STSBF - South Star Mining Announces Positive Initial Results from Advanced Graphite Battery Metals and Technology Testing Program
(TheNewswire)
Toronto, ON – TheNewswire - April 28, 2021 – South Star Mining Corp. ( ‘South Star ’ or ‘the Company’ ) (TSXV: STS ) (OTC:STSBF) is pleased to announcethe positive initial results from its advanced testing program withits technology partner, United States laboratory (“US Lab”) 1 . Positiveoutcomes in the first three phases of testing confirm the suitabilityof the flake graphite from the Santa Cruz Project for expandability,fire retardant, gaskets & seals, specialty paints & coatingsand other value-added applications. The results are consistent withthe Company’s previous value-add test results. Next steps in theongoing testing program include purification, micronization,spheronization, classification and surface coating to determine thepotential use in the rapidly growing lithium-ion batteryindustry.
Figure 1 - Optical microscopy imageof a +25 mesh fraction of the Santa Cruz flake
South Star CEO Richard Pearcecommented : “These very positive resultsconfirm our previous testing. The large flake concentrates aresuitable for a wide range of value-add products that have a large andgrowing demand with very attractive margins. There are no significantlevels of contaminants, and the low levels of boron also confirmsuitability for nuclear applications. The great surprise are the REEsthat may be recoverable in commercial scale as part of thepurification process. We will be reporting on those results in ourupcoming news releases.
Once our Phase 1 plant is operational in 2022,producing high-quality flake graphite concentrates, South Star can add purification, micronization, andspheronization capabilities downstream of thepilot plant concentration facilities and produce a broad array ofdiversified products in high demand sectors to a global marketplace.The growth potential is enormous with prices ranging from $3,000/tonneto up to $18,000/tonne, depending on the technical specifications. ThePhase 2 plant can then be sized and constructed based on realcommercial relationships and market demand. We will allocate capitalto provide strong returns for investors, produce quality value-addproducts for a growing market and scale intelligently while alsomitigating risks.
As part of the scope of the ongoing advanced testingprogram, South Star will continue to improve our understanding of ourinherent material characteristics and then set up a commercial planthat maximizes our pricing and profits across our entire basket ofproducts. With one of the highest percentages oflarge and jumbo flake deposits (63% >80 mesh) of any projects inour peer group, we will be able to produce significant volumes of thevalue-add products for decades to come. Unlike most other metals,our large and jumbo flake products come off the concentration linefirst because they float so well. The testing confirms standard,low-cost expandability process with no extra steps or specialitytreatments for intercalation. This will allow South Star to havegreater profitability, operational flexibility, and a wide range ofvalue-add, high-margin products in underserved and growing marketsectors.”
1 United States laboratory (“US Lab”)specializes in advanced graphite materials and value-add testing forbattery and non-battery applications. The US Lab company name has notbeen published for the purposes of preserving a commercial advantageto South Star in the marketplace.
Material Characterizations
The Santa Cruz +50 mesh and +80 mesh concentrates werecharacterized for the key physiochemical properties. Keycharacteristics are presented in Table 1 . Classic shaping and form factures forour concentrate are provided in Figure 1 .
Table 1 - PhysiochemicalCharacteristics of Bulk Concentrate and P50 and P80 Fractions in SantaCruz Concentrate of 95.33 wt.% C Concentrate Grade Purity Level
Seventy-five-element solid ICP analysis on theconcentrate samples revealed no deleterious elements in any of the rawsamples including a very low measurement of 1.8 ppm for Boron. Thislow level of Boron confirms a previous laboratory analysis and is akey attribute needed to qualify graphite for nuclear industry uses.The ICP analysis also detected measurable levels of Scandium, Yttrium,Praseodymium, Neodymium, Gadolinium, Dysprosium, as well as severalother rare earth elements (REEs) are presented in Table 2 . As part ofthe purification testing program, it may be possible to concentrateand collect these elements in the waste stream, potentially adding ahigh-value by-product to South Star’s processing flow sheet.
Table 2 - REEs from ICP Analysis ofSanta Cruz Graphite Samples
Expandability Testing ofConcentrates
The Santa Cruz +50 mesh and +80 mesh concentrates weretested for expandability utilizing an industry standard chemicalintercalation and heating to 950 o C. Post-expansion analysis indicated an expansioncoefficient average of 196.09 cm 3 /g and a BETSpecific Surface Area (“SSA”) of 56.97 m 2 /g for the +50mesh samples (Figure 2) and an expansion coefficient average of 264.29cm 3 /g and a BET SSA of 99.09 m 2 /g for the +80mesh samples (Figure 3). These resultsdemonstrate excellent suitability for use in expandable and expandedgraphite products such as high temperature seals, gaskets and fireretardants. With various size cuts yielding different expansionresults, the Company will be able to produce intercalated graphitewith tunable purity and expansion properties for a variety ofpotential customers in multiple market segments from fire retardantsto foams, gaskets and seals.
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Figure 2 – +50 Mesh ExpandedGraphite
Figure 3 – +50 Mesh Natural &Expanded Graphite
| Natural Flake Graphite |
| Expanded Graphite |
Figure 4 – +80 Mesh Natural &Expanded Graphite
| Natural Flake Graphite |
| Expanded Graphite |
Additional expandability tests/data of concentrate andpurified graphites will be released when completed, as part of thecurrent testing program.
Expandable (Intercalated)Graphite
Due to the layered structure of graphite, smallmolecules can be introduced between the carbon layers(intercalation). Under the influence of heat thelayers separate like an accordion, and the graphite flakes expand.Depending upon the grade of material, expansion can commence at as lowas 180°C (Start Temperature) and can occur suddenly and rapidly. Thefinal volume can be several hundred times greater than the initialvolume of flake.
Expandable graphite is a high value-add product thathas a wide range of applications due to the thermal and electricalconductivities, soft and ductile nature while extremely resistant toattack from high temperatures, corrosive chemicals, compression orradiation. Uses include heat sinks, high temperature gaskets andseals, fire retardants, paints and coatings, and fillers in chemicallyresistant composites, amongst others. It iswidely used in automotive, petrochemical, chemical, nuclear,electronics, metal castings and building industries. Prices can rangefrom USD thousands to tens of thousands, depending on the technicalspecification, purity and added value, when compared to traditionalgraphite.
South Star Mining Corp. is focused on the selectiveacquisition and development of near-term production projects inBrazil. South Star is driven to create fundamental value in thebattery metals sector for clients and investors with real projectsthat have strong intrinsic financial and operating metrics, and thatcan be profitable throughout the resource cycle. South Star has anexperienced 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 metalsprojects that will be put into production. Brazil is thesecond-largest graphite-producing region in the world with more than80 years of continuous mining. The Project has at-surfacemineralization in friable materials, and successful large-scale pilotplant testing (>30t) has been completed. The results of the testingshow that approximately 65% of Cg concentrate is +80 mesh with goodrecoveries and 95%-99% Cg. With excellentinfrastructure and logistics, South Star is carrying its developmentplan towards Phase 1 production projected in Q4 2022, pendingfinancing.
South Star is committed to a corporate culture, projectexecution plan and safe operations that embrace the highest standardsof ESG principles based on transparency, stakeholder engagement,on-going education and stewardship. To learnmore, please visit the 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
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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. The Report is preliminaryin nature and includes inferred mineral resources that are consideredtoo speculative geologically to have the economic considerationsapplied to them that would enable them to be categorized as mineralreserves.
Forward-Looking Information
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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 commodityprice fluctuations; and other risks and uncertainties related to theCompany's prospects, properties and business detailed elsewhere in theCompany's disclosure record. Should one or more of these risks anduncertainties materialize, or should underlying assumptions proveincorrect, actual results may vary materially from those described inforward-looking statements. Investors are cautioned againstattributing undue certainty to forward-looking statements. Theseforward looking statements are made as of the date hereof and theCompany 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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