St George Mining Ltd (ASX:SGQ) has appointed leading Brazilian environmental consultancy Alger to advise on socio-environmental and cultural heritage matters in connection with the licensing of proposed mining operations at the advanced, high-grade niobium-rare earth element (REE) Araxá Project in Brazil.
The company is finalising arrangements for the 100% acquisition of the project, in the first-class mining jurisdiction of Minas Gerais, and is focused on ensuring its Brazil-based team is ready to commence on-the-ground work as soon as the acquisition is completed.
Alger has an impressive track record of assisting with the grant of licences for numerous mining projects in Brazil – including Brazil’s first producing lithium mine, Grota do Cirilo owned by Sigma Lithium (TSXV:SGML) Resources in Minas Gerais
“The appointment of the well-credentialled Alger team to assist with our licencing process in Brazil follows the signing on October 30 of the MoU with the State of Minas Gerais, pursuant to which the State will assist us to streamline the approvals process for the Araxá Project," St George Mining executive chair John Prineas said.
“We believe these initiatives have created a strong platform to drive the project forward and secure all licences and approvals required for the successful development of a mining operation.
“The appointment of Alger also highlights St George’s commitment to conduct our operations in accordance with best-practice ESG standards. We will ensure that our mining operations will address and adhere to all relevant environmental, social and permitting standards.
“We are extremely excited about completing the acquisition of Araxá and continue to assemble a first-class team that can hit the ground running.”
Lengthy and impressive track record
Alger (Alger Consultoria e Assessoria Juridica) has a lengthy and impressive track record of arranging regulatory approvals required for operating mines in Brazil, including environmental licences, heritage approvals and operation licences.
The firm has also been engaged by ASX-listed companies Latin Resources Ltd (ASX:LRS, OTC:LRSRF), Meteoric Resources Ltd and Viridis Mining and Minerals Ltd (ASX:VMM) to assist with their respective Brazilian operations.
Germano Vieira is a principal of Alger and will lead the team advising St George. He is a Professor of Law and, prior to establishing Alger, occupied very senior roles in government environmental agencies including as secretary of Environment and Sustainable Development of Minas Gerais and president of the National Association of State Environmental Entities.
Alger will provide advisory services to St George to ensure the viability, installation and operation of a mining operation at the Araxá Project.
An attractive opportunity
St George identified many attractive features of the Araxá project, including its high-grade mineralisation established during historical drilling, the world-class location in Minas Gerais, its strong foundation to deliver a globally significant niobium-REE resource and the project's “enviable” development potential.
Extensive high-grade niobium mineralisation has already been discovered at the project – with more than 500 intercepts of niobium grades above 1% – providing a strong foundation for St George to quickly progress to potential resource definition.
In addition to niobium, high-grade rare earths mineralisation has been confirmed by drilling over a widespread area.
The high-grade mineralisation commences at surface and is open in all directions, with excellent prospects to substantially expand the known mineralised footprint. Less than 10% of the project area has been effectively drilled and there has been limited drilling beyond 50 metres from surface.