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Energizer Resources Inc. (TSX-V:EGZ - News)(OTC.BB:ENZR - News)(Frankfurt:YE5 - News) ("Energizer"
or the "Company") provides an update on its 100%-owned Green Giant
vanadium project in Madagascar.
Energizer Well Received at Mining Indaba 2011 and in London, England
Energizer recently attended Mining Indaba 2011 in Cape Town, South
Africa where it conducted one-on-one meetings with international fund managers
and investment specialists. In addition, presentations were made in London,
England to interested investors and funds. Significant interest in
Energizer's Green Giant vanadium project was generated as a result of these
presentations and is expected to result in further discussions, including
regarding strategic investments, project financing and analyst coverage.
Mining Indaba is the world's largest gathering of mining's most
influential stakeholders and decision-makers vested in African mining.
Africa, with its resource-rich regions, is catching the attention of savvy
investors. Six of the world's 10 fastest growing economies over the past
decade are located in Africa, with growth rates rivaling those in Asia. Over
the next five years, Africa's growth rate is expected to surpass Asia's, and
companies with operations in relatively stable African countries, such as
Energizer, are positioned to take advantage of this growth opportunity.
DRA to Complete Preliminary Economic Assessment
As previously announced, DRA Mineral Projects, a leading engineering,
project management and mine construction company based in South Africa, has
been retained to complete a National Instrument 43-101 ("NI
43-101") compliant preliminary economic assessment (PEA) of the
Company's Green Giant vanadium project. Having recently completed the
pre/feasibility study for the neighbouring Sakoa coal project, DRA Mineral Projects will be able to
provide valuable insight into potential infrastructure synergies that will
result from the development of the two projects.
The PEA is expected to be completed in the third quarter of 2011.
SGS Lakefield to Optimize Process Flow Sheet in 2011
SGS Mineral Services (Lakefield) is conducting further metallurgical
test work as part of the PEA to optimize the vanadium extraction process
confirmed by SGS Lakefield in 2010. High vanadium extraction - up to 82% -
was achieved by SGS Lakefield using an oxidizing pre-roast followed by an
alkaline pressure leach. This process resulted in a leach solution low in deleterious
elements and suitable for upgrading by solvent extraction. SGS Lakefield has
identified several opportunities to optimize the process flow sheet,
including the recycling of leach solution to increase vanadium tenor,
reduction of soda ash consumption and optimization of pre-roast and pressure
leach conditions (temperature and time).
George Annandale, a consultant to the Company and a vanadium expert
with over 30 years of international experience, added that, "The
alkaline pressure leach process which resulted in up to 82% vanadium
extraction is a well-established and proven technology that is in use today,
in particular, in connection with the treatment of uranium ores."
The 2011 metallurgical program being carried out at SGS Lakefield is
being directed by George Annandale.
The Green Giant vanadium is unique in that it is sediment-hosted, in
contrast to the majority of known vanadium deposits which are
magnetite-hosted. As a result of this geological difference, the
metallurgical process for the Green Giant vanadium is different from that
used by other vanadium producers.
The unique characteristics of the Green Giant vanadium will allow the
Company to produce a high purity vanadium product - called vanadium pentoxide or V2O5 - required for emerging battery
technologies using vanadium. V2O5 can also be used in traditional steel
applications. Ferrovanadium, which is the usual end-product from
magnetite-hosted deposits, can only be used for steel applications.
Julie Lee Harrs, President and Chief Operating
Officer of the Company, said, "As we see more and more evidence in the
marketplace of commercial applications of vanadium-based battery
technologies, such as the vanadium redox batteries,
a great opportunity exists for vanadium producers who can provide the
necessary high purity vanadium. Energizer's Green Giant project is being
positioned to meet this anticipated new demand for high purity vanadium, as
well as the anticipated 7% annual growth in demand for vanadium from the
steel industry. The sheer size of the Green Giant deposit will allow the
Company to scale the project to meet the increase in demand for vanadium and
to provide the sureness of supply and price required by vanadium end users.
Please visit our website at www.energizerresources.com
to learn more about the two-sided growth story of vanadium - steady growth
from traditional steel applications and explosive growth from emerging
battery technologies."
Environmental and Socio-Economic Studies Continuing
As the Green Giant project transitions from exploration to project
development, environmental and socio-economic baseline studies of the project
area are continuing to ensure that all pertinent information is available at
each stage of project development.
Sakoa
Coal Project Advancing
Julie Lee Harrs, President and Chief
Operating Officer of the Company, recently met again with Asia-Thai Mining,
one of the owners of the Sakoa coal project, as
well as the mine construction company retained to develop the coal project,
both of which are subsidiaries of Italian-Thai Development Public Company
Limited, Thailand's largest construction company, to discuss the status of
the coal project. The Sakoa coal project is a large
thermal coal project located approximately 30 kilometres
from the Green Giant property.
Ms. Lee Harrs had the following comments
regarding her recent meeting with Asia-Thai Mining: "Armed with coal
mine construction and coal mining experience, Asia-Thai Mining is poised to
begin construction of its Sakoa coal project. The
coal owners have plans to build the necessary infrastructure, including roads
and a new port, to support a new coal mine that they anticipate being in
production in the next few years. They also indicated that the coal project
would be phased in stages, and that further infrastructure enhancements would
be made, such as railways, as the project is expanded. The Sako coal project is just the first of several projects
in the region, including the Green Giant vanadium project and Sherritt's limestone project, that
are ready for development."
The Green Giant project will require the upgrading of existing roads,
ports, and water supply routes and the importation of diesel power, all of
which will be detailed in the upcoming PEA being completed by DRA Mineral
Projects. However, the development of the Sakoa
coal project is expected to enhance the economics of the Green Giant project
as it will provide infrastructure sharing opportunities for the two projects.
The Company will continue discussions with Asia-Thai Mining to
identify potential infrastructure sharing opportunities and other synergies.
Energizer Meets with Madagascar Prime Minister and Minister of Mines
In a recent trip to Madagascar, Ms Lee Harrs
met with Madagascar's Prime Minister, Albert Camille Vital, and the Minister
of Mines, Mamy Ratovomalala,
to present the Green Giant vanadium project and to provide a project update.
A key purpose of these meetings was to showcase the transition of the Green
Giant project from exploration to project development and to position the
Company and the Green Giant project as the next significant mining project in
Madagascar. Given Ms. Lee Harrs' previous
experience with the development of the Ambatovy
nickel-cobalt project in Madagascar, she was well
positioned to discuss the development plans for the Company's Green Giant
vanadium project.
The Company is pleased to report that both officials expressed their
continued support for the Company and the advancement of the Green Giant
project.
Non-Brokered Private Placement Completed
With the recently completed non-brokered private placement, which
raised U.S.$13,921,495 million, the Company is well
financed to aggressively advance the development of the Green Giant vanadium
project.
Vanadium in the News
Everyone is talking about vanadium - even U.S. President Barack Obama.
At a recent Presidential roundtable discussion at Cleveland State University,
President Obama commented on the efforts of Painesville, Ohio's power system
and its partners in building a massive energy storage system for the city,
funded by the U.S. Department of Energy's Smart Grid Program, using vanadium redox flow battery technology. President Obama joked that
"Vanadium redox fuel cells is one of the
coolest things I've ever said out loud". President Obama continued to
say that this "Next generation energy storage system will help families
and businesses cut down on energy waste, save money and reduce dangerous
carbon emissions". A video clip highlighting President Obama's comments
on the vanadium redox battery can be viewed at www.cbsnews.com.
Vanadium is becoming one of the most sought after metals in the world.
China recently announced that the development of the country's vanadium
industry will be a top priority in the next five years. Approximately 48% of
the world's vanadium supply comes from China. China has gone from being the
world's largest exporter of vanadium to the world's largest consumer. As
China's urbanization expansion continues, the country's demand for vanadium
for steel use alone is expected to remain strong for the next 10 to 20 years.
Vanadium is attracting the attention of more and more investors,
analysts and the mining industry in general. Two prominent Canadian mining
publications, The Northern Miner and Resource World Magazine, are profiling
vanadium as lead stories. The Northern Miner's current edition (February 29
to March 6, 2011) leads with a feature entitled, "Spotlight on
Vanadium", while Resource World Magazine's April Issue will focus on
vanadium, with a special industry feature.
Visit the Company's website at www.energizerresources.com
to read more vanadium news.
Attendance at PDAC 2011
Energizer will once again exhibit at this year's PDAC International
Mining Trade Show & Investors Exchange, at the Metro Toronto Convention
Centre, South Building. The Company invites shareholders and interested
parties to visit Energizer's booth (#2348) to discuss firsthand the Green
Giant project and our development plans for 2011.
Qualified Person
The resource estimate referred to in this press release was completed
by AGP Mining Consultants Inc. ("AGP") and is in conformance with
the CIM Mineral Resource and Mineral Reserve definitions referred to in NationaI Instrument 43-101, Standards of Disclosure for
Mineral Projects. Pierre Desautels, P.Geo.,
of AGP, is the Independent Qualified Person under NI 43-101 responsible for
the resource estimate.
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.
About the Green Giant Vanadium Project
The Green Giant vanadium project, located in Madagascar, is 100% owned
by Energizer. The Company has a NI 43-101 compliant indicated resource 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 one of the largest known vanadium deposit in the
world, with only 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.
Contact:
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
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