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TRANSCRIPT
June 2011
AGM PRESENTATION
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
obtain 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
outside 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
I
Northern Northern Northern Northern Northern Northern Northern Northern Northern
ore bodyore bodyore bodyore bodyore bodyore bodyore bodyore bodyore body
Central Central Central Central Central Central Central Central Central
ore bodyore bodyore bodyore bodyore bodyore bodyore bodyore bodyore body
DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007
DHPr008DHPr008DHPr008DHPr008DHPr008DHPr008DHPr008DHPr008DHPr008
IIIIIIIII
IIIIIIIII
IIIIIIIIIIIIIIIIII
IIIIIIIIIIIIIIIIII
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 depositthe Kutessai II depositthe Kutessai II depositthe Kutessai II depositthe Kutessai II depositthe Kutessai II depositthe Kutessai II depositthe Kutessai II depositthe 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 numberDesigned drill hole and its numberDesigned drill hole and its numberDesigned drill hole and its numberDesigned drill hole and its numberDesigned drill hole and its numberDesigned drill hole and its numberDesigned drill hole and its numberDesigned drill hole and its number
Section line I-ISection line I-ISection line I-ISection line I-ISection line I-ISection line I-ISection line I-ISection line I-ISection line I-I
2213м2213м2213м2213м2213м2213м2213м2213м2213м
DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007DHPr007
2293м2293м2293м2293м2293м2293м2293м2293м2293м
2263м2263м2263м2263м2263м2263м2263м2263м2263м
Open pit outlineOpen pit outlineOpen pit outlineOpen pit outlineOpen pit outlineOpen pit outlineOpen pit outlineOpen pit outlineOpen 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 on the deep levels of the Aktyuz Deposit
Beryllium deposit with historical reserves of С1+С2 category:
ore – 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
of 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
Kutessay III
TSX-V: HRE
STANS ENERGY CORPORATION 8 King St. East, Suite 205 Toronto, ON, M5C 1B5
Tel: 647 426 1865, Fax 647 426 1869 [email protected] www.stansenergy.com
INVESTOR RELATIONS
David Vinokurov Manager of Investor Relations
OTCQX: HREEF