Energizer Resources Inc. Initiates Process for Mine Permit and Provides Update on Preliminary Economic Assessment
Energizer Resources Inc.’s (TSX: EGZ) (OTCBB: ENZR) (FWB: YE5) (“Energizer” or the “Company”) Green Giant Vanadium Project site located near the town of Fotadrevo, was selected for a visit this past May by a group of high-level ministerial officials from the Madagascar government. This prestigious delegation was led by the Prime Minister, the Minister of Mines, the Minister of Finance, the Secretary General, the Director General of Mines, the Director of Geology, the head of the Madagascar police force, the engineer in charge of environmental evaluation for the Ministry of Mines, as well other governmental officials.
Craig Scherba, P.Geol., Vice President of Exploration, and a Director of the Company, hosted the tour and provided a thorough outline of the planned mine project, including the mine site and surrounding infrastructure build-out planned for this region. The site visit served to showcase the Green Giant Vanadium Project as the next significant mining project in Madagascar. It also placed Energizer in a unique position by illustrating to the government the minimal environmental and social impact expected, given the Project location is away from populated and environmentally sensitive areas.
The Company’s engineering group DRA Mineral Resources (DRA) of South Africa, armed with this positive outcome, has now evolved to where it has begun to layout the mine facility, which will include a residential village to support the future mine, with accomodations and infrastructure for a full 550 personnel.
Craig Scherba stated, “We are pleased that the government recognizes the potential magnitude of our Project – both in the acknowledgement of the minimal environmental impact our Project would have to the area, and the positive social impact it would have to the region.” It should be noted that during the Company’s exploration programs, Energizer employs up to 50 local people daily, thereby significantly contributing a positive impact to the area.
Craig Scherba and the Company’s Vice President of Business Development, Brent Nykoliation, will visit Madagascar next week to initiate the permitting process for mine development.
PEA Progress To Date
Some of the key parts of the presentation being made to the Ministers will include:
– Building Layouts are 98% complete with minor adjustments required for the laboratory, Canteen/Shop and an additional building added for the Power Plant Offices
– Preliminary Layouts for the buildings have been prepared and are under review, with layouts for each building sent out for pricing
– The residential village plan is complete – designs, layout and costs. The layout formed part of the drawing pack issued for comments / approval. The residential village will cater for the full 550 people and will have executive, white collar and blue collar dormitories, a general kitchen / canteen / laundry block, a recreation block and a small all-purpose shop
– A tool list for all mechanical equipment required in the various workshops has been compiled with costs
– The fire fighting system is being designed and costed and is expected to be complete in early August 2011
– The preliminary block plant layout is expected to be complete by the end of the first week of August 2011
– The water demand and supply has been estimated and a trade off study will be completed to determine the best option
– The water treatment plant and sewage treatment plants have been sized and are being designed and costed including all water/sewage storage tanks
– A logistical study to determine costs and the best options regarding shipping and transportation to and from site and to and from Madagascar is currently underway
– Environmental and socio-economic studies are ongoing by local company, AGETIPA.
The main component of the PEA study currently underway is the continued optimization of the metallurgical process. SGS Mineral Services (Lakefield) continues the advanced metallurgical test work as part of the PEA to optimize the vanadium extraction process confirmed by SGS Lakefield in 2010 under the direction of George Annandale, a consultant to the Company and a vanadium expert with over 30 years of international experience.
George Annandale stated, “We are well underway in optimizing the alkaline pressure leach process, which resulted in up to 82% vanadium extraction, and is a well-established and proven technology that is in use today, in particular, in connection with the treatment of uranium ores.”
Resignation of Officer and Director
The Company announces that Julie Lee Harrs, President, Chief Operating Officer and director of the Company has resigned effective August 18, 2011 to pursue other opportunities.
The Board of Directors would like to take this opportunity to thank Ms. Lee Harrs for her contribution and efforts over the past two years and wish her every success in her future endeavours.
AA 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.
About Energizer Resources
Energizer Resources Inc. is a mineral exploration and development company based in Toronto, Canada, which is developing its 100%-owned Green Giant Vanadium Project located in Madagascar. The Green Giant vanadium deposit is one of the largest known vanadium deposits in the world. In addition to the Toronto Stock Exchange (TSX: EGZ), the Company’s common shares trade on the U.S. 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 of Business Development
Toll Free: 800.818.5442 or 416.364.4911
or Kirk McKinnon, Chairman and CEO