LOST SHEEP MINE - UTAH
The Company's Lost Sheep fluorspar mine and its surrounding claims are located at the Spor Mountain area, Juab County, Utah, approximately 214 km south-west of Salt Lake City. The project consists of 67 claims spanning a 1,447-acre area. The fluorspar found at the Lost Sheep mine naturally occurs at grades high enough to be accepted by the industry, even without processing.
The Company has begun investing in the upgrade of the facilities, expanded mine designs, and the design of a new high capacity plant to significantly increase the production of the mine. There is large domestic fluorspar market available to the Company, we are well placed to become an integral part of the country's supply chain.
Companies typically rely on comprehensive feasibility reports on mineral reserve estimates to reduce the risks and uncertainties associated with a production decision. Historically, situations where the issuer decides to put a mineral project into production without first establishing mineral reserves supported by a technical report and completing a feasibility study have a higher risk of economic or technical failure, though some industrial mineral ventures are relatively simple operations with low levels of investment and risk, where the operating entity has determined that a formal prefeasibility or feasibility study in conformance with NI 43-101 and 43-101 CP is not required for a production decision.
Based on historical engineering work, geological reports, historical production data and current engineering work completed or in the process by Ares, the Company intends to move forward with the development of its Utah asset.