Highlights:
- 520,000 tonnes of contained graphite with an open
pit-constrained mineral resource estimate of 22M tonnes of inferred resources at an average
grade of 2.4% (Cg), based on a 1.1% cut-off grade.
- Estimate is based on 12 drill holes totaling 506m of HQ diamond drilling completed in
2022.
- The mineral resource estimate confirms the significant
potential of this historical mine with graphite mineralization open
at depth and in both directions (NE & SW).
- The mineral resource estimate and initial open pit
optimization confirms the deposit is amenable to open pit mining
operations with at-surface mineralization and low strip
ratios.
- The next drilling program (2,000-2,500m) is under contract and planned to begin in
May 2023 to support a NI43-101
Preliminary Economic Assessment (PEA) planned for Q1 of
2024.
VANCOUVER, BC, March 13,
2023 /CNW/ - South Star Battery Metals Corp. ("South
Star" or the "Company") (TSXV: STS) (OTCQB: STSBD), is pleased to
announce the successful completion of its maiden mineral resource
estimate ("MRE") for the BamaStar Graphite Project located in
Coosa County, Alabama,
United States (the "Project"). The
independent mineral resource estimate was prepared by Caracle Creek
International Consulting Inc. in accordance with Canadian
Securities Administrators' National Instrument 43-101.
Richard Pearce, CEO of South
Star, commented, "The BamaStar maiden mineral resource estimate is
a fantastic result and confirms the potential for a significant
deposit at this historical mine with at-surface mineralization that
should be amenable to open pit mining techniques and low strip
ratios. It's one of two projects in the continental United States with a defined mineral resource
estimate. The preliminary drilling program was designed to test
limits and continuity, and the team successfully achieved those
objectives. We have successfully completed our 3-tonne pilot plant
metallurgical testing program confirming our process flowsheet and
recoveries. We have contracts signed for the next drilling program
expected to begin around May 2023,
and we are planning to get a NI 43-101 PEA completed by Q1 of 2024.
The PEA will present our strategic plan of two mines, each
producing 50,000 tonnes per year of concentrates, feeding a
centrally located, value-add plant in the southeast United States and producing active anode
material for electric vehicles, as well as purified/micronized and
expandable graphite products. South Star has two scalable assets in
strategic, stable, mining-friendly jurisdictions and the team to
build and operate them in a safe responsible manner in partnership
with communities and stakeholders. It's happening at the perfect
time, when supply is constrained and demand is outstripping supply.
This dynamic will be putting significant pressure on the graphite
price in 2023 and for the foreseeable future. Santa Cruz will have the first new graphite
production in the Americas since 1996 this year, and BamaStar is
expected to be producing in 2027."
Mineral Resource
Estimate
https://www.southstarbatterymetals.com/ydihapto/2023/03/fig13-10-23.png
Table 1, Mineral
Resource Statement: Open Pit-Constrained Resources (1.1% Cg cut-off
grade).
|
|
|
|
Mineral Resource
Category
|
Zone
|
Density
(glcm3)
|
Tonnes
(M)
|
Graphitic Carbon
(% Cg)
|
In-Situ Graphite
(t)
|
|
Central
|
2.64
|
11
|
2.4
|
260,000
|
Inferred
|
North
|
2.60
|
11
|
2.3
|
260,000
|
|
Totals:
|
2.62
|
22
|
2.4
|
520,000
|
|
Table 2.
Un-constrained Inferred Mineral Resources (1,1% Cg cut-off
grade).
|
|
Mineral Resource
Category
|
Zone
|
Density
(gfcm)
|
Tonnes
(M)
|
Graphitic Carbon
(% Cg)
|
In-Situ Graphite
(t)
|
|
Central
|
2.64
|
11
|
2.5
|
270,000
|
Inferred
|
North
|
2.61
|
12
|
2.3
|
280,000
|
|
Total:
|
2.62
|
23
|
2.4
|
540,000
|
|
Notes to Table 1 and Table 2 (#7
does not apply to Table 2):
- The independent Qualified Person for the Mineral Resource
Estimate, as defined by NI 43-101, is Mr. Simon Mortimer, (FAIG #7795) of Atticus
Geoscience Consulting S.A.C., working with Caracle Creek
International Consulting Inc. The effective date of the Mineral
Resource Estimate is March 7,
2023.
- These Mineral Resources are not Mineral Reserves as they do
not have demonstrated economic viability. The quantity and grade of
reported Inferred Resources in this Mineral Resource Estimate are
uncertain in nature and there has been insufficient exploration to
define these Inferred Resources as Indicated. However, it is
reasonably expected that the majority of Inferred Mineral Resources
could be upgraded to Indicated Mineral Resources with continued
exploration. Slight differences may occur due to rounding.
- Mineralized domains were based on lithological contacts. A
cut-off grade of 1.0% graphitic carbon (Cg) was used for defining
the mineralised domain, which was determined on the basis of core,
surface trench, and surface sample pit assay geostatistics and
drill core lithologies for the deposit.
- Geological and block models for the Mineral Resource
Estimate used data from a total of 12 surface diamond drill holes
(core), 29 trenches, and 90 surface sample pits. The drill hole
database was validated prior to resource estimation and QA/QC
checks were made using industry-standard control charts for blanks,
core duplicates and commercial certified reference material
inserted into assay batches by South Star Battery Metals.
- Quantities and grades in the Mineral Resource Estimate are
rounded to an appropriate number of significant figures to reflect
that they are estimations. Slight differences may occur due to
rounding.
- An economic cut-off grade of 1.1% graphitic carbon (Cg) was
calculated and applied to the resource block model for reporting
purposes.
- The mineral resource estimates (Central and North zones)
were constrained by conceptual pit envelopes using the following
optimization parameters, as provided by South Star Battery Metals,
and agreed to by the QP. Commodity prices used were (US$)
$7,770/t graphite, pit slopes of 34
degrees in oxide and 54 degrees in fresh rock. Mining and
processing costs (US$) were based on benchmarking from similar
deposit types, utilizing a mining cost of $2.25/t (oxide) and $2.75/t (fresh rock), recovery of 97.2% graphite,
with processing cost of $76.12/t
(oxide) and $78.10/t (fresh rock),
and a G&A cost of $2.00/t. Pit
optimization was performed using Datamine's Studio NPVS
software.
- The geological model comprises one mineralized domain split
into five solids due to faulting, they are hosted by quartzites and
sillimanite gneisses both with quartz veins and graphite lenses up
to 40 m wide. Individual wireframes
were created for each domain.
- The block model was prepared using Leapfrog Edge. A
15 m x 15
m with variable height block model was created and samples
were composited at 1.0 m intervals.
Grade estimation for graphite used data from trench and drill hole
data and was carried out using Inverse Distance Squared
Weighting.
- Grade estimation was validated by comparison of input and
output statistics (Nearest Neighbour method), swath plot analysis,
and by visual inspection of the assay data, block model, and grade
shells in cross-sections.
- Density assignation was carried out for the mineralization
domain using flat density by weathering domain, on the basis of 37
specific gravity measurements collected in 14 surface locations,
and 51 specific gravity measurements collected during the core
logging process, the average estimated density value within the
strong weathering is 2.32 g/cm3 (t/m3), moderate weathering is 2.47
g/cm3 (t/m3), weak weathering is 2.62 g/cm3 (t/m3), while the fresh
rock domain of the resource model yielded 2.80 g/cm3
(t/m3).
- The Mineral Resource Estimate was prepared following the CIM
Estimation of Mineral Resources & Mineral Reserves Best
Practice Guidelines (November 29,
2019).
- The NI 43-101 Mineral Resource Estimate and Technical report
will be filed on Sedar within 45 days of this press
release.
Drill Data & Assay
Results
Assay samples were sent to ActLabs and graphitic carbon (% Cg)
was tested using LECO analysis. Actlabs is an accredited
independent laboratory with the ISO 9001:2015 & ISO/IEC
17025:2017 registrations. Refer to the Company's Press Release
dated January 12, 2023 for additional
details on completed drilling and assay programs.
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 fully
funded for Phase 1, and the 12-month 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 Q4 2023. Phase
2 production (25,000tpy) is partially funded and planned for 2026,
while Phase 3 (50,000tpy) 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 is a historic mine active during World Wars I &
II. Trenching, phase 1 drilling, sampling, analysis, and
preliminary metallurgical testing have been completed. The testing
indicates 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. To learn more,
please visit the Company website at
http://www.southstarbatterymetals.com.
The technical and scientific information related to geology and
mineral resource estimate in this news release has been reviewed
and approved by Mr. Simon Mortimer
(FAIG #4083) of Atticus Geoscience Consulting S.A.C. and Dr.
Scott Jobin-Bevans (P.Geo. #0183) of
Caracle Creek International Consulting Inc. Mr. Mortimer and Dr,
Jobin-Bevans are both a Qualified Person as defined by National
Instrument 43-101 and are independent of South Star Battery
Metals.
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
Email: invest@southstarbatterymetals.com
+1 (604) 706-0212
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.
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