Ark Mines reports increase in rare earth and heavy mineral grades at Sandy Mitchell Project

Ark Mines Limited (ASX: $AHK) has announced the receipt of latest assays from the 1st phase of drilling at the Company's 100% owned Sandy Mitchell Rare Earth and Heavy Mineral Project in North Queensland. The ongoing receipt of assays for Ark's 144-hole Stage 1 drill programme continues to confirm that Rare Earth mineralisation is evident in every interval of every hole assayed to date. The average grade of Total Rare Earth Oxides (TREO) + Yttrium (Y) + Scandium (Sc) has increased to 514.1 ppm, representing an upgrade from the previous reported average of 498.7ppm. These results align with the Company's development strategy for low-cost downstream processing following the recently announced beneficiation test work, showcasing the potential for a high-grade rare earth concentrate with robust recoveries using low-cost gravity processes.

Executive Director's perspective on the Stage 1 drill program

Assays from our Stage 1 drill program are now returning consistently from the lab, and we continue to be pleasantly surprised by the results. These latest assays show another upgrade in TREO+Y+Sc, thus highlighting the emerging quality of the mineralisation at Sandy Mitchell particularly in the context of the project's unique geology which is amenable to REE extraction through simple gravity separation. Recall that the initial round of water beneficiation test work carried out by the field team in November was already returning a commercial-grade rare earth concentrate of 51.9% TREO (519,000ppm). These latest assays represent a significant increase in REE grades compared to, which bodes well for our stated downstream processing strategy. The whole team is excited over what this means for the project as we moved towards a maiden MRE at Sandy Mitchell later this year.

Outlook for Sandy Mitchell Project

The ongoing receipt of consistent REE and HM grades from the Phase 1 program continues to validate Ark's stated development strategy for Sandy Mitchell based on low-cost, straightforward beneficiation by gravity processing. The upcoming Maiden Mineral Resource Estimate (MRE) under the 2012 JORC code, expected to be based on the Stage 1 and Stage 2 drilling, will form the basis of a Pre-Feasibility Study (PFS) in collaboration with third-party mineral processing specialists to optimize future project economics. The observed grades of raw, un-cut, FeTiO3, TiO2, and ZrO further bolster the project's potential. With the majority of mineralisation in the Stage 1 area deemed viable, the Company anticipates a low-cost bulk mineable resource. As Ark Mines progresses towards the maiden MRE and subsequent PFS, the project's unique geology and the consistently positive assay results position Sandy Mitchell as a promising venture for the Company's rare earth and heavy mineral endeavors.