Toronto stocks are rising in Thursday morning action, with Energizer Resources Inc. (TSX:EGZ)(OTCQB:ENZR) coming out of the gates as one of the best performing stocks on the Toronto Stock Exchange. Shares have been gaining on news of the company revising the plans for phase 1 of mine development at the company's Molo Graphite Project in Madagascar.
The update including substantial production and a current feasibility study indicating the mine development is "imminent." Encouraging results from a design study completed in November and, subsequently, further analysis underpinned the decision upgrade phase 1 from a demonstration plant (essentially a beta test) into a fully sustainable graphite-producing mine.
The plan includes a permanent processing plant capable of producing approximatley 15,000 tonnes annually of high quality flake graphite for an initial mine life of 20 years. Phase 2 will include expansion to 53,000 tonnes yearly. Energizer needs to secure financing for the project, but once it does, it believes it can have phase 1 completed in about six months.
Nearly 3 million shares of EGZ have already changed hand in 90 minutes of trading Thursday morning, easily the highest volume for the year so far. After closing at 8.5 cents each on Wednesday, shares are currently holding at 10 cents each, representing a gain of 17.7% on the day, and have reached as high as 11 cents. That's the highest the stock has been in nearly a year (12.5 cents on April 21, 2016).
