St George Mining gains local backing for Araxá rare earths and niobium project in Minas Gerais

St George Mining (ASX: SGQ) has received backing from government officials in Brazil for its plans to hunt for high-value rare earths in the country.

After signing an initial co-operation agreement with the State of Minas Gerais in Brazil, the company is now attracting strong support from the local community.

The agreement with Minas Gerais will assist in expediting permitting approvals, while the local government has recognised the significant proposed investment by St George to develop the Araxá project.

Prominent location

Araxá, which St George wholly acquired in February this year, is located 5 kilometres from the city from which it takes its name.

Like many other mines in the area, it draws on the local populace for its workforce and ancillary services.

The project sits adjacent to the operations of CBMM, a global leader in the production and supply of niobium products.

Past drilling at Araxá has confirmed significant mineralisation from surface, with more than 500 intercepts of high-grade niobium of grades up to 8% and rare earth element (REE) grades of up to 33% total rare earth oxide (TREO).

Local engagement

“From the very start, our goal has been to build an open and respectful relationship with the city and the people who live there,” executive chair John Prineas said.

“Our Araxá project will be developed in consultation with the municipality to ensure a development with environmental, social and economic responsibility.”

“The combination of local and state government support, a world-class resource, the location in an established mining region with access to infrastructure and a first-class in-country team of engineers experienced in mine construction and operation all contribute towards positioning St George very well to deliver on our vision for a globally significant rare earths and niobium mine at Araxá.”

Major drill campaign

St George has auger drilling underway at the project, with 16 drill holes completed for nearly 211m drilled and the company’s technical team is also reviewing historical core samples for the full suite of critical metals.

Reverse circulation drilling is imminent, followed by diamond drilling next month, with both focusing on resource expansion as well as upgrading the Inferred resource to the Indicated category.

St George expects it will take up to 16 weeks to complete the 10,000m program.