|Energizer Resources Intersects 421.3 Metres of Graphite Grading 6.12% C in Drill Core and 358.5 Metres Grading 6.21% C in Trench Sampling|
Energizer Resources Inc. (TSX: EGZ) (OTCBB: ENZR) (FWB: YE5) (“Energizer” or the “Company”) is pleased to announce it has verified through assays, wide intercepts of graphite mineralization from its recently initiated National Instrument (NI) 43-101 graphite resource drill program on the Molo deposit. The Molo is located on the Green Giant Graphite project joint venture (JV) property with Malagasy Minerals Limited in Madagascar, in which Energizer has a 75% ownership interest and is the operator.
421.3 Metres of Graphite Mineralization Grading 6.12% C Intersected in Drill Core
The Company has completed 22 diamond drill holes (over 4,600 metres) at the Molo deposit as part of its 2012 resource drill program of 7,500 metres. All drill holes will be used to produce a NI 43-101 compliant graphite resource, which will be released Q4 of this year.
Assay results from the first 3 diamond drill holes have recently been received. Drill hole MOLO-12-01 was emplaced to test the down-hole width of the Molo, and intersected 421.3 metres of graphite mineralization grading 6.12% carbon (C). These results confirm that the Molo deposit is exposed at surface, and extends to a vertical depth of over 300 metres. The confirmation of graphite mineralization at surface is believed by the Company to be a key benefit of the Molo deposit, as it should allow for cost-effective open pit mining.
Additional drill core samples have been sent out for assay, and the Company anticipates receipt of the assay results on an ongoing basis over the next 8-10 weeks.
The first 3 holes were emplaced to help determine the outer boundaries of the Molo deposit. Diamond drill hole MOLO-12-01 was drilled to test both the western and eastern edge of the Molo deposit. MOLO-12-02 was drilled in order to define the western-most edge of the Molo deposit, while MOLO-12-03 was drilled to define the eastern-most edge of the Molo deposit. The table below summarizes the drill intersections, while a drill hole cross-section is provided on the Company’s website. A plan map illustrating the position of all drill holes is also provided on the Company’s website.
Graphite Mineralization on Surface Verified Through Trenching
Geological mapping has identified numerous graphitic outcrops. Trenching over the Molo deposit has verified graphite mineralization is found at surface, and intervening soil-covered areas between graphite outcrops have graphitic bedrock mineralization at depths ranging between 10 cm and 1 metre below the soil. Assay results have been received for 2 of the 13 trenches excavated over the Molo deposit.
Trench MOLO-TH-01 intersected 325 metres of graphite mineralization grading 6.35% C, while trench MOLO-TH-02 intersected 358.5 metres of graphite mineralization grading 6.21% C. These results confirm that graphite mineralization is exposed on surface, and at widths in excess of 300 metres. The table below summarizes the trench intersections.
Samples collected from the additional trenches have been sent out for assay, and the Company anticipates receipt of the assay results in less than 6 weeks.
Pictures of the trenches and the Molo deposit area can be viewed on Energizer’s website at www.energizerresources.com.
Company’s Intention Is to Fast-Track Mine Development
Drill core and trench assays are wider than originally anticipated. As such, the Company believes a resource target of >100 million tonnes (MT) grading over 6% C is obtainable for the Molo deposit. This resource will be available by Q4 of this year. A 100 MT deposit grading at 6% C would be capable of producing 100,000 tonnes (T) per year of graphite concentrate for over 50 years.
To expedite the development of the project, geologic and geotechnical data is being supplied on a continual basis to the Company’s technical partner, DRA Mineral Projects (DRA), which will be providing full Engineering, Procurement and Construction Management (EPCM) services to construct a modular graphite mine at Molo. Additionally, DRA has provided an independent onsite geologist to help facilitate information transfer, as well as to expedite the establishment of a NI 43-101.
The Company believes that existing infrastructure in southern Madagascar can be suitably upgraded with minimal expenditure to handle the output of a modular graphite mine at Molo producing up to 100,000 T of graphite concentrate per annum. Consequently, the Company and DRA believe that given the deposit characteristics and metallurgy determined to date, in conjunction with minimal improvements to existing infrastructure, that a cost-effective open pit mine can be easily fast tracked. The exact build-out timing will be established in a PEA analysis due in Q4 by DRA.
Craig Scherba, Senior Vice President Exploration and Operations for Madagascar, P.Geol., is the qualified person for the technical information provided in this release.
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
or Kirk McKinnon, Chairman and CEO
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.