June 2011
AGM PRESENTATION June 2011 Statements contained in this - - PowerPoint PPT Presentation
AGM PRESENTATION June 2011 Statements contained in this - - PowerPoint PPT Presentation
AGM PRESENTATION June 2011 Statements contained in this presentation which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those
Statements contained in this presentation which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause such differences, without limiting the generality of the following, include: risks inherent in exploration activities; volatility and sensitivity to market prices for uranium and rare earths; volatility and sensitivity to capital market fluctuations; the impact of exploration competition; the ability to raise funds through private or public equity financings; imprecision in resource and reserve estimates; environmental and safety risks including increased regulatory burdens; unexpected geological or hydrological conditions; a possible deterioration in political support for nuclear energy and rare earth technologies; changes in government regulations and policies, including trade laws and policies; demand for nuclear power and rare earth products; failure to
- btain necessary permits and approvals from government authorities; weather and other natural phenomena;
and other exploration, development, operating, financial market and regulatory risks. Although Stans Energy
- Corp. believes that the assumptions inherent in the forward-looking statements are reasonable, undue
reliance should not be placed on these statements, which only apply as of the date of this release. Stans Energy Corp. disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. United States investors are advised that while the term "inferred" resources is recognized and required by Canadian regulations, the SEC does not recognize that term. Investors are cautioned not to assume that all or any part of mineral deposits in this category will ever be converted into reserves.
IMMEDIATE GOAL: ‘Stans Energy will become the first Heavy Rare Earth Elements (HREEs) producer
- utside of China by revitalizing its 100% owned, former REEs mine, Kutessay II.
Long Term, Stans will become a world leader in HREE development.’ AGENDA: 1. Optimize scale and design of Stans’ newly acquired RE Processing Complex.
- 2. Establish relationships with the end-users of REEs and evaluate
partnership opportunities.
- 3. Create a new mine plan for Kutessay II following consultation with Stans’
geology, mining engineering and science partners. 4. Complete feasibility study for Kutessay II, KRP , and the Kalesay Beryllium Deposit by the end of Q4 2011 5. Further team building in Kyrgyzstan to implement the new mine plan 6. Evaluate additional HREE acquisitions
Kutessay II Kutessay III
Element Oxide REEs % REO$/Kg USD July 7, 2011
Yttrium (Y) 26.73 177.00 Dysprosium (Dy) 6.14 2520.00 Terbium (Tb) 1.55 4200.00 Neodymium (Nd) 8.18 330.00 Europium (Eu) 0.23 5880.00
Erbium (Er) 3.25 295.00 Praseodymium (Pr) 3.78 25.00
Gadolinium (Gd) 3.59 255.00 Samarium (Sm) 4.10 136.00 Holmium (Ho) 0.57 200.00 Thulium (Tm) 0.25 790.00 Ytterbium (Yb) 3.29 155.00 Lutetium (Lu) 0.50 1000.00 Cerium (Ce) 19.68 159.00 Lanthanum (La) 16.55 153.00
Aktyuz
Kutessay II REE Mine
JORC Estimate - 46,540 tonnes TREO, 0.264 grade, 48% HREEs
(Note: Resource estimate does not include stockpiled ore in the pit, the resource is open to depth, and higher grades HREEs are present at higher elevations)
Kalesay
- Stans Energy finalized the acquisition of the
RE processing complex ‘KRP’, and rail terminal on May 26th, 2011
- KRP was designed to separate REEs from
Kutessay II RE concentrate
- Almost all equipment remains on site, 97% of
which is in good or satisfactory working condition
- Produced 120 different oxides, metals, and
alloys up to 99.99%
- Under care and maintenance since 1991,
continued to produce HRE metals from stored concentrates until 2010
- Rail terminal connects to Russia, China,
Korea, by ferry to Japan, and to the Middle East
Northern Northern Northern Northern Northern Northern Northern Northern Northern
- re body
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Central Central Central Central Central Central Central Central Central
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DHPr007 DHPr007 DHPr007 DHPr007 DHPr007 DHPr007 DHPr007 DHPr007 DHPr007 DHPr008 DHPr008 DHPr008 DHPr008 DHPr008 DHPr008 DHPr008 DHPr008 DHPr008 I I I I I I I I I I I I I I I I I I II II II II II II II II II II II II II II II II II II Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of Deep exploratory levels of the Kutessai II deposit the Kutessai II deposit the Kutessai II deposit the Kutessai II deposit the Kutessai II deposit the Kutessai II deposit the Kutessai II deposit the Kutessai II deposit the Kutessai II deposit Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m Ore zone at the level of 2213 m Designed drill hole and its number Designed drill hole and its number Designed drill hole and its number Designed drill hole and its number Designed drill hole and its number Designed drill hole and its number Designed drill hole and its number Designed drill hole and its number Designed drill hole and its number Section line I-I Section line I-I Section line I-I Section line I-I Section line I-I Section line I-I Section line I-I Section line I-I Section line I-I
2213м 2213м 2213м 2213м 2213м 2213м 2213м 2213м 2213м DHPr007 DHPr007 DHPr007 DHPr007 DHPr007 DHPr007 DHPr007 DHPr007 DHPr007 2293м 2293м 2293м 2293м 2293м 2293м 2293м 2293м 2293м 2263м 2263м 2263м 2263м 2263м 2263м 2263м 2263м 2263мOpen pit outline Open pit outline Open pit outline Open pit outline Open pit outline Open pit outline Open pit outline Open pit outline Open pit outline
Schematic layout of designed drill holes for estimation of rare earth resources at deep levels of the Kutessay II Deposit
Section Along I-I
Section Along II-II
Exploration Licence Area 40 Km2, 50+ mineralized targets
While mining the Aktyuz deposit for lead in the 1950s, the Soviets found significant levels of all 15 REEs, plus Ag, Th, Zr, Zn, Sn, Mo, Nb, Ta, Hf and Be in the process. Once they discovered Kutessay II, the entire empire’s RE needs were scheduled to derive from Kutessay II for the next 80 years at historical production rates. Soviet surface drilling and trenching identified a total of six main zones of mineralization, but no further exploration work was completed to identify reserves in each area. Stans Energy Corp. hopes to expand its identified historical RE resources by continuing a modern exploration program on the Aktyuz Ore Field in 2011.
Layout of designed drill holes
- n the deep levels of the
Aktyuz Deposit
- Beryllium deposit with historical reserves of С1+С2 category:
- re – 9,245,000 t., containing 11,701 t of Beryllium oxide at
an average grade of 0.128%*… Beryllium’s price is >$700,000.00/t USD
- Due to their close proximity, the Kalesay Beryllium deposit
could be developed in conjunction with Kutessay II. Stans is in the process of completing a JORC resource estimate for Kalesay.
- Increasing Beryllium reserves is possible through exploration
- f deposit pit flanks and to the depth.
- More than 70% of total reserves of the deposit can be mined
by open pit
*Reserve estimate from historical Soviet data, not NI 43-101 compliant and should not be relied on
Kutessay II Kalesay
Kutessay II Kalesay
Classification of beryllium deposits by grade and reserves
(McLemore, 2010)
Kutessay II Kalesay
Southern Ore Zone Northern Ore Zone
Wireframe of ore bodies of the Northern and Southern zones
Kutessay II Kalesay
Open Pit Kutisay-II Southern Ore Zone Northern Ore Zone
View of Kutesay II open pit and Kalesay ore zones
Kalessay Ber
What’s Next?
- Confirm the extensive Russian and Kyrgyz
geological data on Kalesay by producing a JORC resource estimate and complete a new mine design
- Test the depth potential of the known REE
mineralization under Kutessay II
- Test the depth potential of historic Yttrium rich
REE mineralization under the Aktyuz mine
- Complete geophysical survey of the entire
Aktyuz Ore Field to locate additional drill targets
- Continuation of the program to refurbish and
redesign the KRP to optimize production and to maximize efficiency using the latest technological innovations.
- Establish relationships with end users of REEs
and evaluate partnership opportunities
- Upgrade the past metallurgical process
(specifically at the concentrate stage) to implement new technologies, chemicals, and solvents
- Complete a feasibility study on resuming
production at Kutessay II by end of Q4 2011
- Continue to assemble mining, milling, and
metallurgical experts to restart Kutessay II, and KRP
- Evaluate additional HRE acquisitions in areas of
the former Soviet Union