SGQ intercepts niobium grades up to 7.2%, 400m north west of its existing resource

Our rare earths and niobium Investment St George Mining (ASX: SGQ) just hit high grade niobium outside of its current resource estimate…

SGQ’s project already 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 currently 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 hit multiple intercepts to the north of its current resource, all with niobium grades well above its current resource estimate.

SGQ hit an 81.5m intercept with niobium grades averaging 1.27% from surface…

(including two higher grade sections - 43m at 2.01% niobium and 10.5m @ 3.41% niobium).

(source)

SGQ’s project was getting headlines mostly for its rare earth content in the back end of last year - but we first Invested because we liked how big the niobium resource was too.

Remembering that SGQ’s project actually sits right next door to the world’s biggest niobium mine, owned by multi billion dollar private company CBMM:

(CBMM produces ~80% of the world’s niobium)

(source)

SGQ is drilling the project right now with 3 diamond drilling rigs, 24/7… (source)

After today’s news SGQ has high grade niobium and rare earths discovered ~400m to the northwest, 230m to the west, 1km to east of its existing resource.

Which should mean we see a fairly strong resource upgrade come the end of this quarter.

SGQ confirmed today that even though drilling on the project would continue past the resource upgrade, the upgrade would come this quarter:

Here are the extensions SGQ had hit on the project before today:

And now we have extensions to the northwest too:

Hopefully that means SGQ’s resource is substantially upgraded from where it is today.

What’s next for SGQ?

Drilling results 🔄

Drilling is still ongoing on site (24/7) - here is a picture from a recent announcement showing the night shift crew drill the asset:

(Source)

In the short term the main thing we want to see are drill results.

Ideally we see big extensions at depth and to the north/east/west of SGQ’s current JORC resource estimate, which initial results like those today have shown.

(Source)

Beyond the drilling 🔄

Over the next 12-18 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.
• Start working on development studies - SGQ has already commenced environmental, geotechnical and development studies with a view of getting to economic studies in Q4-2025.
• 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)