Energizer Resources Inc. (formerly Uranium Star
Corp.) (TSX VENTURE:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5)
("Energizer" or "the Company") announces it has received
XRF results from the latest completed drill holes on its 100%-owned Green
Giant Vanadium Project in Madagascar. The Company is pleased to report
that these XRF results confirm continued vanadium mineralization in and along
the main vanadium trend.
A total of 6,779 metres
have been drilled to date in the 2010 drill program, bringing the total metres drilled on the property to 19,783 metres. The assays from these drill samples will be added
on to and will increase the Company's current National Instrument 43-101
indicated resource of 21.74 million tonnes V2O5 and
an inferred resource of 4.15 million tonnes V2O5.
Highlights of XRF Results
The following are highlights of drill hole XRF readings. A complete table summarizing the latest
XRF vanadium mineralization results at a cut-off grade of 0.5% vanadium pentoxide (V2O5) intersected since the previous press
release (dated June 8, 2010) follows at the end of this news release.
- Hole M-87 intersected 0.70% V2O5 over
63 metres
-
- Hole K-03 intersected 0.55% V2O5
over 84 metres, including 0.75 V2O5
over 16.5 metres
-
- Hole K-09 intersected 0.58% V2O5
over 54 metres, including 0.70 V2O5
over 9.5 metres
-
- Hole K-05 intersected 0.56% V2O5
over 69 metres
-
- Hole M-53 intersected 0.76% V2O5 over
9 metres, including 0.88 V2O5 over
4.5 metres
-
- Hole K-02 intersected 0.51% V2O5
over 48 metres
-
The Company continues to use Niton
XL3t hand-held XRF instrumentation to gather readings on core samples with
respect to vanadium content, as well as other elements. The Company cautions
that XRF readings are not certifiable or recognized in any National
Instrument 43-101 compliant resource calculation and variability can be seen
when compared with subsequent assays from a registered
laboratory. However, the Company has gained ample experience with XRF
technology and expects that frequent calibration to registered standards have
enabled it to obtain XRF readings which have a strong correlation to
corresponding assay results.
Related drill core samples continue to be sent to Genalysis Laboratory Services for assaying and the
Company looks forward to reporting the drill assay results as they become
available. The Company will continue to report on XRF vanadium results from
the field as they become available.
Vanadium Expert Retained
Energizer has retained the services of vanadium
industry expert, Terrance Perles, to assist the
Company in quantifying the future market opportunity for V2O5, among other
things. Although industry experts expect the demand for vanadium from the
steel industry to grow at 7% year over year from 2010 to 2025, the potential
growth from emerging battery technologies is unknown. With the expected
commercialization of vanadium redox energy storage
systems, evidenced by the recent majority-stake acquisition of vanadium redox battery (VRB) manufacturer, Cellstrom
GmbH, by a+f GmbH, the renewable energy subsidiary
of German-based conglomerate Gildemeister GmbH,
vanadium industry experts expect a shortage in supply of the high purity
vanadium required for these VRBs.
Each of these VRBs require between one and five tonnes of V2O5, depending on the size of the VRB, and are
being successfully installed into markets like India, which tend to suffer
from inadequate and unreliable power infrastructure. To view information
on a+f/Cellstrom's CellCube VRB, please visit www.cellcube.com.
Terrance Perles has been
involved in the vanadium industry for 22 years, most recently directing the
sales and marketing efforts of, and acting in senior management positions
with, Stratcor, Inc. and Evraz
Group's Vanadium Business Unit. The Evraz
Group S.A., based in Luxembourg, is one of the largest vertically-integrated
steel, mining and vanadium businesses in the world.
Terrance Perles states,
"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
where production of higher strength steels to meet the growing demand for
infrastructure is accelerating on a global basis. As a result, we expect the
demand for vanadium to grow at 7% year-over-year from 2010 to 2025 based on the
steel industry alone."
Mr. Perles continues,
"Now that the vanadium redox flow battery
technology seems to be on the cusp of mass commercialization, it could lead
to an explosive new demand for vanadium. In this application, purity of the
vanadium compound (in the form of V2O5) is critical,
whereas purity is of little concern to the steel producers, given the small
amount of vanadium added to steel. Therefore, it is critical for the
vanadium, steel and battery industries to recognize the growing demand for
vanadium in the coming years, as well as the possible structural change in
quality requirements resulting from large scale commercialization of the
vanadium redox flow battery systems. Significant
supply shortages of V2O5 are possible in the coming years unless significant
additional production, meeting battery application quality requirements, is
brought on line in the next few years. Vanadium prices should reflect the
tight but growing market conditions in the coming years and we anticipate
V2O5 market prices will move up from current levels into the range of
US$10.00 to US$15.00 per pound V2O5."
Green Giant Positioned to Meet Forecasted Demand
Energizer's Green Giant project is being positioned
to meet not only the 7% year-over-year increase in demand forecasted from the
steel industry, but also the significant demand expected from emerging
battery storage applications and is expected to provide the sureness of price
and supply necessary to encourage and support vanadium-based battery
technologies.
Qualified Person
Craig Scherba, P.Geol.,
V.P. of Exploration and Director of the Company, is the qualified person for
the geological information provided in this release. Taiga Consultants Ltd.
is continuing to conduct the Company's exploration activities on the Green
Giant Vanadium Project and PEG Mining Consultants Inc. continues to provide
engineering expertise for the project, including oversight of the
metallurgical work currently underway at Mintek
Laboratories in South Africa and SGS Laboratories in Canada.
XRF Summary of V2O5 Mineralization at
0.5% Cut-Off Grade
Latest Diamond Drill Holes from 2010
Drill Program
Program
|
HoleID
|
From
|
To
|
Length
|
V2O5
|
Composite
|
2010
|
K-01
|
101
|
105.5
|
4.5
|
0.522
|
4.5m @ 0.52 V2O5
|
2010
|
K-01
|
143
|
155
|
12
|
0.579875
|
12.0m @ 0.58 V2O5
|
2010
|
K-02
|
155
|
203
|
48
|
0.5132188
|
48.0m @ 0.51 V2O5
|
2010
|
K-03
|
62
|
146
|
84
|
0.5500893
|
84.0m @ 0.55 V2O5
|
2010
|
K-05
|
45.5
|
114.5
|
69
|
0.5582391
|
69.0m @ 0.56 V2O5
|
2010
|
K-09
|
135.5
|
189.5
|
54
|
0.5783579
|
54.0m @ 0.58 V2O5
|
2010
|
M-05
|
54.5
|
85
|
30.5
|
0.5
|
30.5 @ 0.50 V2O5
|
2010
|
M-53
|
71
|
80
|
9
|
0.7636667
|
9.0m @ 0.76 V2O5
|
2010
|
M-53
|
98
|
102.5
|
4.5
|
0.6793333
|
4.5m @ 0.68 V2O5
|
2010
|
M-65
|
54.5
|
60.5
|
6
|
0.789
|
6.0m @ 0.79 V2O5
|
2010
|
M-65
|
101
|
105.5
|
4.5
|
0.536
|
4.5m @ 0.54 V2O5
|
2010
|
M-85
|
99.5
|
129.5
|
30
|
0.51925
|
30.0m @ 0.52 V2O5
|
2010
|
M-86
|
159.5
|
180.5
|
21
|
0.6432857
|
21.0m @ 0.64 V2O5
|
2010
|
M-87
|
188
|
206
|
18
|
0.59
|
18.0m @ 0.59 V2O5
|
2010
|
M-87
|
221
|
284
|
63
|
0.7
|
63.0m @ 0.70 V2O5
|
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.
|