Ark Mines Limited (ASX: AHK) is pleased to announce the successful completion of the Sandy Mitchell exploration drill program and the receipt of the initial assays for Rare Earths (REE) and Heavy Minerals at its 100% owned, 140km2 , ‘Sandy Mitchell’ project, located near Chillagoe, North Queensland.
Announcement highlights:
- 144 drill holes were made, all of which indicated rare earth (REE) and heavy mineral (HM) mineralisation.
- Assay results are composites of the whole length of each hole. The air core holes averaged 10.5 metre depths with the deepest hole down to 18 metres.
- Initial assays show promising results, with yttrium oxide grades up to .31% and cerium oxide grades up to 13.7%. Yttrium is a critical heavy rare earth metal, while cerium is a light rare earth metal.
- Ark Mines anticipates a Maiden Mineral Resource Estimate (MRE) under the 2012 JORC code later this year, based on these results and ongoing test work.
Positives for Investors:
- The successful completion of phase 1 drilling at the Sandy Mitchell project confirms the presence of REE and HM in all drill holes.
- The presence of critical heavy rare earth metal (yttrium) and light rare earth metal (cerium) in the initial assays is a positive indication of the resource's value.
- Sandy Mitchell’s Rare Earths are amenable to panning a concentrate, indicating potential for a low-cost, fast start-up, and straightforward beneficiation by gravity processing, which could result in significant cost savings.
- The average depth of the deposit is more than double the previous estimate based on historical works, suggesting a larger than expected resource.
- The company has already moved to the next stage of assaying all 1m interval drilling samples at a third-party laboratory, which will provide more detailed data.
- Ark Mines plans to conduct a Maiden Mineral Resource Estimate (MRE) under the 2012 JORC code later this year, providing a robust, industry-standard estimate of the resource's potential.
- The planned reconnaissance bulk samples and augur drilling will provide further data to inform the ongoing exploration and development of the resource.
Executive Chairman Roger Jackson said:
“While the pXRF results are preliminary to the actual assays, they are very encouraging and reaffirm our view that Sandy Mitchell has significant potential. The predictive values for REE and HM mineralisation based on the Ce2O3 technique and the Yttrium technique are particularly encouraging, and we look forward to providing further updates once drill sample assays have been returned from the lab. In the interim, these results provide further context around the project’s development potential, following the successful completion of Ark’s 144-hole drill program which indicated the average depth of the deposit is more than double the previous estimate based on historical works. Ahead of first assay results, Ark Mines will deploy funds from its recent share placement to carry out analysis of reconnaissance bulk samples and conduct augur drilling in readiness for more comprehensive exploration at Sandy Mitchell.””
