St George Mining's Partnership with EMBRAPII and SENAI Shapes Araxá Project's Future

Key Highlights

• Collaboration: St George partners with EMBRAPII and SENAI for sustainable niobium and rare earths processing from the high-grade Araxá Project in Brazil.
• Program Focus: Optimizing downstream processing for the production of ferroniobium and rare earth products.
• Government Support: EMBRAPII covers 50% of costs, SENAI 10%, and St George 40%, making this a government-subsidized initiative.
• Exclusivity: St George secures exclusivity for commercializing the intellectual property developed, positioning the company at the forefront of Brazil's critical metals supply chain.
• Araxá Project: High-grade niobium and rare earths, with drilling showing exceptional results, including up to 8% Nb2O5 and 33% TREO.

Introduction to the Araxá Project

St George Mining (ASX:SGQ) has made a significant leap forward in its operations by entering into a Technical Collaboration Agreement with two of Brazil’s leading scientific agencies: EMBRAPII (Brazilian Association for Research and Industrial Innovation) and SENAI (National Industrial Educational Services). This partnership aims to optimize the processing of niobium and rare earth elements (REE) extracted from the Araxá Project, a high-grade niobium-REE deposit located in Minas Gerais, Brazil.

The Araxá Project is one of the most promising mining projects in Brazil, known for its rich mineralization of niobium and rare earth elements. These elements are critical for the development of modern technology, including electronics, renewable energy, and electric vehicles. The project hosts some of the world’s highest-grade niobium and REE mineralization, making it an attractive venture for St George Mining (ASX:SGQ).

The Role of Niobium and Rare Earths

Niobium and rare earth elements are essential for various industrial applications. Niobium, in particular, is vital for the production of high-strength, low-alloy steels used in infrastructure, aerospace, and automotive industries. Rare earths are crucial for the manufacture of magnets used in electric motors, wind turbines, and other high-tech products.

As global demand for clean energy solutions, electric vehicles, and advanced technologies grows, so does the need for a reliable supply of these critical materials. The Araxá Project holds substantial promise in meeting this demand, with its high-grade mineralization offering a secure source for niobium and REE production.

Why Downstream Processing Matters

Downstream processing plays a crucial role in the mining industry, particularly when it comes to extracting valuable elements from ore deposits. The goal is to convert raw ores into high-value products that can be sold in the market. In the case of the Araxá Project, the focus is on producing ferroniobium and rare earth products.

Ferroniobium, an alloy of niobium, is essential for strengthening steel, and rare earth elements are vital for high-performance magnets and other electronic components. However, the efficient and sustainable extraction of these products requires advanced processing techniques that minimize waste and energy consumption.

The Importance of the Technical Collaboration Agreement

The Technical Collaboration Agreement between St George Mining (ASX:SGQ), EMBRAPII, and SENAI is a strategic step toward optimizing the extraction and processing of niobium and rare earth elements at the Araxá Project. EMBRAPII and SENAI bring significant expertise in research, development, and industrial innovation.

Their role is to collaborate with St George Mining (ASX:SGQ) on developing sustainable processing techniques that maximize the recovery of niobium and REEs while minimizing environmental impact.

The agreement marks a breakthrough in advancing the technical knowledge needed to separate rare earth elements from niobium effectively. This process will not only improve the overall efficiency of mineral resource utilization but also align with sustainable mining practices that prioritize environmental, social, and governance (ESG) standards.

St George Mining’s Strategic Approach

St George Mining (ASX:SGQ) is no stranger to the importance of innovation and sustainability in the mining industry. The company has been committed to leveraging cutting-edge technology and partnerships to enhance the efficiency of its mining operations. With the Araxá Project, St George Mining (ASX:SGQ) aims to position itself as a leader in the production of niobium and rare earths.

The partnership with EMBRAPII and SENAI builds upon previous collaborations, including the Memorandum of Understanding (MoU) signed in December 2024 with SENAI to cooperate on research and development for rare earth magnets. The goal is not only to optimize the extraction of niobium and REEs but also to contribute to Brazil’s growing importance as a supplier of critical metals for global markets.

The Significance of Government Support

One of the most notable aspects of the Technical Collaboration Agreement is the significant government support St George Mining (ASX:SGQ) has secured through EMBRAPII and SENAI. EMBRAPII is a government-funded agency that provides support for industrial research and development projects, while SENAI focuses on training and developing the industrial workforce in Brazil.

The government’s involvement in the program is essential for reducing the financial burden on St George Mining (ASX:SGQ), as the costs of the co-venture will be split between EMBRAPII (50%), SENAI (10%), and St George Mining (ASX:SGQ) (40%). This arrangement not only provides St George Mining (ASX:SGQ) with the resources needed to move forward but also aligns the project with Brazil’s broader economic and industrial goals.

The Focus on Sustainability

Sustainability is a central theme in the Technical Collaboration Agreement. As the world becomes increasingly focused on responsible resource extraction, St George Mining (ASX:SGQ), EMBRAPII, and SENAI are committed to ensuring that the extraction and processing of niobium and rare earth elements at the Araxá Project adhere to the highest environmental standards.

The collaboration aims to develop processing techniques that minimize waste and energy consumption, ensuring that the extraction of these critical metals is both economically viable and environmentally responsible. By focusing on sustainability, the partnership is positioning the Araxá Project as a model for future mining operations worldwide.

Araxá Project’s Potential for the Future

The Araxá Project’s high-grade niobium and rare earths mineralization offers immense potential for the future. With drilling results showing intercepts of up to 8% Nb2O5 and 33% TREO, the project is well-positioned to become a key supplier of these critical metals. The exclusive rights to commercialize the intellectual property developed through the co-venture further solidify St George Mining’s (ASX:SGQ) role in shaping Brazil’s niobium and rare earths supply chain.

Moreover, the sustainable processing techniques developed through this collaboration could set a new standard for the industry, ensuring that the Araxá Project not only meets global demand but also contributes to the advancement of environmentally responsible mining practices.

Future Outlook

The Technical Collaboration Agreement between St George Mining (ASX:SGQ), EMBRAPII, and SENAI is a major step forward in optimizing the downstream processing of niobium and rare earth elements from the Araxá Project. With government support and a strong focus on sustainability, the project is positioned for long-term success.

As the demand for critical metals continues to rise, the Araxá Project holds the potential to become a major player in the global supply chain for niobium and rare earths. With innovative processing techniques and a commitment to ESG standards, St George Mining (ASX:SGQ) is well on its way to transforming the Araxá Project into a key contributor to Brazil’s industrial future.

The future of the Araxá Project looks bright, and St George Mining (ASX:SGQ) is poised to lead the way in responsible and sustainable mining practices. This will pave the way for future advancements in the industry.