Energizer Continues to Receive Positive Results on Green Giant Vanadium Project in Madagascar; Engages Vanadium Expert
Companies:ENERGIZER RESOURCES INCENERGIZER RESOURCESENERGIZER RES
Press Release Source: Energizer Resources Inc. On Wednesday June 23, 2010, 8:00 am EDT
TORONTO, ONTARIO--(Marketwire - 06/23/10) - Energizer Resources Inc. (formerly Uranium Star Corp.) (TSX-V:EGZ - News)(OTC.BB:ENZR - News)(Frankfurt:YE5 - News) ("Energizer" or "the Company") announces it has received XRF results from the latest completed drill holes on its 100%-owned Green Giant Vanadium Project in Madagascar. The Company is pleased to report that these XRF results confirm continued vanadium mineralization in and along the main vanadium trend.
A total of 6,779 metres have been drilled to date in the 2010 drill program, bringing the total metres drilled on the property to 19,783 metres. The assays from these drill samples will be added on to and will increase the Company's current National Instrument 43-101 indicated resource of 21.74 million tonnes V2O5 and an inferred resource of 4.15 million tonnes V2O5.
Highlights of XRF Results
The following are highlights of drill hole XRF readings. A complete table summarizing the latest XRF vanadium mineralization results at a cut-off grade of 0.5% vanadium pentoxide (V2O5) intersected since the previous press release (dated June 8, 2010) follows at the end of this news release.
-- Hole M-87 intersected 0.70% V2O5 over 63 metres
-- Hole K-03 intersected 0.55% V2O5 over 84 metres, including 0.75 V2O5
over 16.5 metres
-- Hole K-09 intersected 0.58% V2O5 over 54 metres, including 0.70 V2O5
over 9.5 metres
-- Hole K-05 intersected 0.56% V2O5 over 69 metres
-- Hole M-53 intersected 0.76% V2O5 over 9 metres, including 0.88 V2O5 over
4.5 metres
-- Hole K-02 intersected 0.51% V2O5 over 48 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 continue to be 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 results from the field as they become available.
Vanadium Expert Retained
Energizer has retained the services of vanadium industry expert, Terrance Perles, to assist the Company in quantifying the future market opportunity for V2O5, among other things. Although industry experts expect the demand for vanadium from the steel industry to grow at 7% year over year from 2010 to 2025, the potential growth from emerging battery technologies is unknown. With the expected commercialization of vanadium redox energy storage systems, evidenced by the recent majority-stake acquisition of vanadium redox battery (VRB) manufacturer, Cellstrom GmbH, by a+f GmbH, the renewable energy subsidiary of German-based conglomerate Gildemeister GmbH, vanadium industry experts expect a shortage in supply of the high purity vanadium required for these VRBs.
Each of these VRBs require between one and five tonnes of V2O5, depending on the size of the VRB, and are being successfully installed into markets like India, which tend to suffer from inadequate and unreliable power infrastructure. To view information on a+f/Cellstrom's CellCube VRB, please visit www.cellcube.com.
Terrance Perles has been involved in the vanadium industry for 22 years, most recently directing the sales and marketing efforts of, and acting in senior management positions with, Stratcor, Inc. and Evraz Group's Vanadium Business Unit. The Evraz Group S.A., based in Luxembourg, is one of the largest vertically-integrated steel, mining and vanadium businesses in the world.
Terrance Perles states, "Today, more than 90% of existing vanadium demand is from the global steel industry, driven by increased steel production primarily in China, India and the developing world. At the same time, various economic and legislative factors are increasing the use of vanadium in the steel industry where production of higher strength steels to meet the growing demand for infrastructure is accelerating on a global basis. As a result, we expect the demand for vanadium to grow at 7% year-over-year from 2010 to 2025 based on the steel industry alone."
Mr. Perles continues, "Now that the vanadium redox flow battery technology seems to be on the cusp of mass commercialization, it could lead to an explosive new demand for vanadium. In this application, purity of the vanadium compound (in the form of V2O5) is critical, whereas purity is of little concern to the steel producers, given the small amount of vanadium added to steel. Therefore, it is critical for the vanadium, steel and battery industries to recognize the growing demand for vanadium in the coming years, as well as the possible structural change in quality requirements resulting from large scale commercialization of the vanadium redox flow battery systems. Significant supply shortages of V2O5 are possible in the coming years unless significant additional production, meeting battery application quality requirements, is brought on line in the next few years. Vanadium prices should reflect the tight but growing market conditions in the coming years and we anticipate V2O5 market prices will move up from current levels into the range of US$10.00 to US$15.00 per pound V2O5."
Green Giant Positioned to Meet Forecasted Demand
Energizer's Green Giant project is being positioned to meet not only the 7% year-over-year increase in demand forecasted from the steel industry, but also the significant demand expected from emerging battery storage applications and is expected to provide the sureness of price and supply necessary to encourage and support vanadium-based battery technologies.
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.
XRF Summary of V2O5 Mineralization at 0.5% Cut-Off Grade
Latest Diamond Drill Holes from 2010 Drill Program
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Program HoleID From To Length V2O5 Composite
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2010 K-01 101 105.5 4.5 0.522 4.5m @ 0.52 V2O5
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2010 K-01 143 155 12 0.579875 12.0m @ 0.58 V2O5
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2010 K-02 155 203 48 0.5132188 48.0m @ 0.51 V2O5
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2010 K-03 62 146 84 0.5500893 84.0m @ 0.55 V2O5
----------------------------------------------------------------------------
2010 K-05 45.5 114.5 69 0.5582391 69.0m @ 0.56 V2O5
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2010 K-09 135.5 189.5 54 0.5783579 54.0m @ 0.58 V2O5
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2010 M-05 54.5 85 30.5 0.5 30.5 @ 0.50 V2O5
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2010 M-53 71 80 9 0.7636667 9.0m @ 0.76 V2O5
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2010 M-53 98 102.5 4.5 0.6793333 4.5m @ 0.68 V2O5
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2010 M-65 54.5 60.5 6 0.789 6.0m @ 0.79 V2O5
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2010 M-65 101 105.5 4.5 0.536 4.5m @ 0.54 V2O5
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2010 M-85 99.5 129.5 30 0.51925 30.0m @ 0.52 V2O5
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2010 M-86 159.5 180.5 21 0.6432857 21.0m @ 0.64 V2O5
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2010 M-87 188 206 18 0.59 18.0m @ 0.59 V2O5
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2010 M-87 221 284 63 0.7 63.0m @ 0.70 V2O5
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For more information, please visit our website at www.energizerresources.com.
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.
Contact:
Contacts:
Energizer Resources Inc.
Brent Nykoliation
Vice President - Business Development
Toll Free: 800.818.5442 or 416.364.4911
bnykoliation@energizerresources.com
Energizer Resources Inc.
Julie Lee Harrs
President and COO
Toll Free: 800.818.5442 or 416.364.4911
www.energizerresources.com
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