South Star Announces First Product and Start of Commercial Production Ramp-up at Santa Cruz Phase 1 Graphite Mine in Bahia Brazil, as Well as Board Change.
South Star Announces First Product and Start of Commercial
Production Ramp-up at Santa Cruz Phase 1 Graphite Mine in Bahia
Brazil, as Well as Board Change.
Highlights:
• Commissioning is complete at Santa Cruz Phase 1 Graphite Mine (“Santa Cruz”) in Bahia, Brazil, and first
one tonne product has been placed in the bulk bag. Commercial production will ramp-up in October with
first product shipments expected by end of October.
• Phase 1 construction and commissioning was completed as Santa Cruz team approaches 286,488
manhours and 678 days without a loss-time accident.
• As-builts and a bottleneck /optimization engineering analysis are underway to explore the potential to
upgrade the Phase 1 plant throughput.
• South Star is preparing to ship a variety of large-scale industrial samples for final qualification in Brazil
and the USA.
• Director Eric Allison has decided to not run for reelection and will retire from the Board of Directors.
VANCOUVER — October 07, 2024 — SOUTH STAR BATTERY METALS CORP. (“South Star” or the “Company”)
(TSXV: STS) (OTCQB: STSBF) is pleased to announce that commissioning at Santa Cruz Phase 1 Graphite Mine in
Bahia, Brazil is complete and that the first product has been placed in the one tonne big bag. Ramp -up of
commercial production is underway, and first shipments of natural flake graphite concentrates are expected by
the end of October. The Phase 1 mine and process plant construction and commissioning was completed as Santa
Cruz team approaches 286,488 manhours and 678 days without a loss-time accident. Santa Cruz is the first new
graphite production in the Americas since 1996.
As-builts engineering drawings of the constructed Phase 1 process plant detailing the electrical, mechanical,
structural, foundations and earthworks as well as a bottleneck/process optimization study are underway to
explore the potential to upgrade the Phase 1 processing plant capacity. In order to avoid special orders or custom
parts, much of the installed equipment is the smallest, off -the-shelf, stock production units . It is oversized
compared to Phase 1 throughput , and the study will determine what would have to be upgraded the Phase 1
plant to reach the Phase 2 estimated throughput. An operational mass and water balance as well as the as-builts
will serve as the basis for a production optimization and bottleneck analysis. The study is expected by December
2024.
Photo 1: South Star Team and Start of Commercial Production Ramp-up
Richard Pearce, President and CEO of South Star, commented: “After a 14-year odyssey starting in 2010, we are
pleased to announce the end of commissioning and start of commercial production ramp -up. It has been a long
time coming, and we are fully permitted to expand to 50,000 tonnes/year of graphite concentrate production as
the markets and clients need more material. We have scalable assets in Tier 1 jurisdictions and outstanding, highly
crystalline natural flake graphite coming to the markets at a critical time in the West. We are negotiating several
large potential commercial agreements for 2025 and look forward to building long-term relationships with clients.
I would like to once again thank our team, shareholders and Board for an outstanding job and endless support
getting us to this historic day, which I envisioned for over a decade. South Star is proud of its accomplishments at
Santa Cruz as the first new graphite producer in the Americas since 1996. Our team is committed to safe
operations and executing the Company’s strategic plan of bringing vertically integrated , phased , modular
production in the Americas of midstream and downstream products in a disciplined, technically viable and
profitable business plan with a go-to market commercial strategy.”
Eric Allison, former CEO and current member of South Star’s Board of Directors has decided to not stand for
reelection and will retire in October after the upcoming AGM. Mr. Allison played a crucial role at the start of
South Star serving as the Company’s first CEO from July 2017 to June 2019 and as a Board member for over 7
years. He was also key in bringing the BamaStar Graphite Project opportunity in the USA to the Company. Richard
Pearce commented, “It is with great respect and gratitude that we announce the retirement of Eric from the Board
of Directors. His insights and hard work have been an asset to South Star for over seven years and created
outstanding perspective and value for management and the shareholders. The entire Company and I thank him
for his service and wish him well in the future.”
# # #
ABOUT SOUTH STAR BATTERY METALS CORP.
South Star 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 (> 30 tonnes)
has been completed. The results of the testing show that approximately 65% of graphite concentrate is +80 mesh
with good recoveries and 95%-99% graphitic carbon (Cg). With excellent infrastructure and logistics, South Star
Phase 1 is ramping up commercial production with first sales expected to be delivered in October 2024. Santa
Cruz Phase 1 commercial production has a nameplate capacity of 12,000 tpy and is the first new graphite
production in the Americas since 1996. Phase 2 production (25,000 tpy) is partially funded and planned for 2026,
while Phase 3 (50,000 tpy) is scheduled for 2028.
South Star’s second project in the development pipeline is strategically located in Alabama, USA in the center of
a developing electric -vehicle, aerospace, and defense hub in the southeastern United States. The BamaStar
Project includes a historic mine active during the First and Second World Wars. A NI 43-101 guided technical
report with the maiden resource estimate has been filed on SEDAR. Trenching, Phase 1 drilling, sampling, analysis,
and preliminary metallurgical testing have been completed. The testing included a traditional
crush/grind/flotation concentration circuit that achieved grades of approximately 94-99% Cg with approximately
90% recoveries. The vertically integrated production facilities include a mine and industrial concentrator in Coosa
County, AL and a downstream value -add plant in the Southeast U.S. , which will be upgrading natural flake
graphite concentrates from both the Santa Cruz and BamaStar mines. 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 http://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 South Star Board of Directors,
MR. RICHARD L. PEARCE,
President & Chief Executive Officer
For additional information, please contact:
South Star Investor Relations
Email: [email protected]
Phone: +1 (604) 706-0212
Website: www.southstarbatterymetals.com
Twitter: https://twitter.com/southstarbm
Facebook: https://www.facebook.com/southstarbatterymetals
LinkedIn: https://www.linkedin.com/company/southstarbatterymetals/
YouTube: South Star Battery Metals – YouTube
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 p redictions,
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 det ailed 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.