Name and Location
Green Giant Molo graphite project, Madagascar.

Client
Energizer Resources.

Project Description
Energizer reported a new mineral resource for the Molo deposit in August 2014, consisting of a measured resource of 23.62-million tonnes grading 6.32% carbon, an indicated resource of 76.75-million tonnes grading 6.25% carbon and an inferred resource of 40.91-million tonnes at 5.78% carbon, for a combined total of 141.28-million at 6.13% carbon.

A preliminary economic assessment (PEA) on the project envisages a conventional openpit mining method using trucks and loaders, with a capacity of 1.17-million tonnes a year of ore at 92% availability, with an average head grade of 8.5%.

The processing will entail three-stage crushing, followed by a primary milling and flotation separation circuit. The resultant flake graphite concentrate will be thickened, dried, separated into various flake sizes, packaged and stored before shipment. The final residue generated by the flotation process will generate a clean, nonacidic tailing. The concentrate production is estimated at an average of 84 000 t/y of graphite concentrate, with an average specification of 92%.

Net Present Value/Internal Rate of Return
The PEA estimates a pretax net present value, at a discounted rate of 10%, of $421.46-million and a pretax internal rate of return of 48%, with a payback of three years.

Value
The estimated capital cost for the project is $162.04-million.

Duration
Production is slated for 2015.

Latest Developments
Energizer brokered a private placement in September 2014 to raise $4.8-million to fund the production of additional graphite concentrate samples at its Molo project.

The additional graphite concentrate samples will be required for potential offtake groups and end-users of graphite with which the company is in advanced discussions.

While a pilot-scale plant is already in operation at Molo, Energizer is targeting the start of commercial production of between 50 000 t/y and 150 000 t/y of graphite in 2015.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Energizer Resources senior VP of corporate development Brent Nykoliation, tel +1 416 364 4911, fax +1 416 364 2753 or email info@energizerresources.com.