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South Star Battery Metals Corp. ("South Star" or the "Company") (TSXV: STS) (OTCQB: STSBD), is pleased to announce that it has submitted the Planned Economic Analysis ("PAE") and the request for the final mining license ("concessão de lavra") to the Brazilian Mining Authority ("ANM") on September 28 th 2022 for two additional claims (871.0522011 & 872.8742010), which are east and west extensions on strike of where the Phase 2 and 3 facilities are planned. This brings the total to 7 of the 13 mining claims submitted and now encompasses the entirety of the 8-kilometer strike that has been identified (see the August 15 th 2022 press release). The proposed PAE doubles the Santa Cruz production capacity presented in the previously released PFS ( March 2020 ) and incorporates a third phase of project development. The planned production schedule follows:
- 2 years with 5,000 tonnes per year ("tpy") of concentrates (Phase 1);
- 2 years with 25,000 tpy of concentrates (Phase 2); &
- Life of mine ("LOM") with 50,000 tpy of concentrates (Phase 3).
In addition, the Company has selected the environmental consultants for the Phase 2/3 environmental permitting, and they are expected to mobilize for field inventories in October 2022 . The environmental studies and documents are expected to be completed and submitted for review and comment in January 2023 .
The pilot scale metallurgical testing program for the Alabama Graphite Project is underway at North Carolina State University and is on schedule to deliver approximately 15-18 kg of ROM concentrate samples by the end of November 2022 . Once finalized, the concentrate samples will be sent for physical and chemical characterizations as well as testing for a variety of value-add and battery applications.
The maiden drilling campaign is underway and a rubber track mounted drill rig is scheduled to be on site in Alabama this week. The drill pads are prepared and drilling is expected to be completed by November 2022 . The Alabama exploration program includes:
- Drilling 10-15 holes (HQ) along 1.5 km of strike;
- Logging & Assays;
- QA/QC Program with Blanks, Duplicates and Standards;
- Background Water Quality Testing;
- Geotechnical Drilling / Installation of a Piezometer to Monitor Groundwater Levels; &
- Drill Pad Construction and Reclamation.
Richard Pearce , CEO of South Star, said, "At Santa Cruz we have submitted to the ANM all the priority PAEs along the 8 km strike asked for the full mining license for 50,000 tpy of concentrates. We will continue to submit additional PAEs throughout the remainder of 2022. The environmental consultants for the Phase 2/3 permitting effort have been selected and will be in the field in October 2022 . Our goals are to have the Phase 2 & 3 mining and environmental permits and mining licenses in hand around the same time we are commissioning the Phase 1 plant so we can quickly advance financing alternatives to scale the production. In Alabama we are very excited to get the drills turning for our maiden resource estimate in Alabama , and the met pilot testing program is underway and on schedule. We are aiming to get a maiden 43-101 resource estimate for Alabama out early Q1 2023 and a 43-101 PEA delivered end of year 2023. Exciting times as we race to be the first new graphite production in the Americas in over a decade."
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 Q4 2023.
South Star's next project in the development pipeline is a 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. South Star is executing on its 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 Corp.
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
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CAUTIONARY STATEMENT
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Forward-Looking Information
This press release 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 in this press release include, but are not limited to, statements regarding: moving Santa Cruz into production and scaling operations as well as advancing the Alabama project; and the Company's plans and expectations.
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.
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SOURCE South Star Battery Metals Corp.
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181,057,000 € 20%-30% 40-50% 30% Figure 1 – Financing Plan and Structure