Ark Mines Launches Major Drill Program to Expand Sandy Mitchell Rare Earth Resource

• Contract signed with Australian Exploration Drilling for 2,500m resource upgrade drilling
• Planned 194 vertical holes spaced 280m apart to enhance resource confidence
• Targeting a 260 Mt increase to existing 71.8 Mt Measured Mineral Resource Estimate
• Drilling methods combine Air Core and Reverse Circulation techniques
• Results to feed into a Pre-Feasibility Study scheduled for early 2026

Strategic Resource Expansion Underway

Ark Mines Limited (ASX – AHK) has taken a decisive step forward in developing its flagship Sandy Mitchell Rare Earth and Heavy Minerals project in North Queensland by awarding a contract to Australian Exploration Drilling. The upcoming 2,500-metre drill program is designed to substantially increase the project's current Measured Mineral Resource Estimate (MRE) of 71.8 million tonnes, with an ambitious target to add approximately 260 million tonnes.

This third stage of resource definition drilling follows two successful campaigns that established the initial measured resource. The new program will deploy a combination of Air Core drilling through the sand column and Reverse Circulation drilling at bedrock, ensuring comprehensive sampling and robust geological data. The drilling design includes 194 vertical holes spaced 280 metres apart on a staggered grid, covering an expanded 19.8 square kilometre area beyond the existing resource footprint.

Enhancing Resource Confidence and Project Economics

Managing Director Ben Emery highlighted the significance of this phase, noting that the enhanced resource base is expected to underpin a marked improvement in the project's economics. The expanded resource will be integrated into a comprehensive Pre-Feasibility Study (PFS) scheduled for completion in early 2026. This study will incorporate assay results from the drill program alongside data from a recently commissioned metallurgy program, aimed at validating low-cost downstream processing routes.

The Sandy Mitchell project is notable for its high-grade rare earth mineralisation, including critical light and heavy rare earth elements such as dysprosium, terbium, and neodymium-praseodymium magnet metals. The mineralisation is amenable to straightforward beneficiation by gravity processing, which supports Ark Mines’ strategy for a rapid and cost-effective pathway to commercialisation.

Broader Portfolio and Strategic Outlook

While Sandy Mitchell remains the company’s flagship asset, Ark Mines also holds interests in other promising projects, including the Gunnawarra Nickel-Cobalt Project, Mt Jesse Copper-Iron Project, and Pluton Porphyry Gold Project, all located in Northern Queensland. These assets complement the company’s focus on critical minerals and base metals, positioning Ark Mines as a diversified player in the Australian mining sector.

With the drilling contract now awarded and fieldwork set to commence following the northern wet season, investors and industry watchers will be keenly awaiting assay results and subsequent resource updates. These will provide critical insights into the scale and quality of the expanded resource and the potential for Ark Mines to advance Sandy Mitchell towards production.

Bottom Line?

Ark Mines’ ambitious drilling campaign at Sandy Mitchell sets the stage for a transformative resource upgrade and a pivotal feasibility study in 2026.

Questions in the middle?

• How will assay results from the new drill program compare with previous campaigns in terms of grade and thickness?
• What impact will the metallurgy program have on processing costs and overall project economics?
• Could the expanded resource lead to accelerated timelines for project development and potential partnerships?