St George Mining (ASX: SGQ) continues to receive strong local backing for its proposed development of the Araxá project in Brazil.
The company acquired Araxá in late February and has already confirmed it as the second-highest grade carbonatite-hosted rare earth element (REE) resource in the Western world.
The company has also been busy with regard to community relations work, recently staging an open day and critical minerals forum.
The event attracted more than 200 stakeholders including state and local government, community members, and partners.
Sustainable Mining Practices
Executive chair John Prineas said the forum highlighted the company's vision for sustainable mining practices at the Minas Gerais project.
“Our goal at the Araxá project is to create value for all stakeholders by committing to the highest levels of social and environmental responsibility," Mr Prineas said.
“The St George forum was arranged with this principle in mind […] to further engage with government and community leaders, and establish open and respectful relationships as we progress the development of our world-class rare earths and niobium resource."
“Mining is experiencing a new cycle, with much more responsibility,” Minas Gerais governor Romeu Zema said, adding that it was essential to follow best practices at all times.
“Technology makes it possible to reduce impacts, increase safety, and recover tailings as much as possible—and that's what St George is doing.”
Minas Gerais Co-Operation
St George signed an agreement with the state of Minas Gerais in October 2024, under which the state would assist in the expediting of permitting approvals for the project.
The company has also created partnerships with leading Brazilian government-funded scientific and industry agencies to conduct studies on innovative production processes and technologies for potential application to the proposed mining operation at the Araxá.
“The combination of local and state government support, a world-class resource, the location in an established mining region, and a first-class in-country team of engineers experienced in responsible and safe mine construction and operation, all provide St George with confidence we will be able to deliver on our vision for a globally significant rare earths and niobium mine at Araxá,” Mr Prineas added.
Aggressive Drilling Program
At the same time, St George continues to operate an aggressive, three rig drill program at Araxá, in which it holds 100% interest.
In early April, the company announced a maiden mineral resource estimate (MRE) for the project of 41.2 million tonnes at 0.68% niobium pentoxide and 40.6Mt rare earths at 4.13% total rare earth oxides.
Recent assays from step-out holes drilled outside the envelope of the project's current MRE highlighted the quality of Araxá’s thick, high-grade mineralisation.
