Energizer Resources (‘Energizer’, TSX: EGZ: OTCBB: ENZR; FRANKFURT: YE5) has finally announced assay results from the Molo deposit – the main area of exploration at its Green Giant graphite project. Energizer has been developing the project, as the operator and 75% stakeholder, in a joint venture with Malagasy Minerals Limited. The samples from the drill core have been sent for lab examination and the results were worth the wait and showed that one drill hole, hit 421.3m of graphite at a grade of 6.12% carbon. Energizer confirmed that the mineralization is exposed at the surface in bedrock areas between 10 cm. and 1 meter in depth (at 6% C) occurring over long stretches, or intervals, between holes. Such results confirm Energizer’s initial suggestions that open pit graphite mining would be possible at the Molo deposit, in zones located extending to 300 meters in depth. The initial assays also confirmed the presence of jumbo flake (+50 mesh) graphite at 93% purity, which can be released through simple crushing.
Energizer has estimated that the Molo deposit alone has a potential of 25 million tons of graphite at 6%. This allows for the production of impressive annual tonnages at very high grades. The results also suggest that the Green Giant property is host to one of the largest graphite deposits in the world with the potential to become a primary world producer over the next few decades. The deposit is rich enough to last for decades and the extent and quality of the mineralization will also make it very reliable; given the crucial applications in the next generation of batteries and electronic devices and the kind of global downstream players involved, security of supply is essential. In December 2012, Energizer is expected to issue an initial resource estimate that should confirm the optimistic projections, which suggests that production could begin as early as 2014. For a company that is admittedly still in the early phase of discovery, it holds much promise. The deposit is also located in an ideal terrain, which is flat and dry and characterized by temperate climate for almost half of the year.
Energizer has established partnerships with DRA Mineral Projects, a South African mine development firm that has also worked with Rio Tinto (RIO) and Vale (VALE), which should help speed up the PEA process and begin graphite production within two years time. Energizer has established partnerships with DRA Mineral Projects