September 23, 2021
South Star Battery Metals Corp. (TSXV:STS, Not Rated, David A. Talbot) announced further cycle test results and additional value-add test results pertaining to its high-quality graphite produced from its flagship Santa Cruz project in Brazil. South Star reported life cycle test results for the first 75 cycles in CR2016 LiB coin cells constructed from anode material (i.e. coated spherical purified graphite) produced from Santa Cruz. Overall cycle test results are in line with those previously reported for the first 35 cycles (read more); throughout the 75 cycles (~1,500 hours of charging and discharging), South Star was able to demonstrate a stable, flat discharge pattern, with little degradation, maintaining reversible capacity of 345-346 mAh/g. This equates to a degradation of 2% throughout the 75 cycles, which in our view, is a very positive result. The company plans to complete a minimum of 100 cycles for each cell, and downstream processing flowsheet optimizations remain pending. Further, South Star completed 4-Point resistivity testing (4T) for use in Electrolytic Manganese Dioxide (EMD) for evaluating conductivity enhancement material used in alkaline battery cathodes. Testing confirmed that purified flake graphite from the Santa Cruz project is significantly more conductive than industry-leading material currently in use, which is desirable for alkaline battery manufacturers who may seek to reduce their graphite use and increase energy density of their batteries. With the alkaline battery market producing >12B batteries annually and a global market value of >US$7.5B in 2020, this application could potentially develop into a key market for South Star. Lastly, South Star announced two key appointments to its management team and board. Ms. Samantha Shorter, a senior finance and accounting professional with 15 years of experience in the mineral exploration sector, was appointed CFO of the company. As well, Ms. Priscila Costa Lima, a seasoned finance specialist with 20 years of experience, was appointed to South Star’s board of directors. She is a Brazilian citizen, which could be a key advantage for South Star given Santa Cruz’s location. Overall, we are encouraged to see the appointment of experienced professionals and continued positive test results. We expect these results to help better define processes that will allow creation of spherical and purified graphite on a larger scale at Santa Cruz, which could then service the growing Li-ion battery sector and beyond. The project is fully permitted and construction-ready, with a simple proven flowsheet, and has near-surface oxide open pit potential. Most of its high-quality Phase I graphite has already been contracted (read more) ahead of initial production in Q4/22. Read more
