Nextsource Materials Inc (NSRCF)

[riverrock]

Two interesting companies to compare are Energizer Resources (enzr, t.egz) and Prophecy Platinum (pnikf, v.nkl).

At the present time Energizer Resources has roughly 3 times the number of shares as Prophecy Platinum which sells at over 10x Energizer's present price. In any event, there are strong similarities relative to their potentials.

Prophecy Platinum's Wellgreen compliant NI 43-101 14.0 Million tonne indicated resource is estimated at $307/tonne while its larger inferred resource of 289 Million tonne is estimated at $169/tonne. Both estimates are based on 100% ore recoveries. More info is coming, as a PEA is expected..

When based on similar 100% ore recoveries. Energizer's present compliant indicated NI 43-101 electrical grade V2O5 resource is 49.5 million tonne is estimated at $306/tonne, while a further 9.7 million tonne of compliant indicated NI 43-101 electrical grade V2O5 resource is estimated at $279/tonne, I use a price of $20/lb for electrical grade V2O5, based on Ocean Equities Report “Vanadium Sector Review” dated 15th July 2011, para 3, page13,which states that, V2O5 battery grade prices have ranged from (US$29 – $66)/kg during 2010, according to market consultants, which translates to (US$13 – $30)/lb. Energizer's PEA has been delayed because of the recent graphite (flake graphite) finds that could develop into valuable byproducts credits to the electrical grade V2O5 and increase the $306/tonne estimated value for the indicated ore considerably.

The Red Flag in the above dollar per tonne values are that both are based on 100% recoveries, which was selected to keep them on an even keel. In addition estimated mineral prices have been used. PEA's are being developed for both companies which should give better details for expected recoveries.

Prophecy Platinum Resource is part of a huge ore body consisting of precious metals, nickel, copper and other metals. It has been known about for years while improvements in infrastructure, mining methods and processing and its large resource have made it interesting.

Energizer Resources electrical grade V2O5 has major potential for use in electric vehicle batteries and for storage of energy produced by solar and wind farms, as well as for peak power requirements by national grid systems.
Green Giant's compliant NI 43-101 electrical grade V2O5 ore body is believed to cover only ~20% of the Green Giant Property V2O5 resource. In addition, the recent JV Agreement with Malagasy Minerals allows Energizer to explore for and develop 75% of industrial minerals found on the larger Malagasy property. The JV should further increase Energizer's electrical grade V2O5 potential along with the graphite (flake graphite) being found on both properties.

Prophecy Platinum
http://www.prophecycoal.com/index.php
http://img.bullvestor.com/2012/NKL/2012_03_NKLNorthern_Update%2032.pdf


Energizer Resources
http://www.energizerresources.com/
http://www.niplats.com.au/media/articles/Investor---Research/20110719-Ocean-Equities-Vanadium-Sector-Review---July-2011-261/Vanadium-Thematic-Ocean-Equities-Research-July-2011.pdf