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Yesterday, Energizer revealed that it has achieved greater than 99.9-percent graphitic carbon from a finished concentrate of its Madagascar-based Molo flake graphite deposit on a first-pass, single-stage hydrometallurgical purification test completed by SGS Canada.
For the past few weeks, graphite hopefuls have been flocking to Ontario with the aim of stealing some of the spotlight from much-discussed Zenyatta Ventures (TSXV:ZEN). However, recent news from Energizer Resources (TSX:EGZ,OTCBB:ENZR), a Toronto-based mineral exploration and development company, is a reminder that other locales are worth keeping an eye on.
Yesterday, Energizer revealed that it has achieved greater than 99.9-percent graphitic carbon from a finished concentrate of its Madagascar-based Molo flake graphite deposit on a first-pass, single-stage hydrometallurgical purification test completed by SGS Canada.
The aim of the test was to examine the possibility of upgrading graphite from Molo to an ultra-pure concentrate, and, according to Craig Scherba, president and COO of Energizer, it was successful. In the company’s press release, he describes the test results as “highly significant” in that they reconfirm “the exceptional quality” of Energizer’s graphite.
Happily for Energizer, investors seem to agree — since the announcement, shares of the company have risen 150 percent, to 27.5 cents.
Molo and Green Giant
The Molo deposit is part of the Green Giant graphite project, a joint venture between Energizer and Malagasy Minerals (ASX:MGY); Energizer holds 75-percent ownership and operates the project.
On its website, Energizer identifies four key features that make the deposit stand out and position it for low-cost production. They are:
- Topography: the deposit is “immediately at surface” and is located in a flat and semi-arid environment.
- Scalability: surrounding satellite deposits should allow the company to increase its graphite output as necessary.
- Geographic location: Molo is close to China, India, South Korea and Japan, which Energizer describes as key graphite demand markets.
- Metallurgy: the deposit contains “flake graphite including jumbo (+50 mesh), large (+80 mesh), medium (-80 to +100 mesh) and small flake (-100 to -200).” Yesterday’s press release emphasizes that only flake graphite can be used for all applications where natural graphite can be applied and states that refractories, battery and energy storage and specialty graphite foils will be the three largest drivers of high-purity flake graphite demand moving forward.
A preliminary economic assessment (PEA) for Molo was completed in February and Energizer hopes to begin production in 2015; output will be between 50,000 and 150,000 tonnes per year.
What’s next?
In the next 30 days, Energizer expects to release the results for the first phase of the pilot plant process for Molo. This phase, which SGS began last month, involves testing aimed at finalizing an optimized process flow sheet for the project, as well as minimizing the future mine’s capital and operating costs while maximizing “graphite flake size fractions, concentrate grade, and graphite recovery.” The company anticipates that the results will positively impact its PEA.
Looking further into the future, over the next 60 to 90 days, SGS Canada will complete a “comprehensive hydrometallurgical process flow sheet,” adhering to the technical guidelines of a full feasibility study.
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.
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