Ark Mines Ltd (ASX:AHK) has secured a mining licence from the Queensland Government for its Sandy Mitchell rare earth elements and heavy minerals project in North Queensland, marking a key regulatory milestone as the company moves the asset closer to development.
The licence, granted over EPM 28013, covers about 406 hectares and includes the area hosting the project’s measured mineral resource estimate.
Sandy Mitchell currently hosts a measured resource of 71.8 million tonnes at 1,732 parts per million monazite equivalent, giving Ark Mines a defined resource base within the newly granted development tenure.
Managing director Ben Emery said the grant marked a significant milestone in the project’s progression.
“The granting of the Mining Licence at Sandy Mitchell marks a significant milestone in the project’s progression toward development. Over the last 12 months, the Company has advanced the project with resource expansion drilling, metallurgical testwork and processing trials, all aimed at strengthening the development pathway for Sandy Mitchell.
"An updated Scoping Study is expected to be released shortly, as a pre curser to the PFS. Results from the recent drilling program are expected to contribute to an updated Mineral Resource Estimate which will be a key input into the Pre-Feasibility Study to be released in 2H 2026. With the Mining Licence in place and key studies progressing, the potential of Sandy Mitchell to become an important future supplier of these materials into international markets continues to grow.”
What the licence means for Ark Mines
The grant gives Ark Mines the tenure needed to advance development activities across the resource area, shifting Sandy Mitchell further along the path from exploration toward potential mine development.
With the licence in place, the company can progress more detailed mine planning and engineering studies, continue metallurgical testwork and processing optimisation, assess infrastructure requirements and deepen engagement with strategic partners and potential offtake customers.
The approval is a key permitting milestone for Ark Mines as it works to strengthen the project’s technical and commercial foundations.
Technical work supports next stage
The licence grant follows a period of technical progress at Sandy Mitchell, including additional drilling aimed at expanding the existing resource, as well as metallurgical testwork and bulk sample processing trials.
These programs are designed to refine the project flowsheet, improve concentrate recovery and product specifications, and support the next phase of development studies.
Ark Mines has highlighted the shallow nature of the mineralisation and the presence of rare earth-bearing heavy minerals as factors that could support low-cost mining and relatively simple gravity-based beneficiation.
Updated scoping study due shortly
Ark Mines is expecting to release an updated scoping study shortly, incorporating improved processing pathways and metallurgical optimisation aimed at lifting project economics.
Results from recent resource expansion drilling are also expected to feed into an updated mineral resource estimate, which will in turn support a pre-feasibility study planned for the second half of 2026.