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Record-High Discovery Reinforces Brazilian Potential and May Place Araxá Among the Largest Global Rare Earth and Niobium Hubs
The Australian miner St George Mining announced the discovery of a new and significant rare earth and niobium deposit in Araxá, Minas Gerais.
The revelation was made after the first results of reverse circulation (RC) drilling in the area called Araxá Project, located about one kilometer east of the project’s current mineral resource estimate (MRE).
The data indicate grades well above the global average, which triggered a strong market reaction and caused the company’s shares to soar more than 20% after the announcement.
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“We are very pleased with the results from the deeper drilling at East Araxá, which confirmed the continuity and depth extension of this high-grade rare earth and niobium discovery near the surface“, said St George Mining’s President, John Prineas.
Discovery in East Araxá Surprises with High Concentration
According to St George, the initial drilling revealed thick and rich mineral layers just below the surface.
The results indicated grades of up to 16.87% total rare earth oxides (TREO) — equivalent to 168,700 parts per million — and up to 4.06% niobium pentoxide (Nb₂O₅), about 40,600 ppm.
These figures place the discovery among the most concentrated in the West.
Three drill holes were highlighted in the technical report: one intercepted 48 meters with an average grade of 5.71% TREO from just 2 meters depth, including a section with 15 meters at 12.61% TREO.
Another recorded 32 meters with 1.04% Nb₂O₅ from 11 meters, while a third hole found 40 meters with 2.62% TREO and 1.05% Nb₂O₅ from the surface.
These results reinforce the project’s expansion potential and indicate that mineralization is continuous and of large volume.
Critical Elements for Technology and Defense
In addition to the high grades, the composition of the minerals found further increases the significance of the discovery.
The results showed elevated levels of magnetic elements and heavy rare earths, especially neodymium and praseodymium (NdPr), which reached up to 3.96% — about 39,600 ppm.
NdPr is an essential component for the production of high-power permanent magnets used in wind turbines, electric cars, and industrial equipment.
Another highlight is samarium, which reached up to 2,600 ppm in the samples.
This element is used in the manufacture of samarium-cobalt magnets, essential in high-performance military applications, like F-35 fighters, guided missiles, and radar systems.
Relevant levels of dysprosium, terbium, lutetium, and gadolinium were also detected, totaling about 1,500 ppm of the TREO total — all considered critical for advanced technologies and typically obtained in small quantities in the global market.
According to St George, the presence of these elements at such high levels makes East Araxá a rare strategic source in the world, capable of serving high-tech sectors and national defense across various countries.
Araxá Stands Out in the Global Rare Earth Scenario
The new discovery adds to the already known deposit in the Araxá project, which has an estimated resource of 40.6 million tons with an average grade of 4.13% TREO and 41.2 million tons with 0.68% Nb₂O₅.
This makes Araxá the largest rare earth deposit hosted in carbonatite in South America and the second highest grade in the western world, behind only the Mountain Pass mine in the United States and Mt Weld in Australia.
Both of these international projects are global benchmarks and, like Araxá, are hosted in carbonatites, a type of geological formation that is rare and highly favorable for the concentration of rare earths.
The presence of this same geology places the Brazilian project on par with the world’s leading producers, but with the advantage of being in a region with established infrastructure and a tradition in mining, thanks to the work of CBMM, which accounts for about 80% of global niobium production.
Support from the Brazilian and Minas Gerais Governments
Another point that strengthens Araxá’s potential is the institutional support that St George received.
The company was selected by the federal government to participate in the MAGBRAS program, which seeks to create a national supply chain for rare earth products, including the production of permanent magnets entirely in Brazil.
In addition, the company entered into a cooperation agreement with the Government of Minas Gerais, which committed to expedite licensing processes and support the advancement of studies and future project implementation.
St George also assembled an experienced local team and established relationships with authorities and Brazilian companies to ensure the swift progress of upcoming stages, which could become a relevant competitive differential in the international market.
Next Steps and Company Plans
According to the announcement, the company continues drilling at the Araxá Project and intends to disclose a new inferred resource in 2025, incorporating the new area into the existing MRE.
Three diamond drills are operating 24 hours a day to expand the known area of the deposit.
The miner has also formed a strategic alliance with U.S.-based REAlloys, specializing in materials for magnets and with contracts in the U.S. defense sector.
The partnership involves testing the rare earth concentrate from Araxá and could result in a long-term supply contract for the United States.
A Discovery with Global Strategic Weight
The discovery in Araxá could reposition Brazil as a key player in the global rare earth and niobium market, reducing Western dependence on China for the supply of these strategic minerals.
If forthcoming results confirm the estimated potential, the project could transform Araxá into one of the world’s largest hubs for these critical elements of industry and technology.
Full PDF announcement.
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