South Star Battery Metals Corp. (TSXV: STS) is preparing to begin production at the Phase 1 plant of its flagship Santa Cruz graphite mine in Bahia, Brazil, within the next few weeks.

The company announced this week that it has made the final payment on the land purchase of 325 hectares required for the construction of the Phase 1 mine and plant facilities.

Santa Cruz is scheduled to complete the Phase 1 plant construction in June of 2024, followed by an estimated six weeks of commissioning and production ramp-up.

The current Phase 1 plant can produce approximately 1,000 tonnes monthly once steady-state operations are reached.

In February, the company received environmental approval for Phases 2 and 3 for the mine.

Brazil is the second-largest graphite-producing region in the world, having 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 company’s testing results show that approximately 65% of graphite concentrate is +80 mesh with good recoveries and 95%-99% graphitic carbon (Cg).

Santa Cruz will be the first new graphite production in the Americas since 1996. Phase 2 production (25,000 tpa) is partially funded and planned for 2026, while Phase 3 (50,000 tpa) is scheduled for 2028.

Shares of South Star rose 14% by noon EDT. The company has a market capitalization of C$34.7 million ($25.3 million).

Source: MINING.COM – Read More