St George buoyed by growing support for Araxá in Brazil

Engagement with local stakeholders in Minas Gerais, Brazil, is ramping up as St George Mining advances the Araxá REE and niobium project.

St George leadership with Araxá municipal representatives and local communityleaders in Araxá in June. Pic: SGQ

• St George continues to establish a close and open relationship with the local Government and community at Araxá

• The strong support follows a cooperation agreement with the State of Minas Gerais under which the state will assist in expediting permitting

• A program has been launched to assist with funding initiatives delivering positive impacts for the community

 

Special report: St George Mining is deepening ties with local government and the community in Minas Gerais, Brazil, as it moves to develop the Araxá niobium-REE project.

In a proactive community engagement step, St George Mining (ASX:SGQ) met with Araxá’s local council and key community leaders last week to better understand local priorities.

The community in and around Araxá is experienced in the permitting of mining operations and working closely with mining companies to ensure sustainable projects.

A long history of mining exists in the region with CBMM’s world-leading niobium mining operation immediately adjacent to SGQ’s Araxá asset.

Araxá is 5km from these operations, with many mines in the district drawing on labour and other services from the city.

Value-driven outcomes

SGQ executive chairman John Prineas said the company had a long-term commitment to work with and support the City of Araxá and was very pleased with the warm welcome and positive engagement from the local government and community.

“This demonstrates that our commitment to deliver positive outcomes for all is well received by the city and the broader community in and around this region,” Prineas said.

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

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

“It is clear to us that delivering shared success is the best outcome.”

During the company’s on-the-ground meetings, Prineas said the company launched a program to assist with funding local initiatives to deliver positive social impacts in the areas of health and wellbeing, education, environment and other community projects.

Watch more from SGQ: St George MRE proves Araxa potential

Drilling campaign ongoing 

SGQ recently kicked off a 10,000m auger, reverse circulation and diamond drilling campaign to grow the current 40.6Mt resource grading 4.13% total rare earth oxide (TREO) and 41.2Mt at 0.68% niobium.

The program marks the first campaign for the company since securing ownership of the asset in January.

Around 16 holes for 210.65m have been drilled to date with mineralisation at Araxá remaining open in all directions with significant mineralisation below 100m from surface yet to be included in the resource estimate.

The plan for drilling is to follow up extensive high-grade rare earth and niobium hits from past drilling, with more than 500 intercepts of niobium featuring grades of up to 8%, as well as rare earths with grades of up to 33% TREO.

Relationships with government

The deepening of the relationship with the local government and community follows St George’s successful engagement with the State Government of Minas Gerais and Federal institutions.

SGQ signed a cooperation agreement with the State of Minas Gerais in October 2024, which will see the state assist in expediting permitting approvals for Araxá in recognition of St George’s proposed investment in the state.

The company has also established partnerships with leading scientific and industry agencies in Brazil, which are government-funded, to conduct studies on innovative production processes and technologies for potential application to the proposed mining operation.

This article was developed in collaboration with St George Mining, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as St George buoyed by growing support for Araxá in Brazil