Energizer Resources Inc. and DRA Mineral Projects (Pty) Ltd. Form Strategic Alliance
Energizer Resources Inc. (formerly Uranium Star Corp.) (TSX.V: EGZ) (OTCBB:ENZR) (FRANKFURT:YE5) (“Energizer” or “the Company”) announces that has retained the services of DRA Mineral Projects (Pty) Ltd., one of the largest project management companies in Africa, to provide engineering and technical oversight for the development of the Green Giant Vanadium project in Madagascar.
A leading project management enterprise headquartered in South Africa, DRA specializes in project management and engineering in mining, infrastructure and mineral process plant design and construction. Their expertise and services include Project Management, Infrastructure Engineering, Minerals Processing, Materials Handling, Mining, 3D Modeling and Contract Operations through Minopex (Pty) Ltd., who are specialists in the field of contract operation and maintenance of metal and mineral processing facilities for the mining sector. To learn more about DRA, please visit their website at www.drainternational.com.
DRA has extensive experience with global mining projects. DRA’s Mineral Projects Group located in Johannesburg, South Africa will be providing oversight on the development of Energizer Resources’ Green Giant vanadium project.
This initial arrangement marks the beginning of a strategic alliance between Energizer Resources and DRA which could provide DRA with further business opportunities not just in connection with the Green Giant vanadium project, but with other mining projects in Madagascar. As part of this initial arrangement, DRA will be entitled to earn an equity interest in Energizer Resources, the terms of which would be agreed upon at a later date.
DRA was commissioned by Red Island Minerals to prepare a prefeasibility/feasibility study in connection with its Sakoa coal project in Madagascar. The study was completed in 2008 and included a detailed infrastructure and coal beneficiation analysis, among other things. The infrastructure considered included power and water supply, road/railway requirements, as well as a materials handling terminal. The infrastructure considered in the study is in close proximity to the Green Giant vanadium project (about 35 km away). Green Giant Vanadium has identified potential infrastructure synergy opportunities with other developing projects in the area which may significantly reduce both capital and operating costs. Given DRA’s prefeasibility/feasibility work already completed in the Area, DRA is in a favourable position to provide valuable insight into the potential infrastructure synergies.
Of equal importance is the experience DRA has gained in Madagascar and the knowledge gained from studying the coal project.
About the Green Giant Vanadium Project
The Green Giant vanadium project in Madagascar is 100% owned by Energizer Resources. A National Instrument 43-101 compliant resource estimate has been prepared on the project confirming a resource of 22 million tonnes indicated and 4 million tonnes inferred with a cut-off grade of 0.5% V2O5 in just 1.3 km of the 21 km vanadium mineralization identified to date. Exploration and drilling is currently underway to expand this resource estimate.
Vanadium is well-established as a strategic metal that strengthens and hardens alloys like steel and is positioned to play a significant role in emerging battery technologies such as batteries for electric cars and for large-scale energy storage. While there are some opportunities for substitution in steel production, the same is not true for other markets, including the emerging energy (battery) storage markets, the military and particularly in the aerospace industry, where vanadium is irreplaceable.
In 2007, the world-wide annual supply of vanadium was approximately 60,000 tonnes (or 107,000 equivalent tonnes of V2O5), with this coming largely from South Africa, China and Russia.
Today, more than 90% of existing vanadium demand is from the global steel industry, driven by increased steel production primarily in China, India and the developing world. At the same time, various economic and legislative factors are increasing the use of vanadium in the steel industry (i.e. stronger rebar in construction) where production of higher strength steels to meet the growing demand for infrastructure is accelerating on a global basis. As a result, the demand for vanadium is expected to grow at 7% year-over-year from 2010 to 2025 based on the steel industry alone.
In addition, new demand channels for vanadium from manufacturers of energy storage systems is expected to result in additional demand for vanadium. With the expected commercialization of vanadium redox energy storage systems, evidenced by the recent majority-stake acquisition of vanadium redox battery (VRB) manufacturer, Cellstrom GmbH, by a+f GmbH, the renewable energy subsidiary of German-based conglomerate Gildemeister GmbH, vanadium industry experts expect a shortage in supply of the high purity vanadium required for these VRBs.
Each of these VRBs require between one and five tonnes of V2O5, depending on the size of the VRB, and are being successfully installed into markets like India, which tend to suffer from inadequate and unreliable power infrastructure. To view information on a+f/Cellstrom’s CellCube VRB, please visit www.cellcube.com.
About Energizer Resources
Energizer Resources Inc. is a mineral exploration company whose prime focus is the exploration and development of its 100%-owned Green Giant Vanadium Project in Madagascar. The Company’s common shares are traded on the TSX Venture Exchange under the symbol EGZ, on the Over-The-Counter Bulletin Board under the symbol ENZR, and on the Frankfurt Exchange under the symbol YE5.
For more information, please visit our website at www.energizerresources.com
Vice President – Business Development
Energizer Resources Inc.
Toll Free: 800.818.5442 or 416.364.4911
Julie Lee Harrs, President and COO
Safe Harbour Statement
Cautionary Statement: The above resource estimates were calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by the Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Among other things, the terms “measured”, “indicated” and “inferred” mineral resources are required pursuant to National Instrument 43-101, the U.S. Securities and Exchange Commission does not recognize such terms. Canadian standards differ significantly from the requirements of the U.S. Securities and Exchange Commission, and mineral resource information contained herein is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the U.S. Securities and Exchange Commission.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. This mineral resource estimate includes inferred resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that the inferred mineral resource will be converted to the measured and indicated mineral resource categories through further drilling, or into a mineral reserve once economic considerations are applied.
U.S. investors should understand that “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition, investors are cautioned not to assume that any part or all of the Company’s mineral resources constitute or will be converted into reserves.
Safe Harbour Statement: The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release issued by the Company. This press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.
Forward-looking statements include, receipt of regulatory approval, statements on the proposed use of proceeds; completion of financing on terms proposed; the ability to raise additional funds as required; the development potential and timetable of the Company’s properties and minerals; the current and future price of minerals the Company explores; the estimated size of mineral deposits on the Company’s properties; the realization of those mineral deposit estimates; the timing and amount of estimated future exploration, development and production; costs of future exploration, development and production activities; success of exploration activities; government regulatory matters; discussion of political and environmental risks.
Forward-looking statements are based on the opinions and estimates of management of the Company. Forward-looking statements are subject to known and unknown risks that may cause actual results to be materially different from stated opinions and estimates of management. Some of the Company’s more material risks are: availability and timing of external financing; unexpected events and delays during exploration; receipt of government and stock exchange approvals; results of current exploration activities; future price of minerals; political risks in the locations of the Company’s properties; appreciation/depreciation of foreign currencies relative to the United States Dollar (the Company’s functional currency) and other risks inherent in the mining and exploration industry.
While Company’s management has attempted to determine the factors that could cause actual results to differ materially from estimated results contained in forward-looking statements, there may be other factors that cause results not to be as anticipated. The Company provides no assurance that such forward-looking statements will prove accurate or not materially different than projected. Therefore readers of this and other press releases issued by the Company should not place unreasonable reliance on stated forward-looking statements.
This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.