St George Mining Acquires High-Grade Araxa Niobium Project
ST GEORGE MINING LIMITED (SGQ) Share Update August 2024 Tuesday 6th
St George Mining Announces Acquisition of Araxa Niobium Project
St George Mining Limited (ASX: SGQ) has announced the acquisition of the Araxa Project in Minas Gerais, Brazil, a significant move that positions the company on the global niobium stage.
Instant Summary:
- Acquisition of Araxa Project in Minas Gerais, Brazil.
- Project located near the world's largest niobium producer, CBMM.
- Over 500 significant intercepts of niobium, REE, and phosphate.
- High-grade niobium with grades up to 8% Nb2O5.
- Strong resource foundation with potential for growth.
- Existing infrastructure and workforce in an established mining district.
Overview of the Araxa Project
St George Mining Limited has secured the Araxa Project, a world-class niobium and rare earth elements (REE) opportunity in Minas Gerais, Brazil. The project is located in a premier district for niobium production, adjacent to the flagship operation of CBMM, the world's largest niobium producer, which supplies approximately 80% of the global niobium market.
The Araxa Project boasts near-surface, high-grade mineralisation with historical drilling revealing more than 500 significant intercepts of niobium, REE, and phosphate. Notable intercepts include ultra-high grades up to 8% Nb2O5, 33% TREO, and 32% P2O5. The mineralisation is widespread and open in all directions, with limited drilling beyond 50 meters from the surface and only 10% of the project area explored with close-spaced drilling.
Resource Potential and Development
The Araxa Project offers a strong resource foundation with significant growth potential. The prospective rocks in the carbonatite have been confirmed to depths of 800 meters from the surface. The project is located in an established mining district with existing infrastructure, including roads, power, and access to a skilled workforce. The metallurgy is interpreted to be similar to the adjacent CBMM mine, which has been in operation for over 50 years.
Niobium and REEs are critical metals essential to numerous modern technologies and clean energy solutions. The demand for these metals is rapidly accelerating, driven by their importance in battery applications and a low carbon economy.
Strategic Importance
The Araxa Project is situated within the Barreiro Carbonatite complex, a 5 km wide carbonatite hosting hard-rock niobium, REE, and phosphate mineralisation. This area is home to world-class mines, including CBMM's Araxa niobium mine and Mosaic's Araxa phosphate mine. The carbonatite is considered the world's 'dress circle' location for niobium, producing 80% of the global supply.
St George's Araxa Project has been idle in the portfolio of a major fertiliser company, Itafos Inc, until now. Historical exploration has confirmed widespread and significant niobium, REE, and phosphate both in near-surface weathered ore and in primary ore at depth.
The acquisition of the Araxa Project is a transformative move for St George Mining, positioning the company as a significant player in the global niobium market. The project's high-grade mineralisation and strategic location near CBMM's operations provide a strong foundation for future growth. This acquisition is likely to boost investor confidence and positively impact the company's stock price.
Investor Reaction:
Analysts are expected to react positively to the acquisition, noting the strategic importance of the Araxa Project and its potential to significantly enhance St George Mining's resource base. The project's high-grade mineralisation and proximity to CBMM's operations are seen as key advantages.
Conclusion:
Investors should closely monitor St George Mining's progress with the Araxa Project. The company's strategic acquisition positions it well for future growth in the niobium market. Subscribe to our newsletter for regular updates on St George Mining and other stock market news.