Post by
juniorcal on May 14, 2015 9:47am
The world needs EGZ
Press Release Energizer Resources Well-Positioned To Be Major Supplier of a Critical Material In Short Supply Published: Aug 18, 2014 7:53 a.m. ET 1 1 TORONTO, ONTARIO, Aug 18, 2014 (GLOBE NEWSWIRE via COMTEX) -- Uptick Newswire discovers a world-class graphite project in Energizer Resources, Inc. (otcqx:ENZR)(EGZ), a mine development and mineral exploration company based in Toronto, Canada, that is rapidly developing its flagship Molo Flake Graphite Project in southern Madagascar to mine production. There are currently over 200 daily applications that depend upon flake graphite. Incremental demand will be created by a number of green initiatives, including lithium ion batteries, fuel cells, solar energy, semi-conductors, and nuclear energy. Industry analysts say many of these applications have the potential to consume more graphite than all current uses combined. In fact, the average electric car uses approximately 100 pounds of flake graphite per vehicle. Flake graphite is the most coveted form of graphite because it can be used in any application and commands the most premium price. China, who produces over 75% of the world's graphite, is in urgent supply of flake graphite for their own domestic markets and this has created supply concerns for the rest of the world. With limited exploration and potential development projects on the horizon, Energizer Resources and its Molo project are well positioned to supply both traditional and rapidly growing high-tech and clean-tech markets with the high quality and high purity, large-flake graphite that is in strong demand. The Molo project is monstrous in size, ranked as one of the largest flaked graphite deposits globally, and possesses almost unlimited expansion capability. The Molo deposit comes with the assurance of the highest mining standard issued from the Canadian government: NI43-101. In fact, Energizer Resources released an economically robust Preliminary Economic Assessment Study of the Molo site in February 2013, verifying to the market it has the potential to be a profitable and low cost producer. Based on this Study, Energizer has now initiated a Full Feasibility Study - the last stage required to qualify the project for mine financing by chartered banks. The feasibility study is on track to be completed and released to the market by the fourth quarter of 2014. Energizer also completed a pilot plant, sending multiple-ton samples of finished graphite concentrate for the purposes of evaluation to leading steel, lithium-ion battery and consumer electronics companies who represent the world's largest buyers of graphite. All results to date by the evaluating companies have been extremely positive, confirming through 3rd-party validation that Energizer's graphite is of superior quality and meets all the criteria for the largest demand markets for graphite both today and in the future. As a result, Energizer now has a senior management team stationed in Asia to continue advanced meetings with several of these world-leading companies regarding off-take and strategic alliances in order to ensure a seamless process to market - with the bonus of their Project being relatively close to these key Asian customers: Japan, China, Korea and India. Energizer Resources'current intuitional investors are impressive. JP Morgan, along with two of Canada's largest investment banks, Dundee Resources and Power Corporation's Investors Group, are its largest shareholders. Energizer has also partnered up with Africa's leading mine engineering and construction firm, DRA Global, who have already been contracted to build and operate the mine, providing Energizer with a de-risked and turn-key solution for mine operation. To the general public, both graphite's surging demand and Energizer's Molo Graphite Project remain largely unrecognized. Many know that graphite is in pencils, and as widely recognized as this particular application may be, today it accounts for a small fraction of the worldwide graphite demand. It is the steel industry that accounts for over 50% of worldwide graphite demand, and this well-established industrial demand for graphite has been growing at approximately 5% throughout the current decade due to ongoing industrialization in China, India, and other emerging markets. Based on the steel market alone, annual graphite demand is expected to increase from 1.1 million metric tons to 1.5 million metric tons by the year 2020, which reflects a growth potential of almost 50%. But what has been causing industry analysts lately to call graphite "black gold" is its use in batteries. Now the second largest demand driver for graphite at approximately 26%, lithium-ion batteries are poised to overtake the steel industry in the next 5 years as the top consumption market for flake graphite. Why? The answer is electric vehicles (EVs). Few outside of the industry are aware of this fact; that a lithium-ion battery contains about 11 times more graphite than it does lithium. And it is this fact that has global buyers of graphite in a panic, and current producers of graphite in a frenzy when it comes to the potential demand for graphite from EVs. Every Tesla Model S has about 100 lbs of flake graphite in its battery. Tesla Motor Company's intent to produce the world's total lithium-ion production in one plant in the USA came closer to reality last month when it partnered with Panasonic to fund its "Gigafactory". At capacity, it would consume the entire amount of flake graphite used in the world today for batteries. This demand would require six brand new graphite mines to be brought online. And that's just for Tesla alone. Energizer Resources' management team has consistently completed key project milestones as it progresses its Molo Project to mine development and is uniquely positioned to capitalize on both the current demand and future potential of graphite. While the Molo is one of the largest graphite deposits on the planet, it sits in less than 1 of over 200 miles of continuous graphite mineralization confirmed on Energizer's property in Madagascar. Energizers' Molo deposit has the size and economics to make it a significant barrier to entry in the graphite space, while being one of the most undervalued companies in the industry. The stars are aligning for Energizer to supply one of the most innovative materials of our time - applicable in everything from EVs to energy storage to safe nuclear applications. The Molo Graphite Project represents one vital source of supply of a critical material and an undeniable opportunity for investors. Energizer Resources trades on the OTCQX under the symbol "ENZR" and on the Toronto Stock Exchange (TSX) under the symbol "EGZ".