Join our daily newsletter At The Bell to receive exclusive market insights
- Ark Mines (ASX:AHK) posts its quarterly for Q2 FY24 showing the Sandy Mitchell REE project rolls on
- Concentrate testwork showed recoveries of greater than 50 per cent
- 23 per cent of REEs on-site so far have proven to be high-value magnetic rare earths
- The sand mining venture offers superior economics on paper given cheaper downstream concentration is viable
- Shares last at 14 cents
Ark Mines’ (ASX:AHK) Executive Chair, Roger Jackson, believes the company’s Sandy Mitchell asset is a high-potential rare earths (REE) play in North Queensland.
To that end, the company was busy in the December quarter getting things ready for a fresh new year.
The first assays were received in the last three months of CY2023 showing the presence of REEs including yttrium and scandium. High-value magnetic metals comprised 23 per cent of total REE oxides (TREO).
Assay results boost hopes
Final concentrate assays came in at 51.9 per cent TREO with beneficiation work showing gravity separation can be utilised – a well-understood and comparatively cheap process, boosting project economics on paper.
Meanwhile, auger drilling gave weight to the company’s thesis it can manufacture REEs with a simple mining process looking at heavy and light REEs “from a sand”.
Because of this, mineralisation, according to Ark, stretches from bedrock to surface.
Second phase drilling wound up
This was further confirmed in the second phase of drilling conducted on-site last year with 2426 metres completed.
Target minerals, Ark stated, were found in every drill hole.
“We remain of the view that the Rare Earth placer sand deposit package at Sandy Mitchell is highly prospective, with assay results and metallurgical studies to date indicating we have a unique rare earth deposit,” Mr Jackson said.
“Our efforts in the December quarter were further focused on the ongoing development of the Sandy Mitchell rare earth project, including a second phase of drilling, environmental scoping and metallurgical test work.”
AHK shares last traded at 14 cents.
