Ark Mines Limited (ASX: AHK) Announces Sandy Mitchell Project Scoping Study Results
Ark Mines Limited (ASX: AHK) has confirmed the commercial viability of its 100%-owned Sandy Mitchell Rare Earths and Heavy Minerals Project based on recent results from a comprehensive Scoping Study. The scoping study outlines robust project economics and operational efficiencies.
Key Study Highlights
The study indicates a projected life of mine (LOM) of three to four years, with an initial capital expenditure (capex) forecast of AUD120–150 million. The anticipated annual EBITDA ranges from AUD45 million to AUD53 million and is underpinned by an expected annual net revenue of approximately AUD120 million to AUD130 million.
The beneficial geology, low stripping ratios, and straightforward mining processes contribute to the site’s operational advantages. Mining will utilize surface-free dig strip techniques with low environmental impact, enabling Ark to commence production efficiently.
Project Development Plans
Ark Mines has announced plans to move forward into the next development phase, including the initiation of a Pre-Feasibility Study (PFS) expected in 2025. The study will refine processing methods and explore additional metallurgical optimisations to boost recovery rates.
Roger Jackson, Executive Chairman of Ark Mines, remarked, “The results from the Scoping Study underscore our commitment to developing the Sandy Mitchell Project, which demonstrates strong financial returns and advantageous market conditions for rare earth minerals.”
Operational Insights
The Sandy Mitchell Project is located in Far North Queensland, comprising a mineral resource estimate of 71.8 megatonnes with a weighted average grade of 1,732 ppm monazite equivalent. The scoping study confirms high conversion rates for heavy minerals and rare earth elements, suggesting significant market potential.
Future plans also contemplate securing necessary funding of AUD120–150 million, alongside ongoing discussions with potential offtake partners across multiple geographies.
Ark Mines remains optimistic about the project’s prospects and commits to continually assessing technological advancements in mineral processing to enhance recovery and operational efficiency.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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