South Star Battery Metals is about to start production at its Phase 1 plant at the Santa Cruz graphite mine in the next few weeks. This week, the company announced that it has completed the final payment to acquire the 325 hectares required for the construction of the Phase 1 mine and plant.
Santa Cruz graphite mine completion
The Phase 1 plant in Santa Cruz is scheduled to complete construction in June 2024, followed by approximately six weeks dedicated to commissioning and ramping up production. Once in stable operation, the Phase 1 plant will have the capacity to produce close to 1,000 tons per month.
[post_relacionado]The company obtained environmental approval for Phases 2 and 3 of the mine. Brazil, recognized as the second largest graphite producing region in the world, has more than 80 years of continuous mining activity.
The Santa Cruz mine has surface mineralization in friable materials, having successfully completed testing at a large scale pilot plant with over 30 tons. The results of these tests indicate that about 65% of the graphite concentrate is +80 mesh, with good recovery rates and graphitic carbon (Cg) content ranging from 95% to 99%.
The Santa Cruz mine mine will become the first new graphite production in the Americas since 1996. Phase 2 production, which is expected to reach 25,000 tons per annum (tpa), is partially funded and projected for 2026, while Phase 3, with production of 50,000 tpa, is planned for 2028.
The announcement of these developments triggered a 14% increase in South Star shares at noon EDT. The company currently has a market capitalization of US$25.3 million.
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Source and photo: South Star Battery Metals | Document