Energizer Resources Inc. (TSX.V: EGZ) (“Energizer” or the “Company”) is pleased to announce that an updated National Instrument 43-101 ("NI 43-101") compliant resource estimate for its 100%-owned Green Giant Vanadium Project in Madagascar has been completed.
The updated NI 43-101 resource estimate includes:
A summary of the updated and expanded mineral resource estimate is presented below at a cut-off of 0.5% V2O5.
(at 0.5% V2O5)
Rounding of tonnes as required by reporting guidelines may result in apparent differences in tonnes, grade and metal content.
Resource Increases By More Than Double
The initial NI 43-101 resource estimate, as announced in the Company’s May 11, 2010 press release, reported an indicated resource of 21.74 million tonnes at an average grade of 0.759% V2O5 and an inferred resource of 4.15 million tonnes at an average grade of 0.655% V2O5. The updated resource estimate represents a total change in the indicated category of an additional 27.7 million tonnes (+128% change) containing an additional 392.5 million pounds of V2O5 (+108% change). The overall change in the inferred category amounted to an increase of 5.5 million tonnes (+133% change) containing an additional 74.7 million pounds of V2O5 (+125% change).
Green Giant Deposit Now Ranks Among One of the Largest Known Deposits in the World, 75% of the Vanadium Trend Remains Open for Drilling
This newly expanded resource estimate now places the Green Giant deposit as one of the largest known vanadium deposits in the world.
The mineral resource is contained in three separate zones on the Green Giant property, totaling approximately 5.3 kilometres (3.3 miles) in strike length, and are referred to as the Jaky, Manga and Mainty Zones. Of the 21-kilometre (18 mile) stratigraphic trend of vanadium confirmed on the Green Giant property, 75% remains open for drilling.
The Manga Zone is currently the largest zone, accounting for an indicated resource of 37.5 million tonnes at an average grade of 0.709% V2O5 containing 586.5 million pounds of V2O5 and an inferred resource of 6.0 million tonnes at an average grade of 0.652% V2O5 containing 86.7 million pounds of V2O5.
Pierre Desautels, P.Geo., of AGP Mining Consultants Inc. (AGP), the independent qualified person and author of the updated NI 43-101 resource estimate commented, “AGP believes that the near surface mineralization, as outlined by the surface trenches and mapping, has excellent potential to expand the resource further."
Julie Lee Harrs, President of the Company states, “With this new updated resource estimate, we exceeded our target of identifying an additional resource of 25 to 30 million tonnes. With this expanded resource, combined with the metallurgical test work completed to date, we are ready to move the Green Giant project into the next phase of development and initiate a preliminary economic assessment."
Power Supply and Infrastructure Synergies From Nearby Sakoa Coal Project
Energizer Resources is now ready to move forward with a National Instrument 43-101 preliminary economic assessment (“PEA”), which will begin to quantify the underlying economic parameters for the project.
The PEA will include analysis of the existing and additional infrastructure necessary for the Green Giant project.
One important and of potential benefit to Energizer will be the development of the adjacent Sakoa coal project, situated 30 kilometres away from the Green Giant vanadium project. The Sakoa coal project is being developed by Asia Thai Mining Co. Ltd., a related company of Italian-Thai Development Public Company Limited, Thailand’s largest construction company. A pre/feasibility study of the Sakoa coal project has been completed by DRA Mineral Projects, one of Energizer’s strategic partners. The development of the Sakoa coal project would provide the Green Giant project with infrastructure synergy opportunities, including power and water supply, transportation routes and port facilities, which would significantly reduce both capital and operating costs.
DRA Mineral Projects To Lead Green Giant Project Development
Energizer’s strategic alliance partner, DRA Mineral Projects, a leading engineering, project management and mine construction company based in South Africa will be completing the Company’s upcoming PEA. Having recently completed the pre/feasibility study for the Sakoa Coal Project, DRA Mineral Projects will provide valuable insight into these potential infrastructure synergies while assisting the Company in the on-going discussions with Asia Thai Mining.
Green Giant Deposit To Provide High Purity V2O5 to Battery and Steel Market
The Green Giant vanadium deposit is a sedimentary-hosted deposit, which is unique among the world’s known vanadium deposits. The Green Giant deposit will be able to produce a high-purity vanadium pentoxide (V2O5), which is required in battery power and in battery storage for both mobile (automotive) applications and stationary (large-scale) applications.
Vanadium Demand for Steel Growing at 7%
In addition to its ability to produce high-purity V2O5, the Green Giant project can also be easily adapted to supply another form of vanadium, called ferrovanadium, to the steel market where vanadium demand is growing at 7% year-over-year and is well-established as a strengthening agent for steel.
Energizer believes that a significant amount of the demand for V2O5 will come from the battery power and storage industry. The Company’s November 17, 2010 press release detailed new developments in vanadium-based battery technology, citing several examples of companies developing vanadium-based batteries for automotive applications and large-scale storage applications.
Lithium-Vanadium Polymer Battery Sets Electric Vehicle Distance Record with a 6-Minute Recharge
Perhaps the most compelling breakthrough illustrating how vanadium, when combined with lithium, creates “supercharged” batteries is the recent news by Germany’s DBM Energy. In partnership with German utility Lekker Energie, DBM Energy equipped an Audi A2 electric vehicle with its new lithium-vanadium metal polymer battery and set a long distance record of 603 kilometres (375 miles) travelled on a single charge. The battery’s basic electro-chemistry consists of a metallic lithium anode and a vanadium oxide cathode. DBM Energy claims the battery has a 97% efficiency and can be charged at virtually any electrical socket. Plugged into a high-voltage direct-current source, the battery can be fully charged within 6 minutes. More details can be found at www.benzev.co.nz.
Vanadium Redox Battery Manufacturer, Prudent Energy, Named a Top Cleantech Company
Prudent Energy, the manufacturer of a vanadium redox battery energy storage system called the VRB-ESSTM, was recently named one of the most promising private clean technology companies poised to make a significant market impact in the next five to ten years by the 2010 Global Cleantech 100. Prudent Energy, a private company based in Beijing, China with offices in Washington, D.C., U.S.A., was selected by a committee that included well-respected organizations in Cleantech innovation from around the world, including BASF, GE, Honeywell, IBM, Proctor & Gamble, Siemens and Veolia, as well as venture capital companies.
With installations around the world, Prudent Energy describes its VRB-ESSTM as a large capacity, advanced energy storage system with high performance and low operating costs. Given the fact that their vanadium redox battery’s electrolyte operates at room temperature and never wears out, the company claims the total cost of ownership is undoubtedly the lowest for any energy storage system. For more details, please visit Prudent Energy’s website at www.pdenergy.com.
Gildemeister/Cellstrom’s Version of Vanadium Redox Battery called the CellCubeTM
Cellstrom GmbH, another vanadium redox battery manufacturer, based in Austria, was acquired in 2010 by a subsidiary of a German-based conglomerate, Gildemeister GmbH. Cellstrom has successfully been selling vanadium redox batteries since 2008 throughout Europe and most recently into India under the product name CellCubeTM. Cellstrom currently sells a 10 kilowatt/100 kilowatt hour VRB designed for uninterrupted power supply for households and factories and plans to launch in 2011 a 200 kilowatt/400 kilowatt hour VRB designed for solar and wind farms. According to Cellstrom, the CellCubes are modular in design and can be easily scaled up in size to reach megawatt capacities, suitable for power-grid applications.
Vanadium Redox Batteries Require Significant Amounts of High-Purity V2O5
Vanadium redox batteries (“VRB”) require significant amounts of high purity V2O5. Cellstrom’s CellCube FB10/100 is a 10 kilowatt/100 kilowatt hour VRB designed for uninterrupted power supply for households and factories and require approximately 1 tonne of V2O5 each. In 2011, Cellstrom plans to launch the Cellcube 200/400, a 200 kilowatt/400 kilowatt hour VRB designed for solar and wind farms and requires 5 tonnes of V2O5 per battery. These batteries can be easily scaled up in size to reach megawatt capacities, suitable for power-grid applications.
Vanadium Use Growing in Renewable Energy Storage; Green Giant Project Positioned to Meet This New Demand
Vanadium use is growing in renewable energy storage systems and the recent recognition of vanadium redox batteries as a leading storage solution signals the movement of vanadium-based technologies into the mainstream market of Green Power.
Today, high-purity V2O5 is not readily available and the substantial amounts of high purity V2O5 required for the production of these vanadium redox batteries cannot be met by the current supply of V2O5. New vanadium projects, such as the Green Giant project, will need to come online in order to meet this new demand.
With the capability to provide a high-purity V2O5 product, Energizer’s Green Giant project is uniquely positioned to meet this new demand from vanadium-based battery power and storage and increase supply as needed. In doing so, the Green Giant project will provide the sureness of price and sureness of supply of vanadium that companies such as VRB manufacturers like Prudent Energy and Cellstrom require.
AGP Mining Consultants as Qualified Person
The resource estimate was completed by AGP Mining Consultants Inc. (“AGP”) and is in conformance with the CIM Mineral Resource and Mineral Reserve definitions referred to in NI 43–101, Standards of Disclosure for Mineral Projects. To estimate the resource the following methods were utilized:
For detailed information as to how the mineral resource was generated, please refer to the updated resource estimate that will be filed within 45 days of this news release on www.sedar.com under the Company’s profile.
Pierre Desautels, P.Geo., of AGP Mining Consultants Inc., the Independent Qualified Person under NI 43-101 responsible for the resource estimate, has reviewed this release. Mr. Desautels is the author of the updated resource estimate, which will be filed within 45 days of this news release.
About the Green Giant Vanadium Project
The Green Giant vanadium project, located in Madagascar, is 100% owned by Energizer. The Company has a National Instrument 43-101 compliant indicated resource estimate of 49.5 million tonnes at an average grade of 0.693% V2O5 and an inferred resource estimate of 9.7 million tonnes at an average grade of 0.632%, making the Green Giant project one of the largest known vanadium deposits in the world.
Vanadium is well-established as a strategic metal that strengthens and hardens alloys like steel and is positioned to play a significant role in emerging battery technologies such as batteries for electric cars and for large-scale energy storage. While there are some opportunities for substitution in steel production, the same is not true for other markets, including the emerging energy (battery) storage markets, the military and particularly in the aerospace industry, where vanadium is irreplaceable.
About Energizer Resources
Energizer Resources Inc. is a mineral exploration and development company based in Toronto, Canada. The Company’s common shares are traded on the TSX Venture Exchange under the symbol EGZ, on the Over-The-Counter Bulletin Board under the symbol ENZR, and on the Frankfurt Exchange under the symbol YE5.
For more information please visit our website at www.energizerresources.com
Vice President of Business Development
Toll Free: 800.818.5442 or 416.364.4911
or Julie Lee Harrs, President and COO