South Star Battery Metals

Overview

The green energy industry is booming. Unprecedented positive trends seen year after year present junior mining companies with exceptional growth potential as vital minerals like graphite and lithium needed to power alternative energies surge in demand.

Market research estimates that worldwide graphite output needs to increase by nearly 500 percent by 2050 to meet the growing demand for energy storage. If you are an investor looking for exposure in this market, there is no better time to invest

The company operates in what is arguably the best region worldwide to be developing a new graphite project. Brazil currently produces upwards of 90,000 tonnes of graphite on an annual basis and has a significant internal demand for the product, which advantageously positions South Star as a first-mover in the South American graphite production space. More than that, once in production, South Star will become the first new graphite producer in the Americas in a decade.

The flagship Santa Cruz graphite project sits in the second-largest flake graphite-producing district in the world. This robust project hosts the perfect storm of large flake ore mineralization and production quality concentrates of over 95 percent purity.

South Star has been quick to advance its flagship asset for production readiness. In October 2020, the Phase 1 environmental permit was approved, and in December 2020, South Star released exciting news that it received the mining permit for its 13,000-tonnes-per-year (tpy) Phase 1 pilot plant. Phase 2 production (25,000 tpy) is partially funded and planned for 2026, while Phase 3 (50,000 tpy) is scheduled for 2028.

Leveraging the rapidly growing graphite demand and positive market outlook, South Star aims to become a significant producer in the battery metals space.

Meanwhile, after a successful pilot plant metallurgical testing conducted at the company’s BamaStar Graphite Project in Alabama in 2022, South Star announced the completion of the project’s maiden mineral resource estimate (MRE) indicating 520,000 tonnes of contained graphite with an open pit-constrained mineral resource estimate of 22 million tonnes of inferred resources at an average grade of 2.4 percent (Cg), based on a 1.1 percent cut-off grade. A drilling program composed of 2,000 tp 2,500 meters is underway to support a NI 43-101 preliminary economic assessment( PEA) planned for Q1 of 2024.

The 2023 drilling campaign has been completed at the BamaStar Graphite Project designed to test continuity and limits of mineralization in support of the upcoming NI 43-101 preliminary economic assessment. Fifteen holes totaling approximately 1,900 meters were successfully completed, and all holes at BamaStar have intercepted significant intervals of graphite mineralization. The company has received a US$3.2-million grant (C$4.4 million) from the Department of Defense to advance the NI 43-101 feasibility study for the BamaStar Graphite Project.

South Star’s management team includes experienced mining heavyweights, mine builders and operators. The unparalleled local expertise, proven track records of success and vested interest in company success prime South Star for exceptional growth and project achievements.

Company Highlights

• South Star Battery Metals is positioned to emerge as the first new graphite producer since 1996 as it develops near-term production projects in Brazil and the United States.
• The company’s flagship Santa Cruz graphite project leverages mining-friendly conditions and its strategic position in the second-largest flake graphite-producing district in the world.
• Santa Cruz is an open-pit deposit with 15 drill-ready targets across a 13,000-hectare property. The entire land package hosts widespread mineralization, according to the Brazilian Mining Authority.
• The company started Phase 1 construction of the Santa Cruz Graphite mine in June 2022 with production commencing in January 2024.
• South Star’s current market capitalization stands at C$10.6 million
• South Star Battery Metals has a streaming agreement with Sprott Resources Streaming and Royalty Corp. worth up to $US28 million as prepayment for graphite concentrates from the Santa Cruz Graphite Project.
• The company’s US-based Ceylon graphite project is located on the northeast end of the Alabama Graphite Belt, and is embarking on a two-month drilling program in support of the upcoming preliminary economic assessment (PEA), planned for completion by the end of Q3 2024.
• The company has received a US$3.2 million grant (C$4.4 million) from the Department of Defense to advance an NI 43-101 Feasibility Study for the BamaStar Graphite Project in Alabama.
• 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.