Name of the Project
Santa Cruz graphite project – pilot plant.

Location
Southern Bahia, Brazil.

Project Owner/s
South Star Battery Metals Corp.

Project Description
Santa Cruz hosts 12.31-million tonnes of proven and probable reserves grading 2.4% graphitic carbon for a mine life of 12 years.

The project entails the construction of a 5 000 t/y pilot plant. The aim of the pilot plant operation is to prove the economic and technical viability of the project at a small scale while enabling South Star to produce and qualify large-scale samples (1 t to 20 t) in the marketplace.

The pilot plant is Phase 1 of the proposed path to production and includes a small-pit pilot processing plant, filtered tails technology, a waste-storage facility for the co-disposal of waste rock and filtered tails, as well as civil infrastructure. The Phase 1 plant can produce about 1 000 t a month once steady-state operations are reached.

The experience gained and commercial relationships established from Phase 1 operations will be used to scale up the operations as part of the Phase 2 expansion plan.

The Phase 2 production facility will be similar in layout and process technology, but will be able to produce 25 000 t/y of high-quality concentrate.

Phase 3 will take production to 50 000 t/y of high-quality concentrate.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $81.2-million and an internal rate of return of 35%, with a payback period of four years.

Capital Expenditure
Phase 1 will cost $7.3-million and Phase 2 $27.2-million.

Planned Start/End Date
Phase 1 construction is expected to be completed in the second quarter of 2024. 

The plant will undergo an estimated six-week commissioning process before starting commercial production in August 2024.

Latest Developments
South Star is preparing for production from Phase 1 of the Santa Cruz graphite mine, which is due to start in the coming weeks.

Construction of the 1 000-t-a-month plant will be completed this month, followed by an estimated six weeks of commissioning and ramp-up.

South Star has also reported that it has made the final payment for the land purchase required for the Phase 1 mine and plant facilities. All the plant facilities, mine and infrastructure installations will be situated on the estimated 325 ha for the first three years of operations at the mine.

In addition, the definitive mining licence for five areas, totalling 4 431 ha, has been approved by government and three additional claims are in final evaluation.

The approved licences cover the main areas required for Phases 1, 2 and 3 mining operations.

The Santa Cruz project has now been derisked from a permitting and licensing standpoint.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
South Star Battery Metals Corp, tel +1 604 706 0212 or email info@southstarbatterymetals.com