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Stormcrow Capital has initiated coverage on Energizer Resources (TSX: EGZ) (OTCQX: ENZR)

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Stormcrow gives the company a price target of $0.35, a premium of 159% to the $0.135 price on August 17th, the day the report was issued. Energizer Resources, a mineral exploration and mine development company based in Toronto, is developing its 100%-owned, flagship Molo Graphite Project in southern Madagascar.

Additional Information:

Company: Energizer Resources
Website: http://www.energizerresources.com/
Stock Symbol: TSX: EGZ
Date Published: Aug 27, 2014
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for InvestmentPitch.com

Stormcrow Capital has initiated coverage on Energizer Resources, symbol EGZ on the Toronto Stock Exchange. (OTCQX:ENZR)

Stormcrow gives the company a price target of $0.35, a premium of 159% to the $0.135 price on August 17th, the day the report was issued.

Energizer Resources, a mineral exploration and mine development company based in Toronto, is developing its 100%-owned, flagship Molo Graphite Project in southern Madagascar.

The Molo is one of the largest known all-flake graphite deposits in the world and hosts a NI 43-101 compliant Measured resource of 23.62 million tonnes grading 6.32% carbon, an Indicated resource of 76.75 million tonnes grading 6.25% carbon, and an Inferred resource of 40.91 million tonnes at 5.78% carbon, for a combined total of 141.28 million tonnes at 6.13% carbon.

The company expects to release a feasibility study by the fourth quarter of 2014.

Results of the company's recently completed pilot plant operation confirmed that 43.5% of the Molo deposit is classified as the premium-priced large and extra-large flake graphite, with an average purity level in excess of 97% carbon achieved through standard flotation alone.

The company is targeting production in the second or third quarter of 2016.

Energizer's total land package in southern Madagascar encompasses approximately 320 kilometres of continuous graphitic trends, where all graphite mineralization is immediately at surface.

In addition to the Molo Graphite Project, Energizer has also identified through drilling, trenching and geological mapping at least six other zones that could be potential stand-alone graphite deposits.

The Stormcrow report stated: “Low overall costs and large resource make Energizer a very attractive development-stage graphite project, likely especially attractive to end-users or traders seeking a long-term supplier of pure natural graphite.”

Stormcrow’s revenue projections have it selling 75% of annual production in the form of flotation concentrates, and the balance as 99+% purified graphite flake to various specialty markets.

Molo Project is located approximately 160 kilometres from the coast, within the hub of top purchasing markets for flake graphite.

The report has not ascribed any value to any of the other projects owned in whole or part by Energizer.

This includes the company’s Green Giant stand-alone vanadium project, which has NI 43-101 reports in place, showing indicated and inferred vanadium resources.

The company currently trades at $0.16, well below the $0.35 target price, and with 268.6 million shares outstanding, the company is capitalized at $43 million.

For more information, please visit the company’s website www.energizerresources.com or contact Brent Nykoliation, Senior Vice President of Corporate Development at 416-364-4911 or email bnykoliation@energizerresources.com.

Stormcrow Capital is a Canadian research and technical consulting firm specializing in critical materials. For more information or to obtain a copy of their research report, please visit www.stormcrow (dot) ca or contact Jon Hykawy, President at jon@stormcrow.ca.

I’m Samantha Deutscher for InvestmentPitch.com
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