vanadium tenement - next to 'green giant'

Hi. I'm trying ascertain other peoples thoughts on this tenement and whether I had misunderstood something. To me the Vanadium (or Fotadrevo) Project was always the most exiting of MGY's tenements and something that indicates to me that MGY is possibly undervalued. This is my research:

( 1 ) The tenement next door to the Fotadrevo Project:

Next door we have the Energizer Resources prized "the Green Giant" tenement - self proclaimed as the 3rd biggest in the world.

Direct from Energizers website:
"Energizer Resources Inc. (formerly Uranium Star Corp.) is a mineral exploration company whose prime focus is the exploration and development of its Green Giant Vanadium Property in Madagascar.

About the Green Giant Vanadium Project:
The Green Giant vanadium project, located in Madagascar, is 100% owned by Energizer. The Company has a National Instrument 43-101 compliant indicated resource estimate of 49.5 million tonnes at an average grade of 0.693% vanadium pentoxide (?V2O5?) containing 756.3 million pounds of V2O5 and an inferred resource of 9.7 million tonnes at an average grade of 0.632% V2O5 containing 134.5 million pounds of V2O5. With this resource estimate, the Green Giant deposit currently ranks as the third largest known vanadium deposit in the world, with 75% of the 21-kilometre (18 mile) stratigraphic trend of vanadium remaining open for drilling."

http://www.energizerresources.com/index.php?option=com_content&view=article&id=363:energizer-resources-announces-us-15-million-non-brokered-private-placement-releases-updated-ni-43-101-report-on-green-giant-project&catid=137:2011&Itemid=158

Initial Metallurgy Studies found the Following:
"Metallurgy ? up to 82% vanadium recovery

The Company is providing the following summary regarding the unique characteristics of the Green Giant vanadium deposit and the resulting metallurgy test results to date to provide greater clarification:

The geology of the Green Giant deposit is unlike most of the vanadium mines currently in operation or scheduled to come into production in the near term ? the Green Giant vanadium is sediment-hosted, in contrast to the magnetite-hosted deposits, and as a result, the metallurgical process for the Green Giant project is expected to be different and the project is expected to produce high purity vanadium pentoxide used in both the steel and battery industries.

Metallurgical test work conducted to date by SGS Lakefield in Canada and Mintec Laboratories in South Africa have extracted up to 82% vanadium in a clean liquor using a pre-roast and alkaline pressure leaching process.
Gven its unique geology, physical beneficiation (or upgrading) of the vanadium-bearing ore is not an essential component of the process flow sheet ? in fact, based on internal economic analysis, even without physical beneficiation, the operating costs of our Green Giant project is expected to be comparable to the magnetite-hosted vanadium producers

George Annandale, a world-renowned vanadium expert, and consultant to the Company, said, ?Armed with the promising results from the metallurgical test work conducted by SGS Lakefield, I am confident that we will be able to optimize the conditions of the pre-roast and alkaline pressure leaching process to further enhance the economics of the project. The Green Giant project is well on its way to becoming one of the world?s largest producers of vanadium.?

http://www.energizerresources.com/index.php?option=com_content&view=article&id=366:energizer-resources-provides-update-on-the-development-of-its-green-giant-vanadium-project&catid=137:2011&Itemid=158

FYI see Obama getting excited about Vanadium batteries:
http://www.cbsnews.com/video/watch/?id=7357386n
Note: Vanadium is used for a variety of applications including steel making.

( 2 ) The Malagasy Vanadium Tenement

When looking at the Gravity Surveys its evident that the the vanadium trend appears to extend into the MGY tenements (see image below). In fact the radiometric resonance is of greater magnitude in the MGY property than the EGZ property.

Initial trenching in the Malagasy Tenements which found the following:

"Trenching (costeaning) by MGY in late 2009 returned results up to 0.060% V205 over 10 metres from channel samples. Follow-up inspection and prospecting in 2010 confirm the identification of vanadium minerals within MML ground from an additional 12."

Malagasy Minerals appears to own 11km of the 21km Vanadium trend (according to Energiser the trend is only 21km long). To put things into perspective.

Energizer Resources is a 58 million market cap company (at its height it was trading at a market cap of 92 million). MGY is trading at only 7.8 million despite appearing to have similar resource potential. There is significant upside if MGY finds anything.



2 ) Other Projects:

Ampanihy Project:
Ianapera Area - Significant Mineralisation. Low tenor Ni-Co assays.
Maniry Area - Significant Mineralisation. Low tenor Ni-Co assays.

Vohibory Project:
Strong surface copper-silver anomalies detected 2.8-28% copper & 206g/t of silver at surface. RC drilled at large anomaly as detected by Gravity surveys. Malachite observed. Results are due Late Feb - Early March 2011. RedCat Minerals bought 1/3 of MGY's Vohibory tenement as party of their future upcoming IPO.

I have little expectation of results from the Ampanihy Project. Most results from this area were poor. The vohibory project on the other hand... results are still pending and initial rock sampling was very positive.

( 3 ) Income from alternative sources:
- MGY owns labrodorite tenements from which they earn a Labrodorite Dimension Stone Royalty Stream.
- In 2008-2009 MGY bought BRGM assets which comprise of 3 diamond core drill rigs. The separately bought a RAB Rig. They rent the equipment to other exploration firms as rental income.
-They sold 1/3 of their Vohibory land (the less exciting third) to Red Cat Minerals in exchange for payments and a portion of their IPO.


Anyway, if anyone has any thoughts, please share them. Please excuse any poor grammar or spelling.