St George Mining (ASX:SGQ) Launches Extensive Drilling at Araxá Amid Resource Milestone

Highlights

• St George Mining unveils maiden Mineral Resource Estimate at Araxá

• Drilling campaign expands focus on high-grade zones in Brazil

• Advanced geophysical tools deployed to improve subsurface modelling

St George Mining Ltd (ASX:SGQ), included in the All Ordinaries index, has reported significant progress at its Araxá Niobium-Rare Earths Project in Brazil. The announcement of a maiden Mineral Resource Estimate during the June quarter marked a notable advancement in the company’s development roadmap.

This strategic update arrives as part of a wider initiative focused on critical minerals, particularly niobium and rare earth elements—resources central to clean energy technology and global supply chains. The latest developments represent a step forward in delineating and expanding mineralised zones across the project.

Resource Milestone Reinforces Project Significance

The maiden Mineral Resource Estimate is a foundational milestone for the Araxá Project. It provides a formal baseline for future resource expansion efforts and underpins the geological confidence required for continued development. This estimate has been accompanied by detailed technical studies and geological interpretations that contribute to a clearer understanding of the deposit’s scale and grade distribution.

The resource reporting initiative serves as a catalyst for ongoing field programs aimed at increasing both resource confidence and volume. Strategic focus is now directed toward converting Inferred resources into higher categories while exploring areas not previously modelled in earlier studies.

Extensive Drilling Program Underway

A comprehensive drilling initiative has commenced at the Araxá site. Thousands of metres of auger, reverse circulation (RC), and diamond drilling are being implemented to expand the known resource envelope and explore new mineralised trends. The targeted zones include both near-surface and deeper geologic units across the licence area.

This drilling campaign builds on the success of surface exploration activities, which previously identified high-grade intercepts in select zones. With multiple drilling techniques deployed, the program aims to produce robust geological data to support further updates to the resource model in subsequent quarters.

High-Resolution Surveys Guide Future Drilling

Alongside drilling, St George has launched an array of high-resolution geophysical surveys to enhance structural mapping at the Araxá Project. Magnetic surveys and passive seismic methods are being applied to detect and interpret subsurface features with increased clarity and precision.

These surveys aim to improve targeting accuracy by building a refined understanding of geological structures beneath the surface. By combining geophysical modelling with existing drilling data, the company expects to strengthen its interpretation of lithological units and potential mineralised pathways.

Subsurface continuity is often challenging to assess in frontier zones. However, the integration of modern geophysical tools adds a critical layer of analysis, especially in areas that lack direct observational data. This supports a data-rich framework for future exploration planning.

Strategic Funding Accelerates Workstreams

In July, St George secured funding through a placement of new shares to European investors. This capital raise is structured to support exploration priorities at Araxá, including the expansive drilling program, geophysical work, and subsequent technical assessments.

The transaction reflects growing international engagement with the Araxá Project, positioning it as a noteworthy contributor to niobium and rare earth element development in South America. Proceeds from the raise will be allocated to both near-term exploration activities and broader project evaluation efforts across the company’s asset portfolio.

The capital injection also aligns with global demand trends for critical minerals required in renewable technologies, electric mobility, and advanced manufacturing systems. This context enhances the strategic significance of the project within the sector’s evolving landscape.

Forward Strategy and Development Outlook

St George continues to advance its broader objectives at Araxá by integrating drilling data, geophysical models, and mineral resource information into a consolidated development framework. This approach supports transparent technical reporting and informed decision-making for future resource statements and feasibility planning.

The current phase represents a transition from initial discovery to systematic resource development, with strong emphasis on building geological confidence and validating exploration results through consistent field activities. Stakeholder interest is expected to remain strong as resource updates are delivered.

As exploration progresses, attention remains focused on the delineation of additional high-grade zones and the technical de-risking of the broader mineralised system. With a structured approach to exploration and development, St George reinforces its role in the critical minerals supply network.