South Star Mining Announces Initial Assay Results and Phase 1 Results from its Advanced Testing Program
November 21st, 2018 – Vancouver, B.C. – South Star Mining Corp. (“South Star” or the “Company”) (TSXV: STS) (OTCQB: STSBF) is pleased to announce that it has received the first set of assay results from the 2018 exploration program at its Santa Cruz Graphite Project (Project) in Brazil. The Company would also like to announce that it has received the Phase 1 test results from Urbix Resources, LLC (“Urbix”), a leading graphite technology company based in Mesa, Arizona.
2018 Exploration Program
South Star’s 2018 field investigation program includes trenching along with approximately 550 meters of diamond (HQ) and 1250 meters of reverse circulation (RC) drilling. The program is focused on the Sao Manuel and Sao Rubens targets of the Project. The 2018 field program should be completed this week with all final sample analyses expected during Q4 of 2018.
Initial sample preparation and logging are carried out at the Company’s facility in Itabela with analytics being performed at the SGS Geosol Laboratories in Belo Horizonte, Brazil using LECO analysis to determine graphitic carbon (Cg).
The first hole, 55-SCP-DDH-001, is a vertical hole totaling 79.8m of diamond drilling. Results of hole include 10 meters at an average grade of 3.9% Cg and 14.3 meters at 4.4% Cg. Overall, the hole resulted in 65.6 meters of continuous mineralization in friable material with an average grade of 3.1% Cg. This is the second largest mineralized intersection drilled to date in the Project, when compared to hole SIAC 001 from 2016 campaign with 77 meters at an average Cg of 2.9%. Complete results are presented in Table 1.
In addition, 2 channel samples (TR005 & TR006) were collected near surface close to hole 55-SCP-DDH-001. Results include 28 linear meters at an average grade of 1.9% Cg in TR005 and 12 linear meters at an average grade of 3% Cg in TR006.
Urbi Phase 1 Test Results
Earlier this year, the Company submitted four different flake-size concentrates, previously produced during the Company’s pilot plant program, to Urbix for advanced testing. “We are thrilled to be working with such a highly crystalline material from Brazil,” says Dr. Dr. Palash Gangopadhyay, CTO of Urbix. “The application potentials and favorable geographical location fit nicely with the evolving global graphite landscape.”
The testing program includes detailed characterization, purification, expandability and market suitability segments and was divided into three phases. The first phase of the testing is completed, and the results indicate a very high-quality graphite with minimum impurities and excellent suitability for further purification and value-added processing. One of the Santa Cruz samples has also qualified under part of a US Department of Energy sponsored initiative at Urbix and these initial results also confirm its potential use for nuclear grade graphite. The evaluation is taking place at Urbix’s cutting edge R&D facility in Mesa, Arizona and incorporates its advanced purification and exfoliation technologies. The full testing program is expected to be completed prior to year-end.
Urbix Resources, LLC is an advanced natural graphite processor with expertise ranging across low-cost environmentally friendly graphite purification, nuclear graphite, graphene, and other advanced carbon derivatives. Urbix is also an expert in li-ion battery cell design and boasts next generation high voltage electrolyte and fast charging electrode nanoarchitecture.
Company CEO Eric Allison stated “The results from this first drill hole from the 2018 exploration program is a positive first step toward our objective of upgrading a portion of the resources from our previously released PEA. The results of the first lot of samples are very positive confirming good potential with continuous mineralization across large intervals (> 60m) and mineralization from at- or near-surface to depths of over 75 meters in friable materials. We are very encouraged.” Mr. Allison added “The positive results from the first phase of testing with Urbix supports our conviction that graphite potentially produced from Santa Cruz will be very similar to the high-quality flake graphite that has been continuously produced from this region in Brazil for over 70 years.”
Richard L. Pearce is a Qualified Person as defined by National Instrument 43-101 and is responsible for the preparation and approval of the technical information disclosed in this news release.
ABOUT SOUTH STAR MINING CORP.
South Star Mining Corp. is focused on the acquisition and development of near-term mine production projects in Brazil to maximize shareholder value. To learn more, please visit the Company website at www.southstarmining.com.
On behalf of the Board,
Mr. Eric Allison
Chief Executive Officer
Ph: +1 (203) 918-3098
Email: [email protected]
For additional information, please contact:
Ph: +1 (778) 773-4560
Email: [email protected]
Mr. Kris Kottmeier
VP Corp Development
Ph: +1 (604) 506-2502
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
This news release and the PEA contain references to inferred resources. The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized.
This news release contains “forward-looking information” within the meaning of applicable securities laws. Generally, any statements that are not historical facts may contain forward-looking information, and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or indicates that certain actions, events or results “may”, “could”, “would”, “might” or “will be” taken, “occur” or “be achieved”. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements.