November, 2010 - Stans Energy Corp.

November, 2010
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.
The only Heavy Rare Earth Elements (HREEs) producer in the entire
world recently stated, “China‟s medium and heavy rare earths
reserves may last 15 years to 20 years at the current rate of
production, possibly requiring imports”
China‟s Ministry of Commerce
October 16th, 2010
Aside from 2009, demand for HREEs has been steadily increasing.
Over the next 5 years, we believe that there is no one project or
combination of projects that will be able to fill the looming gap in the
supply of heavy rare earth elements (HREEs).
Accounting for current HREE economic trends, even a modest increase
in HREE demand would effectively create a supply crisis in some
elements.
HREE prices are moving higher
IMMEDIATE GOAL:
„Stans Energy will become the first HREEs producer outside of China by
revitalizing its 100% owned, former REEs mine, Kutessay II‟
AGENDA:
1.
2.
3.
4.
5.
6.
7.
Confirm the extensive Russian and Kyrgyz geological and surface data
on Kutessay II by producing a JORC Resource Estimate.
Finalize economic evaluation of KCMP REE Processing Facilities.
Establish relationships with the end-users of REEs and evaluate
partnership opportunities.
Create a new mine plan for Kutessay II following consultation with Stans
Energy’s world-class geology, mining engineering and science partners.
Commence feasibility study for Kutessay II
Establish a team in Kyrgyzstan to implement the new mine plan
Evaluate additional HREE acquisitions
Fact 1:
Specific HREEs are in short supply. Bringing new REE properties into
production will be essential to meet the demand for these specific REEs,
but increased production will cause a supply surplus for others (LREEs).
Fact 2:
The capital costs of bringing new undeveloped properties into production will
be in the hundreds of millions - to billions of dollars (e.g. infrastructure,
milling, plant facilities, etc.). Permitting issues, environmental studies, and
other setbacks related to opening a new mine can potentially add years to
projected development timeframes.
Fact 3:
Although the metallurgy of a prospective mine can be proven before mass
production takes place, the R&D needed to perfect the REE metallurgical
processes at each specific location is extremely difficult and costly. In
addition, many REE mineral complexes have never been mined before and
operationalizing a large-scale development can take many years.
Fact 4:
The fastest, most cost effective way to make a mine is to put an existing
mine back into production.
 Stans Energy Corp owns 100% of a
20-year Mining Licence for Kutessay
II, signed on December 29, 2009
 Kutessay II is the only past producing
HREE mine outside of China
 Previously produced 80% of the
Former Soviet Union’s REEs for 30
years
 Kutessay II was the source of 120
different REE products including
oxides, metals, and alloys
 Known, proven metallurgical process
 Weighted average International
price of $80/kg US (Oct. 2010)
 Historical recovery rate of 65%
 Infrastructure of paved roads,
power, rail, water in place
 The new government of Kyrgyzstan
is fully supportive of bringing
Kutessay II back into production
Kutessay II REE Mine
51,500 tonnes TREO, 0.3 grade, 48% HREEs
Element Oxide
Lanthanum (La)
Historical
REEs %
REO$/Kg USD
Nov. 2010
9.12
60.00
25.02
60.00
3.20
81.00
8.49
85.00
3.81
35.00
2.51
610.00
Gadolinium (Gd)
2.69
40.00
Terbium (Tb)
1.15
625.00
Dysprosium (Dy)
6.26
286.00
Holmium (Ho)
1.16
38.38
Erbium (Er)
4.82
50.18
Thulium (Tm)
0.05
790.00
Ytterbium (Yb)
1.77
155.30
Lutetium (Lu)
0.06
250.92
26.69
76.00
Cerium (Ce)
Praseodymium (Pr)
Neodymium (Nd)
Samarium (Sm)
Europium (Eu)
Yttrium (Y)
(historical)
Kalesay
Aktyuz
Kutessay III
Kutessay II
1.
Prices of REEs are highly volatile, and often change weekly. There is no
current futures market for REEs. Price discovery is obtained using Free-OnBoard (FOB) surveys of recent transactions.
2.
REE oxides are the most common way to list the elements’ prices, however,
there are many additional products for REEs, including pure metals, alloys,
and concentrates; all of which have independent prices.
3.
There is an industry standard purity for each REE compound, but specific
orders for purity levels can substantially increase the price.
4.
Given the lack of REE substitutes, a small restriction in supply, or a small
increase in demand can result in a significant price spike for certain
elements.
5.
Many REE prices in 2010 have reached their pre-recession highs, and are
resuming the price trends experienced prior to 2008.
Kutessay II REE Breakdown
(% of Ore)
Kutessay II REE Breakdown by Value
(FOB prices in USD Nov. 2010)
La
9.42%
Y
27.57%
La
5.30%
Y
20.68%
Ce
25.85%
Lu
0.06%
Yb
1.83%
Tm
0.05%
Ce
14.54%
Lu
0.23%
Yb
4.71%
Tm
0.38%
Pr
2.51%
Nd
6.99%
Er
2.70%
Ho
0.49%
Er
4.98%
Ho
1.20% Dy
6.47%
Tb
1.19%
Gd
2.78%
Eu
2.59%
Sm
3.94%
Nd
8.77%
Pr
3.31%
LREEs
HREEs
Sm
1.29%
Dy
17.34%
Tb
6.96%
Gd
1.04%
Eu
14.83%
Average REO price of $99/kg
LREEs
HREEs
Geophysical Survey
Kutessay III Assays Pending
Kutessay II
Exploration Licence Area
40 Km2, 50+ mineralized targets
Kutessay
III
•
•
•
•
•
KCMP was designed to separate
REEs from concentrate derived
from Kutessay II
Almost all equipment remains
on site
Produced Oxides, Metals, and
Alloys up to 99.99%
Under care and maintenance
since 1990
Stans Energy owns an exclusive
option to purchase KCMP

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 $356,000.00/t USD

By modernizing the existing infrastructure, the
mine could be developed after refurbishing the
concentrating mill, tailings line and tailing dumps

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


Kyzyluraanskaya is located
directly south of the main
reservoir for Kyrgyzstan’s hydro
electric power generation
13 defined areas over 15
kilometers up to 200 meters at
an average grade of 0.025%

Open pit, heap leachable

NI 43-101 compliant

Correct geological environment
to host in-situ leaching
uranium deposits

Known Uranium showings in the
area

Highly accessible by paved
road, with access to electrical
power

Never been drilled
September 13, 2010 :
Stans Energy Corp. signed an agreement with Leading Russian
Research Institute of Chemical Technology to evaluate and pursue rare
earth acquisitions in the Russian Federation.
Canada
Russia
VNIIHT
Honorary Consul of
the Kyrgyz Republic
for Canada
Kyrgyzstan
CSRL
IGPMG RAS
ARRIMR
GEOTEP
Kyrgyz-Russian
Slavic University
What’s Next?
 Confirm the extensive Russian and
Kyrgyz geological data on Kutessay II
by producing a JORC resource
estimate and complete a new mine
design
 Test the depth potential of Kutessay
II with deep underground drilling
 Complete geophysical survey of the
entire Aktyuz Ore Field to locate
additional drill targets
 Complete economic evaluation of
KCMP REE processing facility
 Establish relationships with end users
of REEs and evaluate partnership
opportunities
 Upgrade the past metallurgical
process to implement new
technologies and chemicals
 Commence a feasibility study on
resuming production at Kutessay II
 Assemble mining, milling, and
metallurgical team to restart
Kutessay II, and KCMP
Conclusions
Due to the following value drivers, Kutessay II will require a
limited amount of capital to bring back into production
Compared to other REE properties:
i) Mining licence
ii) 30 years of known metallurgy and recoveries
iii) Existing infrastructure and processing facilities
iv) 50/50 LREEs to HREEs
v) Scientific & Geological partners with REEs expertise
vi) Qualified local labour force
Kutessay II is one of the only REE deposits in the world that can
help fill the imminent HREE supply shortage in the coming years.
TSX-V: RUU
Kutessay III
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
The Buick Group
[email protected]
Share Type
Number
Common
132,397,183
Warrants
3,025,000
Options
12,740,000
Total
148,162,183
 No debt
 Roughly 3 mil cash Nov. 30, 2010
 Market capitalization of
$122,975,000 Nov. 30, 2010
 52 week high/low = 1.14/0.10
GORDON BAKER, QC
Vice Chairman of the Board
Corporate Law Specialist
RODNEY IRWIN, MA
Chairman of the Board
Retired Canadian
Ambassador to Russia
Honorary Consul of Kyrgyz
Republic in Canada
ROBERT MACKAY;
BSc. Mining
President, CEO
& Director
20 years experience in
the capital markets
DR. GENNADY SAVCHENKO,
BORIS ARYEV;
CGeol FGS, QP
MSc., PEng
Managing Director of
COO & Director
STANS ENERGY KG
Founding Director of the
Canadian-Eurasia-Russia
Association; Founder &
Chairman of its Mining &
Northern Development
Committees
DR. DOUGLAS H. UNDERHILL;
Ph D, M Sc, QP
BA (Geology), MBA
LENA MASTERS; CGA, B.
Director
Retired Uranium
Law, BA (Finance)
Specialist with the IAEA
CFO
12 years of financial and
operational experience in
Investment Industry.
DR. MARAT FAZLULLIN;
Leading Russian expert on
uranium, gold, and rare metals
MR. JAMES ALLAN; P.Eng,
BASc, MSc.
Rare earths exploration and
deposit evaluation expert
MR. JAMES B. HEDRICK;
Retired mineral commodities
expert for the USGS for rare earth
elements, thorium, zirconium,
hafnium, and the mica group
minerals.
Dr. Valery Kosynkin;
Ph.D., Professor.
Leading Russian chemical and
metallurgical expert in rare earths
Chairman of the Board; RODNEY IRWIN, MA ,
Honorary Consul of Kyrgyz Republic in Canada
From 1972 to 1974, Rodney joined the Department of External Affairs, in Ottawa, then in 1978 through
to 1980, he served abroad in New-Delhi, Moscow & Port of Spain. From 1988 to 1990 Rodney served as
High Commissioner, then in 1992, was named Ambassador to Yugoslavia. Due to the war with Croatia,
he served as Ambassador to Albania, Bulgaria, Slovenia & Croatia. From 1993 to 1996, he was
Ambassador to Hungary while retaining his Balkan country accreditations. From 1999 to 2003, he
served as Ambassador to the Russian Federation with concurrent accreditation to the Republics of
Armenia & Uzbekistan. At this time, Rodney then retired to Ottawa after 32 years in the foreign
service.
Vice - Chairman of the Board; Gordon R Baker, Q.C.
In 1972, Gordon was called to the Bar of Ontario, then in 1983, he was appointed to the Queens
Counsel. A highly regarded corporate law specialist, Gordon holds extensive experience in business
law (mergers, acquisitions, joint ventures, financing & structuring) and has acted as counsel (including
as a registered lobbyist) advising on government relations (strategic planning, negotiation, compliance
issues).
President, CEO & Director, Stans Energy Corp; ROBERT MACKAY, BSc Mining
Robert worked in various facets of Mineral Exploration from 1969 to 1975 including diamond drilling,
geophysics, geological mapping and prospecting. In 1975, Robert graduated from the Haileybury
School of Mines. From 1975 to 1980, he gained extensive experience in mining, including mine
planning, surveying, grade control, industrial engineering, open pit and underground production.
Robert graduated from The South Dakota School of Mines Technology in 1980 with a Mining
Engineering Degree and over the next twenty years he worked in the investment business and was a
Vice President of two national investment firms. In 2000 Robert started a consulting business and
over the next 5 years he worked as a Project Engineer on projects in Canada, United States, China
and Africa.
Chief Operating Officer & Director; BORIS ARYEV, MSc, PEng
In 1972, Boris graduated from the USSR State Institute Civil Aviation in Riga Latvia. From 1972 to
1982, he worked in the regal branch of the Central Research Institute of Communication Science of
the Ministry of Communications of the USSR. After migrating to Canada in 1983, he worked as a
software development consultant with NCR Canada Limited & OPTIMOD Inc. until1986 and then with
Verifact Inc. until 1996. In 1990, Boris became and still is President of Marhope Systems Inc.,
providing management and consulting services to both public and private sectors. Boris is the
founding Director of the Canada-Eurasia-Russia Business Association, founder and chairman of its
Mining & Northern Development Committees and co-founder of IEC Minerals Working Group.
Chief Financial Officer; LENA MASTERS, CGA, B. Law, BA (finance)
Masters has over 12 years of financial and operational experience in the investment industry,
overseeing financial functions of public companies in Canada and companies with capitalization of
over EUR 100 million internationally (US, Jersey, Cyprus, Eastern Europe). Masters served as CFO of
Sino Vanadium Inc. TSX: SVX and JJR Capital Corp. (including its predecessor JJR Capital Partners), a
private equity merchant bank based in Toronto. Ms. Masters also acted as corporate controller for the
following Canadian companies: CD Capital Partners, 2008-2009, JJR II Acquisition Inc. TSX: JJR. P
(also serves as Director) 2007-2009; JJR IV Acquisition Inc. TSX: JJV.P 2007-present, SSQ Acquisition
Inc. (TSX: CWG) 2006-2007.
Managing Director of STANS ENERGY KG; DR. GENNADY SAVCHENKO, CGeol, FGS, Qualified Person
(QP)
Dr. Savchenko graduated from Frunze Polytechnical Institute with a Mining Engineer-Geologist
Diploma and Ph. D in Geology & Mineralogy in 1971, then worked till 1981 in exploration & mining
enterprises for Uranium in Kazakhstan, East Germany and China. He then became Deputy Chief
Geologist of Kara-Balty Uranium mining enterprise in Kyrgyzstan where he remained for eight years.
Next, he became Chief Geologist of Kara-Balty until 1996 when he became Chief Geologist for
Kyrgyzaltyn, a state owned gold company. From 2000 to 2002, Dr. Savchenko was Deputy Chief in the
Department of Geology & Investment for the Kyrgyz State Geology & Mineral Resources Agency. He
was also a member of Kyrgyz State Mineral Reserves Committee. Gennady is a Fellow, Chartered
Geologist, of the London Geological Society
Director; DR. DOUGLAS H UNDERHILL, CPG, PhD, MSc, BA (Geology), MBA, Qualified Person (QP)
From 1993 to 2002, Doug was a Uranium Resource & Production Specialist for International Atomic
Energy Agency in Vienna. He has over 40 years of minerals industry experience with nearly 30 of
those years dedicated to uranium (including experience in Kazakhstan & Uzbekistan). As Senior
Consultant with Nuclear Assurance Corporation (USA), he is responsible for consulting on Uranium
supply strategy and maintaining a worldwide uranium production projects database. Doug
represented IAEA in Joint IAEA-NEA Uranium Group. Has an MBA in Strategic Planning & Finance.
Advisor; DR. MARAT I FAZLULLIN
Leading Russian expert on uranium, gold, and rare earths
Dr. Fazlullin is a renowned Professor, Doctor of (engineering) Science, member of the Mineral
Resources International Academy and an Honorable Geologist of the Russian Federation. He has
written over 300 publications on Uranium and gold-ore deposits including treatment by the heap and
underground leaching methods. He has co-authored papers for the development of Uranium
deposits in Uzbekistan, Kazakhstan and Russia. Dr. Fazlullin worked for many years in the Scientific
& Research Institute of the USSR’s Ministry of Geology and Ministry of Medium Machine-Building
Industry. Here, he wore several hats serving as Deputy Director of the Institute, Department Head
and Director of the division responsible for prospecting and exploitation of Uranium & gold deposits.
He also lead prospecting teams and expeditions for poly-metallic, mercury deposits, oil and gas
fields located in Kyrgyzstan, Tajikistan & Algeria as a Chief Engineer.
Advisor; DR. VALERY KOSYNKIN; Ph.D., Professor
Dr. Kosynkin graduated with degree in Chemistry at Moscow State University in 1958. From 1959 until
the present, Dr. Kosynkin has been employed by Russia's State Institute of Chemical Technologies
(VNIIHT). Since 1973, he has been in charge of VNIIHT's research and development of REEs chemistry
and technology. In 1964, Dr. Kosynkin earned his Ph.D. dissertation in a uranium related topic. In
1988, Dr. Kosynkin completed his doctorate dissertation on the development of REEs through
processing loparite concentrate. He became a professor in 1990 and has lectured in Russia, China and
Korea, and was twice a recipient of USSR and Russian government awards for his work in the REEs
industry. Through his time with VNIIHT, Dr. Kosynkin held the following positions - Chief of Laboratory,
Head of the REEs Department, and at present, he presides as an Advisor. Dr. Kosynkin has been in
charge of the technical research and commissioning of new REE productions in Russia, Ukraine,
Estonia and Kazakhstan.
Advisor; MR. JAMES ALLAN BASc (Geological Engineering) MSc (Geology, Engineering)
Mr. Allan is a Registered Professional Engineer with the Association of Professional Engineers,
Geologists and Geophysicists of Alberta (APEGGA). As a geological engineer, James has over 45 years
of experience working with several major mining and petroleum companies and as an independent
consultant in mining exploration and exploration management, mineral property evaluation and
mining geology.
Mr. Allan has conducted and managed exploration and evaluation programs for a wide variety of
mineral commodities in Canada, the United States, Latin America, the Philippines, Malaysia, Australia
and the former Soviet Union including Russia.
Stans will call upon Mr. Allan’s wealth of knowledge and experience in the rare earth sector. James
has been involved in the exploration for, and evaluation of, rare earth deposits both as manager of
exploration in Canada for a large rare earth company from 1982 to 1990 and as an independent
consultant.
Advisor; MR. JAMES B. HEDRICK
Mr. Hedrick is a rare-earth elements, scandium, yttrium, thorium, zirconium, hafnium, and the mica
group of minerals expert. Recently retired from the U.S. Geological Survey, James possesses a wealth
of knowledge with over 31 year of experience in Mineral commodities. He is the author of over 300
publications on REEs, thorium, zirconium & hafnium, and mica.
James served as an engineering geologist with the U.S. Army Corps of Engineers-Civilian, Portland,
Oregon, and as an economic geologist with the U.S. Bureau of Mines, Pittsburgh, Pennsylvania. Mr.
Hedrick reviewed environmental impact statements for the Director of the U.S. Bureau of Mines. He
was also a member of the International Advisory Board for the 2nd International Conference on fElements, Helsinki, Finland, a past board member of Rare Earth Research Conferences Inc., and a
member of the Superconducting Materials Subcommittee under the Office of the President’s
Committee on Materials (COMAT) 1987. Mr. Hedrick served as Chairman and Executive secretary of
the U.S. Government’s Minerals, Metals, and Materials Advisory Board from 1981 to 1995, and chaired
two sessions on the rare-earth elements and one on strategic and critical minerals for The Society for
Mining, Metallurgy, and Exploration (SME).