TORONTO, ONTARIO -- (Marketwired) -- 09/09/13 -- Energizer Resources Inc. (OTCQX: ENZR)(TSX: EGZ)(FRANKFURT: YE5)("Energizer" or the "Company") is pleased to outline the milestones the Company has achieved on its Molo Graphite Project in Madagascar:
-- Completed a maiden NI 43-101 resources estimate with 9,246m of drilling, establishing the Molo as one of the largest known graphite deposits in the world; -- 84.0Mt Indicated @ 6.36% carbon © -- 40.3Mt Inferred @ 6.29%C-- Completed a PEA study indicating robust economics: $421M Pre-tax NPV discounted @ 10%; 48% Internal rate of return (IRR); 3-year payback; $162M Capital cost-- Molo graphite concentrate achieved an ultra-high purity of 99.9% Con a first-pass, single-stage hydrometallurgical purification test using conventional leach technology testing at SGS Canada Inc.-- 47.4% of the Molo graphite concentrate is classified as large & jumbo flake size (greater than +80 mesh)
According to Craig Scherba, President & COO, "The recent metallurgical results indicating that nearly half (47.4%) of the graphite concentrate produced from the Molo composite material submitted for analysis at SGS consists of large and jumbo flake graphite at a grade of 96.8% C, was certainly a pleasant surprise as the highest quoted natural flake graphite prices, are those for +80 (large flake) at purities greater than 95% C. In addition to a large proportion of premium quality graphite flake, we have also achieved an ultra-high purity concentrate of 99.9% C with first-pass single-stage hydrometallurgical purification, and all of our graphite concentrate can be upgraded to this ultra-high purity. We are also pleased to note that we can achieve high purity grades through flotation or physical processing alone, which has significantly less expensive operating costs than achieving ultra-high purity through chemical or pyrometallurgical methods. This will potentially position us as one of the lowest cost producers of ultra-high purity graphite. The Molo deposit is therefore well positioned to not only be capable of supplying the largest and most significant graphite markets (refractory, foil and lithium-ion) with high purity material, but to also have the capability of supplying the small but growing ultra-high purity graphite market.
On behalf of the management and board of Energizer Resources, we are very proud of the speed and quality in which we have advanced the Molo graphite project, and believe that the already robust economics presented in our Preliminary Economic Analysis will be positively impacted by the recent metallurgical advancements in a Full Feasibility study. As a result, we feel that the Molo is well positioned to be a significant contributor to the global graphite supply, and we are striving to reach that goal despite the challenging capital market environment."
Mine Development Update
Advancements in Molo's metallurgical process yielded a superior final flotation concentrate with a coarser flake size distribution and higher grades in each size class as compared to the PEA Study. In the size fractions greater than +80 mesh (large flake), the Molo flotation concentrate consistently yielded grades greater than 96% C. Of particular significance was that even the small flake fractions of less than 150 mesh responded well to the optimized process with grades of greater than 95% C. The improved quality of the flotation concentrate in terms of grade and size distribution is expected to have a positive impact on the already positive IRR and NPV of the project.