Energizer Provides Clarification of June 7, 2010 Press Release: Energizer Continues Exploration to Expand Resource on Green Giant Vanadium Project in Madagascar
Energizer Resources Inc. (formerly Uranium Star Corp.) (TSX.V: EGZ) (OTCBB:ENZR) (FRANKFURT:YE5) (“Energizer” or “the Company”) wishes to provide the following clarification regarding its June 7, 2010 press release. The earlier June 7, 2010 press release is repeated in its entirety below, with additional clarifying language underlined.
Energizer is pleased to report that the XRF results from the latest completed drill holes indicate that the Company continues to expand the resource on its 100%-owned Green Giant Vanadium Project in Madagascar.
During this phase of drilling, a total of 3,869 metres have been completed to date, bringing the total metres drilled on the property to 16,873 metres. This 2010 drill program will also include a number of step-out drill holes along the main vanadium trend to verify additional mineralized zones previously identified through trenching.
Manga Zone Continues to Expand
The Company continues to expand the Manga zone, which is located in the central part of the main 21-kilometres vanadium trend. Initial XRF results obtained from recently completed drill holes confirm continued vanadium mineralization in this zone.
The following are highlights of drill hole XRF readings. A complete table summarizing the XRF vanadium mineralization at a cut-off grade of 0.5% vanadium pentoxide ( V2O5 ) intersected during this stage of drilling follows at the end of this news release.
- Hole MM-01 intersected 1.00% V2O5 over 55.5 metres
- Hole M-56 intersected 0.99% V2O5 over 18 metres
- Hole M-57 intersected 0.83% V2O5 over 12 metres
- Hole M-58 intersected 0.79% V2O5 over 19.5 metres
- Hole M-71 intersected 0.76% V2O5 over 40.5 metres
The Company continues to use Niton XL3t hand-held XRF instrumentation to gather readings on core samples with respect to vanadium content, as well as other elements. The Company cautions that XRF readings are not certifiable or recognized in any National Instrument 43-101 compliant resource calculation and variability can be seen when compared with subsequent assays from a registered laboratory. However, the Company has gained ample experience with XRF technology and expects that frequent calibration to registered standards have enabled it to obtain XRF readings which have a strong correlation to corresponding assay results.
Related drill core samples are being sent to Genalysis Laboratory Services for assaying and the Company looks forward to reporting the drill assay results as they become available. The Company will continue to report on XRF vanadium mineralization results from the field as they become available.
Current Phase of Drilling to Target 55 Million Tonne Resource
The Company’s target for the 2010 exploration program currently underway is to delineate additional resources in the range of 25 to 30 million tonnes of V2O5. This exploration target is conceptual in nature as there has been insufficient exploration to date to define this additional mineral resource and it is uncertain at this time if further exploration will result in the target being delineated as a mineral resource.
In its May 11, 2010 press release, the Company announced that a National Instrument 43-101 compliant resource estimate (the “Report”) had been completed. The Report estimates an indicated resource of 21.74 million tonnes at an average grade of 0.759% V2O5 containing 363.8 million pounds of V2O5, and an inferred resource of 4.15 million tonnes at an average grade of 0.655% V2O5 containing 59.8 million pounds of V2O5.
As indicated in the earlier June 7, 2010 press release, the previously disclosed expected annual output is based on internal assumptions only and as such, is not supported by an independent economic analysis and is therefore retracted. Investors are hereby cautioned that until an independent economic analysis is completed on the project, there can be no certainty that the project will be economically viable.
Vanadium…There Just Isn’t Enough
Vanadium has a two-sided growth story – steady demand from traditional steel applications and potentially exponential demand from emerging battery storage applications.
Energizer’s Green Giant project is being positioned to meet not only the 6% year-over-year increase in demand forecasted from the steel industry alone, but also the new demand expected from emerging battery storage applications.
According to Byron Capital Markets’ November 2009 Vanadium Report (the “Report”), companies such as Japan’s Subaru, China’s BYD Auto and the U.S,’s Valence Technology are developing and in some cases, will soon be producing vanadium-based batteries for electric vehicles. The same Report also recognizes the vanadium redox battery (VRB) as the leading viable solution to efficient large-scale energy storage. As more companies look to develop and produce vanadium-based battery chemistries, the Report anticipates the potential for rapidly increasing demand of V2O5 , which would exhaust current supply levels.
Vanadium Redox Batteries Now Moving into the Mainstream Green Power Market
a+f GmbH, the renewable energy subsidiary of German-based conglomerate Gildemeister, recently acquired a majority stake in vanadium redox battery manufacturer Cellstrom GmbH.
(News release can be read here at www.af.net)
This pairing is expected to accelerate the sales and interest of Cellstrom’s VRB technology and signifies the establishment of the VRB as a leading battery technology in the burgeoning energy storage market.
Cellstrom’s VRB, named the CellCube, is designed as a stand-alone storage solution for unstable power grids, capable of storing energy produced by solar panels and wind turbines for power delivery around the clock. To read more on the CellCube, visit www.gildemeister.com/ino/invite_intersolar_10/en/solutions.htm
The amount of V2O5 that will be needed for the production of these vanadium redox batteries cannot be met by the current supply of V2O5 . 100,000 units of a “CellCube 200” would require approximately 200,000 tonnes of V2O5 , which is approximately double the current annual world-wide supply of V2O5 . New vanadium projects, such as the Green Giant project, will need to come online in order to meet this new demand.
The Gildemeister/a+f acquistion of Cellstrom may be the tipping point for vanadium battery technology, as it will move vanadium-based batteries into the mainstream market of Green Power.
Energizer’s Green Giant project is positioned to meet this increase in potential demand and will provide the needed sureness of price and supply that companies such as Gildemeister, a+f and Cellstrom require in order to mass produce vanadium-based battery products.
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 PEG Mining Consultants Inc. continues to provide engineering expertise for the project, including oversight of the metallurgical work currently underway at Mintek Laboratories in South Africa and SGS Laboratories in Canada, which will form the basis of a NI 43-101 compliant preliminary economic assessment for the project.
For more information, please visit our website at www.energizerresources.com
Vice President of Business Development
Energizer Resources Inc.
Toll Free: 800.818.5442 or 416.364.4911
Julie Lee Harrs, President and COO
Summary of V2O5 Mineralization at 0.5% Cut-Off Grade
XRF Results from the Manga Zone
Diamond Drill Holes from May 2010 Drill Program
|DDH #||Northing||Easting||From||To||Length||Avg V2O5|
|DDH #||Northing||Easting||From||To||Length||Avg V2O5|
Safe Harbour Statement
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 targets, expectations and projections. 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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