St George Mining Expands Araxá Resource by 57% as Brazil Project Takes Shape
Published on 08/11/2026 at 17:33 | Redaktion boerse-global.de
The numbers coming out of St George Mining's Brazilian operation are getting harder to ignore. The company has lifted its mineral resource estimate for the Araxá project to 111.2 million tonnes, a 57% jump that cements its claim to being the world's largest undeveloped niobium deposit in the measured resource category.
The updated estimate carries average grades of 3.57% total rare earth oxides (TREO) and 0.57% niobium pentoxide. More telling, however, is the quality breakdown: over two-thirds of the resource now falls into the measured and indicated (M&I) categories, which jumped 155% to 75 million tonnes. That higher-confidence portion contains roughly 435,000 tonnes of niobium oxide and about 760,000 tonnes of neodymium-praseodymium oxides — the magnet metals that sit at the heart of the project's strategic pitch.
Drilling data builds the case
The resource upgrade follows an intensive drilling campaign that has been delivering headline results. On 28 July, the company reported a record intersection: a 207-metre continuous mineralisation grading 2.60% TREO starting directly from surface. Metallurgical test work has also shown that the ore can be separated into high-grade concentrates, with a niobium concentrate approaching 40% niobium pentoxide achieved at a flotation recovery of 54.3%.
Management's plan is to develop Araxá as a low-cost open-pit operation supplying magnet rare earths and niobium to markets outside China. The project is wholly owned by St George Mining, and the company is now pushing ahead with feasibility studies under the guidance of Worley Engenharia Ltda, the Brazilian arm of the engineering services group.
Should investors sell immediately? Or is it worth buying St George Mining?
East Araxá holds the next chapter
The current estimate does not yet include the East Araxá discovery, located roughly a kilometre from the main deposit. Five diamond drill rigs are working the zone, and management is targeting a maiden resource estimate for the extension area in the fourth quarter of 2026 — a move that could broaden the project's footprint considerably.
Another milestone on the horizon is the construction of a large-scale pilot plant at the CEFET-MG research centre in Araxá, scheduled to begin operations around the end of Q4 2026. That facility will validate the extraction processes at a larger scale ahead of any production decision.
Cash position and strategic backing
The exploration push is underpinned by a solid balance sheet. Following a A$60 million institutional placement completed in July, St George Mining reported cash reserves of roughly A$98 million at the end of that month. Hancock Prospecting, the Australian mining conglomerate, took the opportunity to raise its stake in the company to 10.3% as part of the financing.
The company also restructured its ownership of Lithium Star Pty Ltd, buying out Amperex Technology Limited's (ATL) 10% interest in the subsidiary. ATL, in turn, became a direct shareholder in the parent company.
Market response
Investors have taken a measured but positive view of the latest update. The shares advanced 14.42% to EUR 0.0587 in Tuesday's session, building on momentum after the stock hit a 52-week low of EUR 0.0457 on 20 July. In pre-market trading, the stock had already indicated strength with a 9.75% gain to EUR 0.0563.
Analysts have also weighed in, with media reports indicating that buy recommendations were reaffirmed on Monday, carrying a price target of A$0.23. The market's reaction suggests growing confidence that the company is making tangible progress in defining what could become a significant source of critical minerals outside China's supply chain.
Ad
St George Mining Stock: New Analysis - 11 August
Fresh St George Mining information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
