Energizer Resources Announces Appointment of Richard Quesnel to Board of Directors
TORONTO, ONTARIO -- (Marketwire) -- 10/21/10 -- Energizer Resources Inc. (formerly Uranium Star Corp.) (TSX VENTURE: EGZ)(OTCBB: ENZR)(FRANKFURT: YE5) ('Energizer' or 'the Company') is pleased to announce that Richard Quesnel, President and Chief Executive Officer of Consolidated Thompson Iron Mines Ltd. (TSX: CLM), has been appointed to the Company's Board of Directors effective October 21, 2010.
As Energizer's Green Giant Vanadium Project advances into the development phase, the Company has created a new board committee, the Capital Projects Committee, to sheppard this development. Richard Quesnel has been appointed Chair of the Capital Projects Committee.
Throughout his almost 30-year mining career, Richard Quesnel has contributed to the success of several large gold, copper, nickel and iron ore mining properties in Canada and the U.S.A. He has successfully developed, commissioned, operated and expanded mining operations, including the Mount Wright and Quebec Cartier mines in Quebec, the Gibraltar mine in British Columbia, the Barrick Gold Meikle mine in Nevada and the Montcalm mine in Ontario. Most recently, Richard Quesnel, in his capacity as President and Chief Executive Officer of Consolidated Thompson, was responsible for the successful development of Consolidated Thompson's 8 million tonne Bloom Lake iron ore deposit located in Quebec, Canada, which came into commercial production in early 2010, just three years after completion of the feasibility study.
In addition to the construction of the iron ore mine, Richard Quesnel was instrumental in the construction of a 31-km railroad and ore handling facilities near the port of Pointe-Noire to support the mining operations of the Bloom Lake project.
As part of the successful and on-schedule completion of the Bloom Lake project, Richard Quesnel and the CLM team raised over CDN $1 billion in financing, negotiated and concluded a $240 million strategic investment by Wuhan Iron and Steel Company ('WISCO'), one of China's largest steel producers, as well as off-take agreements with WISCO, Worldlink Resources of China and SK Networks Co., a subsidiary of the third largest Korean conglomerate, SK Group.
Richard Quesnel is a professional mining engineer and holds a B.Sc. (Engineering) from McGill University, Montreal, Canada. He is a member of the Canadian Institute of Mining and the Order of Engineers of Quebec.
Julie Lee Harrs, President and COO of Energizer, said, 'We are delighted that Richard has joined our board of directors. With his current experience and success in bringing the Bloom Lake iron ore project into commercial production this year, Richard will provide valuable insight and advice as we advance our Green Giant Vanadium Project and finalize alliances with strategic partners. We look forward to working with Richard to bring our Green Giant Vanadium Project into production.'
A total of 1,100,000 options were issued to Mr. Quesnel on October 21, 2010 under the terms of the incentive stock option plan of the Company filed with the TSX Venture Exchange and approved by shareholders at the last Annual General Meeting of Shareholders of the Company held on December 9, 2009. The options are exercisable at a price of U.S. $0.25 per share for a period of four years and are subject to a six-month hold period from the date of the issuance.
About the Green Giant Vanadium Project
The Green Giant Vanadium Project, located in Madagascar, is 100% owned by Energizer. The Company previously reported a National Instrument 43-101 compliant indicated resource estimate of 21.74 million tonnes of vanadium pentoxide at an average grade of 0.759% and an inferred resource estimate of 4.15 million tonnes of vanadium pentoxide at a grade of 0.655%. Assay results from the drilling program completed earlier this year are expected to increase the resource estimate by an additional 25 to 30 million tonnes, to make the Green Giant Vanadium Project one of the largest vanadium deposits in the world. An updated National Instrument 43-101 compliant resource estimate is expected shortly.
About Vanadium
Vanadium is well-established as a strategic metal that strengthens and hardens alloys like steel and is positioned to play a significant role in emerging battery technologies such as batteries for electric cars and for large-scale energy storage. While there are some opportunities for substitution in steel production, the same is not true for other markets, including the emerging energy (battery) storage markets, the military and particularly in the aerospace industry, where vanadium is irreplaceable.
Today, more than 90% of existing vanadium demand is from the global steel industry, driven by increased steel production primarily in China, India and the developing world. At the same time, various economic and legislative factors are increasing the use of vanadium in the steel industry (i.e. stronger rebar in construction) where production of higher strength steels to meet the growing demand for infrastructure is accelerating on a global basis. As a result, the demand for vanadium is expected to grow at 7% year-over-year from 2010 to 2025 based on the steel industry alone.
In addition, new demand channels for vanadium from battery manufacturers of both mobile applications (electric vehicles) and large-scale energy storage systems is expected to result in additional demand for vanadium, especially high purity vanadium which is not readily available in today's market.
Energizer's Green Giant Vanadium Property is expected to produce high purity vanadium pentoxide which can meet the increasing demand from both the steel and battery industries.
About Energizer Resources
Energizer Resources Inc. is a mineral exploration and development company based in Toronto, Canada. The Company's common shares are traded on the TSX Venture Exchange under the symbol EGZ, on the Over-The-Counter Bulletin Board under the symbol ENZR, and on the Frankfurt Exchange under the symbol YE5.
Cautionary Statement: The above resource estimates were calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by the Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Among other things, the terms 'measured', 'indicated' and 'inferred' mineral resources are required pursuant to National Instrument 43-101, the U.S. Securities and Exchange Commission does not recognize such terms. Canadian standards differ significantly from the requirements of the U.S. Securities and Exchange Commission, and mineral resource information contained herein is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the U.S. Securities and Exchange Commission.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. This mineral resource estimate includes inferred resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that the inferred mineral resource will be converted to the measured and indicated mineral resource categories through further drilling, or into a mineral reserve once economic considerations are applied.
U.S. investors should understand that 'inferred' mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition, investors are cautioned not to assume that any part or all of the Company's mineral resources constitute or will be converted into reserves.
Safe Harbour Statement: The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release issued by the Company. This press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.
Forward-looking statements include, receipt of regulatory approval, statements on the proposed use of proceeds; completion of financing on terms proposed; the ability to raise additional funds as required; the development potential and timetable of the Company's properties and minerals; the current and future price of minerals the Company explores; the estimated size of mineral deposits on the Company's properties; the realization of those mineral deposit estimates; the timing and amount of estimated future exploration, development and production; costs of future exploration, development and production activities; success of exploration activities; government regulatory matters; discussion of political and environmental risks.
Forward-looking statements are based on the opinions and estimates of management of the Company. Forward-looking statements are subject to known and unknown risks that may cause actual results to be materially different from stated opinions and estimates of management. Some of the Company's more material risks are: availability and timing of external financing; unexpected events and delays during exploration; receipt of government and stock exchange approvals; results of current exploration activities; future price of minerals; political risks in the locations of the Company's properties; appreciation/depreciation of foreign currencies relative to the United States Dollar (the Company's functional currency) and other risks inherent in the mining and exploration industry.
While Company's management has attempted to determine the factors that could cause actual results to differ materially from estimated results contained in forward-looking statements, there may be other factors that cause results not to be as anticipated. The Company provides no assurance that such forward-looking statements will prove accurate or not materially different than projected. Therefore readers of this and other press releases issued by the Company should not place unreasonable reliance on stated forward-looking statements.
This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the 'U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Energizer Resources Inc.
Brent Nykoliation
Vice President of Business Development
Toll Free: 800.818.5442 or 416.364.4911
bnykoliation@energizerresources.com
Energizer Resources Inc.
Julie Lee Harrs
President and COO
Toll Free: 800.818.5442 or 416.364.4911
www.energizerresources.com