Objective Capital's Rare Earths, Speciality & Strategic Metals
Investment Summit 2012
Ironmongers' Hall, City of London
13-14 March 2012
Speaker: Robert Mackay, Stans Energy
06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf
Soviet expertise, Canadian security
1. RARE EARTHS, SPECIALITY
& STRATEGIC METALS
INVESTMENT SUMMIT
Soviet expertise, Canadian security
Robert Mackay – CEO, Stans Energy
IRONMONGERS’ HALL, CITY OF LONDON TUESDAY-WEDNESDAY, 13-14 MARCH 2012
www.ObjectiveCapitalConferences.com
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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
Cautionary Note to United States and Other Investors Concerning Estimates of Measured, Indicated and Inferred Resources:
Certain tables may use the terms “Measured”, “Indicated” and “Inferred” Resources. United States investors are advised that
while such terms are recognized and required by Canadian regulations, however, the United States Securities and Exchange
Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and
as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be
upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of
feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or
Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to
assume that all or any part of a Mineral Resource is economically or legally mineable.
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4. Stans Energy is focused on re-starting a past producing Rare Earth Elements mine and
processing facility in Kyrgyzstan
Kutessay II Mine:
• Past producing open pit mining operation
• Produced equal quantities of heavy and light rare earth elements
• Known metallurgical processes
• 20-year mining license in place
Kashka Rare Earth Processing Facility (KRP):
• Processed ore from Kutessay II Mine for 30 years
• Produced 120 metal, alloy, and oxide products
• Under care-and-maintenance since 1991
• Private rail terminal provides access to Russia, Europe, and Asia
Strong Board, Technical Advisors, and Management:
• Many involved with Kutessay II and the KRP prior to 1991
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5. Stock Exchange HRE (TSX-Venture)
Shares Outstanding 157,263,986
as at March 8,2012
Warrants 8,475,476
Options 13,663,333
Total (fully diluted) 179,402,795
Market Cap C$138m
Share price (Mar 9) C$0.88
52 week high/low C$2.45/ C$0.52
Net cash C$17 m
Debt Nil
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6. Major REEs to be
produced by
Stans Energy Properties Industry Use
Yttrium High Tech Defense Applications
Terbium Reduces
Europium Weight
Dysprosium Emissions
Gadolinium Energy Consumption
Holmium Hybrid Electric Vehicles Green Tech
Erbium Allows
Thulium Greater Efficiency
Luteium Performance
Ytterbium Miniaturizatoin
Lanthanum Speed
Water Treatment Other Applications
Cerium Durability
Praseodymium Thermal Stability
Neodymium
Samarium
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7. Global REE Demand Pacing to Outstrip Supply
250,000
200,000
(Tonnes of REO)
150,000
100,000
50,000
0
2005 2006 2007 2008 2009 2010 2011f 2012f 2013f 2014f 2015f
China Demand Adjusted Global Demand ROW Supply China Supply
Source: IMCOA – Industrial Mineral Company of Australia
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10. • 100% ownership of former Soviet-era mine
• Produced 80% of FSU’s REE needs
• March 2011: Pit-contained mineral resources
– Measured + Indicated: 45,650 tonnes of contained TREO
– Inferred: 3,560 tonnes of contained TREO
• Preliminary Feasibility Study (PFS) to be completed by end
of Q1 of 2012
• 20-year mining license and all permits are in place
• Adjacent beryllium deposit provides additional upside
– 9.245 million tonnes grading 0.128 % BeO***
***Based on historical reserves
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11. Aktyuz Ore Field: Kutessay II REE Mine
And Exploration Areas
Kutessay III
Kalesay
Aktyuz Kutessay II
Aktyuz Mill
14. Rich , coarse, concentrated
Physical
RE Minerals Conc.
Pure & easy liberated
Placers, Veins,… deposits
F.Carbonate : BN
Phosphate : MZ, XN
Exo, Rad* Pufication
Beneficiation
Range Finishings
for
REO content
M.Mixed & liberated Markets
Hydro, Pyro
Oxides : LP,…
Silicates : ED ,… Metallurgy range Pure &
Phosphates : AP, CH,… IX, SX Mixed
F.Carbonates : PA,SY,…
In Salts,
Weathered, Adsorbed Cl or NO3
Leaching solutions
Oxides,
Al.Phosphates : FL,.. Metals
Ionic ores : Clays
Poor, fine, disseminated
RE Minerals
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BN Bastnasite, MZ monazite, XN xenotime, LP loparite, ED eudialyte, AP apatite, CH churchite, PA parisite, SY synchisite, FL florencite,…
JP.TOGNET 2012
15. Mineralogy complexity
Physical Concentrate Mix Physical Concentrate Crude ore
High REO content Intermediate REO content Low REO content
MZ, XN BN IO
BN
LP ED,… YS
Silicates
NaOH direct/alkal Carbo H2SO4 Alkaline Salt
cracking Roasting chlorination Roasting Roasting leaching
Crude RE HCl Water Water HNO3 Selct.RE
Hydroxide dissolution dissolution dissolution dissolution precip.
HCl, HNO3 Ce conc. + Crude RE Crude RE Crude RE HCl
dissolution RE3 Cl solution dissolution
Cl solution SO4 solution NO3 solution
Non RE + Rad* Purification of Mix RE solutions by Chem and/or SX
Purified Mix RE solution (Cl, NO3, SO4) ready for individual separation
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BN Bastnasite, MZ monazite, XN xenotime, LP loparite, ED eudialyte, AP apatite, CH churchite, PA parisite, YS synchisite, FL florencite,…
JP.TOGNET 2012
16. Unproven Metallurgical Process for Complex Silicate RE Ores
Based on Mineralogy :
- Crude ore : Low REO Sulfuric acid H2SO4
- Physical conc. : High REO
- Roasted or not
Sulfuric Baking or in pulp
cracking Atmospheric or Pressure
Cake Slurry
RE+M+Gangue Sulphates
Washing,
Dilution
Precipitation, Gangue residue
L/S Filtration
Purification
RE Sulphate solution
Low REO conc.
Purif & changing anion by :
RE recovery &
- Precipitations + Dissolutions Effluent treatment…
- IX / Solvent eXtraction ?! concentration
Mix.RE Chloride/Nitrate solution
ready for SX separation
JP.TOGNET 2012
17. • 100 % ownership
• Processed Kutessay II ores for 30 years
• 120 metal, alloy, and oxide products
• Under care and maintenance since 1991
• Private Rail Terminal provides access to
Asia, Europe, and Russia
• Facility originally designed by VNIIHT, one
of Stans Energy’s core consultants
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23. Element Oxide REEs % REO USD/kg
REE Breakdown by Value Dysprosium Dy 6.14 1,550
(FOB prices in USD February)
Yttrium Y 26.73 145
Terbium Tb 1.55 2600
Neodymium Nd 8.18 175
Europium Eu 0.23 3400
Erbium Er 3.25 205
Praseodymium Pr 3.78 75
Gadolinium Gd 3.59 148
Samarium Sm 4.1 74
Holmium Ho 0.57 128
Thulium Tm 0.25 790
Ytterbium Yb 3.29 155
Lutetium Lu 0.5 1,270
Cerium Ce 19.68 33
Lanthanum La 16.55 35
Based on historic production
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24. VNIIHT’S ROLE
• Stans Energy’s feasibility studies (Q1 2012) will be conducted
under the guidance of VNIIHT. VNIIHT’s sixty years of
chemical technology experience combined with their
capabilities of executing the complete cycle of rare earths
research, development, and production will give Stans
Energy a significant advantage relative to its competitors.
• VNIIHT will also assist with evaluation and acquisition of
other HREE properties in areas of the Former Soviet Union
(FSU)
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25. VNIIHT ACHIEVEMENTS
Technologies developed in the Institute became the production cycle
base for over 20 hydrometallurgical plants
Over 150 sorbents, extractants and resins were engineered
Over 3600 developments were industrially implemented
Over 2600 inventors certificates and patents were issued
7 minerals were discovered
Over 100 PhDs are employed
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26. Canada
Honorary Consul of
the Kyrgyz Republic
for Canada
Russia Kyrgyzstan
VNIIHT Kyrgyz-Russian
Slavic University
IGPMG RAS
Asiarudproject
ARRIMR
GEOTEP Ecoservice
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27. CORPORATE STRATEGY
• Complete Preliminary Feasibility Study by the end of Q1
2012
• Updated mineral resource statement
• First opportunity to present mineral reserves
• Bankable Feasibility Study expected in H2-2012
• Advance off-take agreement discussions with end users
• Continue to explore:
• Deep drilling of areas of know mineralization
• Refurbish Kashka Rare Earth Processing Facility (KRP)
• Optimize recovery process with new technology
• Build out operating and construction teams
• Assess HREE and joint-venture opportunities
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28. 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, P.eng
After migrating to Canada in 1983, he worked as a software development consultant with NCR Canada Limited & OPTIMOD Inc.
until 1986 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.
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.
Vice President of Operations; DAVID NEWTON, MSc.
During his forty year career in various mine management functions, Mr. Newton has held increasingly senior positions with such
firms as Anglo American Corporation and Newmont Gold. Throughout the course of his distinguished career, Mr. Newton has
overseen both open-pit and underground mining operations most recently having worked in jurisdictions as diverse as:
Democratic Republic of Congo, Armenia, Georgia, Uzbekistan, Ghana, United Kingdom, and South Africa.
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29. 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. From 2000 to 2002, Dr. Savchenko was Deputy Chief in the Department of Geology & Investment for the Kyrgyz
State Geology & Mineral Resources Agency.
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).
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.
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30. Advisor; DR. GENNADY SARYCHEV
Director of the Leading Research Institute of Chemical Technology (VNIIHT) is a former professor of the Moscow
Engineering Physics Institute. He has held the position of Director/Department Head of the following institutions:
Department of Scientific Research and Development, Department of Scientific Research Work, Department of State
Policy on Science, Innovations and Intellectual Property, Department Head of Planning and Construction of
Infrastructure Objects for Special Economic Zones. Dr. Sarychev adds invaluable experience to Stans Energy in areas of
international cooperation amongst the scientific and business communities.
Advisor; DR. VALERY KOSYNKIN; Ph.D., Professor
Dr. Kosynkin is one of the world’s preeminent chemists and metallurgists for Rare Earth Elements (REEs). Dr. Kosynkin
holds a doctorate of philosophy from Moscow State University. His dissertation was on uranium and the development of
REEs through processing loparite concentrate. Since 1959, Dr. Kosynkin has been employed by VNIIHT – The Russian
Leading Institute of Chemical Technology, initially as a research in uranium technologies, and from 1973 as the Head of
Research and Development for REE chemistry and technology. Dr. Kosynkin has overseen the commissioning of REE
production and extraction facilities in Russia, Ukraine, Estonia, and Kazakhstan. In addition to his work at VNIIHT, Dr.
Kosynkin served as a USSR IAEA representative from 1968-1973. He has lectured on REE metallurgy and chemistry in
Russia, China and Korea.
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). 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. 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.
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31. 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 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; MR. JAMES B. HEDRICK
Mr. Hedrick is a rare-earth elements, scandium, yttrium, thorium, zirconium, hafnium, and the mica group of minerals
expert. James possesses a wealth of knowledge with over 31 year of experience in Mineral commodities. 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).
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32. Kyrgyzstan Foreign Investment
• New Kyrgyz Government has made mining and property rights its number 1 and 2 priorities in terms of
foreign investment
• The Basic Foreign Investment Law, adopted in June 1991, allows foreign investors full use of their
profits, including unlimited export of profits in the form of foreign currency or merchandise.
• Foreign firms also enjoy considerable tax advantages, which extend to Kyrgyz partners in joint ventures.
• Investors are granted relief from import duties on materials needed to establish a business, and they
continue receiving tax relief for up to five years, depending on their type of business.
• After that time, several other types of tax relief are available, including various forms of reinvestment in
Kyrgyzstan's economy.
Mining in Kyrgyzstan
• In contrast to the previous regimes, the current government is enhancing the procedure for obtaining
exploration licenses in favor of the mining companies.
• As for the general licensing procedures, the laws stick to a more transparent procedure providing for
issuance of a license on a “first come first served” basis.
• As opposed to licensing, concession and production sharing agreement regimes should allow companies to
negotiate with the state individual terms that meet the companies’ needs.
• Additionally, in order to avoid the state courts, the concession or production sharing agreement can provide
for the jurisdiction of international arbitration courts if any legal disputes occur.
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33. TSX-V: HRE
OTCQX: HREEF
Kutessay III
STANS ENERGY CORP.
8 King St. East, Suite 205
Toronto, ON, M5C 1B5
Tel: 647 426 1865 Fax 647 426 1869
www.stansenergy.com
info@stansenergy.com
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