South Star Battery Metals Corp. (TSX-V:STS, OTCQB:STSBF) revealed that at the end of September it had submitted the Planned Economic Analysis (PAE) and the request for the final mining license to the Brazilian Mining Authority (ANM) for two additional claims, which are east and west extensions on strike of where the Phase 2 and 3 facilities are planned.
The Vancouver-based battery metals project developer noted that this brings the total to seven of the 13 mining claims submitted and now encompasses the entirety of the 8-kilometer (km) strike that has been identified.
The proposed PAE doubles the Santa Cruz production capacity presented in the previously released prefeasibility study and incorporates a third phase of project development.
South Star outlined the planned production schedule as follows:
- Two years with 5,000 tons per year (tpy) of concentrates (Phase 1);
- Two years with 25,000 tpy of concentrates (Phase 2); and
- Life of mine (LOM) with 50,000 tpy of concentrates (Phase 3).
In addition, South Star has selected the consultants for the Phase 2/3 environmental permitting, and they are expected to mobilize for field inventories in October this year. The environmental studies and documents are expected to be completed and submitted for review and comment in January 2023, added the firm.
Update on Alabama Graphite project
South Star's next project in the development pipeline is a graphite project in Alabama smack in the middle of a developing US electric vehicle (EV), aerospace, and defense hub. The project is a historic mine active during World Wars I and II.
In its update, South Star said the pilot scale metallurgical testing program for its Alabama Graphite project is underway at North Carolina State University and is on schedule to deliver 15-to-18 kgs of run of mine (ROM) concentrate samples by the end of November 2022.
Once finalized, the concentrate samples will be sent for physical and chemical characterizations as well as testing for a variety of value-add and battery applications, said the company.
The maiden drilling campaign is underway, and a rubber track mounted drill rig is scheduled to be on site in Alabama this week. The drill pads are prepared, and drilling is expected to be completed by November this year.
South Star said the Alabama exploration program includes drilling 10-to-15 holes along 1.5 km of strike, logging and assays, background water quality testing, geotechnical drilling, and drill pad construction among other things.
In a statement, South Star CEO Richard Pearce said: "At Santa Cruz we have submitted to the ANM all the priority PAEs along the 8-km strike asked for the full mining license for 50,000 tpy of concentrates. We will continue to submit additional PAEs throughout the remainder of 2022.”
He added: “Our goals are to have the Phase 2 & 3 mining and environmental permits and mining licenses in hand around the same time we are commissioning the Phase 1 plant so we can quickly advance financing alternatives to scale the production.”
Meanwhile, Pearce said the company is “very excited” to get the drills turning for its maiden resource estimate in Alabama.
“The met pilot testing program is underway and on schedule. We are aiming to get a maiden 43-101 resource estimate for Alabama out early Q1 2023 and a 43-101 PEA delivered end of year 2023.”
“Exciting times as we race to be the first new graphite production in the Americas in over a decade," he added.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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