South Star nears startup of the Americas’ first new graphite mine in over 25 years

South Star Battery Metals (TSXV: STS) is preparing to start production at its flagship Santa Cruz graphite mine in Bahia, Brazil, within weeks.

The company announced this week that it has made the final payment on the land purchase of 3.3 sq. km required for its Phase 1 mine and plant facilities.

Santa Cruz is scheduled to complete plant construction in June, followed by about six weeks of commissioning and production ramp-up.

The current initial plant will be able to produce around 1,000 tonnes monthly once it reaches steady-state operations.

In February, the company received environmental approval for the second and third phases of the mine.

Brazil is the second-largest graphite-producing region in the world, and has a history of more than 80 years of continuous mining for the mineral.

Santa Cruz has at-surface mineralization in friable materials, and successful large-scale pilot-plant testing (more than 30 tonnes) has been completed. The company’s test results show that roughly 65% of graphite concentrate is +80 mesh with good recoveries and 95%-99% graphitic carbon (Cg).

Santa Cruz will be the first new graphite production in the Americas since 1996. Its second stage of production, at 25,000 tonnes per year, is partially funded and planned for 2026. Its third phase at double that amount is scheduled for 2028.

Shares of South Star rose as high as 15.5% by mid-day to 67¢ per share. The stock retreated to 62¢ by late afternoon. The company has a market capitalization of $32.6 million and has traded in a 52-week range of 48¢-82¢.