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Energizer Continues to Expand Resource On Way to Targeted 55 Million Tonne Resource on Green Giant Vanadium Project in Madagascar

Posted at 3:56 p.m. on January 1, 2010

Energizer Resources Inc. (formerly Uranium Star Corp.)  (TSX.V: EGZ) (OTCBB:URST) (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 acquistion 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

Or contact:

Brent Nykoliation

Vice President of Business Development

Energizer Resources Inc.

Toll Free: 800.818.5442 or 416.364.4911

Email: bnykoliation@energizerresources.com

or

Julie Lee Harrs, President and COO

 

Summary of V2O5 Mineralization at 0.5% Cut-Off Grade

XRF Results from the Manga Zone

Diamond Drill Holes from May 2010 Drill Program

DDH # Northing Easting   From To Length Avg V2O5
M-75 7348170 503440   44 80 36 0.5
M-75 7348170 503440   54.5 71 16.5 0.66
M-75 7348170 503440   54.5 60.5 6 0.73
M-74 7347844 503401   48.5 77 28.5 0.52
M-74 7347844 503401   55 60.5 5.5 0.9
M-74 7347844 503401   60.5 66.5 6 0.57
M-73 7347605 503394   53 60.5 7.5 0.71
M-72  7347408  503399    53 66.5 13.5 0.62
M-72 7347408 503399 incl. 54.5 59 4.5 0.78
M-72 7347408 503399   92 96.5 4.5 0.55
M-49 7346900 503260   192.5 210.5 18 0.501
M-49 7346900 503260 incl. 192.5 200 7.5 0.627
M-48 7346700 503377   50 66.5 16.5 0.543
M-54 7346400 503255 incl. 132.5 141.5 9 0.55
M-54 7346400 503255 incl. 155 162.5 7.5 0.5
M-44 7346306 503275   75.5 95 19.5 0.529
M-44 7346306 503275 incl. 75.5 83 7.5 0.76
M-43  7346302  503138    186.5 251 64.5 0.586
M-43 7346302 503138   186.5 192.5 6 0.706
DDH # Northing Easting   From To Length Avg V2O5
M-43 7346302 503138   207.5 222.5 15 0.92
M-43 7346302 503138   231.5 243.5 12 0.692
M-55  7346200  503212    104 153.5 49.5 0.519
M-55 7346200 503212   105.5 107 1.5 1.019
M-55 7346200 503212   132.5 137 4.5 0.807
M-71 7346200 503105   188 260 72 0.66
M-71 7346200 503105   189.5 200 10.5 0.75
M-71 7346200 503105   200 209 9 0.54
M-71 7346200 503105   219.5 260 40.5 0.76
M-71 7346200 503105   219.5 236 16.5 0.87
M-71 7346200 503105   239 242 3 0.93
M-71 7346200 503105   245 260 15 0.81
M-56  7346101  503116    162 258 96 0.61
M-56 7346101 503116   162 187.5 25.5 0.64
M-56 7346101 503116   175.5 184.5 9 0.8
M-56 7346101 503116   201 219 18 0.99
M-56 7346101 503116   219 243 24 0.59
MM-01  7345950  503285    0 183.5 183.5 0.691
MM-01 7345950 503285   2.5 11 8.5 0.687
MM-01 7345950 503285   36.5 45.5 9 0.829
MM-01 7345950 503285   68 123.5 55.5 1.007
MM-01 7345950 503285   123.5 153.5 30 0.77
M-57 7345392 503203   44 56 12 0.83
M-58 7345391 503063   159.5 186.5 27 0.7
M-58 7345391 503063   162.5 182 19.5 0.79
M-58 7345391 503063   194 195.5 1.5 0.65
M-59  7345198  503127    80 104 24 0.62
M-59 7345198 503127   80 92 12 0.57
M-59 7345198 503127   92 96.5 4.5 0.85
M-59 7345198 503127   96.5 104 7.5 0.57
M-60 7345197 502986   212 219.5 7.5 0.74
M-62 7344997 503115   78.5 84.5 6 0.75
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.

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