About South Star Mining
South Star Mining Corp. (STS – TSX Venture Exchange) (OTCQB: STSBF) is focused on the acquisition and development of near-term mine production projects in Brazil to maximize shareholder value. The company is currently developing the Santa Cruz Graphite Project in the Bahia State, Brazil. A recently completed Preliminary Economic Assessment report for the Santa Cruz project outlines an Indicated resource of 14,990,400 t @ 2.70% with 404,741 t Cg and an Inferred resource of 3,572,100 t @ 2.90% with 103,591 t Cg with excellent potential for expansion with resources open on strike and at depth.
Santa Cruz Graphite Project
The PEA on the Santa Cruz Graphite Project forecasts an after tax Net Present Value of US$117 million. Mine planning for the study shows a 19-year mine life with a mineable resource of 12.0 million tonnes and a diluted grade of 2.63% Cg. Under this scenario, the average annual Life of Mine graphite production at Santa Cruz would be 15,800 tonnes per year and is expected to have LOM operating costs of US$413 per tonne. This has the potential to generate average after tax free cash flow of US$10.4 million per annum from Santa Cruz’ currently defined graphite deposit. In years 1-5, the PEA projects 18,900 tonnes per year at an average operating cost of US$316/t yielding US$15,800,000 of after tax cash flow.