South Star Mining Targets Trial Mining License in Brazil
NEWS RELEASE
South Star Mining Targets Trial Mining License in Brazil
Not for distribution to US wire services or for dissemination in the United States of America
July 11, 2018 – Vancouver, B.C. - South Star Mining Corp. (“South Star ” or the
“Company”) (TSXV: STS) is pleased to announce that further to the Company’s recent closing
of the 100% acquisition of Brazil Graphite S.A., and raising a total of $4.94 million, the
Company is proceeding with building on the information contained in the previously released NI
43-101 Preliminary Economic Assessment. The Company’s main objective, over the next 12
months, will be completion of the requirements for a Guia de Utilizacao, or trial mining license,
for the Santa Cruz graphite project.
Under the Brazilian Mining Code, a trial mining license may be granted for the extraction of up
to 5000 tons of graphite per year per exploration license. The purpose of the trial mining license
is to evaluate the technical and economic viability of each exploration license. The Company
currently owns 100% of 13 exploration licenses totaling 13,316 hectares , of which 11 are
contiguous. 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 mil lion tons at 2.90% Cg (defined on
approximately 1% of its acreage). As per the PEA, projected operating costs were between
US$316 and US$413 per ton with a weighted average sales price of US$1354 per ton. The
Company will conduct further infill drilling, e nvironmental studies, independent metallurgical
studies, mine planning, process plant engineering, equipment sourcing, etc., which, together with
ongoing concentrate marketing, will be submitted to Brazil’s National Mining Agency (ANM)
in support of the t rial mining license application . 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.
The Company has the financial resources to complete the above as well as continue to progress
the project towards a bankable feasibility study with the objective of obtaining the necessary
installation and operating licenses which w ill allow the Company to proceed to lar ge scale
mining.
Company CEO Eric Allison stated “ We are excited to begin the next phase of work at our Santa
Cruz project. The very positive results of our PEA provide a strong foundation for the Company
to undertake activities that will build excellent value for our shareholders. The granting of a trial
mining license will move STS closer to a positive cash flow position while simultaneously
advancing the project toward achievement of its longer term goals.”
Richard L. Pearce is a Qualified Person as defined by National Instrument 43- 101 and is
responsible for the preparation and approval of the technical information 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 Regulation Services Provider (as that term is
defined in polici es of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this press release.
This news release and the PEA contain references to inferred resources. The PEA is
preliminary in nature and includes inferred mineral resources t hat are considered too
speculative geologically to have the economic considerations applied to them that would
enable them to be categorized as mineral reserves. There is no certainty that the PEA will be
realized.
Forward-Looking Information
This news release contains "forward- looking information" within the meaning of applicable
securities laws. Generally, any statements that are not historical facts may contain forward-
looking information, and forward- looking information can be identified 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 phrases 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 factors that have been considered appropriate, that
the expectations reflected in this forward -looking information 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 cautioned to not place undue reliance on forward- looking information.
Actual results and developments may differ materially from those contemplated by these
statements.