At its Santa Cruz Graphite Project in Bahia, Brazil, South Star Battery Metals Corp. has completed the deal for the land purchase necessary for the construction of the Phase 1 mine and plant facilities as well as the first two to three years of operations.
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For Claim 872.737/2010, where the Phase 1 facilities are now being erected, South Star has also submitted the Planned Economic Analysis and the demand for the final mining license to the Brazilian Mining Authority on August 1st, 2022.
The proposed PAE includes the third phase of project development and increases the Santa Cruz production capacity listed in the March 2020 publication of the PFS. The following is the projected production schedule:
- 2 years with 5,000 tons per year of concentrates (Phase 1)
- 2 years with 25,000 tons per year of concentrates (Phase 2)
- Life of mine with 50,000 tons per year of concentrates (Phase 3)
The ANM accepted the final exploration reports for each of the Company’s 13 claims in February 2022. The last stage in obtaining the LOM mining license for each of the exploration claims and transforming them into mining concessions is the authorization of the PAE and mining license.
Within the following ten days, the Company intends to submit the PAE and the request for the final mining license for four more claims, and, by the end of the year, it will have submitted the PAE for all remaining claims. The three-phased production schedule’s environmental fieldwork is expected to start in Q3 2022, and by Q1 2023, the company plans to submit all the environmental documentation for assessment and discussion.
With a trial-mining license and related environmental license, phase 1 operations are fully licensed. The municipal building permission for the development of the Phase 1 plant, mine, and infrastructure has been paid for by South Star, and the company hopes Itabela will issue the permit soon.
The initial land purchase agreement for Phase 1 operations of approximately 325 hectares has been finalized and registered at title office so that all the Phase 1 operations will be on our own property. It is always advantageous to have the mine and facilities under our direct control.
Richard Pearce, CEO, South Star Battery Metals Corp.
“We submitted the PAE incorporating a third phase doubling the production to 50,000 tpy and adding future operational flexibility. We plan on submitting all the PAEs by the end of 2022 and will work towards having the mining licenses and environmental permits for the 5-7 priority claims approved around the time we are commissioning our Phase 1 facilities in mid 2023. This will allow us to advance quickly with Phase 2/3 financing alternatives,” Pearce added.
Pearce also said, “The municipal building permit is the final approval we need to start the Phase 1 construction. The permit fee was paid, and we anticipate the approval in short order.”
“We continue to execute our business plan in a disciplined, responsible manner on our march to being the first new graphite production in the Americas. Site preparation, grading and earthworks, as well as security installations, roads and other infrastructure will be the first order of business.”
I’d like to thank the mayor and his team from Itabela for continued support of South Star, and we look forward to beginning Phase 1 commercial production in mid-2023.
Richard Pearce, CEO, South Star Battery Metals Corp.