Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay


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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 Energy

Published in: Economy & Finance, Business
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Objective Capital Rare Earth and Minor Metals Investment Summit: Reopening a former soviet producer - Robert Mackay

  1. 1. Investment Conferences RARE EARTHS, SPECIALITY & MINOR METALS INVESTMENT SUMMIT 2.55 – 3.20 Focus on rare earths projects around the world Reopening a former soviet producer Robert Mackay –CEO, Stans Energy THE LONDON CHAMBER OF COMMERCE AND INDUSTRY ● THURSDAY, 18 MARCH 2010 www.ObjectiveCapitalConferences.com
  2. 2. TSX–V: RUU.V Corporate Presentation March 2010
  3. 3. 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.
  4. 4. 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.
  5. 5. SAMPLE REE PRODUCTS Compact Fluorescent Lights Carbon lighting systems LEDs and OLEDs Solar panels Thermal resistance alloys Aircraft engines Super magnets Fibre optic cables Industrial motors Microphones Computer hard drives Hybrid vehicle batteries Catalytic converters Electric car motors Permanent magnets Wind and tidal turbines Hydrogen fuel storage cells
  6. 6. 2009 WORLD REEs SUPPLY 2009 WORLD REEs DEMAND (95% from China’s Mining Monopoly) (1.2 billion USD world-wide) • Strategic planning nation, China, recognizes • World REEs demand constantly increased its Heavy Rare Earths (HREEs) deposit has <10 prior to 2009 years of mine life remaining at projected extraction rates • REEs demand forecasted to increase at over 10% per year until 2014 •China implements export quotas & tariffs on REEs • Mining companies scramble to advance REEs properties, with no clear-cut resource deposit •China actively attempts to acquire new REE to fill the future supply gap resources, to ensure a future supply
  7. 7. 140,000 130,000 120,000 Production, metric tons 110,000 100,000 90,000 80,000 China USA Other 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 1956 1965 1985 2002 2008 Monazite-placer │ Mountain Pass │ Chinese era →? era era
  8. 8. 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
  9. 9. 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 compliant and should not be relied on
  10. 10. 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
  11. 11. Element Oxide % of Historical *Price/Kg Weighted AVG P/Kg of REEs USD 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.
  12. 12. La 9.42% Y 27.57% Ce 25.85% Lu 0.06% Yb 1.83% Tm 0.05% Er 4.98% Ho 1.20% Pr Dy 3.31% 6.47% Tb 1.19% Gd 2.78% Eu Sm Nd 8.77% LREEs 2.59% HREEs 3.94%
  13. 13. Lu Y La Ce Pr Nd Yb 0.41% 7.58% 1.32% 2.98% 1.82% 5.06% 7.80% Sm Er 0.37% Tm 3.49% 1.12% Ho 0.84% Eu 34.20% Dy 20.97% Tb Gd LREEs 0.60% 11.44% HREEs
  14. 14. 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.
  15. 15. Canada Honorary Consul of the Russia Kyrgyz Republic for Canada Kyrgyzstan ARRICT IGPMG RAS CSRL ARRIMR GEOTEP Kyrgyz-Russian Slavic University UranGeo Legend Signed Partnership Negotiations in Progress
  16. 16. 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 license 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 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.
  17. 17. DR. DOUGLAS H. UNDERHILL; Ph D, M Sc, QP BA (Geology), MBA Retired Uranium Specialist with the IAEA DR. MARAT FAZLULLIN; Leading world expert on acid ISL technologies
  18. 18. Share Type Number Common 108,647,183 Warrants 23,025,000 Options 9,490,000 Total 141,162,183
  19. 19. RODNEY IRWIN, MA Chairman of the Board Retired Canadian Ambassador to Russia Honorary Consul of Kyrgyz Republic in Canada GORDON BAKER, QC Vice Chairman of the Board Corporate Law Specialist ROBERT MACKAY; BSc. Mining President, CEO & Director 20 years experience in the capital markets
  20. 20. 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 Director LENA MASTERS; CGA, B. Retired Uranium Law, BA (Finance) Specialist with the IAEA CFO 12 years of financial and operational experience in Investment Industry.
  21. 21. 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.