AGM PRESENTATION - Stans Energy Corp.
AGM PRESENTATION - Stans Energy Corp.
AGM PRESENTATION - Stans Energy Corp.
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>AGM</strong> <strong>PRESENTATION</strong><br />
June 2011
Statements contained in this presentation which are not historical facts are forward-looking statements that<br />
involve risks, uncertainties and other factors that could cause actual results to differ materially from those<br />
expressed or implied by such forward-looking statements. Factors that could cause such differences, without<br />
limiting the generality of the following, include: risks inherent in exploration activities; volatility and<br />
sensitivity to market prices for uranium and rare earths; volatility and sensitivity to capital market<br />
fluctuations; the impact of exploration competition; the ability to raise funds through private or public<br />
equity financings; imprecision in resource and reserve estimates; environmental and safety risks including<br />
increased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in<br />
political support for nuclear energy and rare earth technologies; changes in government regulations and<br />
policies, including trade laws and policies; demand for nuclear power and rare earth products; failure to<br />
obtain necessary permits and approvals from government authorities; weather and other natural phenomena;<br />
and other exploration, development, operating, financial market and regulatory risks. Although <strong>Stans</strong> <strong>Energy</strong><br />
<strong>Corp</strong>. believes that the assumptions inherent in the forward-looking statements are reasonable, undue<br />
reliance should not be placed on these statements, which only apply as of the date of this release. <strong>Stans</strong><br />
<strong>Energy</strong> <strong>Corp</strong>. disclaims any intention or obligation to update or revise any forward-looking statement,<br />
whether as a result of new information, future events or otherwise. United States investors are advised that<br />
while the term "inferred" resources is recognized and required by Canadian regulations, the SEC does not<br />
recognize that term. Investors are cautioned not to assume that all or any part of mineral deposits in this<br />
category will ever be converted into reserves.
IMMEDIATE GOAL:<br />
‘<strong>Stans</strong> <strong>Energy</strong> will become the first Heavy Rare Earth Elements (HREEs) producer<br />
outside of China by revitalizing its 100% owned, former REEs mine, Kutessay II.<br />
Long Term, <strong>Stans</strong> will become a world leader in HREE development.’<br />
AGENDA:<br />
1. Optimize scale and design of <strong>Stans</strong>’ newly acquired RE Processing<br />
Complex.<br />
2. Establish relationships with the end-users of REEs and evaluate<br />
partnership opportunities.<br />
3. Create a new mine plan for Kutessay II following consultation with <strong>Stans</strong>’<br />
geology, mining engineering and science partners.<br />
4. Complete feasibility study for Kutessay II, KRP, and the Kalesay Beryllium<br />
Deposit by the end of Q4 2011<br />
5. Further team building in Kyrgyzstan to implement the new mine plan<br />
6. Evaluate additional HREE acquisitions
Element Oxide REEs % REO$/Kg USD<br />
July 7, 2011<br />
Yttrium (Y) 26.73 177.00<br />
Dysprosium (Dy) 6.14 2520.00<br />
Terbium (Tb) 1.55 4200.00<br />
Neodymium (Nd) 8.18 330.00<br />
Europium (Eu) 0.23 5880.00<br />
Erbium (Er) 3.25 295.00<br />
Praseodymium (Pr) 3.78 25.00<br />
Gadolinium (Gd) 3.59 255.00<br />
Samarium (Sm) 4.10 136.00<br />
Holmium (Ho) 0.57 200.00<br />
Thulium (Tm) 0.25 790.00<br />
Ytterbium (Yb) 3.29 155.00<br />
Lutetium (Lu) 0.50 1000.00<br />
Cerium (Ce) 19.68 159.00<br />
Lanthanum (La) 16.55 153.00<br />
Kutessay II REE Mine<br />
JORC Estimate - 46,540 tonnes TREO, 0.264 grade, 48% HREEs<br />
(Note: Resource estimate does not include stockpiled ore in the pit, the resource is open to depth, and higher grades<br />
HREEs are present at higher elevations)<br />
Aktyuz<br />
Kalesay<br />
Kutessay II<br />
Kutessay III
• <strong>Stans</strong> <strong>Energy</strong> finalized the acquisition of the<br />
RE processing complex ‘KRP’, and rail<br />
terminal on May 26 th , 2011<br />
• KRP was designed to separate REEs from<br />
Kutessay II RE concentrate<br />
• Almost all equipment remains on site, 97% of<br />
which is in good or satisfactory working<br />
condition<br />
• Produced 120 different oxides, metals, and<br />
alloys up to 99.99%<br />
• Under care and maintenance since 1991,<br />
continued to produce HRE metals from<br />
stored concentrates until 2010<br />
• Rail terminal connects to Russia, China,<br />
Korea, by ferry to Japan, and to the Middle<br />
East
DHPr007<br />
DHPr007<br />
II II II II<br />
II II<br />
Ore Ore zone zone at at the the level level level level level of of of 2213 2213 m<br />
m<br />
Section Section Section line line I-I<br />
I-I<br />
Designed Designed drill drill drill drill hole hole and and its its number<br />
number<br />
Open Open pit pit outline outline<br />
outline outline<br />
2293м 2293м 2293м<br />
2293м Deep Deep Deep exploratory exploratory levels levels of of<br />
of<br />
2263м 2263м<br />
2263м<br />
2213м 2213м the the Kutessai Kutessai Kutessai II II II II II deposit deposit<br />
2213м<br />
2213м<br />
deposit<br />
I<br />
DHPr007 DHPr007 DHPr007 DHPr007<br />
DHPr007 DHPr007<br />
DHPr008 DHPr008<br />
DHPr008<br />
I<br />
Northern<br />
Northern<br />
ore ore body<br />
body<br />
Central Central Central<br />
Central Central<br />
ore ore body<br />
body<br />
I<br />
II<br />
II<br />
Schematic layout of designed drill holes<br />
for estimation of rare earth resources<br />
at deep levels of the Kutessay II Deposit
Section Along I-I
Section Along II-II
Exploration Licence Area<br />
40 Km 2 , 50+ mineralized targets<br />
While mining the Aktyuz deposit for lead<br />
in the 1950s, the Soviets found<br />
significant levels of all 15 REEs, plus Ag,<br />
Th, Zr, Zn, Sn, Mo, Nb, Ta, Hf and Be in<br />
the process. Once they discovered<br />
Kutessay II, the entire empire’s RE needs<br />
were scheduled to derive from Kutessay<br />
II for the next 80 years at historical<br />
production rates. Soviet surface drilling<br />
and trenching identified a total of six<br />
main zones of mineralization, but no<br />
further exploration work was completed<br />
to identify reserves in each area. <strong>Stans</strong><br />
<strong>Energy</strong> <strong>Corp</strong>. hopes to expand its<br />
identified historical RE resources by<br />
continuing a modern exploration<br />
program on the Aktyuz Ore Field in 2011.
Layout of designed drill holes<br />
on the deep levels of the<br />
Aktyuz Deposit
Kalesay<br />
Kutessay II<br />
� Beryllium deposit with historical reserves of С 1+С 2 category:<br />
ore – 9,245,000 t., containing 11,701 t of Beryllium oxide at<br />
an average grade of 0.128%*… Beryllium’s price is<br />
>$700,000.00/t USD<br />
� Due to their close proximity, the Kalesay Beryllium deposit<br />
could be developed in conjunction with Kutessay II. <strong>Stans</strong> is<br />
in the process of completing a JORC resource estimate for<br />
Kalesay.<br />
� Increasing Beryllium reserves is possible through exploration<br />
of deposit pit flanks and to the depth.<br />
� More than 70% of total reserves of the deposit can be mined<br />
by open pit<br />
*Reserve estimate from historical Soviet data, not NI 43-101 compliant and should<br />
not be relied on
Kalesay<br />
Kutessay II<br />
Classification of beryllium<br />
deposits by grade and reserves<br />
(McLemore, 2010)
Northern Ore Zone<br />
Kalesay<br />
Kutessay II<br />
Southern Ore Zone<br />
Wireframe of ore bodies of the<br />
Northern and Southern zones
Kalesay<br />
Northern Ore Zone<br />
Southern Ore Zone<br />
Kutessay II<br />
Open Pit Kutisay-II<br />
View of Kutesay II open pit<br />
and Kalesay ore zones
Kalessay Ber
� Confirm the extensive Russian and Kyrgyz<br />
geological data on Kalesay by producing a JORC<br />
resource estimate and complete a new mine<br />
design<br />
� Test the depth potential of the known REE<br />
mineralization under Kutessay II<br />
� Test the depth potential of historic Yttrium rich<br />
REE mineralization under the Aktyuz mine<br />
� Complete geophysical survey of the entire<br />
Aktyuz Ore Field to locate additional drill<br />
targets<br />
� Continuation of the program to refurbish and<br />
redesign the KRP to optimize production and<br />
to maximize efficiency using the latest<br />
technological innovations.<br />
What’s Next?<br />
� Establish relationships with end users of REEs<br />
and evaluate partnership opportunities<br />
� Upgrade the past metallurgical process<br />
(specifically at the concentrate stage) to<br />
implement new technologies, chemicals, and<br />
solvents<br />
� Complete a feasibility study on resuming<br />
production at Kutessay II by end of Q4 2011<br />
� Continue to assemble mining, milling, and<br />
metallurgical experts to restart Kutessay II, and<br />
KRP<br />
� Evaluate additional HRE acquisitions in areas of<br />
the former Soviet Union
TSX-V: HRE<br />
OTCQX: HREEF<br />
Kutessay III<br />
STANS ENERGY CORPORATION<br />
8 King St. East, Suite 205<br />
Toronto, ON, M5C 1B5<br />
Tel: 647 426 1865, Fax 647 426 1869<br />
info@stansenergy.com<br />
www.stansenergy.com<br />
INVESTOR RELATIONS<br />
David Vinokurov<br />
Manager of Investor Relations<br />
David@stansenergy.com