South Star Mining Announces the Selection of Final Design and Phase 1 Engineering Construction Support Team for the Santa Cruz Graphite Project
NEWS RELEASE
South Star Mining Announces the Selection of Final Design and Phase 1 Engineering
Construction Support Team for the Santa Cruz Graphite Project
Toronto, ON, April 13, 2021 – South Star Mining Corp. (“South Star” or “the Company”) (TSX-V: STS) (OTCQB:
STSBF) is pleased to announce that it has awarded the contract for final engineering design and Phase 1
construction support services to MIPTEC Engenharia e Consultoria Ltda (“MIPTEC”). MIPTEC is based in Belo
Horizonte and provides full-service engineering, design and consulting services focused on mining and mineral
resource sectors as well as ports and logistics terminals. The scope of work includes value engineering/project
validation for the previous design phase, preparation of the final design construction documents , construction
engineering support services , as-built drawings and operations manuals . Final d esign work packages w ill be
released progressively as they are completed , and the overall design schedule is estimated to be a total of 18
weeks. Project kick-off is scheduled to begin by the week of April 10th.
The Company has elected to internally manage the Phase 1 EPCM program , with MIPTEC providing the final
design and engineering construction support services. The owner’s team will include all major engineering
disciplines to oversee the EPCM project implementation program, construction supervision and quality control &
assurance. Phase 1 operations for the 5,000 tpy pilot plant operations are full y licensed, and the Company is
preparing to mobilize contractors in August 2021 with commercial production targeted for Q4 2022.
Richard Pearce, President and CEO of South Star, commented: “ I am very pleased to announce that we have
selected MIPTEC to provide final design and construction engineering support services. They have a great team,
and I was impressed with their creativity and flexible design approach. We have recently contracted the General
Manager to oversee the final design phase and ensure everything is in place for construction. We flew the site
last week to get updated aerial imagery and precise topography for the final design. Geotechnical drill rigs are
scheduled to mobilize in mid April. The team is taking shape, and we are pushing hard to keep everything
advancing according to schedule. We are swiftly moving into the construction and production phases and intend
to become the first new graphite mine in continuous commercial production in the Americas in over a decade.
It’s a dream come true to see the plans taking shape, the team coming together and to be thinking about hiring
construction support services and qualifying contractors . It’s a w hole new mindset, and the team is very
energized.”
About South Star Mining Corp.
South Star Mining Corp. is focused on the selective acquisition and development of near-term production projects
in Brazil. South Star is driven to create fundamental value in the battery metals sector for clients and investor s
with real projects that have strong intrinsic financial and operating metrics, and that can be profitable throughout
the resource cycle. South Star has an experienced executive team with a strong history of discovering, developing,
building and operating profitable mines in Brazil.
The Santa Cruz Graphite Project (“the Project”), located in Southern Bahia, is the first of a series of 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. The Project 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 2022, pending financing. To learn more, please visit the Company website at http://www.southstarmining.ca.
This news release has been reviewed and approved by Richard Pearce, P. Eng, a "Qualified Person" under National
Instrument 43-101 and President and CEO of South Star Mining.
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
For additional information, please contact:
CHF Capital Markets
Cathy Hume, CEO
Phone: 416-868-1079 x251
Email: [email protected]
Mr. Dave McMillan
Chairman
Email: [email protected]
Twitter: https://twitter.com/southstarmining
Facebook: https://www.facebook.com/southstarmining/
LinkedIn: https://www.linkedin.com/company/south-star-mining-corp/
CAUTIONARY STATEMENT
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Exchange) accepts responsibility for the adequacy or accuracy of this press release.
FORWARD-LOOKING INFORMATION
The information contained herein 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 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 profitabil ity; 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 expen ses; 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 ass ume 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.