Araxá Ascendant: MST Access Boosts St George Mining Valuation on Rare Earths Potential

The Rare Earths Revolution is Here, and St George Mining is Poised to Lead the Charge.

The world is waking up to the critical importance of rare earth elements (REEs). These unsung heroes of modern technology are essential for everything from electric vehicles and wind turbines to smartphones and defense systems. As demand skyrockets, securing a stable and ethical supply of REEs has become a global imperative. St George Mining (ASX: SGQ) is emerging as a key player in this revolution, with its Araxá Project in Brazil attracting significant attention and a recent valuation boost from MST Access.

Araxá: A World-Class Rare Earths and Niobium Deposit

Located in the mining-friendly Minas Gerais region of Brazil, the Araxá Project is a strategic asset boasting both rare earths and niobium. This dual-commodity potential sets it apart, offering diversified revenue streams and mitigating risk. Acquired by St George Mining in February 2025, Araxá is strategically located within the Barreiro Carbonatite complex, known as the “dress circle” location for niobium, responsible for approximately 80% of global supply.

Recent drilling results have confirmed extensive high-grade REE mineralization at the East Araxá target, de-risking the project and highlighting its potential for a significant resource upgrade. St George says the results de-risk the project, thought to be the highest-grade carbonatite-hosted rare-earth elements (REE) deposit in South America, and is confident that East Araxá now offers significant resource upgrade potential. Notably, the magnet and heavy REE grades at East Araxá are higher than those recorded in the existing JORC-compliant Araxá mineral resource estimate (MRE) of 40.6 million tonnes at 4.13% Total Rare Earth Oxides.

MST Access: A Vote of Confidence

Independent equity research provider MST Access has released a new Research Report on St George Mining. MST highlights Araxá’s potential to become a new Niobium producer by CY27, with estimated EBITDA of ~US$130 m per annum at margins above 60 %. The report cites Araxá’s strategic location next to CBMM (the world’s largest Niobium producer), the Company’s strengthened balance sheet following a A$5 m placement to European investors, and commercial validation through MoUs with SKI, Fangda, Xinhai and REAlloys.

Why Araxá Matters: Strategic Advantages

High-Grade, Near-Surface Mineralization: Drilling at the project’s East Araxá target has confirmed thick intervals of high-grade mineralisation from surface in the first three follow-up reverse circulation (RC) drill holes. This translates to lower mining costs and faster project development.
Strategic Location: Araxá is situated in a region with a long history of commercial niobium production, providing access to infrastructure, a skilled workforce, and government support for expedited project approvals.
Dual-Commodity Potential: The presence of both rare earths and niobium provides revenue diversification and mitigates risk. Niobium, a critical mineral used in high-strength steel and lithium-ion batteries, adds another layer of value to the project.
Strong Local Support: St George Mining has fostered strong relationships with local communities and government officials, ensuring responsible and sustainable development of the Araxá Project.
Strategic Partnerships: St George Mining has partnered with Shandong Xinhai Mining Technology & Equipment Inc (Xinhai) to fast-track the development of its Araxá Niobium-Rare Earths Project in Minas Gerais, Brazil. Also St George Mining has struck a strategic alliance with US-based REAlloys Inc., a government-backed supplier of critical magnet materials, to advance and commercialise rare earths production from its 100%-owned Araxá Project in Brazil.

The Road Ahead: Milestones and Opportunities

St George Mining is aggressively pursuing its vision for Araxá, with several key milestones on the horizon:

Resource Expansion: Ongoing drilling programs are aimed at significantly expanding the existing JORC-compliant mineral resource estimate.
Metallurgical Testing: Collaboration with REAlloys will assess the suitability of Araxá material for magnet production, paving the way for downstream processing and value addition.
Feasibility Studies: Comprehensive studies are underway to evaluate the economic viability of the project and guide future development decisions.
Offtake Agreements: St George Mining is actively seeking offtake agreements with strategic partners to secure long-term revenue streams.

Navigating the Legal and Jurisdictional Landscape

Mining projects, particularly those involving critical minerals, operate within a complex web of laws and regulations. St George Mining is committed to adhering to the highest standards of environmental protection, social responsibility, and corporate governance.

The Bottom Line: A Compelling Investment Opportunity

St George Mining’s Araxá Project represents a compelling investment opportunity in the rapidly growing rare earths sector. With its world-class resource, strategic location, strong local support, and experienced management team, St George Mining is well-positioned to become a significant player in the global rare earths supply chain.

Call to Action

Are you looking to capitalize on the rare earths revolution? Contact us today to learn more about St George Mining and the Araxá Project. Our team of experts can provide you with the insights and guidance you need to make informed investment decisions.