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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 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.
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
www.energizerresources.com
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