Worley joins St George Mining for Araxá Project development - ICYMI

St George Mining Ltd(ASX:SGQOTC:SGQMF) View Price & Profile Worley joins St George Mining for Araxá Project development - ICYMI

Published: 21:36 14 May 2026 EDT

St George Mining Ltd (ASX:SGQ, FRA:S0G, OTC:SGQMF) earlier this week announced the appointment of Worley Engenharia Ltda, the Brazilian subsidiary of global engineering group Worley Ltd, as technical adviser for feasibility work at the company’s wholly owned Araxá Niobium-Rare Earths Project in Minas Gerais, Brazil.

Executive chairman John Prineas told Proactive the appointment represented a major milestone as the company transitions from exploration into project development planning.

Prineas said St George Mining had already established a substantial mineral resource at Araxá and continued to deliver strong drilling results from surface, with further resource growth expected. He described the project as potentially “big enough to become a world class rare earth and niobium player”.

According to Prineas, the company’s resource scale already compares favourably with established rare earth projects, noting that Araxá may already exceed the size of Lynas Rare Earths’ Mount Weld resource at the time it entered production.

The company has commenced metallurgical test work programs in Brazil and Canada to support feasibility studies and future plant design. Prineas said Worley’s role would include reviewing metallurgical outcomes, assisting with process flow sheet development and helping establish a staged mining plan.

He indicated that St George Mining was likely to begin with smaller starter pits rather than developing the entire resource simultaneously, supporting a lower-risk pathway toward production.

While niobium was initially expected to be prioritised due to its comparatively straightforward processing route, Prineas said the rare earths component of the project was also progressing positively. He suggested the company could ultimately adopt a combined production strategy for both commodities.

Potential catalysts for the company include the release of initial feasibility study outcomes, expected from July onwards, as well as continued resource expansion drilling and further metallurgical results.

Prineas also highlighted increasing commercial interest in the project from potential end users seeking future supply agreements. He said parties in both the niobium and rare earths sectors had approached the company regarding possible offtake arrangements and development support funding.

He told Proactive that the next stage of feasibility work could represent a significant rerating opportunity for the company as it advances toward development.

Key highlights

St George Mining appointed Worley Engenharia Ltda as technical adviser for the Araxá Project feasibility work. The company is transitioning from exploration into development planning. Ongoing drilling is expected to increase the project resource further. John Prineas described the project as potentially “world class” in scale. Metallurgical test work is underway in Brazil and Canada. Worley will assist with plant design, flow sheet optimisation and mine planning. Initial mining plans are expected to focus on smaller starter pits. The company may pursue a combined niobium and rare earth production strategy. End users are already expressing interest in offtake agreements and development funding. Initial feasibility study outcomes are targeted for July. Management expects feasibility progress to support a future market rerating.

Proactive: Welcome back to Proactive Investors. Ladies and gentlemen, I’m your host Kerry Stephenson. I’ve asked John Prineas, executive chairman of St George Mining, ASX code SGQ, to join us today. The company has a niobium and rare earths project in Brazil and has been consistently delivering milestones. Most recently, the company appointed Worley to provide technical advice around the project. Why is that important for current and future investors to understand?

John Prineas: The appointment of Worley really signals that we are now on the pathway to development. We’ve announced a great resource and continue to drill strong results from surface, so we expect to deliver a larger resource in due course. It’s already big enough to become a world-class rare earth and niobium player. We’re probably already three times bigger than Lynas was when Mount Weld was brought into production. We’re ready to move down the development pathway now, and there is no better name than Worley to help us do that.

Proactive: How does that process work? What will Worley actually do to help de-risk the project and move it toward mining?

John Prineas: We’ve already started metallurgical test work with SENAI in Brazil and SGS in Brazil and Canada. That’s the first step in proving the production flow sheet and designing the plant. Worley will review the metallurgical work and work with us on the right plant design to get the project into production. They’ll also help develop the mine plan. We won’t mine the entire resource immediately — we’ll start with smaller pits and expand from there. It’s all part of starting the mining operation and monetising the mineralisation.

Proactive: Will the focus initially be niobium or rare earths, or both?

John Prineas: Initially we thought niobium would come first because it’s a simpler flotation process and CBMM has been doing it for decades. Some of our team members previously operated that process. However, as we progress, the rare earths component is also looking very achievable. Investors should not be surprised if we adopt a combined production strategy.

Proactive: Are potential customers already approaching the company regarding offtake or development funding?

John Prineas: Definitely. End users can see the quality and scale of the project, and the fact that the mineralisation starts from surface at high grade. That should reduce development risks and allow us to move quickly once design and permitting are completed. We are seeing interest from both niobium and rare earths customers who want to secure offtake agreements and potentially help fund development. It’s a very exciting growth period for us.

Proactive: What do you think changes for the company once the feasibility study is delivered?

John Prineas: Once we release a feasibility study it becomes a completely different game for us. If you look at companies like Arafura, the valuation difference largely comes down to having completed feasibility work. Worley will help us achieve that next level, and I believe it will be a major rerating event over the coming months.

Proactive: When could investors expect the feasibility study?

John Prineas: We’re hoping to deliver the first stage in July and then continue improving the studies after that.

Proactive: What do you think the market is currently missing?

John Prineas: I don’t think the market is missing anything. I think it’s waiting for the next phase of value creation, which is the feasibility work. Worley would not have signed on if this was not a credible project. Their involvement will help us achieve the next level.

Proactive: John, it’s always great to speak with you. St George Mining continues to hit milestones at its niobium and rare earths project in Brazil. The project is high-grade from surface and significant in scale, and the company is taking a systematic approach to development with Worley now providing technical advice. Thanks for joining us today.

John Prineas: Thank you, Kerry.