South Star Battery Metals Corp. (TSX-V:STS, OTCQB:STSBF) said the 2023 drilling campaign on its BamaStar graphite project in Alabama’s Coosa County is nearing completion.
The company said 11 holes totaling approximately 1,300 meters have already been completed, with three to four additional holes planned along strike. All completed holes have intercepted significant intervals of graphite mineralization, it added.
South Star explained that the program is designed to test the continuity and limits of mineralization in support of the upcoming NI43-101 Preliminary Economic Assessment (PEA), scheduled for the end of the first quarter of 2024.
"Once again, preliminary results are extremely positive with all holes having consistent grade and significant mineralized intervals at surface or near surface,” South Star CEO Richard Pearce said in a statement.
“It's exciting to see the continued advance of the BamaStar project as we close in our goals of completing the PEA by March 2024.”
South Star said sample assays are underway at ActLab's facility in Ontario and are expected to be completed by September. It is also finalizing negotiations with three international engineering/consulting companies for the PEA, and the contract is expected to be approved by the board and released in August.
“The PEA will present our 5- to 7-year strategic plan of phased production with two mines producing high-quality concentrates, and a vertically integrated value-add plant producing CSPG and other high-value products in the southeast corridor of the US,” Pearce added.
The company said it is also on schedule to complete a Feasibility Study for its Santa Cruz Mine in Brazil’s Bahia state incorporating Phase 3 by the end of 2024.
“Once we complete our PEA in Q1 of 2024, we will advance straight into the Feasibility Study, which is scheduled to be completed by the end of 2025,” Pearce said.
“Our goals are to have two mines producing a total of 100,000 tpa of concentrates, and 60-70,000 tpa of vertically integrated graphite production including active anode materials and other critical graphite products in the US in 2027."
South Star Battery Metals is a Canadian battery metals project developer focused on the selective acquisition and development of near-term production projects in the Americas.
Contact the author at stephen.gunnion@proactiveinvestors.com