South Star Mining Completes 2018 Drilling Program at Santa Cruz Graphite Project and Announces Further Positive Assay Results
TSX VENTURE: STS
December 13th, 2018 / TheNewswire / Vancouver, B.C. - South Star Mining Corp. ("South Star" or the "Company") (TSXV: STS) (OTCQB: STSBF) is pleased to announce that it has received additional positive assay results expanding mineralization at depth and along strike at its Santa Cruz Graphite Project (Project) in Brazil. The Santa Cruz project is located in the heart of the largest flake producing graphite province outside of China with a history of continuous production for over 70 years.
2018 Exploration Program
South Star's 2018 field program included trenching and 34 holes of drilling consisting of 27 reverse circulation (RC) holes for approximately 1250 meters and 7 diamond (HQ) holes for approximately 550 meters. Assay results for the first group of reverse circulation (RC) holes have been received. The holes were aimed at expanding shallow resources and included some step-out holes for testing lateral extents of the mineralized zone. As previously reported, the NI 43-101 resource at Santa Cruz, released in conjunction with its Preliminary Economic Assessment dated August 21, 2017, included Indicated Resources of 14,990,400 tonnes at an average grade of 2.70% Cg and 3,572,100 tonnes of Inferred Resources with an average grade of 2.90% Cg. Further assay results will be reported in future communications.
Reverse Circulation Drill Highlights
11 meters at 2.6% Cg in hole 55-SPC-RC-001, including 4 meters at 4.4%
17 meters at 1.9% Cg in hole 55-SPC-RC-002
26.5 meters at 1.9% Cg in hole 55-SPC-RC-005 starting at surface, including 9 meters at 3%
45 meters at 2.2% Cg in hole 55-SPC-RC-005B starting at surface, including 10 meters at 3%
18 meters at 3.5% Cg in hole 55-SPC-RC-008
Company CEO Eric Allison stated "The continuation of good assay results from our 2018 exploration program is very encouraging as we advance our Santa Cruz project. We look forward to releasing a revised resource estimate during the first quarter of 2019 as well as further results from our purification testing, licensing and permitting efforts." Mr. Allison added "drilling results and project development activities continue to advance our project towards our goal of production and positive cash flow."
The program is focused on the Sao Manuel and Sao Rubens targets of the Project. The 2018 field program is complete with all final sample analyses expected by the end of the year.
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).
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.
Insert Table with results for all holes.
Insert map showing all previous and new drill holes.
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
For additional information, please contact:
Mr. Dave McMillan
Ph: +1 778-773-4560
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.