Stans Energy Corp (TSX-V: RUU) (‘Stans’ or the ‘Company’) has retained Kazakhstan Mineral Company (KMC) to complete an Australian Joint Ore Reserves Committee (JORC) compliant Resource Estimate for its Kalesay Beryllium deposit, with an expected completion date of March, 2011. The Company owns a mining licence for the Kalesay Beryllium Deposit, acquired on December 29, 2009. The Kalesay Deposit is located 200 metres (m) east of the Company’s Kutessay II past-producing rare earth mine.
Summary of Kalesay
“A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource, Stans Energy Corp. is not treating the historical estimate as a current mineral resource and the historical estimate should not be relied upon.” Dr Gennady Savchenko QP for Stans Energy Corp., and managing Director for Stans Energy KG. For reference, in a paper written in the Mining Journal in 2004, Stephen Henley noted that the Russian C1 resource category fell between “Measured Resource/Indicated Resource” and C2 resource category fell between “Indicated Resource/Inferred Resource” categories under the CIM system. However, it should be noted that the Russian resource categories are not equivalent to the CIM categories, no comparison is implied, and the historic resource categories should not be relied upon.
Historical Tonnage and Grade Estimate
The historical data, completed by Soviet geologists in 1971, was previously approved by the Kyrgyz State Reserve Committee for the Kalesay property, identifying an estimate of 9,245,000 metric tons (mt), containing 11,701 mt of Beryllium Oxide (BeO), at an average grade of 0.128%, classified in the Soviet C1+C2 categories. The estimate is based on the following parameters:
- Cut-off grade of BeO – 0.06%;
- Minimum content in a block – 0.103% BeO;
- Minimum thickness of intervals above cutoff – 2.0 m;
- Maximum thickness of layers below cutoff, included within the deposit- 2.0 m;
The identified deposit remains open beyond the historical designed pit flanks and to depth.
The deposit occurs at elevations above sea level of 2400-2700 m. Electricity is readily available, with the town of Aktyuz located 2 km away. A road joins the Kalesay beryllium deposit with the Company’s Kutessay II open pit.
Beryllium mineralization at the Kalesay deposit is localized with two zones: Severnaya and Yuzhnaya. Both zones are exposed at the surface and occur as steeply dipping, parallel tabular stockworks of chloritic, amphibole, feldspar gneiss. The Yuzhnaya zone is 1600 m long, extends at least 500 m deep, and is 80m thick. The Severnaya zone is 800m long, extends at least 180m deep and is 65m thick. Both zones were explored through underground drifts.
Phenakite, the most common beryllium mineral in the deposit, hosts nearly 80% of the beryllium. Other minerals present containing the element include bavenite, beryl, genthelvite, milarite, and helbertrandite.
Mining and Metallurgy
Historical investigations by the Soviets indicate 70% of the estimated resource has the potential to be mined by open pit. Metallurgical test work was also conducted by the Soviets using twenty-four samples in the early 1970s. Three different metallurgical flowsheets were tested. At the time, the optimal process resulted in 8.23% BeO content in the concentrate. Further metallurgical testing is needed to improve the historical methods using new technologies.
Price of Beryllium
The price of Beryllium has increased significantly in 2010, but varies in different parts of the world. According to the US Geological Survey, the price in the United States has more than doubled in 2010, since it was quoted at $264.00/kg USD in 2009. On November 29, 2010, the Shanghai Metals Market (www.smm.cn) quoted the price of >99% beryllium at $825.00/kg USD.
Please visit Stans Energy’s website – www.stansenergy.com for additional information, or contact:
President and CEO, Stans Energy Corp.
Ph. 647 426 1865
Manager Investor Relations, Stans Energy Corp
Ph. 647 426 1865