Ares Strategic Mining Initiates Metallurgical Lumps Plant Commissioning, Aims for August 15, 2026 Production Launch

Milestone Achieved with Full Operational Integration of Facility

On July 21, 2026, Ares Strategic Mining announced the commencement of commissioning operations at its Metallurgical Lumps Plant in Delta, Utah. This milestone signifies the first time the entire processing plant has been powered up and operated as a fully integrated system since construction completion.

The company highlighted that this launch initiates a four-week commissioning program involving thorough testing to ensure all systems operate correctly and are optimized for commercial output. This integrated startup approach guarantees seamless ore processing from the Lost Sheep Mine through to finished metallurgical-grade fluorspar lumps destined for the U.S. steel sector.

Extensive Testing Across All Plant Systems

The commissioning phase includes multiple testing activities across every operational area of the Lumps Plant. Verification will cover complete process flows from ore feed to finished product, confirming material movement aligns with design specifications. Additionally, testing will assess programmable logic controller (PLC) and human-machine interface (HMI) systems critical for reliable automated plant operations.

Beyond system checks, Ares will optimize operating parameters such as temperatures, pressures, and material flows throughout the facility. The company will also validate alarm systems, diagnostics, and automated start-up and shutdown sequences to ensure safe, dependable operation. Quality assurance tests will evaluate crushing, drying, and product specifications to confirm metallurgical-grade fluorspar meets customer standards prior to commercial shipments.

Production Ramp-Up Scheduled for August 15, 2026

Ares disclosed that ramp-up production is expected to begin on August 15, 2026. This phased increase in feed material allows the company to validate operations under load while maintaining quality and ensuring system reliability.

Fluorspar ore stockpiled at the Lost Sheep Mine will be transported to the Delta facility to support testing and initial ramp-up production. This staged approach provides a buffer to identify and resolve operational issues before reaching full designed capacity.

Secured Market Access Through Existing Offtake Agreements

The company has confirmed that commercial offtake agreements are in place covering the initial five years of metspar production. These agreements reduce commercial launch risk by guaranteeing buyers for the facility's early output, enabling confident progression toward production.

These contracts reflect strong North American demand for metallurgical-grade fluorspar, particularly from steel producers who are the primary end-users. The five-year coverage offers revenue visibility during ramp-up and early production phases.

Plant Capacity Designed to Support Growth

The Lumps Plant is engineered to process approximately 150,000 tonnes annually, exceeding the initial mining rate. This capacity supports potential output increases from the Lost Sheep Project and expansions across the Spor Mountain Range, providing a foundation for future growth.

Management has emphasized the infrastructure’s scalability, allowing strategic expansion without major additional capital expenditure. The substantial capacity indicates the company views its Utah fluorspar operations as a long-term cornerstone asset.

Lost Sheep Project Details and Regulatory Status

The Lost Sheep Fluorspar Project covers 5,982 acres with 353 mining claims in Spor Mountain, Juab County, Utah, about 214 kilometres southwest of Salt Lake City. Ares holds 100% ownership and has obtained full permits, including mining permits required for ore extraction.

The U.S. Bureau of Land Management (BLM) approved the mining plan initially on August 24, 1992, with renewal on December 12, 2016. A National Instrument 43-101 technical report identifies high-grade fluorspar reserves with low impurities, underpinning production plans. These approvals establish the project as a permitted mining operation in good standing with federal authorities.

Market Role of Metallurgical Fluorspar and Applications

Metallurgical-grade fluorspar is essential to the U.S. steel industry as a flux in steelmaking. It is also used in chemical production and specialized industrial materials critical to technology and infrastructure. Ares’s strategy to supply high-grade fluorspar domestically aligns with efforts to strengthen North American mineral supply chains.

The mineral’s strategic importance has made it a focus of U.S. supply security initiatives. Ares aims to become a key domestic supplier, addressing supply chain priorities for steel and manufacturing sectors. Existing offtake agreements indicate buyers are actively seeking domestic sources to reduce import reliance.

Operational Transition and Risk Factors

The company’s announcement includes forward-looking statements noting that while formal feasibility studies are typically conducted before production, industrial mineral projects like Ares’s fluorspar operation often involve lower investment and technical risk. Production decisions rely on historical engineering, geological data, and current engineering efforts.

Investors are cautioned about risks tied to production without formal NI 43-101 prefeasibility or feasibility studies, which historically carry higher economic or technical failure risk. However, management believes such studies are unnecessary for this operation given its nature and available data.

CEO Remarks on Project Milestone

James Walker, President and CEO of Ares Strategic Mining, stated that witnessing the entire Lumps Plant operate together marks an exciting milestone reflecting years of planning, engineering, and construction. He emphasized the focus on successful commissioning completion and production start.

Walker also highlighted the intentionally designed processing infrastructure exceeding initial mining rates, positioning the facility for future growth and supporting the goal of securing a stable U.S. supply of this critical mineral. These remarks underscore management’s long-term vision beyond initial production.