The commencement of mining operations at Ares Strategic Mining's Lost Sheep Fluorspar Mine in Utah represents a significant step in establishing domestic production of a mineral designated as critical by the United States government. With several thousand tons of fluorspar ore now stockpiled at surface, the company has transitioned from development to production build-up, positioning itself as the only permitted and operating fluorspar mine in the country.
This operational milestone matters because fluorspar is essential for numerous modern industries, including steel and aluminum manufacturing, fluorochemicals and refrigerants, semiconductor and electronics production, clean energy technologies, and defense and national security applications. The United States has historically relied heavily on imports for this mineral, primarily from China, Mexico, and South Africa, creating supply chain vulnerabilities. Ares' progress at the Lost Sheep Mine directly addresses this strategic dependency.
The stockpiling initiative allows Ares to build strategic ore inventory ahead of flotation plant commissioning, optimize blending and grade control for consistent processing performance, and ensure uninterrupted feedstock supply once processing begins. James Walker, President and CEO of Ares Strategic Mining, stated that seeing hundreds of tons of ore at surface validates the team's work in bringing the mine back into production, calling it tangible, measurable progress.
The mine's location in the Spor Mountain area of Juab County, Utah, approximately 214 km southwest of Salt Lake City, is fully permitted, including mining permits approved by the Bureau of Land Management. The NI 43-101 Technical Report identified extensive high-grade fluorspar with low levels of impurities. The mining plan was first approved by Rex Rowley, Area Manager of the Bureau of Land Management, on August 24, 1992, and renewed by Paul B. Baker, Minerals Program Manager, on December 12, 2016. More information about the Bureau of Land Management's role in mineral resource management can be found at https://www.blm.gov.
Over the coming weeks, Ares expects to continue expanding surface stockpiles, advance flotation plant readiness, prepare for initial processing runs, and move closer to steady-state production. The company recently settled $185,199.23 CAD for services by issuing 381,854 common shares to consultants and service providers, with these shares subject to a statutory hold period.
The implications of this development extend beyond the company's operational timeline. For industries reliant on fluorspar, particularly those in the technology and defense sectors, a domestic source could mean greater supply security and potentially more stable pricing. For the broader economy, it represents progress in rebuilding critical mineral supply chains that have atrophied over decades of offshoring. The company's methodical approach—focusing on stockpiling before processing—suggests an emphasis on operational discipline aimed at achieving sustainable production rather than rushed output.
