Brazil Backs St George Mining’s Ambitious Rare Earths Drive at Araxá

June 24, 2025 03:19 PM AEST | By Team Kalkine Media

Brazil Backs St George Mining’s Ambitious Rare Earths Drive at Araxá — Image source: Shutterstock

Strategic Partnership with Minas Gerais

The company recently entered into a cooperation agreement with the government of Minas Gerais. This partnership is expected to accelerate the permitting process for the Araxá project while also reflecting the local government's recognition of the significant investment being proposed. The support underlines the collaborative approach between St George and Brazilian authorities as the company prepares to develop a major mining asset.

Araxá, acquired in full earlier this year, is situated just 5 kilometres from the namesake city. Its proximity to established infrastructure and mining operations, including one of the world’s leading niobium producers, offers significant logistical and economic advantages. Notably, the project area has already demonstrated promising results, with past drilling confirming over 500 high-grade niobium intercepts reaching up to 8%, and rare earth elements (REEs) up to 33% total rare earth oxide (TREO).

Commitment to Community and Sustainability

Local engagement has been a cornerstone of St George Mining’s approach. The company emphasises environmental, social, and economic responsibility as key elements in the development of the Araxá project. Close consultation with the municipality of Araxá is underway to ensure that local employment and service opportunities are maximised.

This community-first strategy, combined with Brazil’s mining-friendly policies, an in-country team of skilled engineers, and the region’s long-standing mining heritage, positions St George strongly as it aims to unlock the potential of this high-grade resource.

Multi-Stage Drilling Program Launched

To build upon its existing resource base, St George Mining has commenced an extensive 10,000m drilling campaign. The program includes auger, reverse circulation (RC), and diamond drilling to further define and expand the current mineralisation. So far, 16 auger holes covering nearly 211m have been completed, while the team is also analysing historic drill cores for a full suite of critical minerals.

The aim of the campaign is twofold: to increase the overall resource size and to upgrade current inferred resources to the indicated category. With results expected over the coming months, the initiative is a pivotal part of St George’s growth roadmap.

As the global demand for rare earths and niobium continues to rise, projects like Araxá are gaining increased investor interest. Although not yet a constituent, the success and scale of this project could contribute towards future inclusion in indices like the ASX300 index, enhancing visibility within the Australian investment community.

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