Reviving Essential Mining in the U.S.: A Company Driven by Government Action

US: Ares Strategic Mining is developing the sole permitted and producing Fluorspar mine in the United States, which will provide a much-needed domestic source of this strategic mineral. You may not be aware, but Fluorspar is an essential component of many everyday items, which makes this opportunity even more exciting. To give you a sense of its significance, we've compiled a brief list. Ares Strategic Mining has exclusive access to this valuable resource, and it has the potential to have a major impact on the industry.

The security and economic prosperity of the United States heavily depend on the import of certain mineral commodities.  This dependence on foreign sources creates a strategic vulnerability for both our economy and military, leaving us exposed to adverse foreign government action, natural disasters, and other events that can disrupt the supply of these key minerals. In 2018, the US government classified 35 mineral commodities as critical, including "Fluorspar." This is largely because China is the primary producer and supplier of this rare mineral.

Ares Strategic Mining has set its sights on disrupting China's stronghold on Fluorspar production and supply. As the sole producing Fluorspar, Mine in the U.S., Ares Strategic Mining aims to address the critical need for this rare mineral material in the country. In 2018, the U.S. Government declared Fluorspar as a strategic and critical material, essential to the economic and national security of the United States. The mineral is also classified as a Strategic Mineral by China and the European Union, and its downstream product value is over $112 billion worldwide annually. However, the major producing regions for Fluorspar, including China, Mexico, Mongolia/CIS, and South Africa, are all outside of the U.S. Ares Strategic Mining's domestic source could pave the way for other U.S. mining companies to meet the government mandate of producing Fluorspar domestically.

Ares Strategic Mining, a junior mining company specializing in natural resources, is dedicated to producing active domestic US Fluorspar within the next year. The demand for Fluorspar as a strategic mineral continues to rise, with Acidspar (a superior form of Fluorspar) being particularly valuable due to its use in creating Hydrofluoric acid for electronics, refrigerants, and pharmaceuticals. It is also a crucial component in the production of Lithium-ion batteries, which power the Electric Vehicle (EV) revolution currently taking place worldwide. Despite the attention given to Lithium and Cobalt supplies in battery production, Fluorspar is often overlooked despite its significant importance.

Around35-40% of the overall Fluorspar production comes from metallurgical grade Fluorspar or metspar. It is primarily used in steel production as a flux to lower the melting temperature and aid in the absorption and removal of Sulphur, Phosphorus, Carbon, and other impurities present in slag. It also finds applications in cement to hasten the calcination process.

On the other hand, acid grade Fluorspar or Acidspar accounts for approximately 60-65% of total Fluorspar production. It is extensively used in the manufacture of Hydrofluoric acid (HF), which is the primary source of all fluorochemicals and finds applications in Aluminium production, refrigerant gases, propellants, electrical and electronic appliances, polymers , Lithium batteries, petrochemical catalysts, pharmaceuticals and agrochemicals.

The major regions that consume Fluorspar are North America, China, Europe, Russia, and Mexico. However, the US does not have any producing Fluorspar mines in 2020, which means American cement producers, steel and Aluminium manufacturers, and refrigeration companies must import all Fluorspar from Mexico, Vietnam, and other countries. Between 2014 and 2017, the US imported Fluorspar primarily from Mexico (69%), followed by Vietnam (10%), South Africa (8%), China (6%), and other countries (7%).

The recent developments have created a pressing need for reliable sources of US Fluorspar. Luckily, Ares has identified over 60 potential Fluorspar mining targets through their claims, allowing the company to project a mine life of more than three decades by applying historic average tonnages for each target.

Among these targets is the Lost Sheep Property, which is situated in Juab County, Western Utah. This area boasts an impressively high grade of Fluorspar, which is accepted by the industry even when unprocessed. Additionally, the mine can produce Fluorspar at a much lower cost than any imported alternatives.

It's worth noting that Fluorspar imported from Mexico often contains harmful contaminants such as arsenic, which makes it difficult for manufacturers to avoid purchasing it. Fortunately, the product found in the Lost Sheep Mine is free of Sulphides and Arsenic, making it a safer option for consumers.

Given the large domestic market for Fluorspar, this mine is positioned to become a key part of the supply chain as the only Fluorspar producer in the United States.

The Lost Sheep Mine, located roughly 214 km south-west of Salt Lake City, boasts convenient access and infrastructure, with a paved highway leading to the property and an extensive network of access roads spanning the entire Consolidated Claims District. In addition, there is already a railway attached to the warehouse for delivery, and a local population eager for labor opportunities.

To accelerate progress, Ares has closed a private placement round, raising approximately $1.18 million. This comes on the heels of a previous private placement in February, which garnered $1.97 million for exploration activities and engineering work at the mine. With these funds, Ares is well-positioned to drive its efforts forward.

Ares Strategic Mining's plan to put Lost Sheep Mine into production is direct and efficient. The company intends to begin producing metspar initially to generate immediate revenue, then swiftly scale up production and refining capabilities to start producing higher-value Acidspar.

Ares Strategic Mining boasts exceptional mining expertise and is working alongside esteemed contractors and partners to develop its mines. The company has successfully secured offtake agreements with major foreign partners, ensuring a ready market for their products upon availability. This advantageous situation places Ares Strategic Mining in a rare position to produce a highly sought-after mineral in a short timeframe and quickly access the market. With few domestic strategic minerals plays currently on the radar, the company is poised to emerge as a frontrunner as the international climate intensifies.