Ark Mines Advances Sandy Mitchell with $4.5M Raise and Processing Trial Underway

Processing Trial Marks a Major Step Forward

Ark Mines Limited (ASX, AHK) has kicked off a full-scale processing plant trial using drilling samples from its Sandy Mitchell Rare Earths and Heavy Minerals Project in Queensland. The trial is being conducted at Currumbin Minerals’ state-of-the-art treatment plant in South-East Queensland, leveraging a Memorandum of Understanding established in early 2024. This collaboration aims to validate the processing strategy by assessing the quality and specifications of rare earth concentrates and associated heavy minerals, including titanium, zircon, and garnet.

The trial runs in parallel with the company’s Pre-Feasibility Study (PFS), which is being developed by IHC Robins. The results from this trial will be pivotal in refining the project’s metallurgical processes and underpinning the economic modelling for the next phase of development.

Environmental Approval Clears Regulatory Hurdle

In a significant regulatory milestone, Ark Mines secured the Environmental Authorisation (EA) from the Queensland Department of Environment, Tourism, Science and Innovation for Mining Lease ML100409. This approval is a critical step towards obtaining the full Mining Licence, with only a security self-assessment remaining to complete the permit application. The EA confirms that Ark has met stringent environmental standards, reinforcing the company’s commitment to sustainable mining practices.

Complementing this, Ark’s environmental baseline studies are nearing completion, encompassing water monitoring, cultural heritage assessments, and flora and fauna surveys. Early commencement of these studies has positioned the project to avoid regulatory delays and mitigate environmental risks effectively.

Resource Expansion and Project Development on Track

The company completed a comprehensive resource expansion drilling program comprising 219 holes over 2,324 metres. Samples have been dispatched for assay, with results expected in the second quarter of 2026. These findings will feed into an updated resource model, forming the foundation of the forthcoming PFS.

Alongside drilling, Ark is advancing a metallurgical improvement program with IHC Mining to optimise mineral separation and beneficiation processes. These efforts aim to enhance recoveries and improve the project’s economic viability.

Strong Financial Position and Strategic Partnerships

During the quarter, Ark Mines raised $4.5 million through a combination of a placement and the sale of a 2% royalty over production at Sandy Mitchell to the Queensland Investment Corporation’s Critical Minerals and Battery Technology Fund. This capital injection strengthens the company’s balance sheet as it progresses towards key development milestones.

With no reportable safety or environmental incidents during the quarter, Ark Mines maintains a strong operational discipline. The company’s strategic positioning is further bolstered by favourable government policies supporting critical minerals, including Australia’s new Critical Minerals Strategic Reserve, which prioritises rare earth elements.

Looking Ahead

Ark Mines is targeting first production from Sandy Mitchell by late 2027, contingent on successful completion of the PFS, mining licence approval, and ongoing metallurgical validation. The company’s progress places it among Australia’s leading rare earth developers, well-placed to benefit from growing global demand driven by clean energy and advanced manufacturing sectors.