Name and Location
Molo graphite project, Madagascar.

Client
Energizer Resources.

Project Description
The Molo graphite project has National Instrument 43-101-compliant proven and probable mineral reserves of 22.44-million tonnes grading 7.02% carbon (C). Measured mineral resources are estimated at 23.62-million tonnes grading 6.32% C, indicated mineral resources at 76.75-million tonnes grading 6.25% C and inferred mineral resources of 40.91-million tonnes at 5.78% C.

The feasibility study completed on the project has confirmed that the project will be economically viable using a mine design that is conservative and realistic.

The study proposes the construction of an openpit mine that will produce an average of 856 701 t/y of ore, with a processing plant capable of producing 862 000 t/y of ore, which will be processed to produce an average of 53 017 t/y of graphite over the 26-year life-of-mine.

Construction will include all supporting infrastructure, including water, fuel, power, tailings, buildings and permanent accommodation.
The processing plant will comprise conventional crushing, milling and flotation circuits, followed by concentrate filtering, drying and screening.

The waste heat generated by the power station will be used to dry the concentrate.

Net Present Value/Internal Rate of Return
The feasibility study has placed after-tax net present value, at a 10% discount rate, at $389.8-million, while the internal rate of return has been calculated at 31.2%, with a payback of 4.84 years.
Value

Capital expenditure on the project is estimated at $188.2-million.
The mine is expected to be funded on a 50% debt and a 50% equity basis.

Duration
The mine is expected to come into production by 2017.

Latest Developments
None stated.

Key Contracts and Suppliers
DRA Projects (feasibility study) and SGS (Lakefield) Canada Metallurgical Services (metallurgical testwork).

On Budget and on Time?
Not stated.

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