Highlights

  • Araxá mineral resource estimate reached 111.2 million tonnes in 2026.
  • Measured and Indicated resources increased by 155% in the update.
  • Environmental assessment was submitted during the September quarter.
  • Pilot plant tests commenced to inform processing flowsheets.

St George Mining Limited (ASX:SGQ) explores and develops mineral projects, with its principal 2026 activity focused on the Araxá rare-earths and niobium project in Minas Gerais, Brazil. Its shares closed at AUD 0.055 on 5 November 2026. The September-quarter report described an expanded mineral resource estimate, continued drilling, the beginning of environmental permitting and processing test work. Together, these steps provide new technical information for the project, while commercial production and construction decisions remain separate future stages.

Araxá Mineral Resource Update

During the September 2026 quarter, St George reported an updated Araxá mineral resource estimate of 111.2 million tonnes grading 3.57% total rare earth oxides and 0.57% niobium pentoxide, with further individual rare-earth grades disclosed. Measured and Indicated resources increased by 155% to 75.2 million tonnes. These classifications describe the level of geological confidence in a mineral estimate, not material already mined or converted into saleable product. The resource announcement also identified approximately 3.98 million tonnes of contained total rare earth oxides and 630,000 tonnes of niobium pentoxide. For St George Mining (ASX:SGQ), the expanded estimate supports continued technical investigation but does not on its own determine project economics, financing requirements or a construction timetable.

Drilling Results and Technical Interpretation

The company continued drilling during 2026 to improve its understanding of mineralisation. One reported hole, AXDD166, returned 135.1 metres at 4.86% total rare earth oxides from surface, including an interval of 69.0 metres at 7.33%. These are downhole intersections and must not be treated as automatically equivalent to mineable widths. Their significance depends on geological continuity, metallurgical behaviour, mining design and the resource model as a whole. St George Mining (ASX:SGQ) has therefore advanced both exploration and resource definition instead of relying on isolated grades. The updated classification and drill results offer different forms of evidence: the former describes an estimated inventory and the latter provides individual geological observations used to refine the interpretation.

Permitting, Pilot Tests and Processing Plans

During the quarter, St George submitted an environmental impact assessment as part of the Araxá permitting process. Submission is an administrative milestone and is not itself permission to construct and operate a mine. In parallel, the company started pilot plant work intended to validate flowsheets, study recoveries and inform future feasibility assessments. This is relevant because rare-earth and niobium projects depend on successful separation and processing as well as an identified mineral resource. St George Mining (ASX:SGQ) also announced a collaboration directed at exploring a rare-earth processing centre in Minas Gerais. Such a concept remains dependent on technical design, partner arrangements and commercial assessments. The various programmes therefore need to be monitored on their own timelines.

Funding and Key Insights

The company reported completion of an AUD 60 million Capital Placement in 2026 to support Araxá activities. Funding provides capacity to undertake planned work but also requires disciplined allocation among drilling, metallurgy, studies and permitting. The company reported cash of approximately AUD 86.2 million at 30 September 2026. Resource growth does not eliminate uncertainty surrounding recoveries, infrastructure, environmental conditions, market Demand or eventual capital costs. For St George Mining (ASX:SGQ), Key Insights are the larger mineral resource estimate, ongoing technical evaluation and the commencement of formal permitting. Future reports should establish whether pilot results and development studies support an economically and operationally viable pathway.