St George Mining (ASX:SGQ) has taken a step in its downstream processing strategy by entering into a memorandum of understanding with Brazilian nanotechnology firm, Nanum Nanotecnologia.
The alliance is designed to unlock the full commercial potential of the Araxá Niobium-Rare Earth Element Project in Minas Gerais, Brazil, by focusing on the high-value "upgrading" of its mineral output.
Araxá is currently recognised as the largest and highest-grade carbonatite-hosted REE deposit in South America, boasting a substantial resource of 70.91Mt @ 4.06% TREO.
While the project is primarily focused on recovering high-demand neodymium-praseodymium and heavy rare earths—such as yttrium, dysprosium, and gadolinium—the new partnership specifically targets the cerium and lanthanum components that comprise a large portion of the total rare earth oxide mix.
St George is developing proprietary technology to separate these elements, while Nanum will contribute its cutting-edge expertise in nano-materials to process the cerium into commercially saleable products.
The downstream integration is expected to enhance the concentration of magnet and heavy rare earths in the final product.
At the time of reporting, St George Mining's share price was $0.14.