Energizer Resources Provides Update on the Development of Its Green Giant Vanadium Project
TORONTO, ONTARIO -- (Marketwire) -- 02/10/11 -- Energizer Resources Inc. (TSX VENTURE: EGZ)(OTCBB: ENZR)(FRANKFURT: YE5) ('Energizer' or the 'Company') provides an update on the development of its 100% wholly-owned Green Giant vanadium project located in Madagascar.
Two Tranches of Non-brokered Private Placement Completed
As previously announced in its February 2, 2011 and February 9, 2011 press releases, the Company has completed two tranches of its non-brokered private placement totaling U.S.$12,402,745. With these funds, the Company is well capitalized as it moves forward with its National Instrument 43-101 preliminary economic assessment, which will include advanced metallurgical test work to further optimize the process flow sheet developed from test work completed in 2010 by SGS Lakefield.
Metallurgy - up to 82% vanadium recovery
The Company is providing the following summary regarding the unique characteristics of the Green Giant vanadium deposit and the resulting metallurgy test results to date to provide greater clarification:
-- the geology of the Green Giant deposit is unlike most of the vanadium
mines currently in operation or scheduled to come into production in the
near term - the Green Giant vanadium is sediment-hosted, in contrast to
the magnetite-hosted deposits, and as a result, the metallurgical
process for the Green Giant project is expected to be different and the
project is expected to produce high purity vanadium pentoxide used in
both the steel and battery industries
-- metallurgical test work conducted to date by SGS Lakefield in Canada and
Mintec Laboratories in South Africa have extracted up to 82% vanadium in
a clean liquor using a pre-roast and alkaline pressure leaching process
-- given its unique geology, physical beneficiation (or upgrading) of the
vanadium-bearing ore is not an essential component of the process flow
sheet - in fact, based on internal economic analysis, even without
physical beneficiation, the operating costs of our Green Giant project
is expected to be comparable to the magnetite-hosted vanadium producers.
George Annandale, a world-renowned vanadium expert, and consultant to the Company, said, 'Armed with the promising results from the metallurgical test work conducted by SGS Lakefield, I am confident that we will be able to optimize the conditions of the pre-roast and alkaline pressure leaching process to further enhance the economics of the project. The Green Giant project is well on its way to becoming one of the world's largest producers of vanadium.'
Taking Advantage of Infrastructure Synergies
Given the nature and location of the Green Giant vanadium project, the infrastructure needs of the project can be met with a combination of upgrading of existing infrastructure, which consists of existing secondary roads and operational ports, and the build-out of site-specific infrastructure such as power generation. However, given the progress of the nearby Sakoa coal project, the Green Giant project is poised to benefit from any infrastructure enhancements that may be made by the coal project whereby further enhancing the economics of the Green Giant vanadium project.
The Company was recently informed that the operators of the Sakoa coal project have sent out requests for proposals for the construction of the project. The Company will continue its dialogue with the operators of the coal project to determine what infrastructure synergies may be available which would further enhance the economics of the Green Giant vanadium project.
About the Green Giant Vanadium Project
The Green Giant vanadium project, located in Madagascar, is 100% owned by Energizer. The Company has a National Instrument 43-101 compliant indicated resource estimate of 49.5 million tonnes at an average grade of 0.693% vanadium pentoxide ('V2O5') containing 756.3 million pounds of V2O5 and an inferred resource of 9.7 million tonnes at an average grade of 0.632% V2O5 containing 134.5 million pounds of V2O5. With this resource estimate, the Green Giant deposit currently ranks as the third largest known vanadium deposit in the world, with 75% of the 21-kilometre (18 mile) stratigraphic trend of vanadium remaining open for drilling.
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.
For more information, please visit our website at www.energizerresources.com.
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