objective capital rare earth and minor metals investment summit: reopening a former soviet producer...
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Objective Capital Rare Earths, Speciality and Minor Metals Investment Summit Focus on rare earths projects around the world Reopening a former soviet producer 18 March 2010 by Robert Mackay, Stans EnergyTRANSCRIPT
RARE EARTHS, SPECIALITY & MINOR METALS INVESTMENT SUMMIT
THE LONDON CHAMBER OF COMMERCE AND INDUSTRY ● THURSDAY, 18 MARCH 2010www.ObjectiveCapitalConferences.com
Investment Conferences
2.55 – 3.20 Focus on rare earths projects around the worldReopening a former soviet producerRobert Mackay –CEO, Stans Energy
Corporate Presentation
March 2010
TSX–V: RUU.V
Statements contained in this presentation which are not historical facts are forward-lookingstatements that involve risks, uncertainties and other factors that could cause actual results to differmaterially from those expressed or implied by such forward-looking statements. Factors that couldcause such differences, without limiting the generality of the following, include: risks inherent inexploration activities; volatility and sensitivity to market prices for uranium and rare earths;volatility and sensitivity to capital market fluctuations; the impact of exploration competition; theability to raise funds through private or public equity financings; imprecision in resource and reserveestimates; environmental and safety risks including increased regulatory burdens; unexpectedgeological or hydrological conditions; a possible deterioration in political support for nuclear energyand rare earth technologies; changes in government regulations and policies, including trade laws andpolicies; demand for nuclear power and rare earth products; failure to obtain necessary permits andapprovals from government authorities; weather and other natural phenomena; and otherexploration, development, operating, financial market and regulatory risks. Although Stans EnergyCorp. 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 thisrelease. 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 Statesinvestors are advised that while the term "inferred" resources is recognized and required by Canadianregulations, the SEC does not recognize that term. Investors are cautioned not to assume that all orany 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’
2010 AGENDA:
1. Commence feasibility study on restarting production at Kutessay II.2. Confirm the extensive Russian and Kyrgyz data on Kutessay II by
producing a JORC Resource Estimate.3. Commence economic evaluation of KCMP REE Processing Facilities.4. Begin establishing relationships with the end-users of REEs and evaluate
partnership opportunities.5. Consult Stans Energy’s world-class partners in geology, mining
engineering and science to create a new mine plan for Kutessay II.6. Assemble a motivated team in Kyrgyzstan to implement the new mine
plan.
SAMPLE REE PRODUCTS
Compact Fluorescent LightsCarbon lighting systemsLEDs and OLEDsSolar panelsThermal resistance alloys Aircraft enginesSuper magnetsFibre optic cablesIndustrial motorsMicrophonesComputer hard drivesHybrid vehicle batteriesCatalytic convertersElectric car motorsPermanent magnetsWind and tidal turbinesHydrogen fuel storage cells
2009 WORLD REEs SUPPLY(95% from China’s Mining Monopoly)
2009 WORLD REEs DEMAND(1.2 billion USD world-wide)
• Strategic planning nation, China, recognizes its Heavy Rare Earths (HREEs) deposit has <10 years of mine life remaining at projected extraction rates
•China implements export quotas & tariffs on REEs
•China actively attempts to acquire new REE resources, to ensure a future supply
• World REEs demand constantly increased prior to 2009
• REEs demand forecasted to increase at over 10% per year until 2014
• Mining companies scramble to advance REEs properties, with no clear-cut resource deposit to fill the future supply gap
010,00020,00030,00040,00050,00060,00070,00080,00090,000
100,000110,000120,000130,000140,000
1956 1965 1985 2002 2008
China USA Other
Monazite-placer │ Mountain Pass │ Chinese era → ? era era
Prod
uctio
n, m
etric
tons
Past-producing Rare Earth Elements (REEs) open-pit mine
Produced 80% of total REEs for the former USSR for 30 years
MINING LICENCE for Kutessay II and surrounding properties signed on December 29, 2009, and is 100% owned by Stans Energy Corp.
The Kyrgyz government is supportive in bringing Kutessay II back into production
Estimated remaining REE Reserves A+B+C1+C2+r/b = 63,300,000 Kilograms*
Conservative average REE oxide price of $35.23 per Kg
LREEs/HREEs ratio of approximately 50/50
Located 150 km from Bishkek, with existing infrastructure of paved roads and power
*Reserve estimate is historical, not NI 43-101 compliantand should not be relied on
Deposit has quantities of all 15 REE, plus thorium, silver, molybdenum, lead, zinc, tantalum, niobium, hafnium and bismuth with KNOWN METALLURGY
Historical REEs recovery rate of 65%
120 REE products were produced, including oxides, metals and alloys from Kutessay II concentrate
Abundant amount of qualified labour available in the area
Element Oxide % of Historical REEs
*Price/Kg USD
Weighted AVG P/Kg of REEs contained
Lanthanum (La) %9.12 $5.10 0.47
Cerium (Ce) 25.02 4.20 1.05
Praseodymium (Pr) 3.2 20.00 0.64
Neodymium (Nd) 8.49 21.00 1.78
Samarium (Sm) 3.81 3.40 0.13
Europium (Eu) 2.51 480.00 12.05
Gadolinium (Gd) 2.69 7.86 0.21
Terbium (Tb) 1.15 350.33 4.03
Dysprosium (Dy) 6.26 118.00 7.39
Holmium (Ho) 1.16 25.38 0.29
Erbium (Er) 4.82 25.50 1.23
Thulium (Tm) 0.05 790.00 0.40
Ytterbium (Yb) 1.77 155.30 2.75
Lutetium (Lu) 0.06 238.09 0.14
Yttrium (Y) 26.69 10.01 2.67
Totals **%96.8 35.23
*Prices taken from asianmetal.com FOB & are subject to change. **Stans is currently confirming historical percentages.
La9.42%
Ce25.85%
Pr3.31%
Nd8.77%
Sm3.94%
Eu2.59%
Gd2.78%
Tb1.19%
Dy6.47%
Ho1.20%
Er4.98%
Tm0.05%
Yb1.83%
Lu0.06%
Y27.57%
LREEsHREEs
La1.32%
Ce2.98%
Pr1.82%
Nd5.06% Sm
0.37%
Eu34.20%
Gd0.60%Tb
11.44%
Dy20.97%
Ho0.84%
Er3.49%
Tm1.12%
Yb7.80%
Lu0.41%
Y7.58%
LREEsHREEs
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 for 1 year.
Kyrgyz-Russian Slavic University
CSRL
ARRICT
GEOTEP
UranGeo
IGPMG RAS
ARRIMR
Russia Kyrgyzstan
Canada
Honorary Consul of the Kyrgyz Republic for
Canada
Legend
Signed Partnership
Negotiations in Progress
Kutessay II will require a limited amount of capital to bring back into production compared to other REE properties because of the following value drivers:
i) Mining licenseii) 30 years of known metallurgy and recoveriesiii) Existing infrastructure and processing facilitiesiv) 50/50 LREEs to HREEsv) Scientific & Geological partners with REEs expertisevi) Qualified local labour force
Surrounding REE properties signal further exploration. Kalesay and Kyzyluraanskaya could be economic in the future. Alabuga and Koshdube require drilling to determine the potential of the properties.
DR. DOUGLAS H. UNDERHILL; Ph D, M Sc, QPBA (Geology), MBARetired Uranium Specialist with the IAEA
DR. MARAT FAZLULLIN;Leading world expert on acid ISL technologies
Share Type NumberCommon 108,647,183
WarrantsOptions
23,025,0009,490,000
Total 141,162,183
RODNEY IRWIN, MAChairman of the BoardRetired Canadian Ambassador to RussiaHonorary Consul of Kyrgyz Republic in Canada
GORDON BAKER, QCVice Chairman of the Board
Corporate Law Specialist
ROBERT MACKAY; BSc. MiningPresident, CEO& Director20 years experience inthe capital markets
BORIS ARYEV; MSc., PEng
COO & DirectorFounding Director of the Canadian-Eurasia-Russia Association; Founder &
Chairman of its Mining & Northern Development
Committees
DR. GENNADY SAVCHENKO, CGeol FGS, QPManaging Director of STANS ENERGY KG
DR. DOUGLAS H. UNDERHILL; Ph D, M Sc, QPBA (Geology), MBADirectorRetired Uranium Specialist with the IAEA
LENA MASTERS; CGA, B. Law, BA (Finance)
CFO12 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.