Energizer Resources Inc. Recommences Drilling on Green Giant Vanadium Project to Expand Resource
Energizer Resources Inc. (formerly Uranium Star Corp.) (TSX.V: EGZ; OTCBB: ENZR; FRANKFURT: YE5) (“Energizer” or “the Company”) announces that drilling has recommenced on its 100%-owned Green Giant Vanadium Project in Madagascar with the intention of expanding its initial resource estimate announced on May 11, 2010. This 7,000 metre, 35-hole drill program will employ two Boart Longyear diamond drills and will include a number of step-out drill holes along the main vanadium trend to verify additional mineralized zones previously confirmed through trenching.
The Company’s previously released National Instrument 43-101 compliant resource estimate confirmed that a significant amount of vanadium has been discovered in two mineralized zones that account for a very small portion (1.35 kilometres) of the overall 21-kilometre trend of continuous vanadium mineralization.
Specifically, the two zones, the Manga and the Jaky, were reported to contain a total indicated resource of 21.74 million tonnes at an average grade of 0.759% V2O5 and an inferred resource of 4.15 million tonnes at an average grade of 0.655% V2O5.
Expansion of the Manga Zone to be the Focus of 2010 Drill Program
The Manga zone has a high-grade core with vanadium values assaying as high as 1.2% V2O5 and is open along strike to the south and at depth. In just 500 metres of strike-length drilled to date, the Manga zone accounts for 77% of the total resource estimate.
“We are encouraged by the fact that we have found a large amount of high-grade vanadium in a very small section of the overall vanadium trend, with almost 95% of the overall trend left still to quantify”, said Julie Lee Harrs, President and COO. “This phase of drilling will expand the initial resource.”
To date, 85 diamond drill holes and 151 trenches, totalling 29,691 metres have been completed on the property. This drill program is expected to finish by late July and upon completion, Energizer will have drilled a total of 120 holes on the Green Giant property. The Company expects to complete a NI 43-101 compliant preliminary economic assessment (scoping) study by the end of the year.
Energizer invites the public to visit its website at http://www.energizerresources.com or e-mail us firstname.lastname@example.org to be added to the Company’s e-mail list for press releases and updates.
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.
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
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.
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.
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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