St George Mining Extends High-Grade Rare Earth Zone at Brazil Project, Eyes Nasdaq Move

St George Mining's Araxá project in Brazil delivers near-surface rare earth intercepts up to 10.6% TREO, expands resource by 240m north, secures tax break, eyes Nasdaq listing with $1B valuation.

The latest batch of diamond drilling from St George Mining's Araxá project in Minas Gerais, Brazil, has turned up intercepts that would make most junior explorers envious — 62.95 metres grading 5.80% total rare earth oxides starting at surface, including 21 metres at 10.61% TREO and 0.67% niobium pentoxide from just 15 metres depth. That kind of near-surface, high-grade intersection in hole AXDD103 simplifies future mine planning considerably and reinforces the deposit's standing as one of the southern hemisphere's largest rare earth and niobium resources.

Drilling has now clocked 13,700 metres at the property, and step-out holes continue to push the known envelope northwards. AXDD107, sited roughly 200 metres beyond the previous resource boundary, returned 100.35 metres grading 1.73% TREO and 0.33% Nb?O? from surface, with a higher-grade core of 19.35 metres at 5.65% TREO. Together with hole AXDD095 — which cut 138.1 metres at 2.97% TREO and 0.45% Nb?O? — these results extend the mineralised zone by about 240 metres to the north, with the system still open in that direction.

The existing mineral resource stands at 70.91 million tonnes at 4.06% TREO and 0.62% Nb?O?. Management sees that figure climbing to between 80 million and 100 million tonnes by mid-2026, with an updated resource estimate scheduled for the third quarter of that year, followed by a preliminary economic assessment. The last resource update saw the measured and indicated categories leap 218% to roughly 29.5 million tonnes — a material upgrade that strengthens the project's credibility for feasibility studies and financing discussions.

St George Mining is also making headway on the permitting and fiscal front. The state of Minas Gerais has granted a tax break on equipment and materials for the project's plant construction, including a pilot facility, exempting them from a goods tax that otherwise hits 18%. That cuts development costs meaningfully. Meanwhile, the company is exploring a Nasdaq listing after two New York investment firms approached with a target valuation of US$1 billion — a figure management believes is justified when stacked against global peers, given the current market capitalisation of around US$500 million.

The production timeline is equally ambitious: niobium output is targeted in roughly two years, with rare earths following about 18 months later, both before the decade ends. Engineering firm Worley is already on board to shepherd the transition from exploration to development. The company's cash position of about US$43 million provides a solid runway for the next phase, which will also need a definitive feasibility study, metallurgical work, environmental approvals and offtake agreements.

Geopolitical tailwinds are also piling on the pressure for Western rare earth supply chains. From 31 December 2026, US defence systems will be banned from using Chinese rare earth metals. Araxá's basket carries an average neodymium-praseodymium content of around 20%, rising to as much as 26% in some holes — exactly the magnet metals that EV and wind turbine makers need. That deadline adds urgency to St George's development plans, though the stock has already responded: shares trade at roughly €0.07, up around 25% year-to-date but still about 26% below their February peak of €0.10. The next batch of assays from East Araxá and any concrete progress on the Nasdaq listing will determine whether that gap closes.