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Highlights:
- St George Mining Ltd (ASX:SGQ) partners with Brazilian agencies to enhance the processing of niobium and rare earth elements from the Araxá Project.
- The collaboration aims to create a sustainable processing flow sheet, maximizing resource recovery while adhering to environmental, social, and governance (ESG) standards.
- The Araxá Project boasts high-grade niobium and rare earth mineralization, with recent drilling confirming significant grades.
St George Mining Ltd (ASX:SGQ) has made significant progress in the development of its high-grade Araxá Project in Minas Gerais, Brazil, through a collaborative initiative with key Brazilian research and industrial bodies. The partnership is designed to optimize downstream processing of niobium and rare earth elements (REEs), enhancing the project's economic and environmental viability.
The company has formalized a Technical Collaboration Agreement with two prominent Brazilian agencies—EMBRAPII (Associação Brasileira de Pesquisa e Inovação Industrial) and SENAI (Serviço Nacional de Aprendizagem Industrial). This agreement is pivotal in advancing the development of a sustainable and efficient processing flow sheet for the project.
The collaboration focuses on maximizing resource recovery while adhering to stringent ESG standards. St George Mining has emphasized that the project will not only support economic growth but also meet global expectations for sustainability in mining practices. The research under this agreement will include rigorous test work to refine the methodologies for processing ferroniobium and rare earth products.
As part of the agreement, funding contributions have been structured to ensure equitable sharing of costs. The Brazilian Government will subsidize 60% of the total expenses, with EMBRAPII covering 50% and SENAI contributing 10%. St George Mining will fund the remaining 40% of the costs. Additionally, the company retains exclusive commercial rights to any intellectual property developed through this program for a decade without any royalty obligations.
The Araxá Project is celebrated for its exceptional grades of niobium and rare earth elements. Laboratory assays have revealed grades of up to 8% niobium pentoxide (Nb₂O₅) and 33% total rare earth oxides (TREO). Recent exploration activities have produced notable drill results, including a 43-meter intersection at 1.5% Nb₂O₅ and a 60-meter interval at 11.1% TREO, with a higher-grade segment of 30 meters at 16.9% TREO. These results underscore the project's potential as a world-class source of critical minerals.
The collaboration builds on the foundation laid by a Memorandum of Understanding (MoU) signed between St George Mining and SENAI in December 2024. That MoU focused on advancing the development of rare earth magnets at SENAI’s Lab Fab Facility, located in Minas Gerais.
St George Mining's executive chair, John Prineas, expressed optimism about the partnership, highlighting the agreement's significance in advancing the Araxá Project. The company is committed to driving the project forward with a highly experienced in-country team, positioning Araxá as a potential near-term operation for niobium and rare earth mining.
The agreement signifies a critical step in developing a robust, sustainable mining operation. By leveraging local expertise and resources, St George Mining aims to address the growing global demand for niobium and rare earth elements, essential for industries such as clean energy, advanced manufacturing, and technology.
This collaboration marks a milestone in the development of the Araxá Project, reinforcing St George Mining's position in the critical minerals sector. Further updates on the progress of the downstream processing program are anticipated, shedding light on the project's potential to meet the global supply chain's evolving needs.
