Byron on EnergizerOctober 6, 2011
Rating: SELL Energizer Resources Inc.
Target Price: N/A
Remember that the issue with Energizer’s Green Giant Project is that vanadium is extremely hard to physically beneficiate prior to the multi-hour 1,100° C roasting process, which we believe will make the operating expenses too high. We believe the surrounding areas are also of similar mineralization given the formation, and even if there are continued vanadium trends at the new exploration sites, the same metallurgical issues would arise. We maintain our SELL rating; however, we cannot establish a target price.
Vanadium may be plentiful but good economic high grade deposits like Largo Maracas are very rare.