South Star Mining Approves Budget and Initiates Drilling and Testing Programs at Santa Cruz
NEWS RELEASE
South Star Mining Approves Budget and Initiates Drilling and Testing
Programs at Santa Cruz
Not for distribution to US wire services or for dissemination in the United States of America
July 30, 2018 – Vancouver, B.C. - South Star Mining Corp. (“South Star” or the
“Company”) (TSXV: STS) is pleased to announce that the Co mpany’s Board of Directors has
approved its budget for the next 12 months and ke y activities are starting up at the Santa Cruz
Graphite Project in Bahia, Brazil. The approved budget includes drilling, engineering, testing and
environmental activities focused primarily on gathering the necessary information to fulfill the
requirements for a trial mining license. Under th e Brazilian Mining Code, a trial mining license,
or Guia de Utilizacao, may be granted for the pr oduction of up to 5000 tons of graphite per year
per exploration license.
The initial drill program calls for 2,000 meters of drilling targeted to enhance the size and quality
of the existing resource base as well as contributing to a more de tailed mine plan to support the
trial mining license. Field prepar ations will begin in August with drilling scheduled to start in
September. The 43-101 report dated Feb 6, 2018, defined indicated resources of 14.99 million
tons at 2.70% Cg and inferred resources of 3.57 million tons at 2.90% Cg (defined on
approximately 1% of its acreage). The resource at Santa Cruz is at or near surface with the Feb. 6
PEA projecting a LOM strip ratio of 1.27(in many ar eas the strip ratio is well below 1). Planned
engineering work includes the generation of representative tailings samples for characterization
and testing of filtered tailings and their suitab ility for co-disposal. The ability to economically
generate dry stack tailings (and thereby eliminat e the need for a tailings storage facility (TSF))
will have a significant impact on the Company’s EI A and streamlining of the permitting path to
both the trial mining and full installation/operating license (LI/LO).
Additional planned test work is designed to increase the Company’s confidence in the suitability
of Santa Cruz concentrates for the lithium ion battery market and other newly emerging graphite
technologies. Samples of concentrates generated in South Star’s previous 30-ton pilot plant run
have already been dispatched to several independent labs and potential purchasers.
Company CEO Eric Allison stat ed “Having completed the budge t process and developed our
action plan for the next 12 months, the Company is poised to begin delivering further positive
results from our Santa Cruz project. While our focus will be on obtaining the trial mining license
as quickly as possible, it is important to remember that all of our planned work will contribute to
the Company’s ultimate goal of completing a full feasibility study and obtai ning full installation
and operating licenses. I look fo rward to reporting our results to the market in the coming
months”
The Company also announces that it has issued 2.1 million 5-year options at C$0.45 to directors,
officers and key consultants.
Richard L. Pearce is a Qualified Person as defined by National Instrument 43-101 and is
responsible for the preparation a nd approval of the technical inform ation disclosed in this news
release.
ABOUT SOUTH STAR MINING CORP.
South Star Mining Corp. is focused on the acquisition and development of near-term mine
production projects in Brazil to maximize shareholder value. To learn more, please visit the
Company website at www.southstarmining.com.
On behalf of the Board,
Mr. Eric Allison
Chief Executive Officer
Ph: +1 (203) 918-3098
Email: [email protected]
For additional information, please contact:
Mr. Dave McMillan
Chairman
Ph: 1+ 778-773-4560
Email: [email protected]
Mr. Kris Kottmeier
VP Corp Development
Ph: +1 604 506-2502
Email: [email protected]
CAUTIONARY STATEMENT
Neither the TSX Venture Exchange nor its Regu lation 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.
This news release and the PEA contain refe rences to inferred resources. The PEA is
preliminary in nature and includes inferred mineral resources that are considered too
speculative geologically to have the economic co nsiderations applied to them that would
enable them to be categorized as mineral reserves . There is no certainty that the PEA will be
realized.
Field Cod
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Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable
securities laws. Generally, any st atements that are not historic al facts may contain forward-
looking information, and forward- looking information can be iden tified by the use of forward-
looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends ", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrase s or indicates that certain actions, events or
results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved". Although
the Company believes in light of the experience of its officers and directors, current conditions
and expected future developments and other facto rs that have been considered appropriate, that
the expectations reflected in this forward-looking inform ation are reasonable, undue reliance
should not be placed on them because the Company can give no assurance that they will prove to
be correct. Readers are cautione d to not place undue reliance on forward-looking information.
Actual results and developments may differ mate rially from those contemplated by these
statements.