is particularly noteworthy, as the U.S. has historically relied on imports from China for these materials. St George Mining's strategic alliance in the U.S. positions it to contribute to establishing a domestic supply chain for these important magnets, potentially reducing dependency on foreign sources and enhancing national security.
What's Next?
St George Mining is continuing its multi-rig campaign with diamond drilling focused on expansion and resource definition. The company anticipates strong newsflow for investors as further assays are expected shortly. MST Access has raised its valuation for St George Mining, citing Araxá's potential to become a new Niobium producer by 2027. The strategic location next to the world's largest Niobium producer and commercial validation through MoUs with major companies reinforce the project's significance.
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