SGQ signs processing alliance for European rare earths markets

Our rare earths and niobium Investment St George Mining (ASX: SGQ) just signed an MOU to test its rare earths on processing tech - as part of an EU funded permanent magnets program…

SGQ is working with Tecnicas Reunidas.

Tecnicas Reunidas is the same group leading the “PERMANET Project”, an EU-funded program involving 12 countries and 32 partners - aiming to build an EU value chain for permanent magnets.

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Before today, SGQ already had downstream processing partnerships in two key markets:

• US - MOU with REAlloys, the Ohio-based US government magnet supplier that services the National Defence Stockpile. REAlloys is currently testing SGQ's rare earth product.
• Brazil - Alliance with MagBras, part of a broader initiative backed by major automakers like Stellantis to build Brazil's first permanent magnet-making facility.

And now, in Europe with Tecnicas Reunidas to see if SGQ’s material can be processed into mixed rare earth carbonate and rare earth oxide.

IF the test work is successful, it could lead to the design of a processing flowsheet and an industrial plant for the SGQ + a license agreement to use Tecnicas tech on the deposit.

SGQ's project already hosts the largest hard-rock rare earths deposit in South America - 70.91Mt at 4.06% TREO.

It's the third largest behind two of the biggest operating assets owned by $12BN MP Materials and $19BN Lynas Rare Earths:

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We think the size and grades of SGQ’s asset could attract corporate/government interest to SGQ - and now if the downstream processing programs come in - that interest could be from within Brazil, the US or out of the EU…

(At a time when everyone is looking for non-Chinese alternatives)

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 to include the ongoing drilling- source).

🔄 Downstream processing updates — now on three fronts

Here are the processing partnerships we are tracking:

• 🔄 REAlloys (US) - testing SGQ's rare earth product for US defence magnets
• 🔄 Nanum Nanotecnologia (Brazil) - cerium/lanthanum separation (we covered this here)
• 🔄 Tecnicas Reunidas (Europe) - (today's MOU)

Beyond those workstreams we are also looking out for:

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