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TORONTO, ONTARIO–(Marketwire – March 26, 2012) – Energizer Resources Inc. (TSX:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5) (“Energizer” or the “Company”) is pleased to announce that it has received positive initial metallurgical test results from its Green Giant Project in Madagascar and that DRA Mineral Projects has made an equity investment into the Company.
Graphite ore samples from the Fotsy and Molo zones were submitted to the North Carolina State University (NCSU) Minerals Research Laboratory in Asheville, North Carolina for preliminary evaluations to define potential for recovery of commercial products. Simple mechanical crushing with no flotation yielded flake sizes of +50 mesh, which according to Tom Burkett, Vice President of Graphite Materials & Systems at SGL Carbon Group – the world’s largest carbon company – is regarded by the industry as jumbo flake. Both ores have produced graphite concentrates at purities of +90%.
Both samples were subjected to beneficiation that included crushing, grinding, and various flotation schemes. A +50-mesh grind was utilized for the majority of the testing to achieve a high degree of liberation while maintaining a particle size that would be attractive to the marketplace. This testing recovered graphite in the form of oversize products at +50 mesh and flotation concentrates.
Data is still being processed and an initial report will be forthcoming by the NCSU complete with conclusions, recommendations, flake distribution summary and a preliminary process flow sheet.
Green Giant Outlines Extensive Graphite Zones
Energizer’s Senior Vice President of Exploration, Craig Scherba, P. Geol., commented, “We are very pleased with these initial results. With the confirmation of jumbo flake graphite and +90% purity, Energizer has now met two more thresholds and when combined with our exploration results to date, make our Green Giant project quite unique in the marketplace. We have multiple zones with mineralization at surface, high grades, wide intersections and strike lengths that can be measured in kilometers, not meters. We are outlining a graphite camp.”
To date, Energizer’s Green Giant and JV Property contains 17 separate and distinct graphite zones, seven of which have been drill tested. The culmination of drilling, trenching, geophysics, geologic mapping and prospecting have confirmed graphite mineralization in all tested zones to be at surface, open along strike and at depth.
Drill assays have been received so far from two zones, the Fondrana and the Fotsy, showing high grades and extensive widths (FOND-01: 6.24% C over 118.6 meters; FOND-TH-11-01: 7.11%C over 106 meters; FOTSY-TH-11-05A: 9.93%C over 10 meters). Initial assay results are expected shortly from the Molo and Seta zones.
DRA Makes Initial Equity Investment in Energizer
The Company is also pleased to announce that a private placement transaction has been concluded with DRA Africa Pty Limited, a wholly owned subsidiary of DRA Mineral Projects (“DRA”) who has recently become a technical partner of Energizer (see January 25, 2012 news release).
Johann de Bruin, Pr.Eng, and Director of DRA commented, “Our current understanding of the quality of the graphite within the tenements as well as our understanding of the logistics associated with the development of a mine in the Southern part of Madagascar gives us enough confidence in the Green Giant Graphite and Vanadium project to justify moving forward with an equity investment in Energizer Resources. This represents a further commitment to the project and solidifies our relationship with Energizer since being appointed as their technical partner. It is our intention to increase our equity position as funds and test work analyses become available in accordance with the MOU. We look forward to supporting Energizer Resources in bringing this project to implementation and operation.”
Kirk McKinnon of Energizer stated, “We are very pleased that DRA has decided to invest in Energizer. It certainly reflects their belief in our project and further strengthens our relationship. Their role of technical partner is a key factor in our ability to move the project from resource definition to production within a very short timeframe. As the importance of graphite continues to manifest itself, speed to market will become increasingly important in order to maximize shareholder value.”
DRA has subscribed for 2,540,000 common shares of Energizer for gross proceeds of $635,000 USD. This results in DRA having an equity position of 1.6%. Under the terms of the Memorandum of Understanding (“MOU”), DRA has the right to acquire up to a 5% equity position in Energizer. Future private placements will be done at market conditions. The transaction requires final regulatory approval and all securities issued in this matter are subject to applicable hold periods.
About DRA Mineral Projects
About Energizer Resources
Energizer Resources Inc. is a mineral exploration and development company based in Toronto, Canada, which is developing its Green Giant Project located in Madagascar. The Green Giant hosts one of the largest known vanadium deposits and potentially one of the largest known graphite deposits.
The identification of 17 graphite trends, with a cumulative strike length in excess of 320 km, on the 100% owned Green Giant property and 75% owned Joint Venture (with Malagasy Minerals Limited (ASX:MGY) properties, have validated the Company’s belief that the Green Giant Project has the potential to host a potential graphite camp. Metallurgical results to date confirm jumbo flake (+50 mesh) with +90% purity.
As graphite and vanadium are considered to be critical minerals, the Company will position itself to both strategic partners, and the financial markets, a dual offering of critical minerals from a single source for energy and storage, as well as steel and other innovations worthy of development.
In addition to the Toronto Stock Exchange (TSX:EGZ), the Company’s common shares trade on the U.S. Over-The-Counter Bulletin Board under the symbol ENZR, and on the Frankfurt Exchange under the symbol YE5.
For more information on graphite, graphene and vanadium, please visit our website at www.energizerresources.com.
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.
