South Star Battery Metals Announces Approval of the Environmental Permits for the Santa Cruz Graphite Mine Phases 2 & 3 in Bahia, Brazil
South Star Battery Metals Announces Approval of the Environmental
Permits for the Santa Cruz Graphite Mine Phases 2 & 3 in Bahia, Brazil
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, CANADA, February 06, 2024 – South Star Battery Metals Corp. (“South Star” or the “Company”)
(TSXV: STS) (OTCQB: STSBF), is pleased to announce that the environmental permits for Santa Cruz Graphite
Mine Phases 2 and 3 have been approved for up to 50,000 tonne per annum (“tpa”) of concentrate for eight
mining claims. Following approval of the environmental permits, f ive of the principal claims were approved by
the regional office of the National Mining Agency (“ANM”) and forwarded to the Ministry of Mines and Energy
(“MME”) in Brasilia for final review of the life-of-mine permit applications. The Phases 2 and 3 environmental
permits were approved with conditions generally in line with the Phase 1 permit and are consistent with the
current environmental and community engagement programs already underway.
South Star President , Richard Pearce, commented, “This important approval is another big achievement for
Santa Cruz and is a key step forward in derisking our future operations and scaling our production at a critical
time for battery metals. Once the full mining concessions incorporating Phase s 2 and 3 are approved by the
MME, we will be able to increase our Phase 1 production to name plate capacity of 13,000 tpa from 5,000 tpa
and deliver more high-quality Brazilian flake graphite to our clients. Our goal is to have all permits/licenses in
hand shortly for 50,000 tpa of production and advancing the Santa Cruz feasibility study so we are ready to
make an investment decision shortly after delivery of the report in December 2024. Up to US$18M is available
through our agreement with Sprott Streaming for Phase 2 production expansion upon delivery of the FS. I
would like to sincerely thank our team, the Municipality of Itabela and all stakeholders for their continuing
support of Santa Cruz as we responsibly scale our operations in one of the most proven graphite districts in the
world. Santa Cruz will be the first new graphite production in the Americas since 1996, and we look forward to
scaling operations soon as our clients request additional production from us.”
Upcoming catalysts in 2024 include advancing the Santa Cruz NI 43-101 Feasibility Study (“FS”), which will build
on the Prefeasibility Study previously released in 2021. The FS will advance Santa Cruz operations with a
phased, modular design plant facility and will include the following milestones:
• Approximately 4,000m of diamond and reverse circulation drilling
• Updated Resource/Reserve estimate
• Updated mine plans
• Flow sheet optimizations
• Natural flake graphite concentrate production expansion
o Phase 1: 5,000 scaling to 13,000 tpa
o Phase 2: +25,000 tpa module
o Phase 3: +25,000 tpa module
• Infrastructure and access
• Project CAPEX/OPEX
• Project Economics
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 fully funded for Phase 1, and the construction and commissioning are underway . Santa
Cruz will be the first new graphite production in the Americas since 1996 with Phase 1 commercial production
projected in Q1 2024. Phase 2 production (25,000 tpa) is partially funded and planned for 2026, while Phase 3
(50,000 tpa) is scheduled for 2028.
South Star’s second project in the development pipeline is strategically located in Alabama in the center of a
developing electric vehicle, aerospace, and defen se hub in the southeastern United States . The BamaStar
Project is a historic mine active during World Wars I & II . A NI43-101 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 indicates a traditional crush/grind/flotation concentration circuit that
achieved grades of approximately 94-97% Cg 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 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 Board,
MR. RICHARD PEARCE
Chief Executive Officer
For additional information, please contact:
South Star Investor Relations
Email: [email protected]
+1 (604) 706-0212
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 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 relating to the successful closing of the Private
Placement and anticipated timing thereof and the intended use of proceeds and 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.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in
the United States. The securities have not been and will not be registered under the United States Securities Act
of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold
within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.