Energizer Resources Inc. (formerly Uranium Star Corp.) (TSX.V: EGZ) (OTCBB:ENZR) (FRANKFURT:YE5) (“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.
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.
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
|2010||K-01||101||105.5||4.5||0.522||4.5m @ 0.52 V2O5|
|2010||K-01||143||155||12||0.579875||12.0m @ 0.58 V2O5|
|2010||K-02||155||203||48||0.5132188||48.0m @ 0.51 V2O5|
|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|
|2010||K-09||135.5||189.5||54||0.5783579||54.0m @ 0.58 V2O5|
|2010||M-05||54.5||85||30.5||0.5||30.5 @ 0.50 V2O5|
|2010||M-53||71||80||9||0.7636667||9.0m @ 0.76 V2O5|
|2010||M-53||98||102.5||4.5||0.6793333||4.5m @ 0.68 V2O5|
|2010||M-65||54.5||60.5||6||0.789||6.0m @ 0.79 V2O5|
|2010||M-65||101||105.5||4.5||0.536||4.5m @ 0.54 V2O5|
|2010||M-85||99.5||129.5||30||0.51925||30.0m @ 0.52 V2O5|
|2010||M-86||159.5||180.5||21||0.6432857||21.0m @ 0.64 V2O5|
|2010||M-87||188||206||18||0.59||18.0m @ 0.59 V2O5|
|2010||M-87||221||284||63||0.7||63.0m @ 0.70 V2O5|
For more information, please visit our website at www.energizerresources.com
Vice President - Business Development
Energizer Resources Inc.
Toll Free: 800.818.5442 or 416.364.4911
Julie Lee Harrs, President and COO