DGAP-News: Energizer Resources Provides Update on the Development of its Green Giant Vanadium Project
(firmenpresse) - DGAP-News: Energizer Resources Inc. / Key word(s): Miscellaneous
Energizer Resources Provides Update on the Development of its Green
Giant Vanadium Project
10.02.2011 / 15:24
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Energizer Resources Provides Update on the Development of its Green Giant
Vanadium Project
NEWS RELEASE
TORONTO, ON - February 10, 2011
Energizer Resources Inc. (TSX.V: EGZ) (OTCBB: ENZR) (FWB: 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 thatmay 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
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 onterms 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
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111844 10.02.2011
Datum: 10.02.2011 - 15:24 Uhr
Sprache: Deutsch
News-ID 33187
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