Ark Mines Advances Rare Earths Project with Mining Licence and Processing Trial

Mining Licence Unlocks Development Pathway

Ark Mines Limited (ASX:AHK) has crossed a critical threshold with the Queensland Government granting a mining licence for its Sandy Mitchell Rare Earths and Heavy Minerals Project. Covering roughly 406 hectares, this licence encompasses the deposit underpinning a Measured Mineral Resource Estimate (MRE) of 71.8 million tonnes at 1,732ppm Monazite Equivalent, a key rare earth-bearing mineral. The approval marks a regulatory milestone, shifting Sandy Mitchell firmly from exploration towards development and enabling detailed mine planning, engineering, and infrastructure studies.

This licence grant follows earlier progress and sets the stage for the release of an updated Scoping Study and a Pre-Feasibility Study (PFS) targeted for later in 2026. The licence also strengthens Ark’s hand in engaging strategic partners and potential offtake customers, critical steps in commercialising the project. The significance of this milestone was highlighted in the company’s recent mining licence secured for 406 hectares announcement, underscoring the licence’s role in de-risking the project.

Processing Trial Targets Thorium and Rare Earths

Parallel to development approvals, Ark Mines has commenced a processing trial under a Memorandum of Understanding (MoU) signed in February 2026. The trial aims to crack monazite ore from Sandy Mitchell to recover thorium alongside rare earth elements such as neodymium and praseodymium, using a proven low-cost cracking technology. This downstream test work is crucial to unlocking additional value streams from the ore and supports Ark’s strategy to advance cost-effective processing solutions.

The trial encompasses comprehensive chemical analysis, radionuclide profiling, reagent optimisation, and separation chemistry proving. With up to three chemical process variations per target material, the program is designed to de-risk downstream development and pave the way for a potential scaled pilot plant. Details remain commercially confidential, but the initiative reflects a strong push to validate processing pathways that could differentiate Sandy Mitchell in a competitive rare earths sector. The trial builds on Ark’s earlier processing trial MoU signed in February and represents a tangible step towards commercial readiness.

Resource Expansion and Metallurgical Optimisation Underway

Ark Mines is awaiting assay results from a substantial resource expansion drilling program comprising 219 holes over 2,324 metres. These results, expected in the fourth quarter of 2026, will feed into an updated resource model, forming the foundation for the upcoming PFS. Complementing drilling, a metallurgical improvement program with IHC Mining is advancing to optimise beneficiation and mineral separation processes for both rare earths and heavy minerals. The shallow mineralisation and gravity-based beneficiation potential suggest a low-cost mining approach, which could enhance project economics.

These technical workstreams aim to refine processing flowsheets and improve recoveries, providing critical inputs for the PFS. The combination of drilling, metallurgical testwork, and processing trials signals Ark’s commitment to systematically advancing Sandy Mitchell towards development readiness.

Governance Strengthened with New Director Appointment

Post-quarter, Ark Mines appointed Thomas Patterson as a new director, bringing extensive expertise in accounting, finance, tax, and corporate development. Patterson’s background includes advisory roles to both private and public companies, and he was previously a Non-Executive Director of ASX-listed Acusensus Limited. His appointment adds depth to Ark’s governance as it navigates the complex phases of project development, capital raising, and strategic partnerships.

Strategic Positioning in a Growing Critical Minerals Sector

Ark Mines operates within a rare earths sector buoyed by geopolitical and economic drivers prioritising supply chain security. Governments across the US, Japan, the EU, and Australia are investing heavily in domestic rare earth projects to reduce dependence on dominant offshore processors. The Australian and US Governments’ Critical Minerals Framework recently committed an additional A$5 billion to accelerate priority projects, including rare earths.

This policy momentum aligns with Ark’s high-grade, near-surface mineralisation and low-cost beneficiation potential at Sandy Mitchell, positioning the company as a prospective supplier in emerging allied supply chains. The project’s advancement, supported by institutional backing and government initiatives, underscores its strategic relevance amid global critical minerals reshuffling.