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Energizer Resources Inc. – Developing a World Class Graphite and Vanadium Deposit in Madagascar

Energizer Resources Inc.

Overview

Energizer Resources Inc. (TSX:EGZ,OTCQX:ENZR,FWB:YE5) is a mineral exploration and development company based in Toronto, Canada, and is actively developing its Green Giant Project located in South Central Madagascar. The Green Giant hosts one of the largest known vanadium deposits globally and potentially one of the largest known graphite deposits.

Energizer’s deposit is unique from other known Vanadium deposits because it is sediment-hosted and not magnetite-hosted like the majority of other known Vanadium deposits. As a result, the project would produce as a primary product, a clean liquor requiring less processing to produce the high purity (99.5%), battery-grade vanadium.

Investment Highlights

  • One of the largest 100% owned vanadium discoveries in the world
  • The only company targeting a battery-grade, high-purity vanadium pentoxide (V2O5)
  • NI 43-101 compliant resource estimate of 49.5 M tonnes indicated at an average grade of 0.693% V2O5 and 9.7 M tonnes inferred at an average grade 0.632% V2O5

Key Properties

The Green Giant Vanadium Project – Madagascar

 

Energizer Resources acquired the Green Giant Vanadium property located in Madagascar in August 2007.  Since that time, Energizer has spent more that U.S.$10 million on exploration and development of the property.  These efforts have resulted in the discovery of one of the largest known Vanadium deposits in the world with excellent expansion potential.  The Company has confirmed a 21-kilometre (18-mile) long continuous, mineralized vanadium trend.  Its current resource estimate comes from only drilling 25% of the trend, with 75% of it remaining open for drilling.

Progress To Date

The Company initiated a PEA study in 2011 but augmented the study due to its graphite discovery. A revised PEA study for the graphite resource was presented in February 2013. The below information was incorporated in the updated PEA.

  • Building Layouts are 98% complete with minor adjustments required for the laboratory, Canteen/Shop and an additional building added for the Power Plant Offices
  • Preliminary Layouts for the buildings have been prepared and are under review, with layouts for each building sent out for pricing
  • The Residential Village Plan is complete with designs, layout and costs. The layout formed part of the drawing pack issued for comments / approval. The residential village will cater for the full 550 people and will have executive, white collar and blue collar dormitories, a general kitchen / canteen / laundry block, a recreation block and a small all-purpose shop
  • A tool list for all mechanical equipment required in the various workshops has been compiled with costs
  • The preliminary block plant layout is complete
  • The water demand and supply has been estimated and a trade off study will be completed to determine the best option
  • The water treatment plant and sewage treatment plants have been sized and are being designed and costed including all water/sewage storage tanks
  • A logistical study to determine costs and the best options regarding shipping and transportation to and from site and to and from Madagascar is currently underway
  • Environmental and socio-economic studies are ongoing by local company, AGETIPA.

The Company has put all Vanadium exploration and development activities on hold while it focuses its efforts on developing the Molo graphite deposit. The Company believes strongly in the future off take potential for Vanadium.

Malagasy JV Vanadium Project

The Malagasy JV Vanadium Project is located 145 km southeast of Toliara in the Tulear Region of south central Madagascar The project is adjacent to Energizer’s Green Giant Project and is a Joint Venture between Energizer Resources and Malagasy Minerals Limited (ASX:MGY) of Australia for the purpose of exploration and development of vanadium and graphite.

The objective of the program was to apply geophysical techniques using airborne geophysical data flown over the property and provided by Malagasy to delineate graphite mineralization and to enhance exploration efforts on the property through further drill testing of these trends.

During the course of the exploration programs, multiple graphitic or graphitic-vanadium trends were identified with the aid of airborne geophysics, and subsequently verified with ground prospecting, and delineated with the use of an EM31-MK2 instrument. In total, 12 new graphite trends have been identified over the property.

Field observations indicated that each graphitic zone identified, was comprised of multiple ‘ stacked’ graphitic horizons. This observation was validated by surveying a number of the zones in detail with an EM31 ground conductivity instrument. In total, 160.5 line kilometres of EM31 surveying was completed over 5 target areas, 3 of which (the Besavoa, Molo and Seta) are part of the Malagasy JV ground.

The EM31 geophysical tool was invaluable in delineating the extents of the graphitic zones, as well as their continuity. The EM31 has the capability to also identify multiple graphitic horizons within each zone. As an example, the Fotsy zone has a delineated strike length of 6 kilometres, but the EM31 identified at least 4 separate graphite horizons within the zone, for an aggregate strike length of 24 kilometres.

Geoscientists have identified a graphitic zone consisting of multi-folded graphitic strata with a surficially exposed strike length of over 2 kilometres. This zone, called Molo, is characterized by resistant ridges of graphitic schist, and abundant graphitic schist float, with fracture-lined vanadium mineralization yielding field XRF values as high as 0.7 percent V2O5. Geologic mapping has revealed the individual graphitic ridges to be between 20 and 150 metres in width within this zone. EM31 surveys indicate the graphite mineralization is pervasive in the area, and that the mineralization is not always exposed. Wide-spaced drilling of 6 diamond drill holes conducted over a strike length of 1.2 kilometres, intersected graphitic mineralization to a vertical depth of 75 metres with down-hole thicknesses between 60 and 150 metres in width. Graphite mineralization intersected in drill core was open along strike, and at depth.

Summary

Energizer Resources has put all vanadium exploration and development activities on hold while it focuses its efforts on developing the Molo graphite deposit. The Company believes strongly in the future off-take potential for Vanadium.

With the discovery of a potential deposit size between 80-120 million tonnes*, at a grade range between 5 and 8% carbon (C) at the Molo Deposit, Energizer Resources Inc. is well positioned to move forward to mine development. Energizer’s Molo deposit possesses four key attributes that set it apart from other deposits in the world and position it to be a potential low-cost production model for the industry. These include: an excellent topographical setting, an ideal geographic location, current in-place and serviceable infrastructure for transportation water and power, and at 100 million tonnes and an average grade greater than 6% carbon, the Molo would be the world’s largest known single source deposit of high-grade graphite.

Management

Richard Schler – Chief Executive Officer, Director
Mr. Schler, has served as the Company’s Executive Vice President since September 2012 and has worked for the Company and served as a director since April 2006. Prior to being appointed Executive Vice President, Mr. Schler held numerous positions including Chief Financial Officer and Chief Operating Officer. Before joining Energizer, Mr. Schler held various senior management positions with noted corporations in the manufacturing sector. Mr. Schler holds an MBA (Masters of Business Administration) from Western University and has a background in Mechanical Engineering.

With over 30 years of financial management, engineering and business operations experience, Mr. Schler’s unique skill set will allow the Company to continue the advancement of the Molo Graphite Project and help to realize Energizer’s potential capability to be a low cost, vertically integrated producer of value-added graphite products.

Craig Scherba, P.Geol. – President & COO, Director
Mr. Scherba was appointed as our President and Chief Operating Officer during September 2012 and a director during January 2010. Mr. Scherba served as Vice President, Exploration of the Company from January 2010 to September 2012. Mr. Scherba also servers as Vice President, Exploration of MacDonald Mines Exploration Ltd., Red Pine Exploration Inc. and Honey Badger Exploration Inc., all of which are resource exploration companies trading on the TSX – Venture Exchange. In addition, Mr. Scherba was professional geologist with Taiga Consultants Ltd. (“Taiga”), a mining exploration consulting company from March 2003 to December 2009. He was a managing partner of Taiga between January 2006 and December 2009. Mr. Scherba has been a professional geologist (P. Geol.) since 2000, and his expertise includes supervising large Canadian and international exploration. Mr. Scherba was an integral member of the exploration team that developed Nevsun Resources’ high grade gold, copper and zinc Bisha project in Eritrea. Mr. Scherba served as the Company’s Country and Exploration Manager in Madagascar during its initial exploration stage.

Robin Borley, B.Tech, Mining Engineering – Senior Vice President, Mine Development
Mr. Robin Borley is a Graduate mining engineering professional and a certified mine manager with more than 25 years of international mining experience building and operating mining ventures. He has held senior management positions both Internationally and within the South African mining industry. He has most recently served as Mining Director for DRA Mineral Projects and was instrumental as the COO of Red Island Minerals in a developing a Madagascar coal venture.

His diverse career has spanned resource project management, evaluation, exploration and mine development. Robin has completed several mine evaluations including operational and financial evaluations of new and existing operations across a diverse range of resource sectors. He has experience in the management of underground and surface mining operations from both the contractor and owner miner environments.

From 2006 through to 2012, Robin participated in the BEE management buy-out transaction of the Optimum Colliery mining property from BHP, through its independent listing and its ultimate sale to Glencore in December 2012.

Peter Liabotis – Senior Vice President, CFO & Corporate Secretary
Mr. Liabotis was appointed as our Chief Financial Officer on September 19, 2012. From October 2009 through September 18, 2012, Mr. Liabotis served as our company’s Vice President – Finance. Mr. Liabotis also currently serves as Vice President – Finance of MacDonald Mines Exploration Ltd., Red Pine Exploration Inc. and Honey Badger Exploration Inc., all of which are resource exploration companies trading on the TSX – Venture Exchange. From August 2008 to September 2009 Mr. Liabotis worked for EFG Wealth Management (Canada), Ltd assisting with accounting matters and Canadian mutual fund launches. From July 1998 through July 2008, Mr. Liabotis was the Senior Vice-President and Chief Financial Officer of Olympia Capital (Bermuda) Ltd, a Bermuda corporation. Prior to July 1998, Mr. Liabotis worked for two years at PriceWaterhouseCoopers in Bermuda and two years with KPMG in Canada Mr. Liabotis is a member of the Board of Directors of Honey Badger Exploration, Inc. Mr. Liabotis is a Chartered Accountant (through the Institute of Chartered Accountants of Ontario), received his Bachelor of Commerce, Honours from the University of Windsor and received his Bachelor of Arts from the Western University (in Ontario, Canada).

Brent Nykoliation – Senior Vice President of Corporate Development
Mr. Nykoliation holds a Bachelor of Commerce degree with Honours from Queen’s University, and has a career that has spanned 15 years in various senior management roles in marketing and corporate development with notable industry leading companies such as Nestle, Home Depot and Whirlpool.

Quentin Yarie – Senior Vice-President of Exploration, Director
Mr. Yarie’s principal occupation is as a professional geophysicist (P.Geo). He is President & CEO of Red Pine Exploration Inc., Senior Vice-President of Exploration for Honey Badger Exploration Inc. and Senior Vice-President of Exploration for MacDonald Mines Exploration Ltd. since January 1, 2010.

Mr. Yarie was the business development officer of Geotech Limited, an Ontario corporation from October 2007 to January 2010. From September 2004 through October 2007, he was a senior representative of sales and business development for Aeroquest Limited.

Roland Fok Seung – Chartered Accountant and Madagascar Country Manager
Mr. Fok Seung is a Chartered Accountant of the Institute of England and Wales and the Association of Chartered Certified Accountants. Employed as Energizer’s Madagascar Country Manager for the past 5 years, Mr. Fok Seung is based full time in Madagascar and will continue to act in this capacity with a focus on financial related business activity.