St George Mining Limited (ASX:SGQ) Initiates Niobium Project Collaboration
Project Overview
St George Mining Limited (ASX: SGQ) has announced the commencement of a program to optimise downstream processing for niobium and rare earths at its Araxá Project in Brazil. The Company has signed a Technical Collaboration Agreement with EMBRAPII and SENAI, two leading scientific agencies in Brazil, to develop a sustainable processing flow sheet aimed at producing ferroniobium and rare earth products.
Collaboration Details
The collaboration will involve studies focused on improving the recovery rates of niobium and rare earth elements (REE). St George will cover 40% of the project costs, with EMBRAPII and SENAI funding 50% and 10%, respectively. This agreement grants St George exclusive rights to commercialise the intellectual property developed for ten years without incurring royalties to the agencies involved.
High-Grade Resources
The Araxá deposit is notable for its extensive high-grade niobium and rare earth mineralisation. Recent drilling results show intercepts with grades exceeding 8% Nb2O5 and 33% total rare earth oxides (TREO). The Company has identified multiple promising drill results, indicating significant resource potential.
Executive Comments
John Prineas, Executive Chairman of St George Mining, stated, “The Technical Collaboration Agreement is a key step to support the development of an optimum processing flowsheet for the Araxá Project. We are delighted to have finalised this agreement which has the potential to provide a major breakthrough in the efficiency and sustainability of mining and processing activities at Araxa.” He also highlighted the significance of this project in bolstering St George’s position within Brazil’s critical metals supply chain.
Future Developments
St George is set to complete the acquisition of the Araxá Project in Q1 2025. The Company is actively assembling a highly skilled team in Brazil to manage the exploration and development stages.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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