Ares Strategic Mining Inc. (CSE: ARS) (OTCQX: ARSMF) (FRA: N8I1) announced that commissioning of its Metallurgical Lumps Plant has officially begun at the Company's processing facility in Delta, Utah. For the first time, the entire processing plant has been powered up and is operating as one fully integrated system, marking the beginning of a four-week commissioning program.
The Lumps Plant is designed to process ore from the Company's Lost Sheep Mine into metallurgical-grade fluorspar lumps, also known as metspar, which is primarily supplied to U.S. steel industries. This development is significant as it represents a step toward establishing a domestic supply of a critical mineral that is essential for steelmaking and other industrial applications.
Over the coming weeks, Ares will undertake comprehensive integrated testing across all plant systems to verify performance, optimize operations, and prepare the facility for commercial production. Testing activities include verifying complete process flows from ore feed through 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, diagnostics, 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, commented: "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."
As commissioning progresses, fluorspar ore stockpiled at the Lost Sheep Mine will be transported to the Delta processing facility to support testing and initial ramp-up production runs. The Company expects ramp-up production to begin on August 15, 2026. Ramp-up refers to increasing the feed to the full plant production potential.
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. 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.
James 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."
The Lost Sheep Fluorspar Project is 100% owned by Ares and consists of 5,982 acres (353 claims) located in the Spor Mountain area, Juab County, Utah, approximately 214 km south-west of Salt Lake City. The project is fully permitted, including mining permits, and has a NI 43-101 Technical Report identifying high-grade fluorspar with low levels of impurities. The mining plan was approved by the Bureau of Land Management, first approved on August 24, 1992, and renewed on December 12, 2016.
The commencement of commissioning at the Lumps Plant is a critical step for Ares Strategic Mining as it moves closer to becoming a significant supplier of high-grade fluorspar to North American markets. This development has implications for U.S. steel industries that rely on metspar, as it could reduce dependence on foreign sources and enhance supply chain security. Additionally, the company's infrastructure investments position it for future growth as it explores additional fluorspar targets across its property.
