Ares Strategic Mining Inc. (CSE: ARS) (OTCQX: ARSMF) (FRA: N8I1) announced Monday that commissioning of its Metallurgical Lumps Plant has officially commenced at the company's processing facility in Delta, Utah. For the first time, the entire processing plant has been powered up and operates as one fully integrated system, initiating a four-week commissioning program. The plant is designed to process ore from the company's Lost Sheep Mine into metallurgical-grade fluorspar lumps, known as metspar, a critical input for U.S. steel manufacturers.
Commissioning testing activities include verifying complete process flows from ore feed to finished product, testing PLC control systems and HMI interfaces, monitoring and optimizing operating parameters such as temperatures, pressures and material flows, validating alarm systems and automated start-up and shutdown sequences, and assessing crushing, drying and product quality to ensure metallurgical-grade fluorspar meets customer specifications.
James Walker, President and CEO of Ares Strategic Mining, stated: "It's incredibly rewarding to see the entire Lumps Plant operating together for the first time. This is an exciting milestone for everyone involved with Ares and reflects years of planning, engineering and construction. Our focus now is on completing commissioning successfully and beginning production."
The company expects ramp-up production to begin on August 15, 2026, during which fluorspar ore stockpiled at the Lost Sheep Mine will be transported to the Delta facility to support testing and initial production runs. According to the company's press release of March 27, 2024, commercial offtake agreements are already in place covering the company's expected initial metspar production for the first five years, ensuring a ready market for the output.
The Lumps Plant has a designed processing capacity of approximately 150,000 tonnes per annum, providing capacity to support increased mine output and expansion across the Lost Sheep Project and the wider Spor Mountain Range. Walker added: "We've intentionally built infrastructure that extends well beyond our initial mining rate. As we continue developing additional fluorspar targets across our property, this processing capacity gives us a platform for future growth while supporting our objective of establishing a secure U.S. supply of this critical mineral."
This development is significant as fluorspar is designated a critical mineral by the U.S. government, essential for steel production, aluminum manufacturing, and the production of certain chemicals and fluoropolymers. Currently, the United States relies heavily on imports for its fluorspar needs, primarily from Mexico and China. Ares' facility in Utah represents a strategic effort to reduce that dependency and strengthen domestic supply chains for industries vital to modern technology and infrastructure.
The Lost Sheep Fluorspar Project, located in Juab County, Utah, approximately 214 km southwest of Salt Lake City, spans 5,982 acres with 353 claims and is fully permitted, including mining permits. The NI 43-101 Technical Report identified high-grade fluorspar with low levels of impurities. The mining plan was first approved by the Bureau of Land Management in 1992 and renewed in 2016.
This announcement follows the company's prior disclosure that it intends to move forward with production based on historical engineering work, geological reports, and current engineering, without first establishing mineral reserves supported by a formal feasibility study, which carries higher risk but is considered acceptable for certain industrial mineral ventures.
