Ark Mines Accelerates Sandy Mitchell Drilling, Eyes Massive Resource Boost

Drilling Momentum Builds at Sandy Mitchell

Ark Mines Limited (ASX, AHK) has announced encouraging progress in its Stage-3 resource expansion drilling program at the Sandy Mitchell Rare Earth and Heavy Minerals project in North Queensland. With 94 of the planned 189 drill holes completed, the program is advancing ahead of schedule, underscoring Ark’s commitment to rapidly expanding its resource base.

The current measured mineral resource estimate (MRE) stands at 71.8 million tonnes grading 1,732.7 parts per million Monazite Equivalent (MzEq). The Stage-3 drilling campaign aims to significantly increase this figure to approximately 330 million tonnes, a near fivefold jump that would substantially enhance the project’s economic potential.

Backing from QIC Critical Minerals Fund

This accelerated development is supported by a recent $4.5 million investment from the QIC Critical Minerals and Battery Technology Fund, a Queensland government-backed entity managing over A$130 billion in assets. The funding injection is expected to fast-track the drilling program and subsequent project milestones, including a comprehensive Pre-Feasibility Study (PFS) scheduled for completion in early 2026.

Ark’s Managing Director Ben Emery highlighted the significance of the progress, noting that the existing resource was derived from just 4.5% of the available anomaly area. The current drilling is designed to unlock a much larger portion of the resource, with mineralisation observed consistently from surface sands down to the metamorphic bedrock at an average depth of around 12 meters.

Technical Approach and Next Steps

The drilling utilizes a combination of Air Core and Reverse Circulation techniques, with holes spaced 280 meters apart to systematically cover the target area. Australian Exploration Drilling, the contracted drilling company, has so far completed 89 holes, maintaining the program’s strong pace.

Assay results from this stage will feed directly into the PFS, which will also incorporate updated metallurgical data from a recent improvement program conducted by IHC Mining. These combined inputs are expected to refine the project’s economic outlook and support Ark’s development strategy.

Broader Project Portfolio and Outlook

Beyond Sandy Mitchell, Ark Mines holds several other promising projects in Queensland, including the Gunnawarra Nickel-Cobalt Project, Mt Jesse Copper-Iron Project, and Pluton Porphyry Gold Project. However, Sandy Mitchell remains the flagship asset, with its rare earth elements portfolio including critical light and heavy rare earths such as dysprosium, terbium, and neodymium-praseodymium magnet metals.

While the current resource expansion targets are based on conceptual exploration targets and pending assay results, the early signs are promising. Investors and analysts will be watching closely as assay data and the PFS unfold, potentially reshaping the valuation and development trajectory of this rare earths project.