Traders watch with interest as St George Mining reveals REE hit

St George Mining (ASX:SGQ) has revealed it’s hit what it reported as high grade rare earths outside of its existing Mineral Resource Estimate (MRE) boundary, causing the share price to jump 1.2% in morning trade – implying investors are watching closely but not quite jumping in yet.

HotCopper users were net positive about the news when it came to sentiment, but the reality of the company’s intersection widths may be preventing further excitement.

In all, the highlighted result was a 13.5m wide core equivalent (auger drilling) coming in at 12.3% Total Rare Earth Oxides (TREO) – with a 13.4% result that came in at 50 centimetres.

High value magnet rare earth neodymium was highlighted, though, at a value of 3.33% as a ratio of NdPr to TREO. Of course, like lithium, neodymium prices are another story where relatively recent memory paints a grass-was-greener picture.

The company’s Araxa project in Brazil has long been St George’s flagship and it stands as another Australian explorer hunting REEs in the South American region.

While the market is largely waiting for rare earth prices to recover – both traders and exploration CEOs this finance journalist has personally interviewed – it remains the case that, for most, gold is currently where the action is.

Outside of defence stocks.

SGQ last traded at 4.2cps

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