St George Mining (ASX:SGQ)

SYDNEY, NSW, AUSTRALIA, August 6, 2024 /EINPresswire.com/ --

St George Mining Limited (ASX: SGQ) has today announced that it has entered into a binding agreement to acquire all of the advanced niobium-REE Araxá Project in Minas Gerais, Brazil (“Araxá” or “the Project”).

The Project boasts more than 500 intercepts of high-grade niobium, >1% Nb2O5 , at ultra-high grades up to 8% Nb2O5, 33% TREO and 32% P2O5, and mineralisation commencing from surface and open in all directions.

John Prineas, St George Mining’s Executive Chairman, said:
“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.

“Extensive high-grade niobium mineralisation has already been discovered at the Project – with more than 500 intercepts of niobium grades above 1% – providing a strong foundation for St George to quickly progress to potential resource definition. In addition to niobium, high-grade rare earths mineralisation has been confirmed by drilling over a widespread area.

“The high-grade mineralisation commences at surface and is open in all directions, providing St George with excellent prospects to substantially expand the known mineralised footprint. Significantly, less than 10% of the project area has been effectively drilled and there has been limited drilling beyond 50m from surface.

“Together with abundant high-grade mineralisation, the Project’s strength is its location in an established mining district with potential to access infrastructure and labour – factors that are favourable for near-term development potential. CBMM’s flagship niobium mine abuts the south-east border of our Project, whilst Mosaic’s world-class phosphate mine is immediately to the south-west of our Project.

“Minas Gerais is a first-class mining jurisdiction and we are excited to be adding such a high-quality project in Brazil to our attractive exploration portfolio of clean energy metals projects in Western Australia.

“We are delighted with the strong investor support for the Araxá acquisition with firm commitments received for our $21.25 million fund raising. St George will be fully funded to leverage the advanced status of the Project and to progress to being a globally significant player in the niobium and rare earths sector.

“We also welcome Itafos Inc (TSX-V: IFOS), a global fertiliser company and the vendor of the Araxá Project, as a new and substantial shareholder of St George.”

Location and Infrastructure
The Araxá Project is located 5km south of the town of Araxá, Minas Gerais State, Brazil. The town of Araxá is situated approximately 375km from the capital of this State – Belo Horizonte the centre of mining in the State of Minas Gerais. Araxá is situated 549km from Sao Paulo and 848km from Rio de Janeiro.

The local infrastructure available to the Araxá Project is excellent with the Project being situated 5km south of the town of Araxá and within 1km of two other mining operations.

Project Geology
The Araxá Project is located within the Barreiro Carbonatite Intrusive Complex which forms part of the Alto Paranaiba suite of alkaline carbonatites and kimberlites which were intruded along the AZ125° lineament. This lineament stretches over 2,000km from Rondonia to Rio de Janeiro.

The Barreiro Carbonatite Complex is a circular shaped intrusion with a diameter of approximately 5km. The complex intruded into the surrounding sediments (quartzites and schists) of the Araxá Group approximately 87 million years ago. This intrusion caused the doming of the existing sediments, with concentric and radial fracturing evident in the quartzites.

Mining operations have already been established in the Barriero Carbonatite, being niobium mining by CBMM and CODEMIG and a phosphate mine operated by The Mosaic Company.

The subsequent erosion and weathering of the carbonatite complex in a tropical climate has formed a deep saprolitic profile. The leaching associated with the formation of the saprolitic profile has resulted in the enrichment of the REEs, niobium and phosphates present into high-grade concentrations.

The host mineral for niobium at Araxá is pyrochlore, and the host mineral for REEs is monazite.

There has been no previous mining operation at the Araxá Project.

Forward Work Plan
On completion of the acquisition of the Araxá Project, St George intends to undertake a diamond drill program focused on further confirmation of historical drill results, exploration along strike of known high-grade mineralisation and testing the depth extent of mineralisation.

This inaugural drill programme will comprise up to 5,000m of diamond drilling and will commence as soon as practicable after drilling approvals and land access arrangements are finalised. Funding for the drill programme will be provided from the capital raising to be approved by a shareholder meeting expected to be held in mid to late September 2024 – see the section on Fund Raising in the ASX announcement for further details.

Results from the new drilling together with historical results will be used to complete a mineral resource estimate in accordance with the 2012 JORC Code. Delivery of the JORC compliant MRE is targeted for H1 2025.

The inaugural drill program will also provide bulk samples for metallurgical studies to further identify the metallurgical properties of the Araxá mineralisation and assess optimal processing methods for a potential mining operation.

Further drill programs to fully scope the extent of mineralisation at the Project area will be planned after a review of results from the initial program.

Environmental and geotechnical studies have already been commenced by Itafos with Walm Engenharia – a leading geotechnical and environmental engineering firm in Brazil, and will be continued by St George.

For further information see the ASX announcement.
https://www.asx.com.au/markets/company/SGQ

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