Energizer Confirms 200Mt Plus Tonnage Potential at Molo
(Posted to email subscribers June 13, 2012)
On Monday June 4th Energizer Resources EGZ-T/ENZR announced intersections underneath the 325 meter trench I walked across and photographed in the feature article published in June. Usually I don't pay attention to intersection announcements until assay results are in as they can end up being extremely disappointing, especially in the case of gold companies where mineralization can be quite variable. An example would be BKT-V's announcement regarding their intersections on their Tanzanian gold property bordering Canaco's Magazambi in Tanzania this winter that ended up being anomalous at best. Hardly anything to jump up and down about.
In the case of Energizer's Molo Deposit the mineralization has been confirmed both by drilling and trenching significantly de-risking potential assay results regarding the mineralized intervals. Even if there is no grade assigned, for the first time, we are starting to get a true picture about the size of Molo.
And yes folks... it is a MONSTER!
The intersections from the first set of holes of the resource delineation program at Molo have been impressive. The first hole cut the entire width of the Molo deposit at a 45 degree angle and measured an impressive 434 meters of mineralization. If you multiply a 45 degree hole by approximately 0.7 you get the true width of the deposit if the structure is dipping close to vertical like the Molo deposit. The news both confirms that the structure and true width of the deposit is around 300 meters and maintain that width to depth of at least 300 meters and Energizer's theory that the graphite deposits at Green Giant persist to depth. If you calculate a tonnage target for the area defined within the heart of Molo you have an impressive target that is a lot greater than Energizer's conservative 50Mt to 100Mt target.
Some basic math to calculate volume...
A 300 meter width times a 300 meter depth times an 850 meter strike equals 76.5 million metric tonnes. Multiply that by a typical density of 2 to 2.5 and you come up with a 150Mt to 190Mt target. EGZ has already drill tested at least a 1.2 km strike length with the mineralization corresponding very well to the EM maps. The initial results and EM maps lend to a very good impression of the tonnage potential at Molo. With an impressive 300 meter depth profile and 300 meter wide at Molo’s widest, Molo is the biggest graphite discovery to date anywhere in the world. Hands down.
A $0.30 cent entry and a $45M market cap is a good arbitrage trade just based on valuation differential between Flinders, Northern Graphite, and Focus Metals who valuations are currently between $70M to $100M market caps. Energizer Resources Green Giant undeniably is an emerging world class graphite deposit whose metrics are shaping up to make Molo and Green Giant second to none.
EGZ is the best of the bunch when it comes to graphite. It should be valued at least on par to the current industry leaders FDR, NGC, FMS.
If valued on par to Flinders FDR... EGZ would be $0.50!!!
EGZ is early in the discovery cycle but is clear already that the company will emerge as the leader when it comes to mining graphite because of 4 qualities that make Molo stand out among the rest. Do not miss out on this once in a lifetime opportunity investing in the cream of the crop graphite stocks.
It is easy to see that EGZ will be the low cost producer in the industry because of 4 obvious qualities that the Molo Graphite Deposit possess.
- Simple Processing - some of the simplest processing in the industry
- High Purity - product demonstrates a high purity which means premium pricing
- High Grade - outstanding grade means Molo will be a low cost producer
- Tonnage – being one of the largest graphite deposits in the world ensures both scalability and a long mine.
Read Last Week's News Below...