South Star Battery Metals Announces Approval of Phase 1 Construction Permit for Santa Cruz Mine in Brazil, Meetings with State of Bahia Development & Industrial Agencies and the Port Facilities in Salvador Officials

Rhea-AI Summary

South Star Battery Metals Corp. (TSXV: STS, OTCQB: STSBF) has secured its construction permit for the Santa Cruz Graphite Mine in Brazil, paving the way for Phase 1 construction, which is set to commence following municipal approval received on September 15, 2022. CEO Richard Pearce expressed gratitude for the support from local officials and emphasized the strategic development through Phases 2 and 3, which aim for significant production increases. The company anticipates achieving first production by Q4 2023, leveraging Bahia's established mineral resource infrastructure.

Positive

• Received construction permit for Santa Cruz Mine, enabling Phase 1 construction.
• Anticipates commercial production by Q4 2023.
• Plans for Phase 2 and Phase 3 expansions to increase production capacity significantly.

Negative

• None.

VANCOUVER, British Columbia, Sept. 19, 2022 (GLOBE NEWSWIRE) -- South Star Battery Metals Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF), is pleased to announce that it has received the construction permit for its Santa Cruz Mine in Brazil from the municipality of Itabela on September 15, 2022. In addition, South Star held meetings with the State of Bahia development agency, the Bahia industrial confederation as well as representatives from the port facilities in Salvador, Bahia.

Richard Pearce, CEO of South Star, said, “The municipal construction permit was the final approval we needed for Phase 1 construction to begin in earnest, and are pleased to have achieved this important milestone. Once again, we would like to thank the mayor of Itabela and his/her team for their continued support of South Star. We look forward to working closely with them through construction and the start of commercial production in Q4 of 2023.”  

Mr. Pearce continued, “We also had positive meetings with the State of Bahia development and industrial agencies, as well representatives from the major port facilities in Salvador. We presented additional details about Santa Cruz and our planned growth through Phase 2 (25,000 tpy of concentrates) and Phase 3 (50,000 tpy of concentrates). Santa Cruz will be the first major industrial facility in the municipality and one of the largest in the region as we scale operations. The State of Bahia has a long history of successful mineral resource development and operations, and we are privileged to be operating in a state with strong ties to the sector. The port facilities in Salvador are world class and are one of several excellent alternatives to export our product to the world. Santa Cruz has unparalleled existing infrastructure to support our planned expansions. The existing infrastructure and facilities are significant factors contributing to our low capital intensity as well as our projected first quartile operating costs. We look forward to being the first new graphite production in the Americas in decades. We greatly appreciate all the representatives and our team’s participation in these productive meetings and supporting South Star.”

ABOUT SOUTH STAR BATTERY METALS CORP

South Star Battery Metals Corp. 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 (>30t) has been completed. The results of the testing show that approximately 65% of Cg 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 production projected in Q4 2023 (Q4 is stated in second paragraph).

South Star’s next project in the development pipeline is in Alabama situated in the center of a developing electric vehicle, aerospace and defense hub in the southeastern United States. The Project, a historic mine active during World Wars I & II, has initiated its maiden drilling campaign with results expected in Q1 2023. Trenching, sampling, analysis and preliminary metallurgic testing has been completed. The testing indicated a traditional crush/grind/flotation concentration circuit achieved grades of approximately 96-97% 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. 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 Board,

Mr. Richard Pearce
Chief Executive Officer

For additional information, please contact:

South Star Investor Relations (Canada IR)
Email: invest@southstarbatterymetals.com
+1 (604) 706-0212 x3002

RBMG – RB Milestone Group LLC (IR US)
Trevor Brucato, Managing Director
Email: southstar@rbmilestone.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.

FAQ

What recent permit did South Star Battery Metals Corp. receive for the Santa Cruz Mine?

South Star received the construction permit for the Santa Cruz Mine in Brazil on September 15, 2022.

When is the anticipated start of commercial production at the Santa Cruz Mine?

The company expects to commence commercial production in Q4 2023.

What are the future expansion plans for the Santa Cruz Mine?

South Star plans to expand production capacity through Phase 2 (25,000 tpy) and Phase 3 (50,000 tpy) as part of its growth strategy.

How does the infrastructure in Bahia benefit South Star's operations?

The existing infrastructure in Bahia supports low capital intensity and projected first quartile operating costs for South Star.