Ares Strategic Mining Ltd.: Clarifying News Release
Vancouver, June 22nd, 2020 - Ares Strategic Mining Ltd. (TSXV:ARS) ("Ares" or the "Company"), at the request of IIROCC, would like to issue a clarifying statement alongside the Company's 17th June 2020 Press Release "Ares Strategic Mining Announces the Successful Upgrade of its Fluorspar to the Highest Grades Required by Industry". The Company has made a decision to proceed to production without first establishing mineral reserves supported by preliminary feasibility study, and is instead advancing to production based on known past mining operations at its mine, and using drilling, metallurgy data alongside market evaluation. The Company understands that such projects are typically associated with higher risk of economic or technical failure. Disclosure: Companies typically rely on comprehensive feasibility reports on mineral reserve estimates to reduce the risks and uncertainties associated with a production decision. 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. The demonstration of the economic viability of an industrial minerals deposit, as required under the General CIM Guidelines, may be satisfied by actual profitable production. The Company has not completed a feasibility study on, nor has the Company completed a mineral reserve or resource estimate at the Lost Sheep Mine and as such the financial and technical viability of the project is at higher risk than if this work had been completed. 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 this asset. The Company further cautions that it is not basing any production decision on a feasibility study of mineral reserves demonstrating economic and technical viability, and therefore there is a much greater risk of failure associated with its production decision. In addition, readers are cautioned that inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. The development of a mining operation typically involves large capital expenditures and a high degree of risk and uncertainty. To reduce this risk and uncertainty, the issuer typically makes its production decision based on a comprehensive feasibility study of established mineral reserves. The Company has decided to proceed without established mineral reserves, basing decision on past production and internal projections.
Raul Sanabria, P.Geo., is a qualified person as defined by NI 43-101 and has reviewed and approved the technical contents of this news release. Mr. Sanabria is not independent to the Company as he is a Director and shareholder.
ON BEHALF OF THE BOARD OF DIRECTORS OF ARES STRATEGIC MINING LTD.
James Walker
Chief Executive Officer and President
For further information, please contact Mark Bolin by phone at 604-781-0535 or by email at mbolin@aresmining.com
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.