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Energizer Resources Identifies Second Strategic Mineral and Completes Reconnaissance Exploration Program

Posted at 4:51 p.m. on December 11, 2011

Announces Results of Special and Annual Meeting of Stockholders

TORONTO, ONTARIO--(Marketwire - Dec. 22, 2011) - Energizer Resources Inc. (TSX:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5) ("Energizer" or the "Company") is pleased to provide an exploration update on the Green Giant Project in Madagascar (the "Property"), where the Company has identified the presence of another mineral of potential economic significance, graphite, and to announce the results of the 2011 Special and Annual Meeting of its Stockholders.

Green Giant Exploration Update

As part of Energizer's ongoing effort to optimize its vanadium metallurgical process flow sheet, a number of analytical techniques have been employed to ascertain the mineralogical composition of the head-grade composite samples. These techniques have included petrographic analysis, high definition mineralogical examination by QEMSCAN, and LECO combustion assaying. A review of these analyses has identified anomalous graphitic carbon, which the Company believes may be economically extractable along with vanadium.

The mineralization delineated in the Company's NI 43-101 compliant vanadium resource is found in two types of rocks, silicates and oxides. Petrographic descriptions undertaken on thin sections of selected rocks submitted for metallurgical analysis, identified 17.17% modal graphite from the silicate composite and 15.87% modal graphite from the oxide composite samples. These modal percentages were estimated by Mintek of South Africa in February of 2010 through visual examination of the volume of minerals present according to the thin section of rock examined.

Three additional composite samples were submitted to Mintek at the conclusion of the 2010 exploration program. Mintek provided analytical results of these samples to Energizer in December 2010 and January 2011. The QEMSCAN analysis of these head samples quantified a graphite composition of 4.09%, while the head chemical analysis quantified a graphitic carbon content of 3.87%. For the QEMSCAN analysis, graphite impregnated polished epoxy grain mounts were prepared and analyzed using Particle Map Analysis (PMA) which provides a statistically robust population of mineral identification based on X-ray chemistry of minerals and modal abundance. Chemical assay values were determined by Mintek using LECO CS200 and Eltra CS2000 analyzers.

Company Identifies Additional Graphite Trends Outside of Main Vanadium Resource

The identification of graphite as a potential credit to the Company's NI 43-101 compliant vanadium resource led Company geologists to conduct a reconnaissance exploration program on the Property in September, with the goal of delineating new graphitic trends, and comparing them to those associated with the vanadium mineralization. In the course of this exploration, graphitic trends were identified on the Property, which were visually determined to be of both higher carbon content, and larger flake size than those associated with the vanadium mineralization. Based on these field observations, 10 diamond drill holes (totalling 1157.5 metres) and 16 trenches (totalling 1912 metres) were completed over prospective graphitic units. Samples collected from these drill holes and trenches were submitted to Mintek for graphitic carbon analysis.

The Joint Venture Agreement recently signed with Australian company Malagasy Minerals Limited ("Malagasy") (ASX:MGY) for the exploration and development of industrial minerals (News Release dated December 15, 2011), prompted an additional reconnaissance exploration program in December. The purpose of this program was to ascertain the industrial mineral potential of Energizer and Malagasy's joint property, in addition to further drill testing of graphitic trends on the Green Giant Property in advance of Madagascar's rainy season. During the course of this reconnaissance exploration, vanadium trends were confirmed to extend off of the Green Giant Property, and multiple graphitic trends were identified. In total, 19 diamond drill holes (totalling 2701 metres) were completed during the course of this exploration. All samples collected during this program will be submitted to Mintek in January for graphitic analysis.

About Graphite

Graphite and diamonds are the only two naturally formed polymers of carbon. Graphite is essentially a two dimensional, planar crystal structure whereas diamonds are a three dimensional structure. Graphite is an excellent conductor of heat and electricity and has the highest natural strength and stiffness of any material. It maintains its strength and stability to temperatures in excess of 3,600°C and is very resistant to chemical attack. At the same time it is one of the lightest of all reinforcing agents and has high natural lubricity.

As a result of these unique material properties, graphite is considered a critical strategic mineral. Its traditional demand is largely tied to the steel industry where it is used as a liner for ladles and crucibles, as a component in bricks which line furnaces ("refractories"), and as an agent to increase the carbon content of steel. In the automotive industry it is used in brake linings, gaskets and clutch materials. Graphite also has a myriad of other uses in lubricants, fire retardants, consumer electronics and reinforcements in plastics.

Another primary use of graphite, that is becoming increasingly important, is its role in batteries. Graphite is used in virtually all batteries as a cathode and/or anode material. As the commercialization of electric vehicles approaches, graphite demand is expected to increase significantly since it is a major component in lithium-ion batteries. There is approximately 11 times more graphite in a lithium-ion battery than there is lithium.

AGM Results

The Company's Special and Annual Meeting of its Stockholders was held in Toronto, Ontario, Canada on December 21, 2011. A majority of holders of the common stock cast at the meeting voted to approve the following resolutions;

The election of the following persons to serve as directors of the Company. Each director will hold his office for a term expiring at the next annual meeting of stockholders or until his or her successor is duly elected and qualified:

  •   J.A. Kirk McKinnonRichard 
  •   E. SchlerJohn SandersonV. 
  •   Peter Harder
  •   Quentin Yarie
  •   Craig Scherba 

 

  •   An amendment to the Company's Amended and Restated 2006 Stock Option Plan to increase the number of options for common shares authorized to be issued to 27,000,000 
  •   To ratify the appointment of MSCM LLP, as the Company's independent registered public accounting firm for the fiscal year ending June 30, 2012; 

Following the completion of the Meeting, the board of directors of the Company approved the reappointment of the following executive officers:

  •   J.A. Kirk McKinnon, Chief Executive Officer and Chairman
  •   Richard E. Schler, Vice President and Chief Financial Officer
  •   Joseph Heng, Secretary

Qualified Person

Craig Scherba, Vice President Exploration, P.Geol., is the qualified person for the technical information provided in this release.

About Energizer Resources

Energizer Resources Inc. is a mineral exploration and development company based in Toronto, Canada, which is developing its 100%-owned Green Giant Vanadium Project located in Madagascar. The Green Giant vanadium deposit is one of the largest known vanadium deposits in the world. In addition to the Toronto Stock Exchange (TSX:EGZ), the Company's common shares trade on the U.S. Over-The-Counter Bulletin Board under the symbol, ENZR, and on the Frankfurt Exchange under the symbol, YE5.

We seek Safe Harbour: 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.

 

For more information, please visit our website at www.energizerresources.com, or contact:

Brent Nykoliation, Vice President of Business Development

Toll Free: 800.818.5442 or 416.364.4911

Email:  bnykoliation@energizerresources.com

or Kirk McKinnon, Chairman and CEO

 

Safe Harbour Statement:  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. 
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.

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