DGAP-News: Energizer Resources Inc.: Update on its business strategy and
(firmenpresse) - DGAP-News: Energizer Resources Inc. / Key word(s): Miscellaneous
Energizer Resources Inc.: Update on its business strategy and
07.12.2010 / 16:50
---------------------------------------------------------------------
Energizer Resources Provides Business Update
NEWS RELEASE
TORONTO, ON - December 7, 2010
Energizer Resources Inc. (TSX.V: EGZ) (OTCBB: ENZR) (FWB: YE5) ('Energizer'
or the 'Company') provides an update on its business strategy and
initiatives for 2011 in connection with its 100%-owned Green Giant Vanadium
Project in Madagascar.
One of World's Largest Known Vanadium Deposits
The Company's Green Giant Vanadium Project contains a National Instrument
43-101 compliant ('NI 43-101') 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 the
third largest known vanadium deposit in the world.
The resource estimate was calculated on the basis on the following:
- Approximately 18,832 metres of diamond drill hole data from the 2008,
2009 and 2010 drill program, supplemented by approximately 5,928 metres
of trench data from the 2008, 2009 exploration programs
- All drill core and trench samples were analyzed using an alkaline flux
fusion digestion followed by optical emission spectrometry (ICP OES) by
Genalysis Laboratory located in Johannesburg, South Africa
- All drill holes are diamond drill core and were sampled mostly at 1.5
metre intervals.
- A comprehensive QA/QC program was in place during the drill programs,
which included the insertion of standards and duplicates at regular
intervals
- Gemcom Software International, GEMS(c) Version 6.2.4 software was used
for the estimate
- Ordinary kriging was used for all domains. The interpolation was
carried out in multiple passes with increasing search ellipsoid
dimensions. Inverse distance and nearest neighbor models were used for
validation
- Classification was based primarily on the pass number and distance to
the nearest sample.
Metallurgical recoveries are not taken into account
The Company will continue to consider additional drilling to expand this
resource estimate as 75% of the 21-kilometre (18 mile) stratigraphic trend
of vanadium remains open for drilling.
Preliminary Economic Assessment to Commence
As a result of favourable in-house economic analyses conducted by AGP
Mining Consultants Inc., the independent qualified person for the resource
estimate contained in this press release, the Company will be moving
forward with a NI 43-101 preliminary economic assessment ('PEA') in the
first quarter of 2011 to confirm and refine the economic parameters for the
Green Giant project.
Infrastructure Being Constructed for Nearby Sakoa Coal Project
The PEA will include an analysis of the existing and additional
infrastructure necessary for the Green Giant project. The Company will
continue its discussions with the developers of the nearby Sakoa coal
project, which is located approximately 30 kilometres away from the Green
Giant project. The Company is seeking to reach an agreement as to use of
the infrastructure to be constructed in connection with the Sakoacoal
project, including power and water supply, transportation routes and port
facilities. The use of Sakoa's infrastructure is expected to reduce both
the capital and operating costs of the Green Giant project.
The Sakoa coal project is being developed by Asia Thai Mining Co. Ltd., a
related company of Italian-Thai Development Public Company Limited,
Thailand's largest construction company. A pre/feasibility study of the
Sakoa coal project has been completed by DRA Mineral Projects, one of
Energizer's strategic partners.
DRA Mineral Projects To Lead Green Giant Project Development
Energizer's strategic alliance partner, DRA Mineral Projects, a leading
engineering, project management and mine construction company based in
South Africa will be completing the Company's upcoming PEA. Having
recently completed the pre/feasibility study for Sakoa Coal Project, DRA
Mineral Projects will provide valuable insight into the potential
infrastructure synergies while assisting the Company in the on-going
discussions with Asia Thai Mining.
Strategic Partners To Be Determined
In the first quarter of 2011, the Company will be focusing its efforts on
identifying strategic partners in both the steel and battery industries and
concluding strategic alliances with these partners. These strategic
alliances are expected to provide purchasers for the vanadium to be
produced by the Green Giant project.
The Balloch Group, a leading boutique Chinese investment bank, who were
retained in November 2010, will assist the Company in identifying potential
strategic partners from China.
Increasing Evidence of Vanadium in the Market Place
As indicated in our press releases of November 17 and 30, 2010 there is
increasing evidence of leading vanadium-based technologies in the market
place. These new technologies require high purity V2O5, which is not
readily available. The expected increase in demand for high purity V2O5,
coupled with the vanadium demand from the steel industry, is expected to
result in a shortage of supply of vanadium.
The Green Giant Vanadium Project is expected to produce the high purity
V2O5 required by the new vanadium-based technologies, as well as the form
of vanadium - called ferrovanadium - required by the steel industry.
The Year in Review
( March 2010: US$6.5 million private placement completed, with
participation from Dundee Resources and Consolidated Thompson Iron Mines
( May 2010: listed on the TSX Venture Exchange
( May 2010: initial NI 43-101 resource estimate consisting of an indicated
resource of 21.74 million tonnes at an average grade of 0.759% V2O5 and
inferred resource of 4.15 million tonnes at an average grade of 0.655% V2O5
announced
( June 2010: strategic alliance with DRA Mineral Projects, a leading mine
engineering and construction company based in South Africa, concluded
( October 2010: Richard Quesnel joins board of directors
( November 2010: metallurgical test work conducted by SGS Lakefield
confirms vanadium recoveries of up to 82% with a pre-roast + alkaline
pressure leaching process
( November 2010: updated resource estimate that more than doubles initial
resource
( November 2010: in-house economic analysis of the Green Giant project
completed by our engineering consultants, AGP, confirms very positive
internal rate of return
( November 2010: The Balloch Group retained to help identify potential
Chinese partners. More recently, it was announced that The Balloch Group
was being acquired by Canaccord Financial Inc. and was being rebranded as
Canaccord Genuity Asia with Howard Balloch as Chairman.
2011 Snapshot
Julie Lee Harrs, President and Chief Operating Officer of the Company,
comments, 'On the basis of our extraordinary achievements in 2010, we are
aggressively moving the Green Giant project forward both from a project
development perspective, as well as with strategic partners. To this end,
I will be travelling to Africa to advance the PEA and the discussions
regarding our use of the infrastructure being constructed for the nearby
Sakoa coal project, as well as to Europeand Asia to meet and conclude
agreements with strategic battery and steel partners. Stay tuned for an
exciting 2011.'
Management Ownership of Securities
Contrary to erroneous information that may be circulating, the Company
confirms that no insiders have sold any shares or exercised any options to
purchase shares of the Company.
Management continues to believe strongly in the future potential of the
Green Giant project and the growth of both new vanadium-based technologies
and traditional steel applications which will significantly increase
vanadium demand.
The Company remains firm in its belief that the upside of this quantified
and valuable resource will soon be realized.
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 NI 43-101,
Standards of Disclosure for Mineral Projects.
For detailed information as to how the mineral resource was generated,
please refer to the updated resource estimate that will be filed within 45
days of this news release on www.sedar.com under the Company's profile.
Pierre Desautels, P.Geo., of AGP, the Independent Qualified Person under NI
43-101 responsible for the resource estimate, has reviewed this release.
Mr. Desautels is the author of the updated resource estimate, which will be
filed by January 15, 2011.
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 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
Or contact:
Brent Nykoliation, Vice President of Business Development
Toll Free: 800.818.5442 or 416.364.4911
Email: bnykoliation(at)energizerresources.com
or Julie Lee Harrs, President and COO
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.
End of Corporate News
07.12.2010 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
105757 07.12.2010
Datum: 07.12.2010 - 16:50 Uhr
Sprache: Deutsch
News-ID 32815
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 433 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: Energizer Resources Inc.: Update on its business strategy and"
steht unter der journalistisch-redaktionellen Verantwortung von
Energizer Resources Inc. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
