SGQ kicks off permitting for rare earths-niobium project

Our rare earths and niobium Investment St George Mining (ASX: SGQ) officially kicked off permitting for its project in Brazil.

SGQ's 100% owned project is the largest high-grade carbonatite hosted rare earths resource in South America.

It sits on the same hard rock geology as the two biggest Western producers, $14BN MP Materials and $16BN Lynas.

AND sits directly next door to CBMM, the private company that produces ~80% of the world's niobium.

(source)

Today, SGQ formally lodged the Environmental Impact Assessment (EIA) and the Environmental Impact Report (RIMA) with the state environmental authority in Minas Gerais.

The documents run to roughly 800 pages and are the product of 14 months of studies and fieldwork by the SGQ team and consultants.

The licensing process for the project involves a three stage process, a Preliminary Licence, then an Installation Licence, then an Operation Licence:

(source)

SGQ expects the first two stages to be completed within 12 months, with construction estimated for the second half of 2029 (subject to conditions and a final investment decision).

The EIA was prepared on a full greenfields basis, covering the open pit mine plus a new processing, refining and metallurgical complex:

(source)

Permitting is running in parallel with the feasibility study led by $5.6BN Worley, and SGQ is also evaluating the potential use of existing regional processing plants, so it appears SGQ is covering all bases on the development pathway.

All of this builds on SGQ's resource upgrade from earlier this month, which came in at 111.2Mt at 3.57% TREO (total rare earth oxides) and 0.57% niobium.

This is now getting in the same conversation as both Lynas and MP Materials, and drilling is still ongoing:

(source)

This upgrade included a 155% increase in the higher-confidence Measured and Indicated part of the resource

So with 68% of that resource now sitting in the Measured and Indicated categories, the studies also underway have plenty of resources to work with.

(source - our article on JORC resources)

A higher confidence resource estimate matters because it's typically what the larger institutional investors look for when thinking about development financing for a project.

(the more certain a company is in its orebody, the less risky it is for a financier to back)

See our educational article on resource categories here: What is a JORC resource? How does a company define a resource? 🎓

What’s next for SGQ?

Drilling results 🔄

SGQ is currently drilling its project 24/7 with five diamond rigs - focused mostly on its discovery to the east of its current resource.

SGQ expects to have a maiden JORC resource out on that project in Q4-2026. (source)

(source)(source)

Beyond the drilling 🔄

Over the next 12 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. SGQ recently extended its agreement with US magnet producer REalloys, who SGQ is aiming to supply feedstock to (source). SGQ has confirmed there are talks with more downstream partners and offtake partners, plus multiple strategic investors.
• Work on development studies - SGQ has already commenced environmental, geotechnical and development studies. SGQ has economic studies due on its deposit in Q3-Q4 2026. (source)
• 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.

The pilot plant is expected to begin in H2 and should allow for product samples to be produced for potential strategics/offtake partners.

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.

• Permitting - SGQ is targeting completion for permitting to progress throughout 2026 with 2 mining concession applications and 1 exploration permit.

(source)