Energizer Completes Successful 2010 Drill Program on Green Giant Vanadium Project in Madagascar; Provides Metallurgy Update
Energizer Resources Inc. (formerly Uranium Star Corp.) (TSX.V: EGZ) (OTCBB:ENZR) (FRANKFURT:YE5) (“Energizer” or “the Company”) announces it has completed its 2010 resource definition drill program on its 100%-owned Green Giant Vanadium Project in Madagascar.
Utilizing two Boart Longyear diamond drills, a total of 46 diamond drill holes (DDH), totalling 8,952 metres were drilled during the 2010 program, bringing the total number of completed drill holes to 131, and metres drilled on the property to 21,957.
The focus of the 2010 exploration program was to expand the Company’s current National Instrument 43-101 (NI 43-101) indicated resource of 21.74 million tonnes vanadium pentoxide (V2O5) and inferred resource of 4.15 million tonnes V2O5, as announced on May 11, 2010. Based on the XRF results obtained during the 2010 program, the Company expects to meet its target of delineating additional resources in the range of 25 to 30 million tonnes of V2O5.
Drill core samples have been sent to Genalysis Laboratory Services for assaying and the Company looks forward to reporting the drill assay results, which are expected to be available next month. Pierre Desautels, an independent qualified person of AGP Mining Consultants Inc. (AGP) (formally PEG Mining Consultants Inc.) will update the previous resource estimate for the Green Giant project once final assays are available. AGP is anticipating completion of this effort with release of an updated NI 43-101 technical report in September.
“We are pleased with the results of our drill program as it continues to confirm the existence of a long, continuous trend of high-grade vanadium. We have concluded our drilling for this year and look forward to reporting on the assay results and updating our NI 43-101 resource estimate, which we expect to be completed by Q3 2010,” said Julie Lee Harrs, President and Chief Operating Officer.
As previously announced, simultaneously with the definition drill program, the Company has been actively progressing the metallurgical scoping program with work currently ongoing at laboratories in South Africa (Mintek) and Canada (SGS Lakefield and NMR 360, Montreal). The initial metallurgical test work completed at SGS Lakefield in 2009 demonstrated the amenability of the Green Giant ore to acid leaching, with up to 78.2% extraction achieved under atmospheric leach conditions. Given these promising results, additional work was initiated in Q3 2009 and is continuing at Mintek, SGS Lakefield and NMR360 (Montreal). The goal of the metallurgical scoping program is to assess all technically viable process options for the unique Green Giant mineralization, including acid leaching, alkaline leaching, chloride leaching and roasting. On completion of this program, the lowest cost process option will be used to assist the definition of project economics in a NI 43-101 compliant preliminary economic assessment.
An update on the metallurgical program is expected to be available and incorporated into the next update of the NI 43-101 technical report.
Craig Scherba, P.Geol., V.P. of Exploration and Director of the Company, is the qualified person for the geological information provided in this release. Taiga Consultants Ltd. is continuing to conduct the Company’s exploration activities on the Green Giant Vanadium Project and AGP Mining Consultants Inc. continues to provide engineering expertise for the project. Andy Holloway, P.Eng., Principal Process Engineer of AGP Mining Consultants Inc., is responsible for oversight of the metallurgical program currently underway.
For more information, please visit our website at www.energizerresources.com
Vice President – Business Development
Energizer Resources Inc.
Toll Free: 800.818.5442 or 416.364.4911
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.
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