Thursday 1st October 2020

Resource Clips

Energizer VP Brent Nykoliation on Madagascar metallurgical results, private placement

Resource Clips - essential news on junior gold mining and junior silver miningEnergizer Resources Inc TSX:EGZ announced metallurgical test results from its Green Giant Project in Madagascar and a private placement by DRA Mineral Projects.

The North Carolina State University Minerals Research Laboratory analyzed graphite ore samples from the project’s Fotsy and Molo zones for preliminary evaluations of recovery. Simple mechanical crushing with no flotation yielded flake sizes of +50 mesh. According to Tom Burkett, VP of Graphite Materials & Systems at SGL Group, the world’s largest carbon company, +50 mesh is considered jumbo flake. Both ores have produced graphite concentrates at purities of +90%.

Energizer also announced a private placement of 2.54 million shares for US$635,000 has been closed with DRA Africa Pty Ltd, a wholly owned subsidiary of DRA Mineral Projects. DRA now holds 1.6% of Energizer, with the right to acquire a total of up to 5%. DRA is a technical partner of Energizer.

We have the money, we’re well-funded right now. So for us it’s pitter, patter, let’s get at her—Brent Nykoliation

Energizer VP of Business Development Brent Nykoliation tells, “What sets this project apart from others is its size. We describe it as a graphite camp. We have multiple deposits within our own property. We have 17 distinct zones so far. There’s no other project, according to the analysts that we’ve talked to, that have the scale of ours. We have over 320 line-kilometres of confirmed graphitic mineralization at surface. We’ve now drill-tested seven of the 17 zones. Assays have come back on two, the Fondrana and the Fotsy zones, and results from the Molo Zone will be coming out. The Molo Zone is very wide. Its strike length can be measured in kilometres. What sets us apart from the market is our size. Now that we’ve told the market we have large/jumbo flake, and we have over 90% purity, well, to me that’s a tri-factor. Our grades are around seven. We have samples that go as high as 22% carbon. We’ve already reported drill holes of 118 metres at 6.24%, 46 metres at 7%: so, very high grades, very wide widths, very long strike lengths. They’re open at depth, open along strike. Dundee Resources has said to us, ‘What makes you guys so compelling is you’re developing a graphite camp.’

“A camp by definition means very large, multiple deposits in a single source,” he explains. “Our project also has a 43-101-compliant vanadium resource. We’re the third-largest known deposit of vanadium, according to Dundee. So we now have a second mineral. They’re both deemed to be strategic, and graphite is now deemed critical by the EU, China and the United States, so for us to have both of those in the same place is unique.

“We have a strategic alliance with DRA Mineral Products,” Nykoliation adds. “They’re our technical partner, and they do total mine design all the way to operational mines. They do engineering, procurement, management, construction, everything. For DRA to put an equity position into a company is very rare. They’ve only done that three times and never with a company at this stage. This shows their confidence in the project.

“They’re Africa’s largest mine development company, they build and run mines for Xstrata XSRAF, Rio Tinto RIO, Vale VALE—they’re world class. For them to be partnering with little old Energizer shows we have something of interest to them. One of their directors has joined our board; another joined our special advisory committee. These aren’t silent partners; they’re very engaged.”

Nykoliation continues, “So what makes our project stand out is the project’s size, its large flake and its high purities. No one else can say they have the combination of those three. Then consider the strategic alliance and now the equity investment by DRA, which is very unique. Given that we’re in Madagascar, our location to the markets is another key advantage. There’s the location to Asia and Europe. The big, big buyers of vanadium and graphite are going to be Asian. So the fact that Madagascar is close to the Asian market is a big bonus for us.

“We’re moving very quickly to resource drilling. Our geologist and senior Vice-President of Exploration Craig Scherba will be back in Madagascar in April. The rainy season ends in March. We’ll delineate a 43-101-compliant resource on the graphite in very short order. We should have it finished by July or August. We’ll be in a position to have completed our preliminary economic assessment on the graphite by the end of Q3 and we’ll be in a position to go to bankable feasibility by Q4 of this year. We’re moving very quickly.

“We have the money, we’re well-funded right now. So for us it’s pitter, patter, let’s get at her,” he declares.

Nykoliation concludes, “We have this very large discovery; we’re developing a camp; we have very good grades and wide intersections; we have large/jumbo flake graphite; and we have an excellent partner in DRA. We also have large institutional backers. Cliffs Natural Resources owns 6% of our company. Investors Group owns 9.9%. Dundee owns a chunk of us. So we have very good partners.”

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Brent Nykoliation
VP of Business Development
or Kirk McKinnon

Read feature story on Energizer Resources Inc.

by Greg Klein

Disclaimer: Energizer Resources Inc is a client of OnPage Media, and the principals of OnPage media may hold shares in Energizer.

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