Highlights:

• Ark Mines (ASX:AHK) today announced 100% acquisition of highly prospective advanced rare earths projects, ‘Sandy Mitchell’ in
• AHK stock reacted positively to the update and traded higher at AU$0.225, up 12.49% over Tuesday’s closing price.
• The firm counts it as an outstanding opportunity for Ark which is in line with its strategy of focusing on projects in tier 1.
• At the project site, significant historical work including particle mineral analysis and pan concentrates has been completed.

ASX-listed mining player Ark Mines Ltd (ASX:AHK) has acquired ‘Sandy Mitchell’ rare earths project in Queensland for AU$200,000. As per the company release, ‘Sandy Mitchell’ is a highly prospective and relatively advanced rare earths project contained in sands with light and heavy rare earths.

The acquisition is in line with the strategy of the ASX-listed firm to secure and create a portfolio of resources projects in Queensland that can be developed with simple processing and limited capex.

Image Source: Company update

An overview of advanced Queensland RRE project

Situated in Far North Queensland, approximately 230km north-west of Cairns, EPM 28013 ‘Sandy Mitchell’ is a host to all critical light and heavy rare earths including yttrium (Y), dysprosium (Dy), thulium (Tm) ytterbium (Yb), terbium (Tb), holmium (Ho), erbium (Er), and excluding only Lutetium. The rare earths at ‘Sandy Mitchell’ are amenable to panning a concentrate.

So far, extensive historical work has been through at the project site by other parties. This includes completion of over 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.

Japan Organization for Metals and Energy Security (JOGMEC) completed substantial extensive mineral analysis in 2010, by use of quantitative evaluation of minerals that is done through scanning electron microscopy (Qemscan). It was concluded that ‘Sandy Mitchell’s’ Rare Earths are obtained from Xenotime and Monazite.

Currently, AHK is reviewing this historical work along with the results from drilling and sampling with the objective to determine project’s maiden mineral resource estimate.

Data Source: Company update

Outlook for Sandy Mitchell

Ark is planning to get on the field at the earliest undertaking greater number of pan concentrates to establish geological models of the company. Alongside, AHK is focused on building other assets across Queensland. However, the Gunnawarra Nickel Project continues to be its priority area of work.

Also, Ark is looking forward to file for a Mining Licence aiming a low-cost gravity separation and processing operation at the project location. The company has also submitted request for 46 sub blocks covering 138km² of nearby ground. Considering that pan concentrates are a good measure of RRE in sands, AHK will undertake extensive sampling and met testing around the defined high-grade concentrates.

Data Source: Company update