Sandy Mitchell Rare Earths Project Hits 71.8Mt at 1,733ppm Monazite Equivalent
Ark Mines has delivered a significant upgrade to its Sandy Mitchell Rare Earths Project, including a new Mineral Resource Estimate and a completed Scoping Study confirming commercial viability. The company is now preparing for a Pre-Feasibility Study to expand resources and refine project economics.
- Upgraded Mineral Resource Estimate: 71.8 million tonnes at 1,733 ppm Monazite Equivalent
- Expanded Exploration Target now 1.3 to 1.5 billion tonnes at higher grade
- Completed Scoping Study demonstrates strong project economics and 3-4 year ROI
- Mining Lease application submitted covering 406 hectares
- Pre-Feasibility Study planned for 2025 to incorporate further drilling and metallurgical work
Strong Resource Upgrade Signals Growth Potential
Ark Mines Ltd has reported a robust quarter ending December 2024, marked by a substantial upgrade to its flagship Sandy Mitchell Rare Earths Project in North Queensland. The company announced a new Mineral Resource Estimate (MRE) of 71.8 million tonnes grading 1,732.7 ppm Monazite Equivalent (MzEq), all classified in the Measured category. This upgrade reflects only a small fraction, approximately 4%, of the broader Exploration Target, which now stands between 1.3 and 1.5 billion tonnes at an improved grade range of 1,286 to 1,903 ppm MzEq.
Scoping Study Confirms Commercial Viability
Complementing the resource upgrade, Ark Mines completed a comprehensive Scoping Study prepared by Harrier Project Management. The study underscores the project's commercial potential, highlighting a low-cost beneficiation approach via gravity processing and projecting a return on investment within three to four years. The basket of heavy minerals includes significant quantities of monazite, xenotime, zircon, and titanium minerals, positioning Sandy Mitchell as a high-value rare earths asset.
Strategic Steps Toward Development
During the quarter, Ark Mines submitted a Mining Lease application covering approximately 406 hectares, encompassing the area underpinning the upgraded MRE. This regulatory milestone aligns with the company’s development strategy focused on low-cost open-pit mining and simple downstream processing. The company plans to initiate a follow-up drill program in 2025 aimed at converting a larger portion of the Exploration Target into JORC-compliant resources, which could significantly enhance project economics beyond the current base case.
Looking Ahead: Pre-Feasibility and Optimization
Ark Mines is preparing for a Pre-Feasibility Study (PFS) scheduled for completion later in 2025. This study will integrate results from additional drilling, metallurgical test work, and environmental assessments to refine the project’s development pathway. Notably, the company reported no safety or environmental incidents during the quarter, maintaining a strong operational discipline as it advances.
Expanding Investor Reach
Post-quarter, Ark Mines secured approval for its shares to trade on the OTCQB Venture Market in the United States under the ticker AHKMF. This move follows a US investor roadshow and reflects growing international interest in critical minerals, particularly rare earth elements vital to strategic supply chains. The listing is expected to enhance liquidity and access to capital, supporting the ongoing development of Sandy Mitchell.
Ark Mines’ December quarter results and strategic initiatives position the company as a rising player in Australia’s rare earths sector, with significant upside potential as resource expansion and project optimization efforts progress.
Bottom Line?
Ark Mines is poised to transform Sandy Mitchell into a major rare earths producer, with upcoming studies and drilling set to unlock further value.
Questions in the middle?
- How quickly can Ark convert the vast Exploration Target into JORC-compliant resources?
- What metallurgical advancements could further reduce processing costs or improve recoveries?
- How will the US OTCQB listing impact Ark’s capital raising and investor base?
