Ark Mines speeds up project development at Sandy Mitchell

Ark Mines has decided that the commercial potential of Sandy Mitchell warrants continued project development and studies
The company believes the monazite equivalent and heavy mineral grades in the resource support strong project economics through simple downstream processing
A large diameter auger rig has now arrived on site ready to start the next phase of sampling

Special report: The owner of one of the world’s largest surface-expressed, sand-based placer rare earth deposits is keen to move the project to commercial development status, following an extensive review of on-site work programs.

The review involved the analysis of study works carried out by Harrier Project Management, a Queensland-based specialist advisory firm, following the publication earlier this year of an independent expert report.

That report highlighted several inherent advantages that make Sandy Mitchell highly amenable to the extraction of a rare earths concentrate through simple low-cost beneficiation by gravity processing.

After completing its own comprehensive assessment of all works, Ark’s (ASX:AHK) management team believes the commercial potential of the project warrants the continuation of project development and commercial studies.

These studies will be incorporated into a scoping study, scheduled for completion imminently.

Sandy Mitchell resource and exploration target

Since the publication of the Harrier report, AHK has demonstrated Sandy Mitchell’s stunning rare earths potential with the upgrade of its resource, now sitting at 71.8Mt at 1732.7ppm monazite equivalent, calculated using a 700ppm MzEq lower cut-off grade.

Building off the resource, an updated exploration target was estimated of between 1.3Bt and 1.5Bt at 1286-1903ppm monazite equivalent – representing an increase in the MzEq grade from the July 2024 estimate and highlighting the potential scale of Sandy Mitchell as one of the world’s largest surface expressed terrestrial sand based rare earth deposits.

Just like the resource, Sandy Mitchell’s exploration target is based on mineralisation from surface down to an average depth of ~11 metres.

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

PFS in 2025

“Following ongoing project reviews and data analysis in consultation with independent experts, the Ark Mines board remains of the view that the project has a number of unique inherent advantages which make it amenable to potential commercial project development,” AHK managing director Ben Emery said.

“The company is now advancing key project development studies including a planned scoping study due imminently.

“We anticipate results from the planned scoping along with broader works programs, including our mining lease application submitted in October, which covers over 400 hectares of the project, will then be incorporated into a comprehensive pre-feasibility study in 2025.”

What else is happening?

A large diameter auger rig has now arrived on site ready to start the next phase of sampling.

A further 10 metric tonnes will be drilled for further assays and to produce the metallurgical test work needed to further progress and optimise the PFS work program.

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.