Energizer Resources Inc TSX:EGZ announced results from its Green Giant Property in Madagascar. The drill result shows 6.24% carbon over 118.6 metres. This assay increases a result previously reported on January 19, 2012, that showed 7.46% over 61.4 metres.
Trench results include
7.11% over 106 metres
4.19% over 5 metres
10.31% over 5 metres
10.14% over 6 metres
8.59% over 9 metres
9.53% over 6 metres
7.79% over 8 metres
8.43% over 10 metres
11.26% over 12 metres
13.83% over 10 metres
VP of Business Development Brent Nykoliation tells ResourceClips.com, “At 118 metres of 6.24% carbon, this is an excellent result. We have 17 zones. We’ve drilled seven of those zones, and the assays will be coming back over the next few weeks.
There’s no other company and no other place we know of that has a graphite discovery of this magnitude—a cumulative 320 kilometres—Brent Nykoliation
“We’ve identified what we believe to be a graphite camp. We can say that because we’ve identified 17 distinct graphitic zones, we have a cumulative strike length of over 320 kilometres. That’s absolutely massive. We already had a delineated vanadium resource of almost 60 million tonnes. That was in our original property of 21 kilometres and that vanadium represents only about 20% of our 21-kilometre trend. Then on top of that we increased our vanadium trend by about 50 kilometres.
“Our joint venture property with Malagasy Minerals MGY surrounds our original property on three sides. We hold a 75% interest in the JV and we’re the project operator.
“The JV property is significant for two reasons,” Nykoliation says. “First, we knew the vanadium was going to travel south of our border, so we made the deal to secure the extension of the vanadium. But second, we also found that graphite was in our vanadium trend. So in our 100%-owned property we have about 3.8% graphitic carbon with the vanadium. At that point, we understood that we had graphite on the property and much higher grades in areas that were exclusively graphite and no vanadium. Those areas have now been defined.
“Our property went from 21 kilometres to 120 kilometres long, and we have tied up about 75% to 80% of a very significant zone in southern Madagascar which is known for very rich graphite and vanadium,” he reports.
“There’s no other company and no other place we know of that has a graphite discovery of this magnitude—a cumulative 320 kilometres. There’s graphite and vanadium all over the place. As our VP of Exploration Craig Scherba says, it’s very rare to find those two together. So we have two strategic minerals in one source.
“We’re moving very quickly to delineate a 43-101 resource on the graphite. We need to determine where in the 17 zones we’ll delineate that resource. Madagascar has a rainy season that usually ends in March or April, and we anticipate getting back in April or May. We expect to have a 43-101 resource by July or August of this year. We expect to have a PEA completed probably by September or October, and then we’ll be in a position to have a bankable feasibility, along with a pilot plant project that would start earlier, by December of this year.
“The reason we can fast track this is our partnership with DRA Mineral Projects, Africa’s leading mine development firm,” he emphasizes. “DRA runs 29 mines around the world. They run mines for Xstrata, Rio Tinto RIO, Vale, and now they’re partnering with us. They’re the ones who’ll do our PEA and our bankable. In 18 to 24 months, assuming we hit all our timelines, we could have a mine open up. DRA could be our total engineering, construction, procurement and management solution for mines.
“So the question is, are we a vanadium company with a graphite credit or a graphite company with a vanadium credit? The answer is, we don’t know yet.
“The capex on a graphite mine is much lower than on a vanadium mine. So graphite might be the springboard to get the mine open. Then the revenue from that would help fund our vanadium operation,” he says.
“The vanadium and graphite are very close. In some cases they’re together, in other cases they’re a trend over from each other. So we could definitely mine two strategic commodities from one source. For shareholders, that means the opportunity for off-take agreements with multiple partners. We’re in a position to supply both the steel market and the battery market. We’re already in discussions with possible offtake partners.
“Our location is another huge advantage,” Nykoliation adds. “We’re close to the Chinese market. We’re perfectly situated for South Africa, one of the largest vanadium consumers in the world. We are ideally situated for Europe. Madagascar is an extremely mining-friendly jurisdiction. But it also has location, location, location.”
Nykoliation concludes, “We have a dual offering—two strategic minerals, one source. We have a very large project, and we’re fast-tracking it. We have a great partner in DRA and a great location in Madagascar. We’re uniquely situated in the market.”
VP of Business Development
by Greg Klein