STSBF - South Star Mining Announces the Selection of Final Design and Phase 1 Engineering Construction Support Team for the Santa Cruz Graphite Project
(TheNewswire)
Toronto, ON - TheNewswire - April 13, 2021 - South Star Mining Corp. ( “South Star ” or “the Company” ) (TSXV: STS ) (OTC:STSBF) is pleased to announcethat it has awarded the contract for final engineering design andPhase 1 construction support services to MIPTEC Engenharia eConsultoria Ltda (“MIPTEC”). MIPTEC is based in Belo Horizonte andprovides full-service engineering, design and consulting servicesfocused on mining and mineral resource sectors as well as ports andlogistics terminals. The scope of work includes valueengineering/project validation for the previous design phase,preparation of the final design construction documents, constructionengineering support services, as-built drawings and operationsmanuals. Final design work packages will be released progressively asthey are completed, and the overall design schedule is estimated to bea total of 18 weeks. Project kick-off is scheduled to begin by theweek of April 10 th .
The Company has elected to internally manage the Phase1 EPCM program, with MIPTEC providing the final design and engineeringconstruction support services. The owner’s team will include allmajor engineering disciplines to oversee the EPCM projectimplementation program, construction supervision and quality control& assurance. Phase 1 operations for the 5,000 tpy pilot plantoperations are fully licensed, and the Company is preparing tomobilize contractors in August 2021 with commercial productiontargeted for Q4 2022.
Richard Pearce, President and CEO of South Star , commented: “I am verypleased to announce that we have selected MIPTEC to provide finaldesign and construction engineering support services. They have agreat team, and I was impressed with their creativity and flexibledesign approach. We have recently contracted the General Manager tooversee the final design phase and ensure everything is in place forconstruction. We flew the site last week to get updated aerial imageryand precise topography for the final design. Geotechnical drill rigsare scheduled to mobilize in mid April. The team is taking shape, andwe are pushing hard to keep everything advancing according toschedule. We are swiftly moving into the construction and productionphases and intend to become the first new graphite mine in continuouscommercial production in the Americas in over a decade. It’s a dreamcome true to see the plans taking shape, the team coming together andto be thinking about hiring construction support services andqualifying contractors. It’s a whole new mindset, and the team isvery energized.”
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. To learn more, please visit theCompany website at http://www.southstarmining.ca .
This news release has been reviewedand approved by Richard Pearce, P. Eng, 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
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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 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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