Ark Mines Unveils Promising Updates for Sandy Mitchell Project
AHK (AHK) Share Update July 2024 Monday 29th
Ark Mines Announces Major Developments at Sandy Mitchell Project
Ark Mines Ltd (ASX: AHK) has released its quarterly activities report, highlighting substantial progress at its Sandy Mitchell Rare Earth and Heavy Mineral Project. The company announced a Maiden Indicated Mineral Resource Estimate and an extensive Exploration Target, positioning Sandy Mitchell as a world-class project with significant potential for expansion.
Instant Summary:
- Maiden Indicated Mineral Resource Estimate (MRE) of 21.7Mt @ 1,419ppm Monazite Equivalent.
- Exploration Target estimated at 1.3 to 1.5 billion tonnes @ 1250 to 1490 ppm monazite equivalent.
- High magnetic REO element proportion of 24% of the TREO basket.
- First pass beneficiation test work produced a high-grade rare earth concentrate.
- Pre-Feasibility Study (PFS) for Sandy Mitchell underway, expected Q4 CY2024.
Resource Estimate and Exploration Target
Ark Mines announced a Maiden Indicated Mineral Resource Estimate (MRE) of 21.7 million tonnes at 1,419 ppm Monazite Equivalent (MzEq) for the Sandy Mitchell project. This estimate was derived from Phase 1 drilling and highlights the project's potential for strong economics through simple, low-cost downstream processing.
The resource includes a basket of high-value heavy minerals, such as monazite, zircon, rutile, xenotime, and ilmenite. Notably, the high magnetic REO (Nd, Pr, Dy, Tb) element proportion is 24% of the Total Rare Earth Oxide (TREO) basket, making Sandy Mitchell one of Australia's most enriched MREO deposits.
Exploration and Test Work
During the quarter, Ark Mines conducted extensive reconnaissance drilling, leading to an estimated Exploration Target for Sandy Mitchell of 1.3 to 1.5 billion tonnes at 1250 to 1490 ppm monazite equivalent. This target is based on mineralization from the surface down to an average depth of approximately 11 meters, indicating simple mining and low environmental impact.
First pass beneficiation test work produced a high-grade rare earth concentrate, confirming the material's amenability to straightforward beneficiation by gravity processing. The final concentrate assays returned 51.9% TREO, containing mostly La, Ce, Pr, Nd, and heavy rare earths Dy and Tb, representing a very high-value saleable product.
Future Plans
Ark Mines is now focused on advancing the Sandy Mitchell project with a Scoping Study and ongoing metallurgical and processing test work. The company plans to release an updated Mineral Resource Estimate in the September quarter, followed by a Pre-Feasibility Study (PFS) later in 2024. The PFS aims to develop a low-capex gravity separation plant that produces a monazite concentrate with heavy mineral credits.
The announcement of the Maiden Indicated Mineral Resource Estimate and extensive Exploration Target at Sandy Mitchell is likely to have a positive impact on Ark Mines' stock. The project's potential for strong economics and low-cost processing could attract significant investor interest. The forthcoming updates and studies will be crucial in maintaining this momentum and demonstrating the project's viability.
Investor Reaction:
Investors and analysts have reacted positively to the news, highlighting the project's potential for significant returns. The high-value mineral content and straightforward beneficiation process are seen as major advantages. However, some caution remains as the project progresses towards feasibility studies and eventual development.
Conclusion:
Ark Mines' recent announcements mark a significant milestone for the Sandy Mitchell project. Investors should keep an eye on the upcoming updates and studies, which will provide further insights into the project's potential. With promising resource estimates and a clear development strategy, Sandy Mitchell could become a key player in the rare earth and heavy mineral market.