South Star Battery Metals Corp. requested a final mining license from the Brazilian Mining Authority on August 15th, 2022, for the claims 872.735/2010, 872.736/2010, 871.053/2011, and 871.524/2013, which are the locations of Phase 2 and 3 facilities.
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The proposed PAE includes the third phase of development of the project 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), and
- Life of mine with 50,000 tons per year of concentrates (Phase 3)
The ANM accepted the final exploration investigations for each of the company’s 13 claims in February 2022. It was earlier submitted on August 1st, 2022, the PAE for 872.737/2010.
The last stage in obtaining the LOM mining license for each of the exploration claims and transforming them into mining concessions is the approval of the PAEs and mining licenses.
Beginning in Q3 of 2022, environmental fieldwork for the three-phased production schedule is planned. By the beginning of Q1 of 2023, the company plans to submit all environmental documentation for review and comment.
Phase 1 operations are fully licensed with a trial mining license (“GU”) and associated environmental license. South Star has paid the municipal building permit for construction of the Phase 1 plant, mine, and infrastructure, and the company anticipates the permit should be issued by Itabela shortly.
Additionally, the North Carolina State Mineral Research Laboratory has received three tons of ore from the Ceylon Graphite Project in Coosa County, Alabama, and testing should start soon. The program’s objective is to produce a typical one ton of ore sample that can be used to retest and validate processing techniques and reagents from earlier process work.
For future geotechnical, chemical, and physical testing programs to further describe the ore, the tailings, and the final concentrates, the small-scale pilot test will also produce about 15–18 kg of concentrates (> 94% Cg), as well as samples of intermediate goods and tailings.
The pilot plant program, according to the company, should be completed by November 2022. Then, like the testing program carried out on Santa Cruz Graphite concentrates, the concentrates will be utilized to test for a variety of value-added products as well as mineralogy.
We submitted 4 additional PAEs incorporating the third phase doubling the production to 50,000 tpy and adding future operational flexibility.
Richard Pearce, CEO, South Star
“The 5 areas we have submitted requesting the definitive mining license incorporate all the facilities and structures required for Phase 2/3 and contain the main 7.5km strike that has been identified. All the 43-101 reserves estimated to date are located on these 5 claims, and we are open at depth and in both directions along strike.”
“Our goals are to 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. We have also started the pilot plant testing program on Ceylon ore and look forward to reviewing those results in November. We will work hard with our partners to have the first two new graphite mines in the Americas brought online and the first in the United States.”
“We have two great assets in key jurisdictions and an experienced team with the technical and commercial expertise to bring these operations online and be profitable moving forward. An introductory overview video of the Ceylon Project has been added to our website and posted to social media,” stated Richard.