SGQ hits mineralisation in step out holes on South America’s largest and highest grade rare earths deposit.

Our rare earths and niobium Investment St George Mining (ASX: SGQ) just hit more extensions to its rare earths and niobium project in Brazil.

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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.

And today, SGQ hit 100m+ intercepts ~200m to the north of its existing resource (a good sign with SGQ looking to upgrade its resource again by the end of the year):

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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:

SGQ is currently drilling its project 24/7 with FOUR rigs on site looking to upgrade the resource (for the second time this year) in Q3 (source).

IF we keep seeing results like the one’s today - stepping out of the existing resource footprint that upgrade could be a strong catalyst for SGQ.

The main takeaway for us from today’s results was that most of the results (from the 13 holes announced today) came from completely outside of the existing mineral resource area.

Here were the two standout hits (hole 95 and 107):

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SGQ also hit more minersalisation within its existing resource footprint

There were also further exceptionally high grade results from within the existing resource area:

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We have jokingly hinted at this in the past that it seems to begin getting a little boring continually mentioning similar results, but this goes to show how outstanding the resource is shaping up to be.

Here is a look at those infill results, noting that there is over 500m extending to the east that hasn’t been drilled by SGQ, with only 2 holes from back in 2011 by the then owners:

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SGQ is presenting at the RIU conference in Sydney

We are in Sydney today for the RIU conference and will try to catch John at the booth.

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

John will be presenting SGQ tomorrow at 10:30am AEST - it should be live streamed on youtube here.

What we want to see next from SGQ

🔄 Drill results from expansion drilling

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

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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):

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