Ares Strategic Mining Inc. (CSE: ARS) (OTCQX: ARSMF) (FRA: N8I1) announced 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 is operating as one fully integrated system, marking the beginning of the Company's four-week commissioning program.
The Lumps Plant has been designed to process ore from the Company's Lost Sheep Mine into metallurgical-grade fluorspar lumps ("metspar"), a product primarily supplied to U.S. steel industries. Over the coming weeks, the Company 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 optimising operating parameters including 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 ramping up the feed to the full plant production potential. As per 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 adds, "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 commissioning milestone is significant as it moves the Company closer to becoming a key domestic supplier of fluorspar, a critical mineral used in steelmaking and other industrial processes. The facility's capacity to produce 150,000 tonnes per annum positions Ares to meet growing demand while reducing reliance on imports. The company has secured offtake agreements for its initial five years of production, ensuring a stable market for its output.
Ares Strategic Mining Inc. is focused on developing its fluorspar projects in the U.S., aiming to become a significant supplier of high-grade fluorspar to North American markets. The Lost Sheep Fluorspar Project is 100% owned and covers 5,982 acres with 353 claims in the Spor Mountain area, Juab County, Utah. It is fully permitted, including mining permits, and has a mining plan approved by the BLM. The NI 43-101 Technical Report identified high-grade fluorspar with low levels of impurities.
The commissioning process includes a video update available at https://youtu.be/8CzwUTRsSOA. The company's forward-looking statements emphasize the risks associated with production decisions without a comprehensive feasibility study, but the management believes the current engineering work supports moving forward.
