STSBF - South Star Mining Announces Environmental Permitting Update for 25000 tpy Phase 2 Plant Operations for the Santa Cruz Graphite Project
(TheNewswire)
Toronto, ON – TheNewswire - March 29, 2021 – South Star Mining Corp. ( ‘South Star ’ or ‘the Company’ ) (TSXV: STS ) (OTC:STSBF)is pleased to announce that it has received the environmentalpermitting terms of reference for the 25,000 tonne per year(“tpy”) Phase 2 plant operations from the municipality of Itabela,Bahia (“Itabela”). The Phase 2 environmental permitting processfor the Santa Cruz Graphite Project (“Project”) will follow anapproach and level of studies similar to that of Phase 1.
The Phase 1 operations for the 5,000 tpy pilot plantoperations are fully licensed, and the Company is preparing to startconstruction in August 2021 with commercial production targeted for Q42022. Phase 2 operations will represent a larger scale concentrationplant currently planned to produce between 25,000 to 30,000 tpy ofconcentrate. The sizing of Phase 2 plant could be increased dependingon the successes of the Phase 1 operations, on-going development ofcommercial relationships, and market conditions. Additional details onthe Phase 2 operations are available in in the Press Release datedFebruary 5, 2020 and in the NI43-101 Prefeasibility Report issued inMarch 2020.
The Phase 2 environmental work program will kick off inApril 2021 and should include an approximate 7-8-month study anddocumentation phase to prepare all the required reports, followed bysubmittal to Itabela for review and comment. For reference, the Phase1 studies were submitted in August 2019, and the environmental permitwas approved and published in March 2020.
Richard Pearce, President and CEO of South Star , commented: “I am pleasedto announce that the Board of Directors has authorized theacceleration of the start of the environmental permitting for thePhase 2 operations more than a year ahead of the original schedule. Wewill start the work shortly and plan to submit the documents forreview and comments by December 2021. ESG and environmental complianceare core Company values. We will work diligently in partnership withthe permitting and licensing agencies to complete all the requiredstudies and ensure a smooth licensing process. Once again, I wouldlike to thank our team for their hard work and the Municipality ofItabela for their ongoing support and effort in handling oursubmittals and reviewing the documentation in a timely, professionalmanner. We are swiftly moving into the construction and productionphases as we intend to become the first new graphite mine incontinuous commercial production in the Americas in over a decade, andone of the very few new operations worldwide. This acceleratedpermitting effort has the potential to significantly advance ourroadmap for Phase 2 production.”
South Star Mining Corp. is focused on the selectiveacquisition and development of near-term production projects inBrazil. STS is driven to create fundamental value in the batterymetals sector for clients and investors with real projects that havestrong intrinsic financial and operating metrics, and that can beprofitable throughout the resource cycle. STS has an experiencedexecutive team with a strong history of discovering, developing,building and operating profitable mines in Brazil.
The Santa Cruz Graphite Project, located in SouthernBahia, is the first of a series of battery metals projects that willbe put into production. Brazil is the second largest graphiteproducing region in the world with over 80 years of continuous mining.The Project has at-surface mineralization in friable materials, andsuccessful large-scale pilot plant testing (>30t) has beencompleted. The results of the testing show that approximately 65% ofCg 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 productionprojected in Q4 2022, pending financing. To learn more, please visitthe Company website at http://www.southstarmining.ca .
This news release has been reviewedand approved by Richard Pearce, P.E., a "Qualified Person"under National Instrument 43-101 and President and CEO of South StarMining.
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
For additional information, pleasecontact:
CHF Capital Markets
Cathy Hume, CEO
Phone: 416-868-1079 x251
Email: cathy@chfir.com
Mr. Dave McMillan
Chairman
Email: davemc@telus.net
Twitter: https://twitter.com/southstarmining
Facebook: https://www.facebook.com/southstarmining/
LinkedIn: https://www.linkedin.com/company/south-star-mining-corp/
CAUTIONARY STATEMENT
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this press release.
This news release and the UpdatedTechnical Report contain references to inferred resources. TheReport is preliminary in nature and includes inferred mineralresources that are considered too speculative geologically to have theeconomic considerations applied to them that would enable them to becategorized as mineral reserves.
Forward-Looking Information
The information contained hereincontains "forward-looking statements" within the meaning ofapplicable securities legislation. Forward-looking statements relateto information that is based on assumptions of management, forecastsof future results, and estimates of amounts not yet determinable. Anystatements that express predictions, expectations, beliefs, plans,projections, objectives, assumptions or future events or performanceare not statements of historical fact and may be "forward-lookingstatements."
Forward-looking statements aresubject to a variety of risks and uncertainties which could causeactual events or results to differ from those reflected in theforward-looking statements, including, without limitation: risksrelated to failure to obtain adequate financing on a timely basis andon acceptable terms; risks related to the outcome of legalproceedings; political and regulatory risks associated with mining andexploration; risks related to the maintenance of stock exchangelistings; risks related to environmental regulation and liability; thepotential for delays in exploration or development activities or thecompletion of feasibility studies; the uncertainty of profitability;risks and uncertainties relating to the interpretation of drillresults, the geology, grade and continuity of mineral deposits; risksrelated to the inherent uncertainty of production and cost estimatesand the potential for unexpected costs and expenses; results ofprefeasibility and feasibility studies, and the possibility thatfuture exploration, development or mining results will not beconsistent with the Company's expectations; risks related to goldprice and other commodity price fluctuations; and other risks anduncertainties related to the Company's prospects, properties andbusiness detailed elsewhere in the Company's disclosure record. Shouldone or more of these risks and uncertainties materialize, or shouldunderlying assumptions prove incorrect, actual results may varyma terially from thosedescribed in forward-looking statements. Investors are cautionedagainst attributing undue certainty to forward-looking statements.These forward-looking statements are made as of the date hereof andthe Company does not assume any obligation to update or revise them toreflect new events or circumstances. Actual events or results coulddiffer materially from the Company's expectations orprojections.
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