Ares Strategic Mining Inc. (CSE: ARS) (OTCQX: ARSMF) (FRA: N8I1) announced that commissioning of its Metallurgical Lumps Plant has officially commenced at its 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 Lumps Plant is designed to process ore from the Company's Lost Sheep Mine into metallurgical-grade fluorspar lumps, known as metspar, a product primarily supplied to U.S. steel industries. The 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.
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 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. A video of the plant is available at https://youtu.be/8CzwUTRsSOA.
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."
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.
This development is significant as it positions Ares to become a key domestic supplier of fluorspar, a critical mineral essential for steelmaking and other industrial applications. The U.S. currently relies heavily on imports for fluorspar, and Ares' production could enhance supply chain security. The company's processing capacity far exceeds its initial mining rate, providing a platform for future growth as it develops additional fluorspar targets across its property. Ares Strategic Mining is focused on becoming a significant supplier of high-grade fluorspar to North American markets, supporting industries vital to modern technology and infrastructure.
