Ark Mines announces promising scoping study results

Ark Mines (ASX:AHK) has released a scoping study for its Sandy Mitchell Rare Earths and Heavy Minerals Project. The study confirms the viability of a low-cost, scalable rare earth element development. Located in Far North Queensland, this project is expected to have a life of mine spanning three to four years and could generate significant economic returns.

Ark Mines' future and strategic plans

Ark Mines has confirmed the potential of its Sandy Mitchell project with a promising scoping study. The project aims to produce monazite concentrate utilizing low-impact surface-free dig strip mining and synchronous gravity beneficiation. With an estimated annual EBITDA of AUD45 million to AUD53 million, the company plans to proceed with a Pre-Feasibility Study in 2025. Ark Mines is actively exploring funding opportunities, including equity markets and joint ventures, to meet the required capital expenditure of AUD120 million to AUD150 million. The company is also committed to sustainable mining practices and intends to develop an environmental management system aligned with ISO 14001:2015 standards. Future plans include further metallurgical testing to optimize recoveries and infrastructure development to support the operation.

Executive insights on project potential

The Scoping Study indicates a commercial project with substantial economic potential based on a Measured Mineral Resource Estimate. Total initial capital expenditure is estimated between AUD120 million and AUD150 million. The project is expected to deliver annual net revenue of AUD120 million to AUD130 million.