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.
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.
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
Vice President of Business Development
Energizer Resources Inc.
Toll Free: 800.818.5442 or 416.364.4911
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|
|DDH #||Northing||Easting||From||To||Length||Avg V2O5|