Advancing the First New Natural-Flake Graphite Mine in the Americas this Century
South Star Battery Metals CORP. (‘South Star’ or the ‘Company’) (TSXV:STS)(OTCQB:STSBF) is pleased to announce that, further to the Company’s May 6, 2024 announcement (‘South Star Battery Metals Announces the First Sale of Natural Flake Graphite Concentrate from its Santa Cruz Graphite Mine in Brazil’) and its August 1, 2024 announcement (‘South Star Announces Successful Product Qualification and 100-Tonne Sale of Natural Flake Graphite Concentrate to U.S. Customer’), South Star has executed another binding commercial sales agreement (the ‘Agreement’) for an initial 40 tonnes (more than 88,000 pounds) of natural-flake graphite concentrate from the Company’s flagship Santa Cruz Graphite Mine(‘Santa Cruz’), located in northeastern Brazil’s Bahia state. This most recent sales Agreement was formally executed with a prominent American industrial graphite customer (the ‘U.S. Client
The U.S. Client has also expressed interest in negotiating regular purchases, pending positive test results for specific applications. For competitive reasons, the U.S. Client’s identity and commercial details of the Agreement will remain confidential.
As announced by the Company on July 29, 2024 (‘South Star Announces Substantial Completion and Commissioning of the Santa Cruz Phase 1 Graphite Mine in Brazil‘), South Star is on schedule to commission the Santa Cruz Phase 1 Plant during Q3 2024. Once commercial production commences, Santa Cruz will be the first new graphite mine in the Americas this century. At steady-state, the Phase 1 Plant will produce approximately 1,000 tonnes per month/12,000 tonnes per annum of natural-flake graphite concentrates. South Star plans to fulfill initial sales agreements in Q4 2024.
South Star President and CEO Richard Pearce stated, ‘We are extremely pleased to continue to develop long-term partnerships in the U.S. as we continue to execute on our business plan. South Star’s phased commercialization approach is predicated on effectively leveraging our first-mover advantage, providing our customers with a broad range of products for a variety of industry sectors and applications.’
‘As part of our upcoming National Instrument 43-101-guided (‘N.I. 43-101‘) Preliminary Economic Assessment(‘PEA‘) technical report for the BamaStar Graphite Project – located in Coosa County, Alabama, USA, in the historic, past-producing ‘Alabama Graphite Belt’[1] – we have produced several value-added battery-graphite samples, with preliminary electrochemical testing, currently underway,’ commented Mr. Pearce. ‘We intend to advance into downstream battery-graphite markets quickly with phased, modular builds, in order to scale operations as demand grows. Our long-term strategic plan is to have a vertically integrated battery-graphite manufacturing plant – located in the United States – with flake graphite concentrate feedstocks produced from two mines, producing a combined 100,000 tonnes per year of high-quality concentrates. Our team is working hard to fill out the order book for Santa Cruz’s Phase 1 production, while providing South Star with the graphite concentrate feedstock needed to rapidly advance our planned suite of battery-graphite products.’
South Star’s immediate go-to-market commercial strategy is to produce high-quality graphite concentrates for various industrial applications and sectors. Concurrently, technical product-development programs are continuing to advance the Company’s downstream product suite for value-added applications, specifically, specialty battery-graphite products – including Coated Spherical Purified Graphite (‘CSPG‘ or ‘Active Anode Material‘) for large-scale lithium-ion (‘Li-ion‘) battery applications and conductivity-enhancement products – applicable to all commercial primary and secondary battery chemistries. Initial production and commercial sales of value-add products are planned for Q4 2026.
The Company looks forward to updating the market on the progress of developments with other potential customers as soon as details are finalized.
On behalf of the South Star Battery Metals Corp. Board of Directors,
(s) MR. RICHARD L. PEARCE, Jr., P.E.
President, Chief Executive Officer and Executive Director
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QUALIFIED PERSON
Mr. Richard L. Pearce, P.E., President, Chief Executive Officer and Executive Director of South Star Battery Metals Corp., is a Qualified Person as defined by National Instrument 43-101 guidelines, and has reviewed and approved the content of this news release.
ABOUT South Star Battery Metals CORP.
South Star Battery Metals Corp. (‘South Star‘) is a Canadian battery-metals project developer focused on the selective acquisition and development of near-term production projects in the Americas. South Star’s Santa Cruz Graphite Project, located in Southern Bahia, Brazil is the first of a series of industrial- and battery-metals projects that will be put into production. Brazil is the second-largest graphite-producing region in the world with more than 80 years of continuous mining. Santa Cruz has at-surface mineralization in friable materials, and successful large-scale pilot-plant testing (>30 tonnes) has been completed. The results of the testing show that approximately 65% of graphite concentrate is +80 mesh with good recoveries and 95%-99% graphitic carbon (‘Cg‘). With excellent infrastructure and logistics, South Star is fully funded for Phase 1, and the construction and commissioning are underway. Santa Cruz will be the first new graphite production in the Americas since 1996, with Phase 1 commercial production projected in Q3 2024. Phase 2 production (25,000 tonnes per year) is partially funded and planned for 2026, while Phase 3 (50,000 tonnes per year) is scheduled for 2028.
South Star’s second project in the development pipeline is strategically located in Alabama in the center of a developing electric-vehicle, aerospace, and defense hub in the southeastern United States. The BamaStar Project includes a historic mine active during the First and Second World Wars. An N.I. 43-101 guided technical report with the maiden resource estimate has been filed on SEDAR. Trenching, Phase 1 drilling, sampling, analysis, and preliminary metallurgical testing have been completed. The testing included a traditional crush/grind/flotation concentration circuit that achieved grades of approximately 94-97% Cg with approximately 86% recoveries. South Star is executing on its plan to create a multi-asset, diversified battery-metals company with near-term operations in strategic jurisdictions. South Star trades on the TSX Venture Exchange under the symbol STS, and on the OTCQB under the symbol STSBF.
South Star is committed to a corporate culture, project execution plan and safe operations that embrace the highest standards of ESG principles, based on transparency, stakeholder engagement, ongoing education, and stewardship. Learn more by visiting www.southstarbatterymetals.com
For additional information, please contact:
SOUTH STAR INVESTOR RELATIONS
Email invest@southstarbatterymetals.com
Phone +1 (604) 706-0212
Websitewww.southstarbatterymetals.com
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FORWARD-LOOKING INFORMATION
This press release contains ‘forward-looking statements’ within the meaning of applicable securities legislation. Forward-looking statements relate to information that 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 in this press release include, but are not limited to statements regarding moving Santa Cruz into production and scaling operations as well as advancing the Alabama project, and the Company’s plans and expectations.
Forward-looking statements are subject to a variety of risks and 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 obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company’s prospects, properties and business detailed elsewhere in the Company’s disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying 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 new events or circumstances. Actual events or results could differ materially from the Company’s expectations or projections.
CAUTIONARY STATEMENT
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.
[1] Cameron, Eugene N. & Weis, Paul L., ‘Strategic Graphite, A Survey’ (Washington, DC: United States Bureau of Mines report; Bulletin 1082-E, 1960): 260 – 266, United States Geological Survey (USGS) publications website: https://pubs.usgs.gov/publication/b1082E(accessed August 4, 2024)
SOURCE: South Star Battery Metals Corp.
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