Energizer Resources Outlines Phased Development Plan for Molo Graphite Project Based on FEED Study Results

TORONTO, ONTARIO--(Marketwired - Nov. 7, 2016) -

Highlights:

• Value engineering and Front-End Engineering and Design ("FEED") Study results provide a cost effective solution for a demonstration plant to test and verify the flow sheet design process of the Molo Graphite Project
  
  
• Demonstration plant in Madagascar will have an estimated capital cost (CAPEX) of US$7,000,000
  
  
• 9-month estimated build time
  
  
• Will allow the Company to provide off-takers with multi-tonne, "run of mine" Molo graphite flake concentrate for final product test verification purposes
  
  

Energizer Resources Inc. (TSX:EGZ)(OTCQB:ENZR)(WKN:A1CXW3) ("Energizer" or the "Company") is pleased to announce that it has received results from its FEED Study, which was initiated in September, 2016.

The FEED study was initiated as a part of a comprehensive value engineering exercise undertaken by the Company in order to examine ways of optimizing the mine plan as envisioned in the Molo Feasibility Study. All costing aspects were examined with the goal of providing a method to produce meaningful, multi-tonne test samples of Molo graphite concentrate to potential off-takers while reducing the CAPEX and time required to the commencement of commercial production.

Under an exploration permit, the Company will initially be limited to an input of 20,000 cubic metres (or approximately 50,000 tonnes) of front-end feed into the demonstration plant for the purposes of verifying the flow sheet design process of the proposed Molo Project mine plan. The Company has already initiated the application process for a mining permit, which upon approval would remove the 20,000 cubic metre test limit. At full capacity, the demonstration plant would be capable of processing 240,000 tonnes of feed per annum. This equates to 30 tonnes per hour of feed, and roughly 1 to 3 tonnes of flake graphite concentrate per hour.

The FEED Study suggests a phased approach to achieving commercial production at the Molo Project may be attainable as set forth below.

Phase 1

Phase 1 will consist of the construction of a demonstration processing plant, capable of producing flake graphite concentrate on a test basis. The plant will utilize dry-stack tailings in order to eliminate the up-front capital costs associated with a tailings dam. The demonstration plant is designed to be a "proof of concept" operation with the goal of optimizing the process circuit while allowing the Company to supply true "run-of-mine" flake concentrate to customers for final product validation. Energizer has reached the stage with several potential off-takers where they are awaiting final multi-tonne samples of Molo concentrate in order to run full-scale end production runs using Molo concentrate and enter into definitive off-take contracts. This initial phase will allow Energizer to complete those trials.