PR out--resource update....................
Energizer Continues to Expand Resource On Way to Targeted 55 Million Tonne Resource on Green Giant Vanadium Project in Madagasca
Posted on: Mon, 07 Jun 2010 08:06:33 EDT
TORONTO, ONTARIO, Jun 7, 2010 (Marketwire via COMTEX) --
Energizer Resources Inc. (formerly Uranium Star Corp.) (TSX VENTURE: EGZ | PowerRating)(OTCBB: ENZR | PowerRating)(FRANKFURT:YE5) ("Energizer" or "the Company") 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 55 million tonnes of V2O5. Based on the Company's internal assumptions, which will be verified in a forthcoming preliminary economic assessment, 55 million tonnes is expected to represent a 20-year mine life. Based on these internal assumptions, the Green Giant mine is expected to produce an annual output of 14,700 tonnes of V2O5 per year, which would represent 14% of the world's current annual output of V2O5.
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 acquisition 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.
Qualified Person
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.
Summary of V2O5 Mineralization at 0.5% Cut-Off Grade
XRF Results from the Manga Zone
Diamond Drill Holes from May 2010 Drill Program
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DDH # Northing Easting From To Length Avg V2O5
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M-75 7348170 503440 44 80 36 0.5
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M-75 7348170 503440 54.5 71 16.5 0.66
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M-75 7348170 503440 54.5 60.5 6 0.73
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M-74 7347844 503401 48.5 77 28.5 0.52
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M-74 7347844 503401 55 60.5 5.5 0.9
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M-74 7347844 503401 60.5 66.5 6 0.57
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M-73 7347605 503394 53 60.5 7.5 0.71
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M-72 7347408 503399 53 66.5 13.5 0.62
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M-72 7347408 503399 incl. 54.5 59 4.5 0.78
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M-72 7347408 503399 92 96.5 4.5 0.55
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M-49 7346900 503260 192.5 210.5 18 0.501
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M-49 7346900 503260 incl. 192.5 200 7.5 0.627
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M-48 7346700 503377 50 66.5 16.5 0.543
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M-54 7346400 503255 incl. 132.5 141.5 9 0.55
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M-54 7346400 503255 incl. 155 162.5 7.5 0.5
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M-44 7346306 503275 75.5 95 19.5 0.529
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M-44 7346306 503275 incl. 75.5 83 7.5 0.76
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M-43 7346302 503138 186.5 251 64.5 0.586
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M-43 7346302 503138 186.5 192.5 6 0.706
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DDH # Northing Easting From To Length Avg V2O5
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M-43 7346302 503138 207.5 222.5 15 0.92
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M-43 7346302 503138 231.5 243.5 12 0.692
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M-55 7346200 503212 104 153.5 49.5 0.519
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M-55 7346200 503212 105.5 107 1.5 1.019
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M-55 7346200 503212 132.5 137 4.5 0.807
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M-71 7346200 503105 188 260 72 0.66
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M-71 7346200 503105 189.5 200 10.5 0.75
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M-71 7346200 503105 200 209 9 0.54
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M-71 7346200 503105 219.5 260 40.5 0.76
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M-71 7346200 503105 219.5 236 16.5 0.87
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M-71 7346200 503105 239 242 3 0.93
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M-71 7346200 503105 245 260 15 0.81
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M-56 7346101 503116 162 258 96 0.61
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M-56 7346101 503116 162 187.5 25.5 0.64
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M-56 7346101 503116 175.5 184.5 9 0.8
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M-56 7346101 503116 201 219 18 0.99
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M-56 7346101 503116 219 243 24 0.59
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MM-01 7345950 503285 0 183.5 183.5 0.691
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MM-01 7345950 503285 2.5 11 8.5 0.687
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MM-01 7345950 503285 36.5 45.5 9 0.829
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MM-01 7345950 503285 68 123.5 55.5 1.007
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MM-01 7345950 503285 123.5 153.5 30 0.77
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M-57 7345392 503203 44 56 12 0.83
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M-58 7345391 503063 159.5 186.5 27 0.7
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M-58 7345391 503063 162.5 182 19.5 0.79
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M-58 7345391 503063 194 195.5 1.5 0.65
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M-59 7345198 503127 80 104 24 0.62
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M-59 7345198 503127 80 92 12 0.57
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M-59 7345198 503127 92 96.5 4.5 0.85
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M-59 7345198 503127 96.5 104 7.5 0.57
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M-60 7345197 502986 212 219.5 7.5 0.74
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M-62 7344997 503115 78.5 84.5 6 0.75
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AI
