In July 2019, South Star Mining (“STS”, “company”) announced an updated resource estimate on its 100% owned Santa Cruz flake graphite project in Brazil.
The updated estimate reported resources in the measured category for the first time. The total in-situ resource (across all categories) increased 3% to 0.52 Mt at 2.30% Cg.
A Pre-Feasibility Study (“PFS”) is expected in Q3-2019. A Preliminary Economic Assessment (“PEA”) completed in 2017 had shown an after-tax Net Present Value (“NPV”) at 5% of US$117 million, with an extremely high after-tax Internal Rate of Return (“IRR”) of 78%.
The company is preparing to commence trial mining (a 5,000 tpy pilot plant) in 2020, for an estimated CAPEX of $5 – $7 million.
The project benefits from at / near surface mineralization, with significant quantities of large, extra-large, and jumbo graphite flakes.
Since our initiating report in October 2018, the company’s board has been restructured. The company also appointed a new CEO. Management and board members combined hold 23.9% of the total outstanding shares.
