South Star Mining Submits Trial Mining Licensing Documents for Pilot Plant Operations
South Star Mining Submits Trial Mining Licensing Documents for Pilot Plant
Operations
Toronto, ON, January 13, 2019 – South Star Mining Corp. (‘South Star’ or ‘the Company’) (TSX-V: STS) (OTC:
STSBF) is pleased to announce that it has completed and formall y submitted the trial mining licensing
documents (Guia de Utilização - GU) to the National Mining Agen cy (ANM) for the construction and operations
of a 5,000 tonne/year (tpy) pilot plant facility at the Santa C ruz Graphite Project (‘the Project’). The goal of the
GU and pilot plant operations is to prove the economic and tech nical viability of the Project at a small scale,
while also allowing the Company to produce and qualify large scale samples (1-20t) in the marketplace.
The GU will allow the Company to test and optimize the flowshee t, develop the key commercial relationships
and optimize the production of products demanded in the marketp lace, given the inherent, high-quality nature
of the concentrates produced to date.
Richard Pearce, President and CEO of South Star , commented: “We have now submitted all the required
permitting and licensing documents for the Phase 1 production f acilities. We are pleased to have completed
another big step forward in our march towards production. The pilot plant operations will provide short-term
cash flow from operations and al low us to qualify bulk samples in the marketplace and establish future, firm
offtake agreements. We have been working diligently to develop commercial relationships with key players,
both in Brazil and internationally, and have received excellent feedback on our sample materials shipped to
date. We will monitor closely the permitting and licensing process and will be using the first half of 2020 to get
the financing in place to constr uct and commission the pilot pl ant facilities. Construction is expected to take
approximately 8-10 months. We are so excited to be moving past p r o j e c t d e v e l o p m e n t a n d f o c u s i n g a l l o u r
efforts and attention on near-term construction, commissioning and production.”
The 5,000 tpy concentrate pilot plant is Phase 1 of the propose d path to production and includes a small-pit
pilot processing plant with filtered tails technology, waste st orage facility for co-disposal of wasterock and
filtered tails and civil infrastructure. The Phase 1 operations will then determine the Phase 2 scaling up
operations. The Phase 2 production facility will be similar in layout and process technology but will be able to
produce 25,000 tpy of high-quality concentrate.
The upcoming Prefeasibility Study (PFS) results, expected in January of 2020, will present the detailed design of
the Phase 1 facilities along with the PFS level design for the Phase 2 facilities and the maiden reserve estimate.
About South Star Mining Corp.
South Star Mining Corp. is focused on the selective acquisition and development of near-term mine production
projects in Brazil to maximize shareholder value. STS has an ex perienced executive team with a strong history
of discovering, developing, building and operating profitable mines in Brazil.
The Santa Cruz Graphite Project is located in Southern Bahia in the third largest graphite producing region in
the world with over 70 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 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 production projected at the end
of 2020.
To learn more, please visit the Company website at http://www.southstarmining.ca.
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
Ph: +1 (314)266-0793 (US)
Ph: +55 (11) 2308-6839 (Brazil)
Email: [email protected]
For additional information, please contact:
Mr. Dave McMillan
Chairman
Ph: +1 778-773-4560
Email: [email protected]
Mr. Eric Allison
Director
Ph: +1 203 918-3098
Email: [email protected]
For more information: https://southstarmining.com/.
CHF Capital Markets
Cathy Hume, CEO
Phone: 416-868-1079 x231
Email: [email protected]
CAUTIONARY STATEMENT
Neither the TSX Venture Exchange nor its Regulation Services Pr ovider (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 Updated Technical Report contain refe rences to inferred resources. The Report is preliminary in
nature and includes inferred mineral resources that are conside red too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized as mineral reserves.
FORWARD-LOOKING INFORMATION
The information contained herein contains "forward-looking stat ements" within the meaning of applicable securities
legislation. Forward-looking statements relate to information t hat 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 an d 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 obta in
adequate financing on a timely basis and on acceptable terms; r isks related to the outcome of legal proceedings; political
and regulatory risks associated with mining and exploration; ri sks related to the maintenance of stock exchange listings;
risks related to environmental regulation and liability; the po tential for delays in exploratio n or development activities or
the completion of feasibility st udies; the uncertainty of profi tability; risks and uncertainties relating to the interpretatio n of
drill results, the geology, grade and continuity of mineral dep osits; risks related to the inhe rent uncertainty of production
and cost estimates and the potential for unexpected costs and e xpenses; results of prefeasibility and feasibility studies, and
the possibility that future expl oration, development or mining results will not be consistent with the Company's
expectations; risks related to gold price and other commodity price fluctuations; and other risks and uncertainties related to
the Company's prospects, proper ties and business detailed elsew here in the Company's disclosure record. Should one or
more of these risks and uncertainties materialize, or should un derlying 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 n ew events or circumstances. Ac tual events or results could
differ materially from the Company's expectations or projections.