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Ark Mines (ASX:AHK) is on target to take the big step from explorer to developer after being granted a mining licence for the Sandy Mitchell rare earth elements (REEs) and heavy minerals project in North Queensland.
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The explorer’s managing director, Ben Emery, today told shareholders that the licence grant represents a key permitting milestone supporting advancement of project studies, development planning and offtake discussions.
“Over the last twelve months, the company has advanced the project with expansion drilling, metallurgical testwork, and processing trials, all aimed at strengthening the development pathway,” he said. “An updated scoping study is to be released shortly, as a precursor to the pre-feasibility study.”
Mr Emery added that results from a recent drilling program at Sandy Mitchell are also expected to contribute to an updated mineral resource estimate, which will be a key input into the PFS to be released in second-half CY26.
“With the mining licence in place and key studies progressing, the potential of Sandy Mitchell to become an important future supplier of these materials into international markets continues to grow,” he explained.
The mining licence approval follows a period of key technical progress at the Sandy Mitchell project since the licence application was submitted.
Since then, Ark Mines has completed additional drilling programs aimed at expanding the existing mineral resource and progressing metallurgical testwork. The explorer has also initiated bulk sample processing trials to evaluate concentrate recoveries and product specifications.
Mr Emery told shareholders the shallow nature of the mineralisation and the presence of rare earth-bearing heavy minerals support the potential for low-cost mining and simple gravity-based beneficiation processes.
In February, Ark added to its strategy when it signed a memorandum of understanding with a technology provider to partner in a processing trial to crack its monazite ore from Sandy Mitchell to recover thorium and other REEs.
The MoU established a framework for the parties to collaborate on the cracking of monazite ore using a proven, low-cost process to recover both thorium and REEs.
Under the agreement, the parties will work together from initial monazite cracking through to the production of further rare earth oxides and high-value refined thorium.
AHK is up +7.89% to 41c today.
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