South Star Announces First Product and Start of Commercial Production Ramp-up at Santa Cruz Phase 1 Graphite Mine in Bahia Brazil, as Well as Board Change

Rhea-AI Summary

South Star Battery Metals (TSXV:STS)(OTCQB:STSBF) has announced the completion of commissioning and start of commercial production ramp-up at its Santa Cruz Phase 1 Graphite Mine in Bahia, Brazil. Key highlights include:

1. First one-tonne product placed in bulk bag
2. Commercial production ramp-up in October with first shipments expected by month-end
3. Phase 1 construction and commissioning completed with 286,488 manhours and 678 days without a loss-time accident
4. As-builts and bottleneck/optimization engineering analysis underway to explore potential plant throughput upgrade
5. Preparation for shipping large-scale industrial samples for final qualification in Brazil and USA
6. Director Eric Allison to retire from the Board of Directors

Santa Cruz is the first new graphite production in the Americas since 1996, with South Star fully permitted to expand to 50,000 tonnes/year of graphite concentrate production.

Positive

• Completion of commissioning and start of commercial production ramp-up at Santa Cruz Phase 1 Graphite Mine
• First product placed in one-tonne big bag, with first shipments expected by end of October
• Phase 1 construction and commissioning completed with strong safety record (286,488 manhours and 678 days without a loss-time accident)
• Potential to upgrade Phase 1 processing plant capacity being explored
• Fully permitted to expand production to 50,000 tonnes/year of graphite concentrate
• Negotiations underway for several large potential commercial agreements for 2025

Negative

• None.

Highlights:

• Commissioning is complete at Santa Cruz Phase 1 Graphite Mine ("Santa Cruz") in Bahia, Brazil, and first one tonne product has been placed in the bulk bag. Commercial production will ramp-up in October with first product shipments expected by end of October.

• Phase 1 construction and commissioning was completed as Santa Cruz team approaches 286,488 manhours and 678 days without a loss-time accident.

• As-builts and a bottleneck/optimization engineering analysis are underway to explore the potential to upgrade the Phase 1 plant throughput.

• South Star is preparing to ship a variety of large-scale industrial samples for final qualification in Brazil and the USA.

• Director Eric Allison has decided to not run for reelection and will retire from the Board of Directors.

VANCOUVER, BC / ACCESSWIRE / October 7, 2024 / SOUTH STAR BATTERY METALS CORP. ("South Star" or the "Company") (TSXV:STS)(OTCQB:STSBF) is pleased to announce that commissioning at Santa Cruz Phase 1 Graphite Mine in Bahia, Brazil is complete and that the first product has been placed in the one tonne big bag. Ramp-up of commercial production is underway, and first shipments of natural flake graphite concentrates are expected by the end of October. The Phase 1 mine and process plant construction and commissioning was completed as Santa Cruz team approaches 286,488 manhours and 678 days without a loss-time accident. Santa Cruz is the first new graphite production in the Americas since 1996.

As-builts engineering drawings of the constructed Phase 1 process plant detailing the electrical, mechanical, structural, foundations and earthworks as well as a bottleneck/process optimization study are underway to explore the potential to upgrade the Phase 1 processing plant capacity. In order to avoid special orders or custom parts, much of the installed equipment is the smallest, off-the-shelf, stock production units. It is oversized compared to Phase 1 throughput, and the study will determine what would have to be upgraded the Phase 1 plant to reach the Phase 2 estimated throughput. An operational mass and water balance as well as the as-builts will serve as the basis for a production optimization and bottleneck analysis. The study is expected by December 2024.

Photo 1: South Star Team and Start of Commercial Production Ramp-up

Richard Pearce, President and CEO of South Star, commented: "After a 14-year odyssey starting in 2010, we are pleased to announce the end of commissioning and start of commercial production ramp-up. It has been a long time coming, and we are fully permitted to expand to 50,000 tonnes/year of graphite concentrate production as the markets and clients need more material. We have scalable assets in Tier 1 jurisdictions and outstanding, highly crystalline natural flake graphite coming to the markets at a critical time in the West. We are negotiating several large potential commercial agreements for 2025 and look forward to building long-term relationships with clients. I would like to once again thank our te shareholders and Board for an outstanding job and endless support getting us to this historic day, which I envisioned for over a decade. South Star is proud of its accomplishments at Santa Cruz as the first new graphite producer in the Americas since 1996. Our team is committed to safe operations and executing the Company's strategic plan of bringing vertically integrated, phased, modular production in the Americas of midstream and downstream products in a disciplined, technically viable and profitable business plan with a go-to market commercial strategy."

Eric Allison, former CEO and current member of South Star's Board of Directors has decided to not stand for reelection and will retire in October after the upcoming AGM. Mr. Allison played a crucial role at the start of South Star serving as the Company's first CEO from July 2017 to June 2019 and as a Board member for over 7 years. He was also key in bringing the BamaStar Graphite Project opportunity in the USA to the Company. Richard Pearce commented, "It is with great respect and gratitude that we announce the retirement of Eric from the Board of Directors. His insights and hard work have been an asset to South Star for over seven years and created outstanding perspective and value for management and the shareholders. The entire Company and I thank him for his service and wish him well in the future."

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About 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 Phase 1 is ramping up commercial production with first sales expected to be delivered in October 2024. Santa Cruz Phase 1 commercial production has a nameplate capacity of 12,000 tpy and is the first new graphite production in the Americas since 1996. Phase 2 production (25,000 tpy) is partially funded and planned for 2026, while Phase 3 (50,000 tpy) is scheduled for 2028.

South Star's second project in the development pipeline is strategically located in Alabama, USA 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. A NI 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 94-99% Cg with approximately 90% recoveries. The vertically integrated production facilities include a mine and industrial concentrator in Coosa County, AL and a downstream value-add plant in the Southeast U.S., which will be upgrading natural flake graphite concentrates from both the Santa Cruz and BamaStar mines. 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. To learn more, please visit the Company website at http://www.southstarbatterymetals.com.

This news release has been reviewed and approved by Richard Pearce, P.E., a "Qualified Person" under National Instrument 43-101 and President and CEO of South Star Battery Metals Corp.

On behalf of the South Star Board of Directors,

MR. RICHARD L. PEARCE,
President & Chief Executive Officer

For additional information, please contact:

South Star Investor Relations
Email: invest@southstarbatterymetals.com
Phone: +1 (604) 706-0212
Website: www.southstarbatterymetals.com
Twitter: https://twitter.com/southstarbm
Facebook: https://www.facebook.com/southstarbatterymetals
LinkedIn: https://www.linkedin.com/company/southstarbatterymetals/
YouTube: South Star Battery Metals - YouTube

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.

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.

SOURCE: South Star Battery Metals Corp.

View the original press release on accesswire.com

FAQ

When will South Star Battery Metals (STSBF) begin commercial production at Santa Cruz Graphite Mine?

South Star Battery Metals has announced that commercial production ramp-up at Santa Cruz Phase 1 Graphite Mine is underway in October 2024, with first product shipments expected by the end of the month.

What is the production capacity of South Star's Santa Cruz Graphite Mine?

While the current capacity is not specified, South Star is fully permitted to expand production at Santa Cruz to 50,000 tonnes/year of graphite concentrate as market demand increases.

Has South Star Battery Metals (STSBF) achieved any safety milestones at Santa Cruz?

Yes, South Star has completed Phase 1 construction and commissioning at Santa Cruz with an impressive safety record of 286,488 manhours and 678 days without a loss-time accident.

What are South Star's plans for expanding production at Santa Cruz Graphite Mine?

South Star is conducting as-builts and a bottleneck/optimization engineering analysis to explore the potential to upgrade the Phase 1 plant throughput, with results expected by December 2024.