Energizer Resources Inc. Announces Initial NI 43-101 Compliant Resource Estimate for its Green Giant Vanadium Project
Energizer Resources Inc. (formerly Uranium Star Corp.) (TSX.V: EGZ; OTCBB: ENZR; FRANKFURT: YE5) (“Energizer” or “the Company”) is pleased to announce that a National Instrument 43-101 (“NI 43-101”) compliant resource estimate (the “Report”) for its 100%-owned Green Giant Vanadium Project in Madagascar has 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.
This mineral resource estimate utilized diamond drill hole data and was supplemented by trench data from the 2008 and 2009 exploration programs. The objective of the Company’s upcoming 2010 resource definition drill program will be to expand the mineral resource.
A summary of the mineral resource estimate is presented below.
(at 0.5% V2O5 cut-off)
The mineral resource is contained in two separate zones on the Green Giant property, approximately 3 kilometres apart, which are referred to as the Jaky and Manga zones. The Manga zone itself accounts for an indicated resource of 16.3 million tonnes at 0.770% V2O5 containing 277.4 million pounds of V2O5 and an inferred resource of 3.5 million tonnes at a grade of 0.662% V2O5 containing 50.9 million pounds of V2O5.
The Report was completed by PEG Mining Consultants Inc. (“PEG”). For detailed information as to how the mineral resource was generated, please refer to the Report that will be filed on www.sedar.com under the Company’s profile.
This first-time resource estimate was completed using industry standard methods that conform with the CIM Mineral Resource and Mineral Reserve definitions referred to in Nl 43-101, Standards of Disclosure for Mineral Projects, and utilizing GEMS© V.126.96.36.199TM software. This mineral resource estimate utilized approximately 9,900 metres of diamond drill hole data and was supplemented by approximately 3,600 metres of trench data from the 2008 and 2009 exploration programs.
Manga Zone to be the Focus of 2010 Drill Program
The Company will be focusing its upcoming May 2010 resource definition drill program on the Manga zone, which has a defined strike length of 500 metres. Because this zone has a high-grade core that is open along strike and at depth, the objective of the upcoming drill program will be to delineate additional resources in the Manga zone alone.
“We are pleased to have completed this initial mineral resource estimate which begins to quantify the size of our Green Giant deposit. With the completion of our 2010 drill program, we will be well on our way to advancing the Green Giant Project into a robust, economic project,” said Julie Lee Harrs, President and COO. “We have high expectations of the resource being drilled in our 2010 exploration program, which will focus on the Manga zone, given that it is open along strike and at depth. We are also excited by PEG’s belief that the near surface resource has excellent potential to expand which, we are told, is amenable to open pit mining”.
Pierre Desautels, P.Geo., of PEG Mining Consultants Inc., the Independent Qualified Person under National Instrument 43-101 responsible for the resource estimate, has reviewed this release. Mr. Desautels is the author of the Report (section 17), which will be filed within 45 days of this news 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.
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.
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.
The demand for stronger rebar in construction, as well as the global infrastructure projects that have been announced, is expected to result in an increase in vanadium demand from the steel industry at a rate of 6% per annum. In addition, new demand channels for vanadium from manufacturers of energy storage systems is expected to result in additional demand for vanadium.
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.
About Energizer Resources
Energizer Resources Inc. (formerly Uranium Star Corp.) 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, through the Over-The-Counter Bulletin Board under the symbol ENZR, and on the Frankfurt Exchange under the symbol YE5.
PEG Mining Consultants Inc. is a group of experienced geologists and engineers specialized in underground & open pit mining, processing/metallurgy, and project management. The PEG team has a broad range of operations and consulting experience and skills. Further information can be found at PEG Mining’s website at www.pegmining.com.
A total of 7,000,000 options were issued to directors, officers and consultants of the Company on May 10, 2010 under the terms of the incentive stock option plan of the Company filed with the TSX Venture Exchange and approved by shareholders at the last Annual General Meeting of Shareholders of the Company held on December 9, 2009. The options are exercisable at a price of $0.395 per share for a period of four years and are subject to a six-month hold period from the date of the issuance.
For more information, please visit our website at www.energizerresources.com
Brent Nykoliation, Vice President of 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.
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.