en.Wedoany.com Reported - Australian-listed company St George Mining Ltd (ASX:SGQ) announced on June 30, 2026, that its Araxá Rare Earths and Niobium Project in Minas Gerais, Brazil, intersected 199.5 meters of continuous mineralization from surface in diamond drill hole AXDD120, confirming the continuity and significant scale of high-grade mineralization starting from surface. The company also confirmed it has secured A$60 million in funding commitments to accelerate the project's development.
Located in Minas Gerais, Brazil, the Araxá Project is a carbonatite-hosted rare earths and niobium deposit. According to the company's disclosure, the project has been recognized as the largest carbonatite-hosted rare earth resource in South America and one of the highest-grade rare earth deposits in the Western Hemisphere. The latest drilling results further expand the mineralization footprint, extending it 200 meters northward. In addition to hole AXDD120, multiple other drill holes have also intercepted continuous mineralized intervals exceeding 150 meters, further confirming the deposit's scale, near-surface geometry, and potential for large-scale open-pit development. Mineralization remains open at depth, as hole AXDD120 ended in mineralization.
On the funding front, St George Mining successfully raised A$60 million through two tranches of placements to institutional investors, issuing 600 million new shares at A$0.10 per share. Among the participants, Hancock Prospecting Pty Ltd, controlled by Australian mining magnate Gina Rinehart, subscribed for A$20 million, increasing its stake in St George Mining from approximately 6% to 10.5%. Executive Chairman John Prineas stated that the funding will be used to bolster cash reserves and accelerate development activities at the Araxá Project.
The newly acquired drilling data will be incorporated into a mineral resource estimate update planned for the third quarter of 2026, which will underpin subsequent economic studies and potential mining operations. Thereafter, the company plans to shift drilling activities to the nearby East Araxá target, aiming for further resource upgrades in the fourth quarter of 2026. To date, approximately 14,500 meters of drilling have been completed this season, with multiple work streams progressing concurrently.
