SGQ hits largest rare earth intercept from South America’s largest hard rock rare earths project

Our rare earths and niobium Investment St George Mining (ASX: SGQ) just drilled its largest intercept at its rare earth project in Brazil.

SGQ owns 100% of 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 is currently drilling the project with three rigs - working toward a resource upgrade on the project in this quarter. (source)

Today, SGQ hit the largest intercept from the project to date and most importantly, a big section where the grades were above the current average grade of its resource…

OUTSIDE of the current resource footprint…

SGQ hit 164.45m at 2.93% rare earths and 0.39% niobium from surface - Including a 62m interval @ 5.15% rare earths and 0.66% niobium.

For context SGQ’s current resource has an average grade of ~4.13% TREO (total rare earths oxide) AND Niobium grades of 0.63%.

Here is a cross section from today’s announcement showing the intercepts outside of the current resource:

(source)

And here is an aerial view of today’s results released from across the wider project area:

(source)

Today’s results also continue to show the niobium/total rare earth ratio continue to show around 20%, which is important because niobium is a key metal required for powerful magnets.

SGQ also included a top view which shows some of today’s results extending the resource to the west:

(source)

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

(hopefully that translates to a big resource upgrade for SGQ)

Here is an image we have combined a some of the recent drilling result onto which shows that the drilling results are quickly expanding the resource area:

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

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)