St George Mining Ltd (ASX:SGQ, FRA:S0G, OTC:SGQMF)<\/a> has signed a strategic alliance with Brazilian technology company Nanum Nanotecnologia to explore downstream processing opportunities for rare earths from its Arax\u00e1 project in Minas Gerais, Brazil.<\/p>\n The memorandum of understanding (MoU) will focus on assessing technologies to commercialise cerium contained in the project\u2019s large rare earth resource while upgrading the concentration of higher-value magnet rare earths such as neodymium and praseodymium (NdPr).<\/p>\n Arax\u00e1 hosts a globally significant carbonatite-hosted rare earth deposit with a mineral resource of 70.91 million tonnes at 4.06% total rare earth oxides (TREO), making it the largest and highest-grade deposit of its kind in South America.<\/p>\n While the project contains valuable magnet rare earths and heavy rare earth elements such as dysprosium and yttrium, cerium and lanthanum make up a large portion of the overall resource. These elements are generally lower value but can still be used in applications including catalytic converters, metal alloys and certain magnets.<\/p>\n St George is developing proprietary technology to separate cerium and lanthanum from the rare earth product as part of its metallurgical test work program. Removing these components could potentially increase the concentration of NdPr and heavy rare earths by up to three times, creating a higher-value rare earth oxide product.<\/p>\n Under the alliance, St George and Nanum will collaborate on a number of workstreams including metallurgical testing, evaluating processing technologies and optimising the flowsheet for rare earth product production.<\/p>\n Nanum specialises in nanomaterial technologies and has developed processes for producing commercial products from cerium, making it a potential partner for converting the separated material into marketable products.<\/p>\n The companies will also assess potential marketing strategies for cerium products produced from Arax\u00e1, including the possibility of securing long-term offtake arrangements.<\/p>\n Thiago Amaral, St George Brazil country head (on left) and Fernando Contadini, CEO of Nanum (on right) signing the MoU.<\/em><\/p>\n St George executive chairman John Prineas said the collaboration could unlock additional value from the project\u2019s large rare earth inventory.<\/p>\n \u201cThe magnet and heavy rare earths hosted in our world-class Arax\u00e1 rare earths resource are very significant and the main driver for development of a rare earths mining operation,\u201d he said.<\/p>\n \u201cThe opportunity to also monetise the cerium component of the Arax\u00e1 rare earths deposit can add material value to a potential mining operation at Arax\u00e1.<\/p>\n<\/p><\/div>\n \u201cNanum is an industry leader in nano particles technology and a standout example of Brazil\u2019s ability to be at the forefront of innovation for modern technologies.\u201d<\/p>\n The downstream strategy forms part of St George\u2019s broader push to advance development of the Arax\u00e1 project, which sits in a well-established mining region with existing infrastructure and processing expertise.<\/p>\n Earlier this month, St George\u00a0lifted the Arax\u00e1 resource estimate<\/a> by 75% to 70.9Mt, significantly expanding the project\u2019s inventory<\/a> of rare earths and niobium. The company has also recently been added to the ASX All Ordinaries Index<\/a>, reflecting strong investor interest following its acquisition of the Brazilian asset.<\/p>\n St George continues to progress metallurgical studies and development planning at Arax\u00e1 while exploring opportunities to capture more value through downstream processing partnerships.<\/p>\n<\/p><\/div>\n<\/div>\n<\/div>\n<\/figure>\n