Approval of All Final Exploration Reports of Santa Cruz Mine by Brazilian Mining Authority and Launch of Product Information Bulletins for Phase 1 Operations
South Star Battery Metals Announces Approval of All Final Exploration Reports of Santa Cruz Mine by Brazilian Mining Authority and Launch of Product Information Bulletins for Phase 1 Operations
Vancouver, Canada, February 23th, 2022 – South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF), is pleased to announce that it has received approval from the Brazilian Mining Authority (“ANM”) on February 22th, 2022 of the final exploration reports for the remaining 6 of the 13 claims of the Santa Cruz Graphite Mine in Brazil. In addition, the Company has launched Product Information Bulletins (“PIBs”) for a range of concentrate products for Phase 1 operations.
The approval of the Final Exploration Reports for all 13 claims totaling approximately 13,000 hectares is presented in Table 1. The other 7 claims had the final exploration reports previously approved on February 8th, 2022 (See February 9th, 2022 Press Release).
“All 13 final exploration reports for the Santa Cruz Graphite Project have been approved by the ANM. We have a large land package with approximately 13,000 hectares in one of the most prospective graphite producing regions in the world. The markets understand Brazilian graphite, like Brazilian graphite and are looking for more Brazilian graphite. The USGS Mineral Commodities Summary for 2022 lists Brazil as having the third largest reserves of graphite in the world (70,000,000t) behind Turkey and China, and the second largest producer of graphite in 2021 (68,000t) behind only China. South Star has just increased Brazil’s total by 17% with reported 43-101 reserve estimates of 12.3Mt and a 12-year mine life, and the combined total of our ANM compliant resource estimates in the 13 Final Exploration Reports total over 40Mt,” commented Richard Pearce, President and CEO of South Star. “This is a scalable, high-quality, world-class deposit that is just getting started, and South Star will be the first new graphite production in the Americas in more than a decade. 2022 and 2023 will be transformative for South Star. Once again I’d like to thank our team and the analysts at the ANM for all their hard work and dedication.”
Product Information Bulletins for Phase 1 Operations
The Company is pleased to launch the Product Information Bulletins (PIBs) for natural flake, crystalline graphite concentrate products for the Santa Cruz Phase 1 Operations. Flake size distributions vary from very fines (ASTM -325 mesh or 44 microns) to large flake (ASTM +30 mesh or 600 microns) and carbon grade ranging from 87% to 96%. The PIBs present the physical and chemical characteristics of a range of products, and the Company is in ongoing commercial talks for the sale of 100% of the Phase 1 production. The PIBs can be accessed using the following link to the Products webpage.
About South Star Battery Metals Corp
South Star Battery Metals Corp. is a Canadian battery metals project developer focused on the selective acquisition and development of near-term production projects in the Americas. South Star’s Santa Cruz Graphite Project, located in Southern Bahia, Brazil is the first of a series of industrial and battery metals projects that will be put into production. Brazil is the second-largest graphite-producing region in the world with more than 80 years of continuous mining. Santa Cruz has at-surface mineralization in friable materials, and successful large-scale pilot-plant testing (>30t) has been completed. The results of the testing show that approximately 65% of Cg concentrate is +80 mesh with good recoveries and 95%-99% Cg. With excellent infrastructure and logistics, South Star is carrying its development plan towards Phase 1 production projected in Q1 2023, pending financing.
South Star’s next project in the pipeline is a development project in Alabama located in the middle of a developing electric vehicle, aerospace and defence hub in the southeastern United States. The Project is a historic mine active during World Wars I & II. Trenching, sampling, analysis and preliminary metallurgic testing has been completed. The testing indicated a traditional crush/grind/flotation concentration circuit achieved grades of approximately 96-97% with approximately 86% recoveries. and South Star is executing on it’s plan to create a multi-asset, diversified battery metals company with near-term operations in strategic jurisdictions. South Star trades on the TSX Venture Exchange under the symbol STS, and on the OTCQB under the symbol STSBF.
South Star is committed to a corporate culture, project execution plan and safe operations that embrace the highest standards of ESG principles based on transparency, stakeholder engagement, ongoing education and stewardship. To learn more, please visit the Company website at https://www.southstarbatterymetals.com.
This news release has been reviewed and approved by Richard Pearce, P.E., a “Qualified Person” under National Instrument 43-101 and President and CEO of South Star Battery Metals.
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
For additional information, please contact:
South Star Investor Relations (Canada IR)
RBMG – RB Milestone Group LLC (Investor Relations USA)
Trevor Brucato, Managing Director
YouTube: South Star Battery Metals – YouTube
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This news release and the Updated Technical Report contain references to inferred resources. The Report is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
The information contained herein contains “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be “forward-looking statements”.
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company’s prospects, properties and business detailed elsewhere in the Company’s disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company’s expectations or projections.