SGQ appoints $6BN Worley to lead project development on South America’s largest, highest grade rare earths project

Our Investment St George Mining (ASX: SGQ) just appointed $6BN Worley to lead the development of its rare earths and niobium project in Brazil.

SGQ’s resource is already 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.

SGQ’s resource is already comparable to the two biggest hard rock carbonatite assets in the world - both of which are currently in production and owned by $16BN MP and $19BN Lynas:

Now, SGQ moving the asset into the development stages with the following catalysts due inside the next 6 months:

• Another resource upgrade - drilling is ongoing 24/7 with 4 rigs and a resource upgrade to follow in Q3
  
• Economic studies incoming (Q2/Q3).
  
• Other studies including Environmental, Geotechnical and Development underway.
  

Now, concurrently, SGQ will have the Brazilian subsidiary of $6BN ASX listed Worley leading project development including:

• Metallurgical and process engineering,
  
• Feasibility and cost study work,
  
• Process plant design,
  
• Mine planning,
  
• Tailings management,
  
• Procurement and plant construction.
  

By the end of the year, we should have a fairly strong overview on how SGQ moves its project from where it is now into the development stage.

AND hopefully, that gives the market a clearer path to seeing how SGQ can achieve a valuation comparable with its western peers (MP and Lynas) who have similar assets…

We listened in to SGQ’s Managing Director John Prineas present at the RIU conference in Sydney this morning where he also discussed that valuation difference - for anyone who missed it, here is a link watch the presentation:

(we have timestamped the link, if it doesn’t stick it’s around 2h:41min into the stream)

For anyone following the conference along from home, here is SGQ’s updated Investor presentation for RIU - Full presentation here

What’s next for SGQ?

🔄 Drill results from expansion drilling

SGQ has 4 rigs turning 24/7 at its project right now.

(source)

The last update out of SGQ said that ~44 expansion holes had been completed that AREN’T in the current resource estimate.

We are hoping the current drill programs lead to another resource upgrade on the project later this year.

(SGQ has mentioned it is targeting another upgrade in Q3).

🔄 Downstream processing updates - now on FOUR fronts

Here are the processing pathways we are tracking with four different companies across four different jurisdictions.

For rare earths processing:

• 🔄 With REAlloys (US) - Testing SGQ's rare earth product to see IF it meets specifications for US military-grade permanent magnets
  
• 🔄 Nanum Nanotecnologia (Brazil) - Cerium/lanthanum separation to upgrade NdPr concentration by removing lower-value rare earths early in the processing cycle
  
• 🔄 Tecnicas Reunidas (Europe) - Applying proprietary technology to SGQ's ore samples to design an optimal chemical flowsheet
  

And now, with last month’s announcement - for the niobium:

• 🔄 With Boston Metal (US/Brazil) - testing processing tech on SGQ’s niobium resource.
  

We also note SGQ:

• Has signed an agreement for a joint pilot plant trial (building on a prior 9-month trial that successfully produced rare earth product at over 99% purity with 86% recoveries)
  
• Is participating in the MAGBRAS Initiative - a program with major automakers like Stellantis working toward building Brazil's first permanent magnet-making facility
  

Beyond all of that, we are also looking out for the following (specifically that economic study):

(source)