Today Energizer Resources upgraded a portion of the NI 43-101 mineral resource estimate for its Molo project to measured status. The overall size of the resource has also increased.
As those familiar with Energizer Resources (TSX:EGZ,OTCQX:ENZR) are no doubt aware, the company is rapidly making progress at its Madagascar-based Molo graphite project, where it hopes to start production in mid-2016.
Today the company hit what Brent Nykoliation, Energizer’s senior vice president of corporate development, described as “another key milestone” with the upgrading of a portion of Molo’s NI 43-101 mineral resource estimate to measured status. The overall size of the resource has also increased.
Specifically, states a company press release, the new mineral resource for Molo consists of a measured resource of 23.62 million tonnes grading 6.32-percent carbon, an indicated resource of 76.75 million tonnes grading 6.25-percent carbon and an inferred resource of 40.91 million tonnes at 5.78-percent carbon. Together, that comes to 141.28 million tonnes at 6.13-percent carbon; respectively, cut-off grades of 4- and 2-percent carbon were used for high- and low-grade zones.
By comparison, Energizer’s December 2012 maiden NI 43-101 resource outlines 124.31 million tonnes consisting of an indicated resource of 84.04 million tonnes grading 6.36-percent carbon and an inferred resource of 40.34 million tonnes grading 6.29-percent carbon above a cut-off grade of 2 percent.
Explaining why the update is important, Nykoliation told Graphite Investing News, “one of the requirements of a bankable feasibility study … is to upgrade your deposit to measured status.” Doing so thus means that “the bankable is on track” to be released in November of this year.
Watch the video below to see Nykoliation elaborate further on the timeline for the Molo feasibility study.
The upgrade is also significant in that it de-risks Molo — after all, said Nykoliation, measured is the highest classification a resource can have, above probable, inferred and indicated. He added, “this adds greater confidence to the market, to the eventual partners who will be helping us fund the mine, that the Molo is indeed consistent, homogenous and maintains its significant presence.”
Energizer is certainly in an enviable position, and it will be exciting to watch what the company does moving forward. As Nykoliation concluded, “[measured status] is a rare thing indeed to have in the space.”
At close of day Thursday, shares of Energizer were selling for $0.13 each. The company’s 52-week high is $0.25 and its low is $0.10.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energizer Resources is a client of the Investing News Network. This article is not paid-for content.