Ark Mines Ltd. announced that following the success of its recent drilling program at Gunnawarra the Company has engaged IHC Mining (IHC) of Brisbane to undertake beneficiation test work on its mineralised Ni Co laterite material. The primary focus of the test work being undertaken by IHC will be on magnetic separation. Additional options will also be reviewed and examined to further improve extraction processes for the Gunnawarra laterite material.

Given Laterites have a significant Iron content there is potential to upgrade Ni grades through a magnetic separation process. The ability to upgrade is highly dependent on how separate the Ni is from the magnetic iron. The initial 45-hole drill program completed at Gunnawarra confirmed strong nickel and cobalt mineralisation at an area known as `the Pod'.

The results of the program revealed most intersections to be shallow with little to no overburden, with the deposit remaining open in numerous directions. Significant intersections include: 28m at .73% Ni Eq from surface including 5m at 1.8% Ni Eq from 5m,including 2m of Co at .1% from 4m; 42m at .76% Ni Eq from 2m including 19m at 1% Ni Eq from 6m; 22m at 1% Ni Eq from 4m including 9m at 1.4% Ni Eq from 8m; 28m at .7% Ni Eq from surface including 6m at 1.4% Ni Eq from 3m; 11m at .84% Ni Eq from 2m including 2m at 1.2% Ni Eq from 5m and; 14m at 1.12% Ni Eq from 3m including 4m at 1.7% Ni Eq from 8m. Coinciding with the beneficiation test work by IHC, Ark will continue to advance its exploration initiatives at the Pod through targeting known extensions to the system.

In addition, further high potential targets identified across the 36km² Gunnawarra tenement area will begin to be drilled as the Company looks to continue to build upon the historic resource at the project.