EnergizerEnergizer Resources Inc Symbol C : EGZ Shares Issued 268,627,603 Close 2014-09-11 C$ 0.17 Recent Sedar Documents View Original Document Energizer's graphite hype machine goes into overdrive 2014-09-11 08:02 ET - News Release An anonymous representative reports TESLA'S NEW GIGA-PLANT WILL DOUBLE THE WORLD'S DEMAND FOR FLAKE GRAPHITE AND ENERGIZER RESOURCES INC. (OTCQX: ENZR) MAY JUST BE SITTING ON THE MOTHER LODE Tesla Motors Inc. has announced its intentions to build a $6-billion lithium-ion battery factory in Nevada capable of producing enough batteries to power 500,000 vehicles every year. According to industry sources, every electric car requires about 100 pounds of natural flake graphite. With 11 times more graphite in a lithium-ion battery than lithium, electric vehicles represent a significant future off-take demand for flake graphite. Tesla alone will require six new mines -- double the global demand. The Tesla gigaplant, at full operation, will require the equivalent of six new, full-scale graphite mines and would consume the entire amount of flake graphite used today for batteries globally. This represents a doubling of the world's demand for flake graphite for batteries. Presently, the United States does not have any producing graphite mines and imports 100 per cent of its graphite, and just last year, the U.S., the United Kingdom and the European Union designated graphite as a critical mineral. It's easy to understand why. Not all graphite is the same Graphite comes in basically two forms, powder (amorphous) and flake. Powder is the plentiful and cheap form used in pencils, lubricants and brake pads. Flake graphite is the scarcer form, it commands the highest selling price and is the only form of graphite that can be used in all 180-plus applications used on a daily basis that depend upon graphite. Flake graphite is the only form of natural graphite that can be used for lithium-ion batteries and is used exclusively in new-tech applications, such as graphite foils, which are used in almost every consumer electronics product you own, to cool your electronics. Flake graphite is the requisite mineral behind nearly all advancements in new innovations and nanotechnologies. Flake graphite in its single-layer form is the wonder product graphene and is the key raw material used in large-scale energy storage systems and pebble-bed nuclear reactors. In addition to the graphite used in every lithium-ion battery, portable electronics increasingly rely on graphite to cool components and dissipate heat. Very thin sheets of graphite foil, made exclusively from natural graphite flake, line the insides of electronics and act as both a sealant and a heat sink for all laptop computers, tablets, flat-panel televisions, solar panel arrays, cellular phones and smart phones. Graphite foil is one of the fastest growing end-use segments for flake graphite. Where will we get all that graphite? Enter Energizer Resources' Molo graphite project -- a world-class flake graphite deposit that you have probably never heard of. Energizer Resources is sitting on the proverbial motherlode. It's 100-per-cent-owned-and-operated Molo project in Madagascar is one of the largest, most advanced high-quality flake graphite deposits in the world. Energizer is just weeks away from releasing a bankable feasibility study on the project and is well positioned to have a first-mover advantage in being a major supplier of high-quality flake graphite to the world. Energizer is already at the stage where it has entered into advanced discussions regarding off-take and project investment agreements with over 20 of the world's largest flake graphite buyers and end-users in the refractory, lithium-ion battery and consumer electronics industries. Next steps consist of multinational companies running full-scale, multitonne production runs of graphite-based end products using Energizer's graphite. Pending successful test runs, Energizer would be able to secure a preferred supplier status for flake graphite with these potential customers. The Molo The Molo is 100-per-cent flake and it is massive. The National Instrument 43-101 resource of 141 million tonnes has a mine life of over 130 years, and its expandability is virtually limitless. The Molo alone represents less than 1 per cent of the total graphite confirmed on Energizer's property. The graphite at the Molo deposit sits immediately at surface, which means very low-cost, open pit mining with no stripping waste. Energizer has partnered with DRA, Africa's largest mine builder and operator, which ensures a turnkey solution when it comes to construction and operation of the future mine. This provides added confidence for both investors and future customers for the timeline of the mine. The Molo has passed government environmental permitting and is within easy trucking to two major sea ports serving transportation corridors to the world's highest-graphite-demand markets: Japan, China, India and South Korea. Production is targeted for mid-2016. Market response Powerhouse institutions on both Wall Street and Bay Street have now started to pay attention to Energizer Resources. Notable investors are JP Morgan, Canada's largest resource investment bank; Dundee Resources; and mutual fund giant AGF Group. Analysts covering ENZR with buy recommendations include Canadian and European institutions GMP Securities and Stormcrow Capital Ltd. Profitability Based upon early and robust economic studies, the sheer size and quality of the deposit, as well as manufacture demand for this specific type of high-quality flake graphite, Energizer expects its investors' payback periods to be only three years with very healthy margins. The Molo is easily expandable and can meet market demand as required. The stars are aligning for Energizer to supply one of the most innovative materials of our time -- applicable in everything from electric vehicles to energy storage to safe nuclear applications. Given everything now known about graphite and its rising status in the world of strategic minerals, Energizer's Molo graphite project represents one vital source of supply and is shaping up to be an undeniable opportunity for investors. The National Instrument 43-101-compliant technical report, titled "Molo Graphite Project, Fotadrevo Province of Toliara, Madagascar, Preliminary Economic Assessment Technical Report Update," and dated April 12, 2013, was prepared by DRA Mineral Projects and authored by John Hancox, PriScNat; Desmond Subramani, PriScNat; Dave Thompson; and Glenn Bezuidenhout, all qualified persons as defined by NI 43-101 and independent of Energizer Resources for the purposes of NI 43-101 requirements. The technical report is available on SEDAR and on the company's website. We seek Safe Harbor. © 2014 Canjex Publishing Ltd. All rights reserved.