Energizer Resources (TSE:EGZ)(OTCQX:ENZR) says that its chairman and CEO, Kirk McKinnon, resigned as of yesterday, with no reasons for the departure given in a statement released Friday.
The graphite development company said McKinnon will continue to serve on the board of directors, and will provide ongoing consulting services to Energizer.
The board is planning to complete a review of its senior management structure, Energizer said in the release, and will provide an update on this matter in the "near future".
Energizer updated investors on its Molo graphite project in Madagascar earlier this week, saying it has achieved a number of milestones in the property's development so far, including the recent metallurgical results that are expected to boost economics.
The company's maiden resource on the property, made up of 84 million indicated tonnes at 6.36% carbon (C) and 40.3 million inferred tonnes at 6.29% C, has established Molo as one of the largest graphite deposits in the world. A preliminary economic report on the asset estimates the pre-tax net present value is $421 million at a discount rate of 10%, with a 48% internal rate of return. Capital costs are pegged at $162 million, with a three-year payback period.
"The recent metallurgical results indicating that nearly half (47.4%) of the graphite concentrate produced from the Molo composite material submitted for analysis at SGS consists of large and jumbo flake graphite at a grade of 96.8% C, was certainly a pleasant surprise as the highest quoted natural flake graphite prices, are those for +80 (large flake) at purities greater than 95% C," said president and COO Craig Scherba in a statement released Monday.
The latest metallurgical results are expected to positively impact the economics in the preliminary report, particularly the operating costs, IRR and net present value, with a full feasibility study anticipated in the fourth quarter. The company has hired consultants to generate new capex and opex figures based on the new metallurgical analysis, versus the existing numbers in the PEA study.
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