SGQ acquires land for processing infrastructure at its rare earths/niobium project

Our rare earths and niobium Investment St George Mining (ASX: SGQ) just acquired land suitable for processing infrastructure next to its project in Brazil.

SGQ’s project has the following resources:

• 40.6Mt of Rare Earths at grades of 4.13% TREO (total rare earths oxide)
• 41.2Mt of Niobium at grades of 0.63%

Which makes it the largest and highest-grade carbonatite-hosted rare earth deposit in South America…

… and the second highest grade REE deposit globally in the Western world.

Today, SGQ has announced that it has secured land near the project that will enable it to progress development activities towards production.

This ground is flat lying which makes it suitable for installing the processing infrastructure that would be needed to develop SGQ’s project. .

Looking at CBMM’s project nearby (the world’s biggest producer of niobium - supplying 80% of the market).

They also have their processing plant slightly outside of the broader carbonatite complex (highlighted in yellow) - SGQ now has the landholding to follow a similar development setup:

(source)

SGQ is currently putting together a feasibility study and so we think the land acquisition ahead of that study being finalised is a good move by the company.

SGQ is currently drilling the project looking to expand the resource across most of the project area that sits inside that carbonatite complex.

SGQ has already shown the resource could extend ~230m to the west and ~1km to the east (source) (source).

(source)(source)(source)(source)

IF SGQ wanted to mine a big chunk of that ground, then it wouldn't leave much space for processing infrastructure, which is now de-risked with that plot of land ~2km away.

What’s next for SGQ?

Drilling results 🔄

SGQ is currently drilling its project 24/7 with three diamond core rigs and one RC rig”.

SGQ expects to have a resource upgrade out for the project later this month.

AND for drilling to continue indefinitely into 2026. (source)

In the short term the main thing we want to see are drill results confirming big extensions at depth and to the north/east/west of SGQ’s current JORC resource estimate:

(Source)

Beyond the drilling 🔄

Over the next 12 months, a lot of the catalysts for SGQ could come at hard-to-forecast times:

• Updates on downstream processing strategy - We want to see SGQ define its downstream rare earths strategy. We are especially looking forward to an update in relation to the US. SGQ recently extended its agreement with US magnet producer REalloys, who SGQ is aiming to supply feedstock to. (source)
• Work on development studies - SGQ has already commenced environmental, geotechnical and development studies, which were mentioned as continuing here and in the most recent quarterly, that negotiations with the government were underway to expedite these (source).

Today, SGQ confirmed a scoping study for a niobium mine and feasibility studies for rare earths were underway. (source)

• Pilot plant trials - SGQ has signed an agreement with CEFET to jointly collaborate on a new Pilot Plant trial that will build on the prior 9 month trial from 2012-13 which successfully produced rare earth product at over 99% purity and recoveries of 86% TREO.

SGQ is also participating in the “MAGBRAS Initiative” - a program that has major automakers like Stellantis working toward building Brazil’s first permanent magnet-making facility.

• Metwork and sample production - SGQ should have results from this in the pipeline with the creation of the St George Technical Centre. The main catalyst we are looking forward to is the re-starting of SGQ’s pilot plant with development of this underway with the agreement signed with CEFET to host and jointly collaborate. This will allow for product samples to be produced for potential strategics/offtake partners.
• Permitting - SGQ is targeting completion for permitting by Q4-2026.

(source)