St George Mining Addresses Misinformation on Araxa Niobium Project
ST GEORGE MINING LIMITED (SGQ) Share Update August 2024 Sunday 11th
St George Mining Clarifies Misinformation on Araxa Niobium Project
St George Mining Limited (ASX: SGQ) has issued an update to clarify misinformation circulating about its Araxa Niobium Project in Minas Gerais, Brazil.
Instant Summary:
- No active tailings dam within the Araxa Project area.
- Significant niobium intersections located away from historical Dam B4.
- Rehabilitation of Dam B4 is nearly complete.
- Open-pit mining operation feasible on tenement 831.972/1985.
Project Clarifications
St George Mining Limited has provided an important update regarding its proposed acquisition of the Araxa Niobium Project in Minas Gerais, Brazil. The company aims to address misinformation circulating in online forums and social media about the project.
Contrary to some claims, there is no active tailings dam within the project area. The historical Dam B4, operated by CBMM until 1985, has been rehabilitated and integrated into the environment. This dam is located on tenement 832.150/1989, which is not where St George plans to define its mineral resource.
Niobium Intersections
The significant niobium intersections, which include more than 500 intercepts of greater than 1% Nb2O5, are located on tenement 831.972/1985. This area is separate from the tenement hosting the historical Dam B4, ensuring that any JORC compliant mineral resource will not extend into the tenement with the dam.
Rehabilitation Efforts
CBMM has been responsible for the rehabilitation of Dam B4, progressively integrating it into the natural environment. The dam no longer has a reservoir, and measures such as the insertion of compacted mine clay and HDPE lining have been implemented to make the tailings impervious to water.
Feasibility of Mining Operations
Independent technical consultants have advised that an open-pit mining operation could be established on tenement 831.972/1985 without any impediments posed by the rehabilitated Dam B4. These findings are preliminary and subject to final geotechnical studies, which are currently underway.
The clarification provided by St George Mining is likely to reassure investors concerned about environmental and operational risks associated with the Araxa Niobium Project. The confirmation that significant niobium intersections are located away from the historical dam and that the dam has been rehabilitated should mitigate some of the concerns raised by misinformation. This could have a stabilizing effect on the company's stock price.
Investor Reaction:
Analysts are expected to react positively to the clarification, as it addresses key concerns about the project's feasibility and environmental impact. The reassurance about the location of significant niobium intersections and the feasibility of open-pit mining operations should bolster investor confidence.
Conclusion:
Investors should keep an eye on further updates from St George Mining regarding the Araxa Niobium Project. The company's efforts to clarify misinformation and provide transparent updates are crucial for maintaining investor trust. Monitoring the progress of the geotechnical studies will be important for assessing the project's long-term viability.