Ark Mines Ltd (ASX: AHK), a company focused on developing resource projects, has announced a significant $4.5 million investment from the Queensland Investment Corporation (QIC) to advance its Sandy Mitchell rare earths project. Ark Mines is focused on developing resource projects. The funding comprises $4 million in upfront capital tied to royalties from future sales at Sandy Mitchell, and a $500,000 equity investment, subject to ASX listing rules.
The investment is being made through the $170 million Queensland Critical Minerals and Battery Technology Fund, which is managed by QIC. The QIC’s strategy is to support Queensland-based resources companies that align with their investment criteria and contribute to strengthening domestic supply chains for critical minerals. The company notes that the Sandy Mitchell deposit is unique because it is an inland surface expressed placer deposit, where nature has already done the crushing and grinding.
The funding will accelerate project development at Sandy Mitchell, where Stage-3 infill drilling is currently underway. Results from this drilling will be incorporated into an upcoming Pre-Feasibility Study (PFS) scheduled for completion in Q1 2026. Ark Mines is now targeting production at Sandy Mitchell in late-2027. The company also reports that multiple near-term value drivers are present for the company and project, and that the project is leveraged to the upside of rare earth elements.
The Sandy Mitchell project boasts a Measured Mineral Resource Estimate (MRE) of 71.8 million tonnes at 1,732.7 parts per million Monazite Equivalent. The deposit includes valuable heavy minerals such as Monazite, Xenotime, Zircon, Rutile, and Ilmenite. The company has previously stated that test work has shown simple gravity separation is able to upgrade the material, and final concentrate assays returned 51.9% TREO.
