Agoracom Blog Home

Posts Tagged ‘Energizer Resources’

Energizer Resources on pace to meet world graphite demand with full feasibility study at Molo project targeted for Q4

Posted by AGORACOM-JC at 3:37 PM on Monday, April 8th, 2013

Tuesday, April 09, 2013 by Carrie White

Given its robust PEA at its Molo graphite project in Madagascar, as well as the quality of the project and the speed at which it has advanced, it appears that Energizer Resources is well positioned to realize production by Q4 2015.Given its robust PEA at its Molo graphite project in Madagascar, as well as the quality of the project and the speed at which it has advanced, it appears that Energizer Resources is well positioned to realize production by Q4 2015.

 

With the graphite market forecast to ramp up significantly in the near future, Energizer Resources (TSE:EGZ) (OTCBB:ENZR) says it will be ready to meet the demand.

The company not only has a giant resource in its Molo graphite deposit in Madagascar, but it is moving toward a full-feasibility study at a rapid pace, having recently released “a very conservative” yet strong preliminary economic assessment (PEA) – one of only three junior graphite companies to have done so.

Energizer late last year unveiled an NI 43-101 resource estimate for Molo, which ranks the deposit as one of the largest in the world.

Indicated resources at the Molo deposit total 83.99 million tonnes, grading 6.36 per cent carbon (C), above a 2 per cent C cut-off grade, with inferred resources totalling 40.32 million tonnes grading 6.3 per cent C.

Based on drill and trench data received to date, as well as mapping, prospecting, and geophysical surveying, graphite mineralization is confirmed at surface and over an area of at least 250,000 square metres.  Drilling has also confirmed that the mineralization is exposed at surface and open at depth in excess of 300 metres.

The conventional open pit project is expected to mine 1.17 million tonnes per year of ore, at an average head grade of 8.5 per cent with a stripping ratio of 1.65.

Brent Nykoliation, Energizer’s senior VP of corporate development, tells Proactiveinvestors that the company is targeting the completion of a bankable feasibility study and emphasizes that the Molo project can meet the current demand for graphite from the traditional steel markets and easily scale up when new demand for graphite in the energy markets heats up – as he believes it will be in the near future.

“In just 15 months from initial discovery, the team at Energizer in conjunction with its EPCM partner, DRA Mineral Projects of South Africa, has released a robust PEA study,” he says.

“Unlike other graphite companies who have released either a PEA Study or full feasibility study, Energizer’s PEA results included transportation costs FOB port as opposed to just ex-mine.”

The economics of the report, done by DRA Mineral Projects showed a post-tax net present value of $341.8 million on a 10 per cent discounted basis, with a 41 per cent IRR and a payback period of three years. Pre tax, the net present value was calculated at $421.5 million, with an IRR of 48 per cent.

According to the preliminary report, the average specification of the graphite to be produced is 92 per cent carbon (C), with average mill recovery estimated at 89 per cent. Nykoliation says that the PEA uses a conservative, average price of $1,564 per tonne of graphite, and did not include pricing for any large and jumbo flake.

Pricing for the full distribution suite of flaked graphite will be incorporated into the full feasibility study, slated to be initiated next quarter. Work on the full feasibility study will include construction of two pilot plants, each at a different accredited lab, to produce the necessary quantity of samples for presentation to potential off-take partners.

The work will also look to optimize flake size distribution and further upgrade its concentrates from purities between 98 and 98.6 per cent graphitic carbon to battery-grade target purity levels of greater than 99 per cent.

With completion of the full feasibility study targeted for the fourth quarter of this year, the start of mine construction is expected in the third quarter of 2014, and production is anticipated in the fourth quarter of 2015 at an output capacity of 84,000 tonnes per annum (tpa).

Along with its large, expandable NI 43-101 compliant resource that is able to meet market demand as required with a “full suite” of flake sizes, the company says it will be able to supply products to all market segments.

Energizer says it is also currently in off-take discussions with key graphite producers and manufacturers as well as with “leading financial institutions” for moving the project through to construction and production.

“The graphite market is very complicated, so we have spoken with many groups internationally on how to go forward in a partnership basis to place the graphite in customer’s hands,” says president, director and COO Craig Scherba.

Also key to the company’s future success is the unique location of its Molo deposit, which is in a sparsely populated, dry savannah grassland area. The environmental impact is therefore low, with the property having easy access through a network of secondary roads that lead to both the regional capital and port city of Toliara, and to the port of Soalara.

Scherba says other projects in Madagascar have paved the way in terms of mining laws, making it easier for companies like Energizer to move forward with their projects.

The company is also confident that operating costs will decline in the future as many other projects – particularly coal – are starting up in the region.

The nearby Sakoa Coal Field, just 30 kilometres away, will upgrade the now serviceable infrastructure, and with targeted production of 5 million tonnes of coal on an annualized basis, Energizer says the coal project will require significant upgrades to road infrastructure, port infrastructure, and on-site power plants – into which Energizer can no doubt tap. The Sakoa Coal Field is targeting operation between 2015 and 2016.

“We have diesel power generation in our OPEX costs right now, but should be able purchase ‘over-the-fence’ power once the Sakoa plant is built,” says Scherba.

“That means our operating costs will become even more favourable going into the future.”

The location of the company’s asset in Madagascar is also at the centre of the key graphite demand markets of China, India, South Korea and Japan – an important advantage for the Project

“Molo is located at the hub of high-volume world graphite markets and it is an easy process to ship from where we are located,” Scherba says.

The company also boasts favourable partnerships, with DRA Mineral Projects on board to help it construct its mine.

“DRA and its wholly owned division, Minopex, is one of the largest and most African-centric companies specializing in mine engineering, construction, and mine operation,” says Nykoliation.

Energizer has also enlisted the help of Panalpina, an intercontinental air and ocean freight supply chain and logistics companies, which has “hands-on experience” in Madagascar.

“They, in fact, handled all the logistics for the recently completed $6.5-billion Sherritt Ambatovy nickel mine, and they have confirmed that the current infrastructure in place is suitable today to support our graphite mine,” he adds.

Importantly, Scherba says the company also plans to apply for Madagascar’s Large Mining Investment Act (LGIM) permit, which defines the framework for developing and operating large-scale mining projects in the country, and provides for legal stability and financial incentives – including a tax exemption.

“The benefits of the LGIM permit are very positive for the company as it provides exemption for tax collection for first five years of a project (within guidelines), or until the mine turns a profit.” he notes.

“Based on a three year payback, that means we wouldn’t have to pay taxes in the first three years of operations.”

Graphite has achieved critical mineral status, with over 180 applications today that are dependent on the material.

China is currently the world’s largest producer of graphite, at about 80 per cent, but Energizer points out that the product is mostly lower grade.

“China, is realizing increased costs and reduced capacity due to older and deeper mines, and recent environmental and safety mandates will see significant mine rationalization – about 210 mines into just 20 super mines planned for this decade,” says Nykoliation.

“Just in the province of Hunan, they will be shutting 20 mines in the next three to four years due to environmental concerns.”

As the demand for graphite grows, the steel industry is still expected to be the number one consumer of the product, with automotive being the next highest consumer as advancements in the electric engine continue to improve.

Nykoliation explains that the estimated demand within the auto industry of one million electric vehicles would require the equivalent of at least five Molo deposits.

Even if electric vehicles are slow to take off, he notes that graphite has multiple layers of demand. There are many other new demand channels which will require graphite in the future, including large-scale lithium ion and vanadium redox batteries for grid storage, pebble bed nuclear reactors, consumer electronics, and fuel cells.

Meanwhile, the graphene market is expected to skyrocket through 2020.

Graphene, hailed as “the wonder product of graphite” is a two-dimensional crystal of pure carbon, is the thinnest and strongest substance known to science – about 300 times stronger than steel by weight.

It is a much better conductor of electricity than copper, is stretchable, almost transparent and also conducts heat better than any other known substance. Graphene-based applications with the greatest anticipated demand include consumer electronics, communications, computing devices, industrial materials, military/security and biotech.

According to a report recently released by BCC Research, new figures from global technology strategy and consultancy company CambridgeIP indicate there is a global graphene patent race underway to exploit graphene-based applications.

A global survey shows there are currently a total of 7,351 patents filed for applications of graphene, with just 3 countries holding 68% of them.  China leads the world with 2,204, followed closely by the U.S. with 1,704 and South Korea with 1,160.  Samsung leads all companies with patents, followed by Xerox.

As well, the level of investment going toward moving graphene from the laboratory to the marketplace is unprecedented. Europe has pledged €1 billion towards graphene research, while University of Cambridge and Manchester have both committed to building graphene research facilitates totalling over €85 million.

“We have the ability at Molo to meet traditional current as well as burgeoning markets coming on board,” Nykoliation says. “Even if one or two take off, there will be a need for a lot of graphite.”

With all that in mind, Nykoliation says the company remains focused on moving the development of the Molo forward.

According to US-based research firm House Mountain Partners, in January 2012 there were nine junior exploration companies involved in graphite exploration on the TSX, TSX-Venture, ASX and the AIM Exchanges. Today, there are over 82 companies managing 150 graphite projects in 13 countries. Of those 82 companies, only 12 have delineated a NI-43101 or JORC compliant resource, only three have completed a preliminary economic assessment study (Energizer is one of them) and only one has a final feasibility study.

As a result, several industry analysts, notably Chris Berry and Mickey Fulp, share the view that within the graphite space, there are “many pretenders and very few contenders” – only a select few will realize production.

Given the quality of the Molo project and the speed in which it has advanced, it appears that Energizer Resources is well positioned to be one of these companies.

Source: http://www.proactiveinvestors.com.au/companies/news/41750/energizer-resources-on-pace-to-meet-world-graphite-demand-with-full-feasibility-study-at-molo-project-targeted-for-q4-41750.html

Energizer Resources Provides Progress Report on NI 43-101 Molo Deposit Delineation

Posted by AGORACOM-JC at 9:46 AM on Wednesday, September 19th, 2012

TORONTO, ONTARIO–( Sept. 19, 2012) - Energizer Resources Inc. (TSX:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5) (“Energizer” or the “Company”) is pleased to announce it has received additional assays from its National Instrument (NI) 43-101 graphite resource drill program on the Molo deposit. The results continue to outline the targeted deposit size and boundaries, as well as the grade of the Molo deposit.

The Molo deposit is located in the Green Giant Graphite project, and is part of the joint venture (JV) property with Malagasy Minerals Limited in Madagascar. Energizer has a 75% ownership interest and is the operator of the project.

Drill and Trench Intersections Support Large Footprint of Molo

The Company has received assay results from an additional 9 diamond drill holes and 1 trench. Energizer has now received a combined total of 24 (of 47) drill holes, and 10 (of 19) trenches completed over the Molo deposit. This dataset continues to confirm that the Molo deposit has a very large footprint.

The company has focused its resource delineation program on the Molo deposit. The deposit’s description and shape consists of a 2 km strike length with a south plunging antiformal fold. In the north, the graphite mineralization is between 50-100 metres in width. The deposit then flares to over 500 metres in width as you move south, after which the graphite deposit width tapers to approximately 250-350 metres before splitting into two ‘arms’. The widths of these arms range in size between 50 and 100 metre widths respectively. The deposit is open at depth, and along strike.

Drill and trench data received to date, as well as mapping, prospecting and geophysical surveying, confirms graphite mineralization at surface, and over an area of at least 250,000 m2. The depth of mineralization that has been confirmed by drilling is in excess of 300 metres. With these results, the Company continues to move forward outlining a potential deposit size of 80-120 million tonnes. As well, the assays have outlined a grade average of between 5 and 8% carbon. The Company has now reported just over 50% of its drill holes, and will continue to report assay results as it receives them from the lab.

Cautionary Statement – The potential quantity and grade of the Molo deposit is conceptual in nature and there has been insufficient assay data received at this time to properly define a mineral resource in accordance with NI 43-101 requirements. Although the Company sees no reason why a compliant mineral resource could not be defined, there is no guarantee that further exploration will result in the Molo being defined as a mineral resource. The potential quantity and grade of the Molo is being determined through the progression of exploration and the assays received. To date, the company’s exploration activities include airborne geophysical surveys, ground geophysics, mapping, drilling and trenching. The deposit target range is based on drilling and trenching results obtained to date.

Mine Site Design and Logistical Planning Underway

The recently completed drill program will provide the necessary data to complete a National Instrument (NI) 43-101 graphite resource, which will be part of the Preliminary Economic Assessment Report (PEA) due in Q4 of this year.

DRA Mineral Projects, Africa’s largest mine engineering, construction and operations firm, is authoring the PEA study, which will include a mine site layout. This layout will include a model flowchart for the graphite in three separate phases: phase 1) graphite production through simple crushing, phase 2) graphite through flotation, and phase 3) graphite purification targeting the electric vehicle (EV) battery market and electric power storage markets. It should be noted that the Molo deposit has a unique feature in that that Jumbo flake (i.e. +50 mesh) graphite at an average purity of 93% C can be easily liberated through simple crushing of the Molo deposit graphite.

As part of the PEA study, DRA has authored a preliminary mine design with a capacity of 150,000 tonnes per year graphite production. The mine will be constructed in 50,000 tonne modules. This will allow for the production at the Molo deposit to be scalable and which can be ‘ramped’ up when the project off-take demands manifest themselves in the marketplace.

Logistics and product management is a key component in a mine operation, and to this end, Energizer has engaged the Panalpina Group, one of the world’s leading intercontinental air and ocean freight supply chain and logistics companies to design and manage this phase of the operation. Panalpina has stated that existing infrastructure in southern Madagascar will allow for immediate production at the Molo. Working closely with DRA, Panalpina is currently outlining a logistical solution for Energizer that will enable graphite produced at the Molo to be transported in a cost effective manner from ‘pit to port to customer’.

Assay Results

The drill hole and trenches were designed to delineate the extent of the Molo deposit. The latest assay results received are from the southern and northern sections of the deposit respectively. Specifically, drill holes MOLO-12-10 through MOLO-12-15 were emplaced on the southern edge of the deposit where the Molo bifurcates into 2 arms. Drill holes MOLO-12-17, 18 and 20 were emplaced to test the width of the mineralization in the ‘arm’ that extends north of the Molo ‘central’. Trench MOLO-TH-12-09 was emplaced on the southern end of the Molo, where the deposit splits into 2 arms.

The table below summarizes the drill and trench intersections. An assay table summarizing all results is also provided on the Company’s website.

Drill Hole From (m) To (m) Length (m) C%
MOLO-12-10 71 278 207 6.55
MOLO-12-11 0.64 97.45 96.81 6.90
MOLO-12-11 129.3 221 91.7 5.68
MOLO-12-12 0.5 24.5 24 5.18
MOLO-12-12 80 137 57 6.56
MOLO-12-13 0.77 69.5 68.73 6.30
MOLO-12-14 35.09 128 92.91 5.44
MOLO-12-14 166 250 84 5.43
MOLO-12-15 0.87 159 158.13 5.10
MOLO-12-17 96 170 74 6.49
MOLO-12-18 7.5 118.5 111 6.39
MOLO-12-20 58.2 188.5 130.3 7.08
Trench From (m) To (m) Length (m) C%
MOLO-TH-12-09 22 130 108 6.02
MOLO-TH-12-09 166 220 54 8.79

Additional Graphite Available for Targeting Beyond the Molo Deposit

The Company realizes that off-take will be the key driver for the development and size of the Green Giant project. It continues to analyze the off-take opportunities for Electric Vehicles, fuel cells, battery storage, and pebble bed nuclear reactors. The Green Giant project offers a significant incremental exploration opportunity if the off-take demand for the above graphite usage manifests itself.

Immediately to the east, and attached to the Molo deposit is a graphite-bearing synformal fold of similar dimensions to the Molo deposit (which is an antiformal fold). This eastern synformal fold (“Molo East”) will not be part of the Company’s upcoming NI 43-101 resource statement as it was not drill tested. Through the use of both ground and airborne geophysics, geologic mapping and prospecting however, the Company believes that additional graphite mineralization would be easily obtainable at Molo East.

A satellite image of the Molo East target in relation to the Molo deposit footprint, as well as a block model of assay data received to date can be viewed on the Company’s website at www.energizerresources.com.

To view the images associated with this release, please visit the following link: http://media3.marketwire.com/docs/819900.pdf.

Energizer Appoints New President, & Chief Operating Officer and a New Chief Financial Officer

Energizer Resources is very pleased to announce the appointment of Craig Scherba, PGeo. to the role of President and Chief Operating Officer and Peter Liabotis, CA to the role of Chief Financial Officer.

In making these appointments, Kirk McKinnon, Chairman and CEO of Energizer stated, “Craig Scherba has progressively demonstrated his skillset and ability to manage the operational activities of Energizer as it moves from the exploration stage to mine development stage. Craig has steadily progressed from Vice President Exploration, to Senior Vice President of Exploration and Operations for Madagascar. The company wishes to recognize Craig’s exploration efforts in the discovery of the Molo project and its development. His intimate knowledge of the Green Giant project and his developed relationships within Madagascar, especially at the highest government levels, will provide an essential understanding as he leads the development of the Green Giant Project in Madagascar”.

“Peter Liabotis has been with the company for 3 years. During this time Peter has continuously demonstrated a strong understanding of the finance and operational side of the business. Peter’s responsibilities within the company have steadily increased and will continue to do so as we develop our Madagascar graphite project and operations.”

Richard Schler commented, “Given the magnitude of the opportunity the Molo graphite project presents us, I have stepped down from my role as VP & CFO and I will be focusing my attention primarily on the Molo mine development. I personally believe that the move towards green energy will drive electric vehicle and battery storage demand and that the tipping point is just around the corner. I will continue to sit on the Board of Directors and act in the capacity of Executive Vice-President, Operations. I am pleased that Mr Scherba and Mr Liabotis have accepted their respective roles and am confident that they will serve the shareholders well. The Molo graphite project is very promising and I believe it will provide significant shareholder value as it moves forward into production”.

Qualified Person

Craig Scherba, P.Geo., is the qualified person for the technical information provided in this release.

For more information, please visit our website at www.energizerresources.com.

We seek Safe Harbour: 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.

Contact Information

 

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.
Craig Scherba
President and COO
Toll Free: 800.818.5442 or 416.364.4911
www.energizerresources.com

Projects in the Pipeline: Canada surges as flake tops graphite wish list September 2012

Posted by AGORACOM-JC at 11:05 AM on Sunday, September 2nd, 2012

Canada is leading the world in the hunt for new graphite supply. The boom in the exploration-friendly province of Quebec has spearheaded the drive after investors became hooked on graphite’s anode role in electric vehicle batteries.

Canada is leading the world in the hunt for new graphite supply. The boom in the exploration-friendly province of Quebec has spearheaded the drive after investors became hooked on graphite’s anode role in electric vehicle batteries.

The timing coincided with the graphite supply squeeze of 2011, which effectively doubled prices, forcing high-quality +80 mesh, 94-97% carbon flake over $2,000/tonne. The story and industry dynamics were attractive to newcomers and independent and retail investors resulting in a flood of new companies.

The number of active companies in the sector has surged since mid-2011. The number of projects in mid-July stood at 110. All of these are flake graphite projects, except for one located in central-Ontario and operated by Zenyatta Ventures Ltd, which is the Albany vein graphite deposit, similar to that found in Sri Lanka.

Click here to read article in its entirety.

Energizer Resources Outlines 100 Million Tonne Footprint of the Molo Deposit with the Completion of Resource Drill Program

Posted by AGORACOM-JC at 9:11 AM on Wednesday, August 29th, 2012

TORONTO, ONTARIO–(Aug. 29, 2012) - Energizer Resources Inc. (TSX:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5) (“Energizer” or the “Company”) is pleased to announce it has received additional assays from its recently completed National Instrument (NI) 43-101 graphite resource drill program on the Molo deposit. The Company is now in a position to outline the prospective deposit size and boundaries, as well as the grade and tonnage.

The Molo deposit is located in the Green Giant Graphite project, and is part of the joint venture (JV) property with Malagasy Minerals Limited in Madagascar. Energizer has a 75% ownership interest and is the operator of the Project.

NI 43-101 Graphite Resource Program Complete

The recently completed drill program will provide the necessary data to complete a National Instrument (NI) 43-101 graphite resource, which will be part of the Preliminary Economic Assessment (PEA) due in Q4 of this year. DRA Mineral Projects, Africa’s largest mine engineering, construction and operations firm, is authoring the PEA Study, while Caracle Creek International Consulting Inc. of South Africa is authoring the resource statement. In total, 41 diamond drill holes over 8,450 metres, and 18 trenches over 2,100 metres were completed during the program.

Drill and Trench Intersections Confirm Large Footprint of Molo

The Company has now received assays for the first 9 (of 41) drill holes, and the first 8 (of 18) trenches completed during the course of the recently concluded resource delineation program. Coupled with the 6 diamond drill holes and 1 trench completed during the December 2011 exploration program, this assay data confirms that the Molo has a very large footprint.

The Molo deposit exists within a folded sequence over a 2 km strike length. In the north, it is between 50 to 60 metres wide then flares to over 500 metres in width. From this point, the graphite deposit tapers down to a width of approximately 250 to 350 metres. Finally, the deposit splits into two ‘arms’ of between 50 and 100 metre widths respectively. A satellite image of the Molo deposit footprint can be viewed on the Company’s website at www.energizerresources.com.

Drill and trench data received to date, as well as mapping, prospecting and geophysical surveying, confirms graphite mineralization at surface, and over an area of at least 250,000 m2. Depth of mineralization has been confirmed by drilling in excess of 300 metres. Based on the size of the Molo footprint, as well as the tenor of mineralization found in the 15 drill holes (9 from 2012 and 6 from 2011) and 8 trenches received to date, the Company is confident of delineating a deposit in excess of 100 million tonnes at an average grade greater than 6% carbon (graphite)…

To view the figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/EGZ2908_Figure1.pdf.

Assay Results

The drill hole and trenches were designed to delineate the extent of the Molo deposit. The first 3 holes were emplaced to help determine the eastern and western boundaries of the Molo deposit. Diamond drill holes MOLO-12-04 through MOLO-12-09 were drilled to delineate the eastern edge of the deposit.

Trench MOLO-TH-12-03 assayed 7.2% carbon over 413 metres and was emplaced to test the extent of surficial mineralization over the width of the Molo. This trench was extended further to the east. Assays are still pending on this extension. Trenches MOLO-TH-12-04 through MOLO-TH-12-07 were emplaced to test the mineralized width of the northern limb of the Molo deposit, while MOLO-TH-12-08 was emplaced to test the widths of the southern limbs of the deposit.

The table below summarizes the drill and trench intersections. An assay table summarizing all results is also provided on the Company’s website.

DDH From (m) To (m) Length (m) C%
MOLO-12-04 0.8 221 220.2 5.42
MOLO-12-05 10.5 163.6 153.1 6.01
MOLO-12-06 0.5 362 361.5 5.60
MOLO-12-07 1.5 293.5 292 6.48
MOLO-12-08 1.2 212 210.8 6.45
MOLO-12-09 0.2 137 136.8 6.83
Trench From (m) To (m) Length (m) C%
MOLO-TH-12-03 5 418 413 7.20
MOLO-TH-12-04 2 119 117 6.64
MOLO-TH-12-05 22 90 68 6.73
MOLO-TH-12-06 52 118 66 7.49
MOLO-TH-12-07 37 138 101 6.45
MOLO-TH-12-08 86 140 54 7.45
MOLO-TH-12-08 186 296 110 6.70

Targeting Low Cost Production

Energizer’s Molo deposit possesses four key attributes that set it apart from other deposits in the world and position it to be a potential low-cost production model for the industry. These include:

  • An excellent topographical setting. The Molo deposit rests in a flat and semi-arid environment, with no environmental issues. With the deposit immediately at surface, operations can be optimized through little to no stripping requirements and easy access to site.
  • An ideal geographic location. The Molo deposit is uniquely located in the centre of the hub of key graphite demand markets of China, India, South Korea and Japan. Furthermore, the Molo deposit is in close proximity to specialty-finishing battery producers in both Korea and Japan. Currently, China must send almost all of its spherical cut graphite (required for batteries) to both Korea and Japan for specialty coating, which is the final, and very complex, process to produce battery-grade graphite.
  • At 100 million tonnes and an average grade greater than 6% carbon, the Molo would be the world’s largest known single source deposit of high-grade graphite. In addition, the Molo deposit possesses a unique metallurgical characteristic that allows simple mechanical separation of the graphite up to 93% without flotation.
  • Current in-place and serviceable infrastructure for transportation water and power. Confirmed by the PanaAlpina Group, one of the world’s leading intercontinental air and ocean freight supply chain and logistics companies, the in-place infrastructure at Molo will allow for immediate production. Utilizing a now serviceable road structure from site to port, 160km away, there are existing water sources proximal to the Project. Over-the-fence power will be required initially and will be satisfactory until the nearby Sakoa Coal Field (35km away) will upgrade the now serviceable infrastructure to world-class status. Targeted to produce 5 million tonnes of coal on an annualized basis, the Sakoa Coal Field will require significant upgrades to road infrastructure, port infrastructure, and on-sight power plants that Energizer expects to tap into. It is the Company’s understanding that the Sakoa Coal Field is targeting operation between 2015 and 2016.

Energizer believes the Molo’s 100 million tonnes will be required and relevant to what the Company views as the re-emergence of electric vehicles, evidenced in recent news from Ford, General Motors, BMW, Kia, Hyundai, Nissan and Toyota.

Qualified Person

Craig Scherba, Senior Vice President Exploration and Operations for Madagascar, P.Geol., is the qualified person for the technical information provided in this release.

For more information, please visit our website at www.energizerresources.com.

We seek Safe Harbour: 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.

Contact Information

 

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.
Kirk McKinnon
Chairman and CEO
Toll Free: 800.818.5442 or 416.364.4911
www.energizerresources.com

Energizer Resources Intersects 421.3 Metres of Graphite Grading 6.12% C in Drill Core and 358.5 Metres Grading 6.21% C in Trench Sampling

Posted by AGORACOM-JC at 9:18 AM on Wednesday, July 25th, 2012

TORONTO, ONTARIO–(July 25, 2012) - Energizer Resources Inc. (TSX:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5) (“Energizer” or the “Company”) is pleased to announce it has verified through assays, wide intercepts of graphite mineralization from its recently initiated National Instrument (NI) 43-101 graphite resource drill program on the Molo deposit. The Molo is located on the Green Giant Graphite project joint venture (JV) property with Malagasy Minerals Limited in Madagascar, in which Energizer has a 75% ownership interest and is the operator.

421.3 Metres of Graphite Mineralization Grading 6.12% C Intersected in Drill Core

The Company has completed 22 diamond drill holes (over 4,600 metres) at the Molo deposit as part of its 2012 resource drill program of 7,500 metres. All drill holes will be used to produce a NI 43-101 compliant graphite resource, which will be released Q4 of this year.

Assay results from the first 3 diamond drill holes have recently been received. Drill hole MOLO-12-01 was emplaced to test the down-hole width of the Molo, and intersected 421.3 metres of graphite mineralization grading 6.12% carbon (C). These results confirm that the Molo deposit is exposed at surface, and extends to a vertical depth of over 300 metres. The confirmation of graphite mineralization at surface is believed by the Company to be a key benefit of the Molo deposit, as it should allow for cost-effective open pit mining.

Additional drill core samples have been sent out for assay, and the Company anticipates receipt of the assay results on an ongoing basis over the next 8-10 weeks.

Drill Results

The first 3 holes were emplaced to help determine the outer boundaries of the Molo deposit. Diamond drill hole MOLO-12-01 was drilled to test both the western and eastern edge of the Molo deposit. MOLO-12-02 was drilled in order to define the western-most edge of the Molo deposit, while MOLO-12-03 was drilled to define the eastern-most edge of the Molo deposit. The table below summarizes the drill intersections, while a drill hole cross-section is provided on the Company’s website. A plan map illustrating the position of all drill holes is also provided on the Company’s website. To view the above mentioned illustrations, please click here.

Drill Hole UTMX UTMY Azimuth Dip Graphite Carbon % Depth
Intersection
(m) From (m) To (m)
MOLO-12-01 513120 7345600 90 -45 421.3 6.12% 31.3 452.65
MOLO-12-02 513180 7345600 270 -45 37.5 6.11% 19 56.5
MOLO-12-03 513240 7345600 90 -45 290.1 6.08% 1.2 291.3

Graphite Mineralization on Surface Verified Through Trenching

Geological mapping has identified numerous graphitic outcrops. Trenching over the Molo deposit has verified graphite mineralization is found at surface, and intervening soil-covered areas between graphite outcrops have graphitic bedrock mineralization at depths ranging between 10 cm and 1 metre below the soil. Assay results have been received for 2 of the 13 trenches excavated over the Molo deposit.

Trench MOLO-TH-01 intersected 325 metres of graphite mineralization grading 6.35% C, while trench MOLO-TH-02 intersected 358.5 metres of graphite mineralization grading 6.21% C. These results confirm that graphite mineralization is exposed on surface, and at widths in excess of 300 metres. The table below summarizes the trench intersections.

Trench UTMX UTMX UTMY Graphite Carbon % Length
From To Intersection
(m) From (m) To (m)
MOLO-TH-12-01 513130 513492 7345500 325 6.35% 10 335
MOLO-TH-12-02 513139 513500 7345600 358.5 6.21% 2.5 361

Samples collected from the additional trenches have been sent out for assay, and the Company anticipates receipt of the assay results in less than 6 weeks.

Pictures of the trenches and the Molo deposit area can be viewed on Energizer’s website at www.energizerresources.com.

Company’s Intention Is to Fast-Track Mine Development

Drill core and trench assays are wider than originally anticipated. As such, the Company believes a resource target of >100 million tonnes (MT) grading over 6% C is obtainable for the Molo deposit. This resource will be available by Q4 of this year. A 100 MT deposit grading at 6% C would be capable of producing 100,000 tonnes (T) per year of graphite concentrate for over 50 years.

To expedite the development of the project, geologic and geotechnical data is being supplied on a continual basis to the Company’s technical partner, DRA Mineral Projects (DRA), which will be providing full Engineering, Procurement and Construction Management (EPCM) services to construct a modular graphite mine at Molo. Additionally, DRA has provided an independent onsite geologist to help facilitate information transfer, as well as to expedite the establishment of a NI 43-101.

The Company believes that existing infrastructure in southern Madagascar can be suitably upgraded with minimal expenditure to handle the output of a modular graphite mine at Molo producing up to 100,000 T of graphite concentrate per annum. Consequently, the Company and DRA believe that given the deposit characteristics and metallurgy determined to date, in conjunction with minimal improvements to existing infrastructure, that a cost-effective open pit mine can be easily fast tracked. The exact build-out timing will be established in a PEA analysis due in Q4 by DRA.

Qualified Person

Craig Scherba, Senior Vice President Exploration and Operations for Madagascar, P.Geol., is the qualified person for the technical information provided in this release.

For more information, please visit our website at www.energizerresources.com.

We seek Safe Harbour: 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.

FOR FURTHER INFORMATION PLEASE CONTACT:

Brent Nykoliation
Energizer Resources Inc.
Vice President of Business Development
Toll Free: 800.818.5442 or 416.364.4911
bnykoliation@energizerresources.com
OR
Kirk McKinnon
Energizer Resources Inc.
Chairman and CEO
Toll Free: 800.818.5442 or 416.364.4911
www.energizerresources.com

The Graphite Digest — A roundup of recent news from graphite explorers

Posted by AGORACOM-JC at 11:15 AM on Monday, June 11th, 2012

Big North completes SE Ontario EM Survey, ends IR Agreement

Big North Graphite Corp (TSXV:NRT) announced June 8 completion of an airborne electromagnetic survey of 1,187 line-kilometres with 100-metre spacing over its Griffith and Brougham properties in southeast Ontario. Preliminary data suggests both properties show conductors, including coincident features to the known graphite showings. Final data is expected next week and will be used to direct ground geophysics, mapping and sampling.

The company also announced it has terminated an investor relations agreement with Trident Financial announced on April 19. The Griffith-Brougham land package covers 6,500 hectares in a region that includes Ontario Graphite’s Kearney Mine and Northern Graphite’s (TSXV:NGC) Bissett Creek Project.

 

Read an interview with Big North Graphite President/CEO Spiro Kletas.

Galaxy completes Airborne Surveys of Quebec Graphite Project, approves Name Change

Galaxy Capital Corp (TSXV:GXY) announced June 7 completion of helicopter-borne electromagnetic and magnetometer surveys on its Buckingham Property in west Quebec. Preliminary results from the 162-line-kilometre survey are expected within three weeks and will be used to direct a program of ground geophysics, prospecting, mapping and sampling.

On June 6, the company announced shareholder approval of a change of name to Galaxy Graphite Corp. Contingent on TSXV approval, the stock symbol will remain the same. The 1,324-hectare Buckingham Property consists of two former mines 40 kilometres east of Ottawa. The host rocks for both deposits are graphitic crystalline marbles, similar to the host stratigraphy at Timcal Graphite & Carbon’s Lac-des-Îles Graphite Mine, the company has stated.

Rare Earth Metals begins Ground EM Survey on NW Ontario Graphite Property

Rare Earth Metals Inc (TSXV:RA) announced June 7 it has begun line-cutting and a ground electromagnetic survey on its Manitouwadge Graphite Property in northwest Ontario. The company intends to determine the strike length and continuity of graphite zones outlined by an EM survey flown in 1989. Three graphite horizons have been identified so far through historic work and recent trenching. The zones range from four to 12 metres thick with chip samples showing 2.04% to 4.18% carbon. Screen tests on the higher-grade composite sample confirmed the presence of +65 mesh and +35 mesh flake graphite. Additional metallurgical results are pending.

The company has two advanced projects in Ontario and Labrador, with rare earth elements, niobium, beryllium, zirconium and iron ore. The company has also acquired the Coldwell Complex and the Lavergne-Springer REE Prospect, both in north Ontario.

Standard Graphite reports EM Conductors on Quebec Graphite Property

Standard Graphite Corp (TSXV:SGH) announced June 5 airborne geophysical results from its Kiamika Property in west Quebec. Initial results confirm that surface occurrences are associated with a conductor crossing the entire property over a 3.5-kilometre strike length. A second conductor 750 metres east replicates the first and expands the project’s potential, the company stated.

The 888-line-kilometre TDEM survey included three other properties: Preston, 31 Milles and Notre Dame. Results are pending for those properties and will help determine follow-up work scheduled for later this month. All four properties lie within 90 kilometres of Standard’s flagship Mousseau East Project in the Central Metasedimentary Belt of the Grenville Geological Subprovince. Mousseau East has a 1992 non-43-101 resource estimate showing 598,480 tonnes grading 8.29% carbon proven, 219,450 tonnes grading 8.13% probable and 288,760 tonnes grading 7.85% possible.

Read a feature story about Standard Graphite.

Focus to acquire Brazil Graphite Project from Lara Exploration

Focus Graphite Inc (TSXV:FMS) and Lara Exploration Ltd (TSXV:LRA) announced June 4 a letter of intent in which Focus will acquire up to a 60% interest in the Canindé Graphite Project in Ceará State, northeast Brazil. Under the agreement’s first option, Focus may earn a 51% interest by issuing Lara a total of 500,000 shares and spending $2.5 million within three years. Exploration must include an EM survey and 2,000 metres of drilling.

Under the second option, Focus may earn an additional 9% interest by spending a total of $4.5 million within five years, including completion of an additional 5,000 metres of drilling and a positive PEA.

Advertisement

If Focus declines or fails to exercise the second option, the two companies will create a 51/49 joint venture. If Focus exercises the second option, the companies will create a 60/40 JV. Both companies will fund exploration proportionately and the party holding majority interest will be deemed the project operator. If a party’s interest falls to less than 10%, its interest in the JV will be converted to a 2% production royalty.

Canindé is subject to a 1% royalty payable to a third party on gross revenue up to R$750,000 (750,000 Brazilian reais, approximately $369,000) as well as a one-time payment of R$200,000 (approximately $99,000) payable to the third party on completion of a non-NI 43-101-compliant Economic Graphite Reserve Estimate as defined by Brazil’s Departamento Nacional de Produção Mineral.

The 15,615-hectare project hosts 22 surface graphite occurrences discovered by Lara in mid-2011. The occurrences define a 16-kilometre-long graphitic corridor in high-grade metamorphic rocks. Individual graphite occurrences range from less than one metre to 10 metres wide and host grades ranging from 1% or 2% disseminated graphite in paragneiss and schist (mostly flakes), to over 50% graphite in narrow lenses in gneiss, schist, pegmatitic migmatites and brecciated horizons in gneiss. Surface grab samples from 15 of the occurrences show grades ranging from less than 1% up to 42%. The project is accessible by road.

The company’s flagship Lac Knife Graphite Project in northeast Quebec is scheduled for a PEA this month. The company states that it hopes to have offtake agreements and financing to begin mine construction following the PEA.

Read an interview with Focus President/CEO Gary Economo.

Read an interview about Focus’ Kwyjibo REE-Copper Project.

Read a feature story about Focus Graphite.

Energizer, Malagasy report Madagascar Graphite Intersections up to 434m

Energizer Resources Inc (TSXV:EGZ) and Malagasy Minerals Ltd announced June 4 five graphite intersections on the Molo Deposit of their Joint Venture Property in Madagascar. Intersections came to 434 metres, 295 metres, 220 metres, 150 metres and 51 metres. Core from the five holes has been sent for assaying, with the first results expected within six weeks. Metallurgical analysis of previous Molo samples showed jumbo-flake, +50 mesh graphite at an average purity of 93% carbon which can be liberated through simple crushing. The deposit begins at surface and extends to a vertical depth of over 300 metres, Energizer stated. The company plans an initial resource estimate for the Molo Deposit, which Energizer and engineering partner DRA Mineral Projects are targeting for open-pit production in early 2015.

Energizer holds a 75% interest and acts as operator on the JV Property, which surrounds Energizer‘s wholly owned Green Giant Graphite-Vanadium Property on three sides.

Read an interview with Energizer Resources VP of Business Development Brent Nykoliation.

Read feature stories about Energizer Resources’ vanadium deposit and its graphite deposits.

Canadian Platinum finds Saskatchewan Graphitic Argillite

Canadian Platinum Corp (TSXV:CPC) announced June 4 the presence of a thick sequence of graphitic argillite on its Peter Lake Copper-Nickel-PGE Project in northeast Saskatchewan. Examination of a 2009 airborne ZTEM survey and historic drillholes found conductors caused by graphitic argillite, the company stated. A sample assay of historic core showed 10.2% carbon and six grab samples from another historic hole averaged 4.5% carbon. Canadian Platinum drilled one of the ZTEM conductors in 2009, which intersected 142 metres of graphitic argillite and terminated in graphitic argillite. This drillhole and historic holes are currently being sampled to determine grades.

The project is North America’s largest mafic/ultramafic complex. The company’s mining claims in the area cover approximately 202,340 hectares.

By Greg Klein

Read previous Graphite Digests here

Disclaimer: Standard Graphite Corp and Focus Graphite Inc are clients of OnPage Media and the principals of OnPage Media may hold shares in those companies.

Read more articles like this at resourceclips.com.

All information on this website is: (a) for informational purposes only; (b) not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, investment advice or sponsorship of any entity or security; and (c) not necessarily reflective of the views or policy of the Financial Post. Prior to making any investment decision, it is strongly recommended that you seek advice from a qualified investment advisor. The Financial Post does not provide or guarantee any financial, legal, tax or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security or information source, especially as it relates to mining companies. For further details, please Section 22 of http://www2.canada.com/aboutus/termsofservice.html.

Source: http://business.financialpost.com/2012/06/11/the-graphite-digest-a-roundup-of-recent-news-from-graphite-explorers-3/

Energizer Resources Intersects 434 Metres of Graphite Mineralization in Drill Core

Posted by AGORACOM-JC at 9:43 AM on Monday, June 4th, 2012

TORONTO, ONTARIO–(June 4, 2012) - Energizer Resources Inc. (TSX:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5) (“Energizer” or the “Company”) is pleased to announce it has intersected wide intercepts of graphite mineralization from its recently initiated National Instrument (NI) 43-101 graphite resource drill program on the Molo deposit. The Molo is located on the Green Giant Graphite project joint venture (JV) property with Malagasy Minerals Limited in Madagascar, in which Energizer has a 75% ownership interest and is the operator.

In normal circumstances, the Company would not issue a press release describing mineralization without accompanying assay data. However, due to the wide intercepts of graphite mineralization intersected, the Company deems this information to be material.

Samples collected from the drill core have been sent out for assay, and the Company anticipates the receipt of the first assay results in approximately 6 weeks. Previous metallurgical analysis conducted at two different laboratories have confirmed that the Molo deposit contains jumbo flake (i.e. +50 mesh) graphite at an average purity of 93% C and can be easily liberated through simple crushing.

434 Metres of Graphite Mineralization Intersected in Drill Core

The Company has completed 5 diamond drill holes at the Molo as part of its 2012 resource drill program. All drill holes were completed along a single drill section, and in conjunction with ongoing drilling will be used to produce a NI 43-101 compliant graphite resource.

Based on assays from the 7 diamond drill holes previously intersected in the 2011 drilling campaign at the Molo deposit, the geological logging and visual inspection of the drill core for these latest 5 holes indicates that the graphite content appears to be similar.

The Company can now confirm that the Molo deposit begins immediately at surface, and extends to a vertical depth of over 300 metres as evidenced by drill hole MOLO-12-01, which intersected 434 metres of graphite mineralization. The confirmation of graphite mineralization at surface is believed by the Company to be a key benefit of the Molo, as it should allow for cost-effective open pit mining.

Molo Deposit Well Positioned for Mine Development

These latest resource-drilling results reinforce Energizer’s selection of the Molo Deposit for mine development. The Company, in conjunction with its technical engineering partner DRA Mineral Projects, is now expediting development and is targeting early 2015 for production.

The Molo is located in an area that has good access via a network of seasonal secondary roads from the nearby village of Fotadrevo, which in turn has access to a regional road system that leads to the ocean port of Tulear. The port of Tulear is an international shipping container port, located 160 kilometres to the west of the Molo.

Water is readily available due to the shallow water table and local river system and the power requirements of a graphite operation can be easily met with diesel power. The proximity of the Sakoa coal project (located 30 kilometres away), which is expected to commence development this year, could provide Energizer with the added option of infrastructure sharing opportunities and other synergies.

The Molo is located in an ideal geographical setting for a mine. The area is dry and semi-desert like with very little vegetation, has a very low regional population density, and has relatively flat terrain. The climate also adds to the ease of mining, as this area of Madagascar has a very temperate climate with a mild rainy season from December to March.

Drill Results

Diamond drill hole (DDH) MOLO-12-01 was emplaced to test both the western and eastern edge of the Molo deposit. DDH MOLO-12-02 was drilled in order to define the western-most edge of the Molo deposit, while DDH MOLO-12-03 through 05 were drilled to define the eastern-most edge of the Molo deposit. The table below summarizes the drill intersections, while a drill hole cross-section is provided on the Company’s website.

Drill Hole UTMX UTMY Azimuth Dip Graphite
Intersection
Depth
(m) From (m) To (m)
MOLO-12-01 513120 7345600 90 -45 434 26 460
MOLO-12-02 513180 7345600 270 -45 51 18 69
MOLO-12-03 513240 7345600 90 -45 295 Surface 295
MOLO-12-04 513300 7345600 90 -45 220 Surface 220
MOLO-12-05 513360 7345600 90 -45 150 Surface 150

To view the image associated with this release, please visit the following link: http://media3.marketwire.com/docs/Energizer_GridImage.pdf.

Graphite Mineralization on Surface

Geological mapping has identified numerous graphitic outcrops. Trenching over the Molo deposit has verified graphite mineralization is found at surface, and intervening soil-covered areas between graphite outcrops have graphitic bedrock mineralization at depths ranging between 10 cm and 1 metre below the soil. To-date, two trenches have been excavated over the Molo deposit, exposing continuous graphite mineralization over 300 metre lengths. Samples collected from the trenches have been sent out for assay, and the Company anticipates the receipt of the first assay results in approximately 6 weeks.

Pictures of the trenches and the Molo deposit area can be viewed on Energizer’s website at www.energizerresources.com.

Drilling and Trenching Confirm Effectiveness of Geophysics

The drill and trench intersections obtained to date confirm that both the ground-based EM-31, and time domain electromagnetic airborne geophysical surveys are highly effective at identifying graphite mineralization. The EM-31 is effective in delineating near-surface mineralization, while the time domain airborne survey is effective in detecting graphite mineralization at depth.

Due to the high correlation between the geophysics, drill core and conductors, the Company is confident in obtaining a NI 43-101 resource ranging between 50 and 100 million tonnes on the Molo deposit with a grade range of between 6 to 10% C. The Company anticipates the NI 43-101 report will be available by Q3-Q4 of this year.

To view the image associated with this release, please visit the following link: http://media3.marketwire.com/docs/Energizer_GridImage2.pdf.

Qualified Person

Craig Scherba, Senior Vice President Exploration and Operations for Madagascar, P.Geol., is the qualified person for the technical information provided in this release.

For more information, please visit our website at www.energizerresources.com.

We seek Safe Harbour: 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.

Contact Information

Energizer Resources Selects Molo Deposit for Mine Development;

Posted by AGORACOM-JC at 9:14 AM on Thursday, May 24th, 2012

Drills 106 m of 8.44% C including 37 m of 11.17% C

TORONTO, ONTARIO–(May 24, 2012) - Energizer Resources Inc. (TSX:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5) (“Energizer” or the “Company”) is pleased to announce the receipt of all graphite assays from its Phase I and II exploration programs conducted in Q4, 2011. These assays confirm wide intercepts of graphite mineralization with composite grades between 7.3% and 11.2% carbon ( C ) within the Molo Deposit, and support the Company’s intention to delineate a National Instrument (NI) 43-101 resource for the Molo. The Molo graphite deposit is located on the joint venture (JV) property with Malagasy Minerals Limited in Madagascar, in which Energizer has a 75% ownership interest.

Molo Deposit Selected for Mine Development; NI 43-101 Resource Drilling Initiated

The Company’s most recent exploration program, which included airborne surveys, ground geophysics, mapping, trenching and 29 diamond drill holes, has provided the basis to evaluate several potential graphite deposits on its properties. The objective of this evaluation was to select which deposit would present the best overall parameters, including economics and quality of product, to move forward to production. Included in the analysis were the Molo, Fondrana, Fotsy and Seta deposits.

This evaluation has now been completed and the Company has selected the Molo Deposit to be brought to mine development. The Company intends to expedite this process and is targeting 2014/2015 for production. It should be noted that this evaluation included metallurgical analysis, which confirms that jumbo flake (i.e. +50 mesh) graphite at an average purity of 93% C can be easily liberated through simple crushing of the Molo deposit graphite.

The Company is targeting a resource between 50 and 100 million tonnes on the Molo Deposit with a grade range of between 6 to 10% C. The resource drill program has commenced, utilizing two Boart Longyear diamond drills and is being led by Energizer’s Senior Vice President of Exploration, Craig Scherba, P. Geol. Drilling is estimated to take two months.

Molo Deposit Has Key Mining Attributes

A key characteristic of the Molo deposit is that the graphite is immediately at surface, which will allow for very cost-effective open pit mining. In addition to having the significant surficial expression of graphite, the Molo is also located in an area with an ideal geographical setting as well as ideal terrain. The terrain is semi-arid and almost flat – two features that give the Molo a unique topographical signature not found in most deposits. The climate also adds to the ease of mining, as this area of Madagascar has a very temperate climate with a mild rainy season from December to March.

The local Malagasy people are excellent workers who have offered great cooperation and assistance to Energizer. As the largest employer in the region, Energizer has hired up to 100 people at any one time to support its exploration programs.

Assay Results

Drill hole MOLO-07 was from the central core of the Molo deposit and intersected 106 metres of graphite mineralization at 8.44% C, including a higher-grade interval of 37 metres at 11.17% C.

Drill hole MOLO-06 intersected 27 metres of graphite mineralization at 7.25% C and was drilled into a surficially exposed graphitic ridge 1 kilometre to the west, and parallel to the Molo deposit. These latest assay results confirm that this surficially exposed graphitic ridge (which extends for a minimum of 12 kilometres in strike length), extends to a vertical depth of at least 108 metres.

Drill holes SETA-02 and SETA-03 intersected 41 metres of graphite mineralization at 5.42% C and 28.6 metres of graphite mineralization at 5.77% C respectively. These drill holes were emplaced to test the depth extension of a 1.8 kilometre long ridge of graphite. The results confirm graphite mineralization extends to depth. Due to the wider widths of mineralization intersected at the Molo however, the focus of the Company’s resource delineation program will be the Molo Deposit.

Mr. Albert A. Thiess, Jr. appointed Company Director and Chair of Capital Projects and Mine Development Committee

Energizer is pleased to announce the appointment of Mr. Albert A. Thiess, Jr. to the Company’s board of directors and as Chair of its Capital Projects and Mine Development Committee (the “Committee”) effective May 22, 2012.

Mr. Thiess brings over 35 years of accounting, finance and management experience to the Company. Mr. Thiess served as a CPA and audit partner in Coopers & Lybrand, LLP and with PricewaterhouseCoopers LLP following the merger of those firms in 1998. He served clients in the automotive, banking, retail and manufacturing industries, as well as serving as the Managing Partner of the Detroit, Michigan and Los Angeles, California offices. He also was elected to the Governing Council of Coopers & Lybrand. Following the merger with PricewaterhouseCoopers, Mr. Thiess managed various global functions for the newly merged firm.

Peter D. Liabotis, C.A., the Company’s Vice President of Finance, has also been appointed to the Committee. Mr. Liabotis is a Chartered Accountant with over 15 years of accounting experience, auditing for both KPMG and PriceWaterhouseCoopers. From 1998 to 2008, Mr. Liabotis worked for Olympia Capital, a hedge fund administrator where he served as Senior Vice President – Chief Financial Officer.

These appointments further reflect the Company’s ongoing commitment to move the Company’s graphite discovery in Madagascar on its 75% owned joint venture ground to a mine. Both Mr. Thiess and Mr. Liabotis join Robin Borley, who was announced to the Committee in the Company’s January 25, 2012 news release.

Mr. Borley is a Director of DRA and a Graduate Mining Engineer and Certified Mine Manager with over 25 years of International Mining experience across a range of commodities. Mr. Borley brings considerable knowledge and experience to the technical and operational aspects of mine development, which will be invaluable to the Company as it develops its projects in Madagascar.

Qualified Person

Craig Scherba, Senior Vice President Exploration and Operations for Madagascar, P.Geol., is the qualified person for the technical information provided in this release.

For more information on graphite and graphene, please visit our website at www.energizerresources.com

We seek Safe Harbour: 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.

Contact Information

Energizer Releases Latest Molo Assays and Announces Resource Drill Program; Targeting 50 to 100 Million Tonne Graphite Deposit

Posted by AGORACOM-JC at 2:36 PM on Monday, April 30th, 2012

Energizer Resources Inc. CA:EGZ -1.75% ENZR +3.16% (frankfurt:YE5) (“Energizer” or the “Company”) is pleased to announce additional assay results from the Molo deposit on its Green Giant Project. The latest assays received from the Molo deposit confirm graphite mineralization is at surface, and extends to a vertical depth of at least 90 metres at grades between 6.9% and 14.6% carbon Copyright. The Molo graphite deposit is located on the joint venture (JV) property with Malagasy Minerals Limited (“Malagasy”) (asx:MGY) in Madagascar, in which Energizer has a 75% ownership interest.

Focus Will be on Molo Graphite Deposit – NI 43-101 Resource Drilling to Begin Within Two Weeks

These latest drill hole assays continue to confirm that extensive surficial graphite mineralization extends to depth over the Molo deposit. As a result, the Company is now focusing its full attention and resources behind fast tracking the delineation of a National Instrument 43-101 (NI 43-101) compliant resource at the Molo deposit. Based on work completed to date, the Company is targeting a resource between 50 and 100 million tonnes within a grade range of 6 to 10% C.

This resource delineation program is scheduled to begin within two weeks and is estimated to take two months. The resource drilling will total approximately 7,500 meters and will utilize two Boart Longyear diamond drills, which are already on site. Energizer’s exploration team, led by Senior Vice President of Exploration Craig Scherba, P. Geol., has previous experience in this regard, having already delineated a NI 43-101 compliant stand-alone vanadium resource of 49.5 million tonnes at an average grade of 0.693% V2O5 and an inferred resource of 9.7 million tonnes at an average grade of 0.632% V2O5, located on the Green Giant property.

Non-Compliant NI 43-101 Statement – The potential quantity and grade of the target graphite deposit is conceptual in nature and there has been insufficient exploration to adequately define a mineral resource in accordance with NI 43-101 requirements. Further exploration to define a compliant NI 43-101 resource will commence shortly, and although the Company sees no reason why a compliant mineral resource would not be defined there is no guarantee that further exploration will result in the target graphite deposit being defined as a mineral resource. The potential quantity and grade of the target graphite deposits have been determined through the progression of exploration methodology and initial metallurgical testing. This included airborne surveys, ground geophysics, mapping, trenching and diamond drill holes, in conjunction with assay results. The low range of the resource target is based on confirmed surficial mineralization and drill hole intersection assays to date. The high range of the resource target is based solely on confirmed surficial mineralization with no sub-surface drilling. Samples are collected in accordance with strict QA/QC protocols, and sent to accredited test facilities for obtaining assay results.

DRA Engineers to Begin Outlining Mine Site

Shortly after the commencement of drilling, DRA Mineral Projects will send an engineering team to site to begin quantifying data required for a Preliminary Economic Assessment (PEA) of the Molo deposit. During this time, DRA will begin outlining the mine site parameters, including production facilities and infrastructure.

Jumbo Flake Graphite at an Average Purity of 93% Confirmed

Preliminary metallurgical analysis indicates that Jumbo flake (i.e. +50 mesh) graphite at an average purity of 93% C can be easily liberated through simple crushing of the Molo deposit graphite.

This metallurgical insight, coupled with the wide widths and high grades quantified through assays, has prompted the Company to expedite and focus its full attention on the delineation of a NI 43-101 compliant resource at the Molo deposit.

Molo Graphite Assays Continue to Confirm Size and Grade

The Company has now received assay results from 5 of the 7 diamond drill holes completed over the Molo deposit. Of the 7 drill holes, 6 were drilled into the western arm of a fold, with a strike length of at least 2 kilometres, with the remaining hole (MOLO-06) drilled into a surficially exposed graphitic ridge 1 kilometre to the west of the central core of the Molo deposit. Of the holes received (MOLO-01 to MOLO-05), graphite mineralization was intersected to a down-hole depth of 108 metres, with composited grades ranging from 6.94% C to 14.63% C. The table below summarizes the intersections from all 5 holes received.

        --------------------------------------------------------
                                               Interval
        Drill Hole           From (m)   To (m)      (m)      C%)
        MOLO-01                     0      108      108      8.8
        incl.                      23       72       49    10.09
        incl.                      83      106       23    10.03
        MOLO-02(i)                  0       20       20     6.94
        MOLO-03                    39      126       87      7.4
        MOLO-04                   9.5       23     13.5    14.63
        MOLO-04                    50      104       54     7.27
        MOLO-05                    37      125       88     7.92
        --------------------------------------------------------
        (i)Molo-02 was drilled in the opposite direction of Molo-1
           from the same collar location.

Additional Fotsy and Fondrana Assays Confirm Multiple Stand-Alone Graphite Deposit Potential

Energizer turned its attention to graphite in November 2011, and continues to identify new graphite opportunities on its 120 kilometre-long Green Giant Project. Through the completion of 29 diamond drill holes over 3,780 metres, 20 trenches over 1,900 metres, regional sampling with 670 prospecting samples, geological mapping of 3 areas, analysis of 3 airborne geophysical surveys, and the completion of 160.5 kilometres of ground-based electromagnetic geophysical surveying, the Company has identified over 320 kilometres of graphitic trends.

The Company has now received assay results from 12 of the 14 diamond drill holes completed over the Fotsy deposit, and 5 of the 6 diamond drill holes completed over the Fondrana deposit. Graphite mineralization was intersected to a down-hole depth of 138.5 metres, with composited grades ranging from 5.19% C to 12.16% C. The table below summarizes the intersections from all recently received drill holes.

        --------------------------------------------------------------
        Drill Hole          From (m)      To (m)  Interval (m)     C%)
        FOND-04                   15        40.5          25.5    5.27
        FOND-04                   69         135            66    5.63
        FOND-06                62.05          68          5.95     6.2
        --------------------------------------------------------------
        FOTSY-07                   7       21.37         14.37    5.27
        FOTSY-07               41.44        53.7         12.26    6.34
        FOTSY-11                  12        17.5           5.5    5.74
        FOTSY-11               126.5       138.5            12    6.91
        FOTSY-12               67.43        72.5          5.07   12.16
        FOTSY-12                  74       88.75         14.75    5.49
        FOTSY-12              112.35         119          6.65     9.9
        FOTSY-13                  27          61            34    5.19
        --------------------------------------------------------------

The assay results for the Fotsy and Fondrana confirm the Green Giant Project has the potential to host multiple stand-alone graphite deposits. In order to expedite project development however, the Company will focus exploration and engineering efforts on the Molo graphite deposit.

Qualified Person

Craig Scherba, Senior Vice President Exploration and Operations for Madagascar, P.Geol., is the qualified person for the technical information provided in this release.

For more information on graphite and graphene, please visit our website at www.energizerresources.com .

We seek Safe Harbour: 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.

        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.
        Kirk McKinnon
        Chairman and CEO
        Toll Free: 800.818.5442 or 416.364.4911

www.energizerresources.com            

 SOURCE: Energizer Resources Inc.
        mailto:bnykoliation@energizerresources.com

http://www.energizerresources.com

Graphite Investment Boom Heats Up

Posted by AGORACOM-JC at 3:19 PM on Tuesday, April 24th, 2012

Graphite seems to be the new rare earth, and investor interest in the mineral, once seen as synonymous with No. 2 pencils, is heating up. Graphite is in short supply, especially large-flake graphite, a must for lithium-ion batteries, fuel cells, and nuclear power. China controls about 80 percent of the world’s graphite supply and its intention to curb exports is causing worry. Historic underinvestment in new graphite projects globally has prompted many juniors to step in and fill the gap. Investor interest in a cycle like this will not last for a long time, but for now, the bubble is growing bigger.

“I believe the Graphite cycle is now where Rare Earths were in 2009,” Ben Axler, managing partner and co-founder of Spruce Point Capital Management, a New York-based hedge fund, was quoted as saying on Seeking Alpha.

Axler, who is long on large-flake graphite company Northern Graphite Corp. (TSXV:NGC), said, “it’s entirely possible…NGC’s shares can easily double from here to over $6/share.” Northern Graphite shares were trading at $2.41 on Friday morning.

Northern Graphite, which owns 100 percent of the Bisset Creek deposit, said earlier this month that it has made test quantities of spherical graphite from graphite. The spherical graphite has been evaluated in lithium/graphite battery test cells, and the “performance of these cells demonstrated that it meets or exceeds current commercial performance requirements,” the company said.

Siddharth Rajeev, head of research at Vancouver-based Fundamental Research Corp. (FRC), told Graphite Investing News in an interview, “we are most bullish on high-grade, large-flake graphite projects.” He added that applications such as batteries and fuel cells will “require high-grade, large-flake graphite – and a significant portion of the demand is currently filled by synthetic graphite. We believe high-grade, large-flake natural graphite has the potential to take a significant market share from the synthetic graphite market.”

But Rajeev warned that “the recent boom and growing investor interest in the graphite sector have resulted in lot of new graphite companies and/or has prompted existing companies to switch their focus to graphite. Switching focus is not uncommon in the junior resource space. We saw the same trend a few years ago when the rare earth and lithium boom started. Several of those rare earth or lithium companies do not exist anymore. We will see the same in graphite as well. Investors should keep this in mind and look for strong fundamentals and management teams before making an investment decision.”

Nathan Pearson and Rachel Harrison reported for VantageWire that investors looking to invest in shares of graphite juniors need to “focus on projects with near-surface, high-grade, large-flake deposits that are in politically and economically safe areas with sound infrastructure.”

Besides Northern Graphite, other firms making headlines in the graphite space are Focus Metals Inc. (TSXV:FMS), Energizer Resources Inc. (TSX:EGZ), Flinders Resources Ltd. (TSXV:FDR), and Standard Graphite (TSXV:SGH) to name a few.

Focus Metals holds 100 percent ownership of its Lac Knife, Quebec, property, which has 16 percent carbon grade medium- and large-flake crystalline graphite, with production expected to begin in 2014. Its shares have risen more than 38 percent so far this year.

Energizer Resources last month confirmed jumbo-flake graphite with more than 90 percent purity at its Green Giant project in Madagascar. Shares of the company have nearly doubled so far this year.

Flinders Resources raised $15 million to advance the Kringel graphite mine in Sweden toward production this month. The Kringel mine, with a capacity 13,000 tonnes per year of flake graphite, operated from 1996 to 2001, when production was halted due to falling graphite prices. The company’s shares are down more than 23 percent so far this year, but have risen more than 20 percent in the past month.

Standard Graphite controls a 100 percent stake in twelve highly prospective graphite properties within known graphite districts in both Quebec and Ontario. Its shares have risen more than 80 percent so far in 2012.

Securities Disclosure: I, Karan Kumar, hold no direct investment interest in any company mentioned in this article.

Source: http://resourceinvestingnews.com/35268-graphite-investment-boom-heats-up.html