By Brazil Stock Guide – Australian miner St George Mining Ltd. (ASX: SGQ) agreed to acquire 166 hectares in Araxá, Minas Gerais, for 14 million reais ($2.8 million) to build a processing plant for niobium and rare earths, the company said. The site is located less than two kilometers from its existing mineral concession area in the region.
Securing the land is key to advancing what the company describes as an international-standard operation for niobium and rare earths. “Guaranteeing this area is fundamental to enabling the implementation of a niobium and rare earths operation with international standards,” Chief Executive Officer John Prineas said in a statement.
St George also purchased a second 163-hectare property for 6 million reais, about 19.5 kilometers from the main mining area. The company said the site will serve as an environmental conservation zone to offset the project’s footprint.
On Wednesday (18), the company released new drilling results from its Araxá Project. The highlight was a continuous intercept of 164.45 meters — the thickest recorded at the project so far — confirming grades of up to 17.15% rare earths and 4% niobium.
According to St George, the results indicate mineralization continues at depth beyond the limits currently considered in the project’s geological model. The company expects to revise its mineral resource estimate upward.
The initial estimate outlined 41.2 million tons grading 0.68% niobium and 40.6 million tons grading 4.13% rare earths. An expanded mineralized footprint could extend the potential life of a future mine, the company said.