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Sunday, February 9, 2020 - 10:41:31 AM
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Mining News Pro - Vancouver-headquartered South Star Mining has announced the results of a prefeasibility study (PFS) for its Santa Cruz graphite project, in Bahia, Brazil, which the company plans to develop in a two-phase approach.
According to Mining News Pro - Phase 1 will be a pilot plant operation with the capacity to produce 5 000 t/y of concentrate, which will provide South Star with short-term cash flow and allow it to qualify bulk samples in the market place.
Phase 2 is a larger plant with similar layout and technology, but with a capacity of 25 000 t/y of concentrate.
Both phases include the use of filtered tails technology and co-disposal of tailings with wasterock to avoid the requirement of a tailings storage facility, which South Star says will aid its permitting process.
The PFS determined that South Star has an after-tax net present value, at a 5% discount, of $81.2-million, an internal rate of return of 35% and a four-year payback. The study used the current average basket price of $1 287/t, which was held constant for the life of the project.
Santa Cruz has a maiden proven and probable reserve estimate of 12.3-million tonnes at 2.4% for 295 400 t of in-situ graphite.
“We have now submitted all the required permitting and licensing documents for the Phase 1 production facilities. We have a PFS highlighting a project with robust economics, low capital intensity, and low operational expenditure designed around a simple, proven flowsheet in one of the most prolific, high quality graphite-producing regions in the world. The detailed design of the Phase 1 facility is complete,” said CEO Richard Pearce.
He said the company would use the first half of 2020 to get the financing in place to construct and commission the pilot plant facilities.
Phase 1 construction is expected to take about eight to ten months.
“We are excited to be moving past project development and focusing all our efforts and attention on near-term construction, commissioning and production."
The junior’s stock surged 25% on Wednesday to trade at C$0.05 a share.
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https://www.miningnews.ir/En/News/485874
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