Ark Mines Ltd (ASX: AHK) has acquired the highly prospective ‘Sandy Mitchell’ rare earths project located in Far North Queensland, Australia.
‘Sandy Mitchell’ is a relatively advanced Rare Earths project contained in sands that hosts both light and heavy rare earths including multiple high value heavy rare earths as referenced above.
Significant historical work has been undertaken across the project including completion of more than 100 augur drill holes, sediment and stream sampling and extensive pan concentrates which best reflect the project’s grades given the Rare Earths Elements at ‘Sandy Mitchell’ are hosted in sands.
In 2010, the Japan Organization for Metals and Energy Security (JOGMEC) undertook extensive mineral analysis using quantitative valuation of minerals by scanning electron microscopy (Qemscan) which determined that ‘Sandy Mitchell’s’ Rare Earths were derived from Monazite and Xenotime. This historical work, as well as the those from drilling and sampling are being reviewed by Ark’s team to define a maiden mineral resource estimate for the project.
Work Programme
Regardless, Ark’s team has sufficient confidence in the historical work that that it plans to apply for a Mining Licence in order to establish a low-cost gravity separation and processing operation at site. As well, given the historical results and the prospectivity of the project and the surrounding region, Ark has already applied for 46 subblocks covering 138km of surrounding ground.
Pan concentrates are the best measure of Rare Earths Elements in sands, as such, extensive panning is planned around identified high-grade concentrates already defined.
The company secured attractive acquisition terms acquiring 100% of the project for A$200,000 cash. Ark was able to secure the project due to the vendor having limited interest in undertaking follow-up exploration and further developing the asset.
“Sandy Mitchell is an outstanding opportunity for Ark and is consistent with our strategy of focusing on projects in Tier 1, stable jurisdictions that have the potential to be near-term, low cost mining operations,” Executive Chairman, Roger Jackson, said.
“Sandy Mitchell has all these characteristics with compelling geology and is amenable to relatively straightforward gravity separation processing. We are well-advanced in the review of the historical data and follow up exploration is likely to focus on defining more pan concentrates across multiple areas of the tenement area, metallurgy and engineering test work to define a mining operation.
“As a further reflection of our confidence in the project, we have held preliminary discussions with potential customers that are establishing processing operations in Australia.
“In terms of the make up of the Rare Earths elements at Sandy Mitchell, Ark will focus more on extracting higher-priced Heavy Rare Earths Elements, as highlighted, as these are well represented in historical reports assessed to date. This is one characteristic that makes Sandy Mitchell unique and commercially appealing.
“We anticipate being on the ground as soon as possible undertaking more pan concentrates to build our geological models and we anticipate a steady stream of updates.
“Ark is also continuing to advance its other assets in Queensland with the key focus on the Gunnawarra Nickel Project where we anticipate updating shareholders more fully on our progress here.”
For further information please visit: https://arkmines.com/
