Energizer Resources (TSE:EGZ) has announced that it is working with testing and certification company SGS Canada to optimize the metallurgical process for its Molo graphite deposit located in Madagascar.
The Toronto-based mineral exploration and development company is focused on developing the Molo flaked graphite deposit in Fotodrevo, southern Madagascar, which is part of its Green Giant Graphite project, a joint venture property with Malagasy Minerals. Energizer has a 75 per cent ownership interest in the development and is also the operator of the project.
In a company statement issued Tuesday announcing the upcoming metallurgical testing, Energizer said it was "confident" that flake size distribution and graphite purity levels can be further optimized by SGS due to the lab's experience in graphite metallurgical management.
It is anticipated that the results of the SGS study will positively impact the Molo preliminary economic analysis (PEA) study, which reported a net present value of $421 million for an internal rate of return of 48 per cent, and a payback period of 3 years.
The test work to be conducted by SGS will be completed in three phases, with the results being integrated into the company's full feasibility study as well as the PEA study.
The first phase will involve SGS conducting a variability analysis on the two zones of mineralization found within the Molo deposit and developing a flowsheet to maximize the recovery of graphite into a flotation concentrate grading at least 95 per cent carbon. SGS is aiming for purities of better than 99.5 per cent carbon.
The final phase is for SGS to design and construct a pilot plant to process roughly 200 tonnes of Molo graphite ore. The pilot plant is anticipated to begin processing in August, and will result in the production of between 6 and 10 tonnes of graphite concentrate, which the company will use to further off-take discussions.
Stock in Energizer Resources was steady in trading on the TSX, holding at the 16 cent per share open.
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