St George Mining fires up drill rigs for first time at Araxa niobium-rare earth elements project in Brazil
St George Mining has begun its first drilling campaign at the Araxa niobium-rare earth elements project in Brazil.
On Wednesday the WA explorer said it had more than 10,000m of auger, reverse circulation and diamond drilling planned across 12-16 weeks.
St George said mineralisation was open in all directions, with significant mineralisation below 100m from surface not yet included in the current mineral resource estimate.
The company said this meant there was potential for a 'substantial increase in the already globally significant resource' of 41.2 million tonnes at 0.68 per cent niobium pentoxide and 40.64Mt at 4.13 per cent total rare earth oxide.
St George secured ownership of Araxa in the Brazilian State of Minas Gerais in February after announcing its intention at last year's Diggers & Dealers Mining Forum in Kalgoorlie-Boulder.
Executive chairman John Prineas said the project had already delivered more than 500 intercepts of high-grade rare earths and niobium from past drilling, and St George was expecting to add significantly to this tally by the time the drilling campaign was completed.
'The Araxa project has many competitive advantages that make it a standout project in the rare earths and niobium space,' he said.
'Mineralisation starts from surface and is free-digging, supporting a potential low-cost open-pit mining operation.
'The project is in an established mining region with well-understood permitting and environmental management, providing an expedited pathway to potential development and strong ESG credentials.
'Araxa's key feature, of course, is the large, high-grade resource — an enviable development opportunity at a time when global economies are scrambling to establish new supply chains for critical metals, particularly magnet rare earths.
'One of the largest-producing hard-rock rare earths mines outside of China is the Mt Weld mine owned by the $8 billion Lynas Rare Earths, with a total resource of 106Mt at 4.1 per cent TREO.
'St George's Araxa project already has a total JORC resource of 40.64Mt at 4.13 per cent TREO, illustrating the potential value upside for St George as we progress through development studies and resource expansion drilling to demonstrate the potential for a commercial rare earth mining operation.
'At a time when investors are increasingly looking to Brazil for the next generation of quality hard-rock rare earths and niobium development opportunities, Araxa is in pole position to deliver sustained value for St George shareholders.'
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West Australian
2 days ago
- West Australian
St George Mining fires up drill rigs for first time at Araxa niobium-rare earth elements project in Brazil
St George Mining has begun its first drilling campaign at the Araxa niobium-rare earth elements project in Brazil. On Wednesday the WA explorer said it had more than 10,000m of auger, reverse circulation and diamond drilling planned across 12-16 weeks. St George said mineralisation was open in all directions, with significant mineralisation below 100m from surface not yet included in the current mineral resource estimate. The company said this meant there was potential for a 'substantial increase in the already globally significant resource' of 41.2 million tonnes at 0.68 per cent niobium pentoxide and 40.64Mt at 4.13 per cent total rare earth oxide. St George secured ownership of Araxa in the Brazilian State of Minas Gerais in February after announcing its intention at last year's Diggers & Dealers Mining Forum in Kalgoorlie-Boulder. Executive chairman John Prineas said the project had already delivered more than 500 intercepts of high-grade rare earths and niobium from past drilling, and St George was expecting to add significantly to this tally by the time the drilling campaign was completed. 'The Araxa project has many competitive advantages that make it a standout project in the rare earths and niobium space,' he said. 'Mineralisation starts from surface and is free-digging, supporting a potential low-cost open-pit mining operation. 'The project is in an established mining region with well-understood permitting and environmental management, providing an expedited pathway to potential development and strong ESG credentials. 'Araxa's key feature, of course, is the large, high-grade resource — an enviable development opportunity at a time when global economies are scrambling to establish new supply chains for critical metals, particularly magnet rare earths. 'One of the largest-producing hard-rock rare earths mines outside of China is the Mt Weld mine owned by the $8 billion Lynas Rare Earths, with a total resource of 106Mt at 4.1 per cent TREO. 'St George's Araxa project already has a total JORC resource of 40.64Mt at 4.13 per cent TREO, illustrating the potential value upside for St George as we progress through development studies and resource expansion drilling to demonstrate the potential for a commercial rare earth mining operation. 'At a time when investors are increasingly looking to Brazil for the next generation of quality hard-rock rare earths and niobium development opportunities, Araxa is in pole position to deliver sustained value for St George shareholders.'
West Australian
3 days ago
- West Australian
St George kicks off drill assault on mammoth Brazil niobium play
St George Mining has launched a major drilling assault at its giant Araxá rare earths project in Minas Gerais, Brazil, with the company deploying three drill rigs for a substantial 10,000-metre program over the next three or so months. St George's sizable undertaking follows a recently unveiled globally significant maiden resource at Araxá, comprising 40.64 million tonnes (Mt) at 4.13 per cent total rare earth oxides (TREO) and 41.2Mt at 0.68 per cent niobium pentoxide. The campaign will be carried out alongside a high-resolution airborne magnetic survey, which is set to kick off next week. The 10,000m drilling program aims to significantly expand this resource base by combining auger, reverse circulation and diamond drilling to target the Araxá mineralisation, which remains open in all directions. The company says untested high-grade zones below 100m depth were not included in the resource. Historical drilling intersected more than 500 high-grade intercepts, including standout results such as a massive 60m at 11.1 per cent TREO, a substantial 43m grading 1.5 per cent niobium and a higher-grade 20m running 2.4 per cent niobium. Impressively, all these hits started at surface. The company's imminent drone-based airborne magnetic survey will cover the entire project area to define the carbonatite-hosted deposit's geological model and pinpoint the extent of its niobium and rare earths targets. Araxá's standout features include its free-dig near-surface resource, which sits almost entirely within 100m depth and is ideal for low-cost open-pit mining. Located in Brazil's mining-friendly Minas Gerais state, the project sits adjacent to CBMM's world-class niobium mine, which has a massive 896Mt at 1.49 per cent niobium. St George's robust local infrastructure and access to a skilled workforce enabled it to secure government backing for expedited approvals and assemble a top-tier in-country team including several former CBMM executives. The project also stacks up well against global peers such as Lynas Rare Earths' Mt Weld mine, with its massive 106Mt at 4.1 per cent TREO, and MP Materials' Mountain Pass, which holds 40.6Mt at 5.9 per cent TREO. Araxá's 40.64Mt at 4.13 per cent TREO translates to a whopping 1.7Mt of contained TREO, including 320,000 tonnes of high-value neodymium and praseodymium and 280,000t niobium, which could be just the beginning. With auger drilling already underway, the company is hoping the latest drilling results will further uncover what looks to be the next world-class mine to emerge from the fabled Brazilian carbonatite complex. Is your ASX-listed company doing something interesting? Contact:
News.com.au
06-06-2025
- News.com.au
Rio stays the course on lithium as it looks to rejuvenate iron ore business
Outgoing Rio Tinto boss Jakob Stausholm says Rio remains committed to its lithium strategy Mining giant just opened newest iron ore operation in WA's Pilbara CEO denies being nudged by board as he says company leaders are aligned on ESG and operational improvements The head of the world's second biggest miner Rio Tinto (ASX:RIO) says its board remains aligned on a counter-cyclical push into lithium as CEO Jakob Stausholm denied speculation that friction with the company's board was behind his decision to resign this year. Stausholm's near five year tenure at Rio followed the destruction of the Juukan Gorge rock cave in the Pilbara under his predecessor JS Jacques, an act that led to Jacques' resignation and steered the $150bn miner on a course to prioritise its ESG commitments. In that time, its new investments have focused in two areas, replacement mines to address declining iron ore quality at its flagship Pilbara operations and M&A to become one of the world's largest lithium producers. The latter has come under the microscope amid Stausholm's surprise exit, with lithium prices crashing to four year lows after Rio's entry as a producer via its $10 billion takeover of Argentine brine producer Allkem. Speaking at the opening of Rio's first of five major replacement iron ore mines due in the next five years – the 25Mtpa Western Range with Chinese steel giant Baowu near Paraburdoo – Stausholm said Rio's board remained aligned on its lithium strategy. "The lithium strategy we are absolutely aligned about in the whole board. This is a next pillar," he said. "Think about it like some visionary people 50-60 years ago said Rio Tinto should go into iron ore. "We need to think about the future to the next decade and the next decade. And we are lucky that we have built now a portfolio of outstanding brine resources in Argentina, in Chile. " It's going to complement our – what I would call signature – business here of iron ore for the future." Grade control Under Stausholm, Rio has cleared a number of social licence hurdles in its WA heartland culminating in an agreement this week with the PKKP group, the very Traditional Owner group devastated by the 2020 demolition of Juukan Gorge. It will be a key stakeholder for the US$1.8bn Brockman Syncline 1, the next replacement mine approved for the ~40Mtpa Brockman hub, one of a number of developments that will cost Rio in the order of US$13bn to deliver in the coming years. Western Range is a milestone in that it marks the first new operation delivered by Rio's iron ore division since Juukan Gorge (its Gudai-Darri mine was under construction at the time), and the first to a mine plan co-designed with the TO group, the Yinhawangka People. But Rio's iron ore division has been, quite literally, degrading. 2023 and 2024 marked long time highs for iron ore production at 331.8Mt and 328.6Mt, making Rio the largest exporter of hematite iron ore in the world. But costs have been escalating at a faster rate – on reported numbers at least – than its peers BHP and Fortescue. While BHP and FMG reported C1 cash costs of US$17.50/t and US$19.17/wmt in the first half of FY2025, Rio's unit cash costs came in at US$23/t in CY24. Its 2025 numbers will likely be higher at a guided range of US$23-24.50/t. And while 62% Fe Singapore iron ore futures are sitting at US$95.55/t, Rio's realisation to the benchmark price has been slipping. It notified customers that during the September quarter the spec grade for its Pilbara Blend product will drop. Fastmarkets this week introduced a 61% Fe Index to reflect the lower quality product Pilbara miners are now shipping. It will likely take until the end of this decade, when Rio delivers the higher grade Rhodes Ridge mine, for its grade to recover. Speaking at the Western Range opening, Stausholm denied any rift with new chair Dominic Barton, nor that the miner's focus on ESG under his leadership had clouded its dedication to operating performance. "We are absolutely aligned. It's very important to say we in the management team and the whole board (are) absolutely aligned around the values of Rio Tinto about pursuing the four objectives, about our strategy and the strategic choices and about the assessment of our performance," Stausholm said. "So there is no disalignment. "We are absolutely aligned. It's very important to say we in the management team and the whole board (are) absolutely aligned around the values of Rio Tinto about pursuing the four objectives, about our strategy and the strategic choices and about the assessment of our performance," Stausholm said. "So there is no disalignment. "If you look at my statements at the full year results, I said exactly the same thing because we have under the four objectives, made a lot of progress on rebuilding trust in the company, working towards impeccable ESG credentials, improving how we execute projects. " This project is an example. This project is on time, on schedule. "We still have the potential to do in the best operator, our safe production system is really working. So I said that at the full year, and my chairman repeated that a couple of weeks ago." Steel on top The official opening of Western Range marked a second major development in the relationship between Rio and China's top steel producer Baowu in the Pilbara after the development of Eastern Range in the early 2000s. It followed Rio's landmark first deal with China's Sinosteel at the nearby Channar JV almost 40 years ago. Australia now ships over 900Mt of iron ore a year, the vast bulk of it (around 80%) to China, the world's largest steel producer. But as new, high quality ore sources are developed overseas – notably the high grade 120Mtpa Simandou project in Guinea in which both Rio and Baowu are invested – question marks are hovering over the centrality of the long-established "conveyor belt" between the Pilbara and Beijing to the steel supply chain. FMG chairman Andrew Forrest notably sounded the alarm in recent months over the emergence of new competitors to WA who could eat its golden goose. He is lobbying hard for the establishment of a domestic green iron industry. But Rio remains confident in the role Australian iron ore will play in the future, even in a decarbonising world where green steel technologies – not suited to low and mid-grade ores produced in the Pilbara – could dominate. "It is for us as companies to make sure that the Pilbara ore remains relevant," Stausholm said. "And how do we do that? We do that in partnerships like you see today with Baowu, working on how can we decarbonise the supply chain. " If you find the right solutions and we will, then Pilbara will be the source for many, many decades to come." Stausholm's departure comes as BHP is also rumoured to be looking for a new CEO to replace Mike Henry, and has a number of internal Rio candidates reputedly jostling for position, among them chief commercial officer Bold Baatar and local favourite Simon Trott, who helped open Western Range on Friday and runs the major's iron ore division out of its Perth office.
