VANCOUVER, BC, Dec. 20, 2021 /CNW/ - South Star Battery Metals
Corp. ("South Star" or the "Company") (TSXV: STS) (OTCQB:
STSBF), is pleased to provide further details on its new project in
the Alabama Graphite Belt that is subject to the recently
announced binding Earn-in and Option Agreement ("Agreement")
for the Ceylon Graphite Project ("Project"). Refer to December 7, 2021 press release for additional
details. Under the terms of the Agreement, South Star will have the
right to earn-in up to 75% of the Project. A comprehensive
preliminary exploration program including mapping, trenching and
sampling (both surface and bulk) was previously completed and
provides a sound basis for South Star to move quickly toward a
maiden resource estimate. The Project's location is in the heart of
a booming regional center focused on the electric vehicle
industry.
PROJECT LOCATION
The Project is located on the northeast end of the Alabama
Graphite Belt and covers approximately 500 acres in Coosa County, Alabama (Figure 1). It is
crossed by a four-lane highway with power and natural gas available
adjacent to the site. The Project is close to several interstate
highways and 225 miles from a major port in Mobile, Alabama. State and local officials are
pro-development and support both primary extractive and downstream
processing industries.
Figure 1: Ceylon Graphite Project Location.
The southeastern United States
is rapidly developing into a major hub for the Electric Vehicle
("EV") industry and the Lithium-ion Batteries ("LiB") needed to
power them (Figure 2). In addition, a significant aerospace and
defense industries hub is centered around Huntsville, Alabama providing further market
opportunities for high purity, value-added graphite products.
Graphite is included in the list of US Critical Minerals and was
recently added to the National Defense Stockpile List.
Figure 2: Southeastern US EV Hub.
The Alabama Graphite Belt is approximately sixty-miles long,
strikes NE – SW and is located in the Coosa block of the Northern Piedmont province in the Higgins
Ferry and Poe Bridge Mountains Groups of schists
(quartz-sillimanite-mica-graphite-roscoelite) and quartzite
(quartz-mica-graphite). The metamorphic rocks of the Alabama
Graphite belt are sillimanite to kyanite grade, meaning upper green
schist to blue schist facies. The graphitic schist unit is highly
weathered down to depths of 10
m-30 m depending on topography
and variations in mineralogy/structure. The Project is one of
approximately 50 mines within the Belt that were active primarily
during World Wars I and II (last production 1949). These mines
historically targeted friable outcropping graphite mineralization,
averaging approximately 3%-5% graphitic carbon. Mineralization is
at surface, and the graphitic host rock was mined without the need
for drilling and blasting. Historic production typically 1/3 large,
1/3 medium and 1/3 fine flake.
PREVIOUS EXPLORATION WORK
A comprehensive mapping program during the first half of 2019
generated a detailed geological and structural picture of the
Project area as well as along strike to the northeast and southwest
(Figure 3). Eighty-three surface samples were collected (Figure 4a)
and analysed both in the field with a XMET8000 handheld XRF
analyzer and at an independent laboratory. Samples were tested for
37 elements. Mineralized zones were characterized into several
geo-metallurgical domains related to the intensity of weathering,
graphite grades, gangue mineralogy and host lithology. This work
has generated new concepts on the controls and locations of
graphite mineralization that will assist the Company in identifying
and assessing new graphite prospects along the belt.
Figure 3: Detailed Geologic Map of the Ceylon
Project.
Figure 4a: Typical Samples from Ceylon. On the left, Weathered Graphitic
Schist (Cg = 3.5%). On the right, Graphitic Quartzite (Cg =
4.0%).
Following the mapping program, 29 trenches were excavated to a
maximum depth of 2 meters (Figure 4b). A total of 2,769 linear meters were dug,
mapped and sampled. 765 samples were submitted from the trenches
for
Figure 4b: 2019
Trench Program at the Project.
independent laboratory analysis plus standards (5 per hundred
for a total of 42) and duplicates (5 per hundred for a total of
38). Graphite content ranged from 0% up to 4.93% Cg. Results
support the conclusion that the deposit continues at depth below
the Ceylon Mine pit floor, laterally and on strike at least 1,000
meters to the northeast and to the south-southwest.
Following the trenching program, a 100-ton bulk sample was
excavated, crushed and bagged from eight pits across the property
(Figure 5). The sample pits were selected to provide representative
samples of the different graphite-bearing deposits identified
during the mapping and trenching programs.
Figure 5: Bulk Sampling Program.
Each one-ton supersack was carefully tagged and catalogued and a
small representative sample was taken from each for laboratory
analysis (Figure 6). The bags were immediately transferred to
a secure, dry warehouse in the nearby city of Sylacauga, Alabama.
Figure 6: Analysis from Bulk Sample
Pits.
A portion of the bulk sample was shipped to the GIRCU Laboratory
in Guangzhou, China for initial
bench-scale beneficiation testing. The testing indicated a
traditional crush/grind/flotation concentration circuit could
achieve grades of 95%-97% with approximately 86% recoveries. In
general, 75%-80% of the sample concentrates (by mass) were -80 mesh
material and the balance being +80 mesh material. The graphitic
samples were described as well liberated and easy to process.
Approximately 75 tons of the bulk sample remain in the
warehouse.
NEXT STEPS
South Star is currently developing a work program, schedule and
budget for the initial Phase 1 exploration program at the
Project. This initial work will include RC drilling to
further define the extent and structure of the deposit and will be
combined with additional field mapping and surface sampling. The
initial RC drilling will be supplemented with diamond core
drilling, as needed, to generate sufficient data to produce a
maiden resource estimate. The work program will also include the
base level reconnaissance work needed to begin the permitting
process. This first phase is tentatively scheduled to begin early
in 2022. Subsequent phases will include additional drilling, bench-
and pilot-scale metallurgy, engineering, and additional permit
preparation. South Star will also continue to expand and develop
the excellent relationships with the community, as well as with
local, state and federal agencies, originally established by the
Charge Minerals' team.
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
2022, pending financing. 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.
On behalf of the Board,
Mr. Richard Pearce
Chief Executive Officer
For additional information, please contact:
CHF Capital Markets (IR Canada)
Cathy Hume, CEO
Phone: +1 416-868-1079 x251
Email: cathy@chfir.com
RBMG – RB Milestone Group LLC (IR US)
Trevor Brucato, Managing Director
Email: southstar@rbmilestone.com
Mr. Dave McMillan
Chairman
Email: davemc@telus.net
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.
This news release and the Updated Technical Report contain
references to inferred resources. The Report is preliminary in
nature and includes inferred mineral resources that are considered
too speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves.
Forward-Looking Information
The information contained herein 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 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.
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SOURCE South Star Battery Metals Corp.