Mineral exploration and development company Energizer Resources (TSX:EGZ,OTCQX:ENZR) achieved a milestone today with the announcement that it has commissioned and started up the pilot plant for its Madagascar-based Molo graphite project.
In its press release, the company notes that mechanical commissioning for the plant has been completed, with two continuous 80-hour campaigns aimed at optimizing metallurgical conditions set to be finished in the next 30 days. Also within that time period, the plant is expected to put out between 7 and 9 tonnes of “finished, flaked graphite concentrate.”
Energizer will mainly use the pilot plant to:
- optimize flake size, quality and purity to meet the specifications of potential offtake partners
- gain “key operational data” that it will use to create process design criteria for an upcoming bankable feasibility study
The plant will also allow the potential offtake partners to evaluate finished graphite concentrate from Molo and decide if it will meet the requirements of their customers — thus far, optimization testing has confirmed that 47.4 percent of Molo graphite concentrate is large- and jumbo-flake size, and test results show that the concentrate can be “upgraded to the ultra high purity of greater than 99.9% carbon,” so Energizer is optimistic that it will be able to sell the finished product to a wide array of end users at premium prices.
Craig Scherba, president and COO of Energizer, described today’s news as a “significant milestone,” also stating that the company is “extremely pleased that by the end of November, tonnes of [its] finished graphite will be in the hands of several potential off take partners for evaluation.”
The company expects to reveal the final test results from the pilot plant in the next few weeks and is aiming to start production at Molo in 2015.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energizer Resources is a client of the Investing News Network. This article is not paid-for content.