South Star Battery Metals Announces Land Purchase, Application Submittal for the Full Mining License Doubling Production and Construction Update for Phase 1 Plant & Mine at its Santa Cruz Graphite Project
South Star Battery Metals Announces Land Purchase, Application Submittal
for the Full Mining License Doubling Production and Construction Update for
Phase 1 Plant & Mine at its Santa Cruz Graphite Project
VANCOUVER, British Columbia, Aug. 02, 2022 -- South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV:
STS) (OTCQB: STSBD), is pleased to announce that it has finalized the agreement for the land purchase required for
construction of the Phase 1 mine and plant facilities as well as the first two to three years of operations at its Santa Cruz
Graphite Project in Bahia, Brazil.
In addition, South Star 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 August 1 st, 2022 for the Claim 872.737/2010, which is
where the Phase 1 facilities are currently being installed. 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 February of 2022 (See Press Releases from February 9 th and 24 th) the final exploration reports for all of the Company’s 13
claims were approved by the ANM. The approval of the PAE and mining license is the final step in securing the LOM mining
license for each of the exploration claims and converting them to mining concessions. The Company plans to submit the PAE
and the request for the final mining license for 4 additional claims in the next 10 days and all the remaining claims by the end
of the year. The environmental field work for the 3 phased production schedule is scheduled to begin in Q3 of 2022, and the
Company intends to submit all the environmental documents for review and comment by Q1 of 2023.
Phase 1 operations are fully licensed with a trial mining license (“GU”) and associated environmental license. South Star has
paid the municipal building permit for construction of the Phase 1 plant, mine and infrastructure, and the Company anticipates
the permit should be issued by Itabela shortly.
Richard Pearce, CEO of South Star, said, “The initial land purchase agreement for Phase 1 operations of approximately 325
hectares has been finalized and registered at title office so that all the Phase 1 operations will be on our own property. It is
always advantageous to have the mine and facilities under our direct control. We submitted the PAE incorporating a third
phase doubling the production to 50,000 tpy and adding future operational flexibility. We plan on submitting all the PAEs by
the end of 2022 and will work towards having the mining licenses and environmental permits for the 5-7 priority claims approved
around the time we are commissioning our Phase 1 facilities in mid 2023. This will allow us to advance quickly with Phase 2/3
financing alternatives. The municipal building permit is the final approval we need to start the Phase 1 construction. The permit
fee was paid, and we anticipate the approval in short order. We continue to execute our business plan in a disciplined,
responsible manner on our march to being the first new graphite production in the Americas. Site preparation, grading and
earthworks, as well as security installations, roads and other infrastructure will be the first order of business. I’d like to thank
the mayor and his team from Itabela for continued support of South Star, and we look forward to beginning Phase 1
commercial production in mid-2023.”
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 Q3 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 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 (Canada IR)
Email: [email protected]
+1 (604) 706-0212 x3002
RBMG – RB Milestone Group LLC (IR US)
Trevor Brucato, Managing Director
Email: [email protected]
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 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.