Ark Mines eyes production as Sandy Mitchell rare earths resource grows by 231pc

An updated resource has been completed for Sandy Mitchell REE project
It boasts an overall 231% growth – or 50.1Mt increase – over the May 2024 resource
The updated MRE leaves Ark Mines well positioned to execute on its stated development strategy

Special Report: The new measured Sandy Mitchell resource incorporates results from Ark’s initial Stage 1 drilling program completed in 2023 as well as Stage 2 for an overall 231% increase over the May resource.

Ark Mines’ (ASX:AHK) Sandy Mitchell project in northern Queensland is one of Australia’s most enriched magnet rare earth oxides deposits with 24% of the total rare earth oxides basket consisting of the high-value heavy REE minerals including neodymium, praseodymium, dysprosium and terbium.

It is also one of the world’s largest surface-expressed, sand-based placer rare earth deposits with an exploration target up to 1.5Bt based on mineralisation from surface down to an average depth of ~11m.

This means there is no overburden removal, with simple mining and low environmental impact smoothing the likely development pathway for the company.

71.8Mt resource, upgrade of 231%

The company believes the commercialisation pathway for Sandy Mitchell has been further validated after calculating a new 71.8Mt measured resource for an overall 231% increase over the May resource estimate.

Carried out by independent consultants HGS Australia, the resource is wholly categorised as measured and totals 71.8Mt at 1733ppm monazite equivalent using a lower cut-off grade of 700ppm.

In addition to the high value economic commodities modelled, the MRE included estimates for arsenic and sulphur for environmental considerations.

AHK believes the updated resource positions the company to execute on its stated development strategy for Sandy Mitchell, with low-cost mining of rare earths and heavy minerals combined with low-cost downstream processing through simple gravity separation.

Commercial scale

“This updated measured resource bodes well for our ambitions to get the Sandy Mitchell into production,” AHK executive director Ben Emery said.

“The commercialisation pathway for Sandy Mitchell is now more clearly defined, given the fact it is the simplest REE style of deposit to mine and beneficiate.

“Importantly, the monazite equivalent grades of 1,733 ppm are also indicative of potential commercial scale based on current market prices for monazite concentrate,” he said.

What’s next?

Emery said the Ark team is now busy advancing its mine development strategy at Sandy Mitchell.

“Near-term milestones will be led by the pending results of our mining licence application and a forthcoming scoping study, which is well-advanced and scheduled for release in the coming weeks,” he said.

“Results from the scoping study will be incorporated into a Pre-Feasibility Study for Sandy Mitchell which is scheduled for completion in the December quarter.

“As the project development accelerates, Ark is also advancing discussions with strategic partners and potential offtake customers.”

This article was developed in collaboration with Ark Mines, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.