Hexagon's Managing Director,
CEYLON GRAPHITE PROJECT
Currently, Hexagon owns 80% of the Project, and USCM with a small group of individuals own the remaining 20% of the Project. The Project is located on the northeast end of the Alabama
A comprehensive preliminary exploration program and bench scale process have been completed. Work completed to date includes:
- Regional scale and local geologic and structural mapping and sampling program.
- 29 trenches totaling 2,769 linear meters were dug to a maximum depth of approximately 2 meters. The trenches were mapped, logged and 765 samples plus standards and duplicates (5 per 100 samples) were analyzed.
- 100 tonnes of bulk ore samples were collected from across the claims, and a bench scale process circuit using 10 representative samples was tested at
GIRCU Laboratory inGuangzhou , China. The testing indicated a traditional crush/grind/flotation concentration circuit achieved grades of approximately 96-97% with approximately 86% recoveries. In general, approximately 75-80% of the ore concentrates (by mass) is -80 mesh material and the balance being +80 mesh material. The ore was described as well liberated and easy to process.
FINAL EARN-IN TERMS
To satisfy the terms of the Agreement,
- The drilling, resource estimation and analysis needed to produce a NI 43-101 compliant Preliminary Economic Analysis (PEA) within three years.
- Fund an annual minimum expenditure of
C$250,000 (C$750,000 total) to earn 75% of the project. - Extend or renew, as needed, the currently existing mineral leases and surface agreements on the Project to ensure they are valid for a period of a minimum of 12 months beyond the three-year term of the definitive earn-in period.
- Upon satisfaction of the first three items listed above,
South Star shall have the right, but not the obligation, to acquire 75% of the Project. - For a period of six months following the exercise of the 75% earn-in option ("Option Period"), Hexagon and USCM individually have the right, but not the obligation, to sell their remaining interest in the Project by selling for a payment of
C$250,000 inSouth Star shares for the remaining 25% of Project. - During the Option Period, and expenditures will be shared pro rata. Failure by any party to pay their share shall result in a proportional dilution of interest in the Project.
Should South Star's interest in the Project increase to 90% or greater, STS shall have the right, but not the obligation, to purchase the entire remaining interest not owned or under its control.- Within six months of the
Ceylon Graphite Project achieving Commercial Production ("Production Bonus"), STS shall make a payment ofC$250,000 in STS shares. The Production Bonus shall be proportionately reduced to reflect any reduction in the remaining 25% interest held by the parties.
NEXT STEPS
ABOUT
This news release has been reviewed and approved by Richard Pearce, P.E., a "Qualified Person" under National Instrument 43-101 and President and CEO of
On behalf of the Board,
Mr.
Chief Executive Officer
For additional information, please contact:
Phone: +1 416-868-1079 x251
Email: Cathy@chfir.com
RBMG –
Email: southstar@rbmilestone.com
Mr.
Chairman
Email: davemc@telus.net
Twitter: https://twitter.com/southstarbm
Facebook: https://www.facebook.com/southstarbatterymetals
LinkedIn: https://www.linkedin.com/company/southstarbatterymetals/
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CAUTIONARY STATEMENT
Neither the
This news release and the Updated Technical Report contain references to inferred resources. The Report 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.
FORWARD-LOOKING INFORMATION
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements".
Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.
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