Ark Mines has intercepted low-grade gold in its Sandy Mitchell Rare Earths Project, revealing potential value-add from gold credits alongside rare earths. Further assays and development studies are underway.
- Shallow gold intersected in paleochannel drilling
- Gold grades low but gravity tests show concentration potential
- Assays received from 38 of 166 samples, more pending
- Mining licence granted enabling development progress
- Daemon de Chaeney appointed Technical Services Manager
Gold Appears as Potential Credit in Rare Earths Project
Ark Mines Limited (ASX:AHK) has revealed shallow gold intercepts from drilling at its Sandy Mitchell Rare Earths and Heavy Minerals Project in North Queensland, adding an unexpected twist to its rare earth story. While the gold grades are modest, ranging from 0.07 to 0.27 g/t in raw intercepts, the company’s gravity concentration tests have boosted these values significantly, with gold concentrating up to 4.5 g/t in the heavy mineral concentrate. This raises the prospect of gold credits enhancing the value of the rare earth and heavy mineral concentrates.
Drilling Targets Paleochannel Mesa South of Resource Boundary
The gold was intercepted in a targeted drilling program following Ark’s 2025 resource expansion campaign. The drilling focused on a topographic high paleochannel conglomerate mesa located south of the company’s Measured Mineral Resource Estimate (MRE) of 71.8 million tonnes at 1,732 ppm Monazite Equivalent. The program aimed to test whether gold found in streams draining the southern tenement area was sourced from this elevated paleochannel unit.
Initial assays have been received for 38 one-metre intercepts from eight drill holes, out of a total 166 samples collected. Notable intercepts include 1m at 0.27 g/t Au from 5m depth, which concentrates to 4.5 g/t Au, representing a concentration factor of 16.66. Ark plans to complete assaying of the remaining samples to better understand the gold distribution.
Gold Grades Low but Potential for Value Addition
Managing Director Ben Emery cautioned that the gold grades are not high in isolation but highlighted the potential to add value if the gold reports to the heavy mineral concentrate. The simple gravity processes used to extract monazite-hosted rare earth elements and heavy minerals appear capable of recovering gold as well, which could provide a meaningful credit to the project economics.
This development comes as Ark Mines continues to advance the Sandy Mitchell project following the recent granting of a mining licence, which paves the way for mine development and detailed planning. The licence covers 406 hectares including the measured resource area, enabling the company to progress towards feasibility studies and eventual production. The company’s upcoming updated Scoping Study and Pre-Feasibility Study will incorporate these new insights and metallurgical optimisations, potentially highlighting further economic advantages for the project. The recent mining licence grant was a critical milestone in this progression.
Technical Leadership and Next Steps
To support these efforts, Ark Mines has appointed Daemon de Chaeney as Technical Services Manager and Project Geologist for Sandy Mitchell. De Chaeney brings extensive geological expertise and will oversee the delivery of the updated Scoping Study, Pre-Feasibility Study, and site works, signalling the company’s commitment to advancing the project efficiently.
Looking forward, Ark plans to assay all remaining drill samples for gold and extend its investigations into gold credits within the sand units across the wider project area. An infill drill program is being designed to better delineate these zones. This exploration complements the ongoing resource expansion drilling and metallurgical test work, which includes pilot plant trials to optimise processing pathways. These activities follow on from Ark’s recent processing trials at Sandy Mitchell aiming to unlock value from rare earths and heavy minerals.
Bottom Line?
Gold credits at Sandy Mitchell could modestly enhance project economics, but full impact depends on forthcoming assay and feasibility results.
Questions in the middle?
- Will further assays confirm consistent gold distribution across the paleochannel and sand units?
- How will the inclusion of gold credits affect the updated Scoping and Pre-Feasibility Studies?
- Can Ark Mines optimise processing to economically recover both rare earths and gold simultaneously?