TSX-V: RUU; OTCQX: HREEF – April 12, 2011
In January, 2011, Stans Energy Corp. (TSX-V: RUU; OTCQX: HREEF) (‘Stans’ or the ‘Company’) retained N. N. Malyukova, along with a team of experts with extensive knowledge on the history of the Aktyuz Ore Field (author’s details are listed at the end of this press release), to conduct a study to determine the overall distribution of individual rare earth elements (REEs) in the Kutessay II deposit (see Technical Report press release dated March, 23, 2011 for details of the Mineral Resource Estimate). A summary of Malyukova’s results follows:
Individual REE Average Quantities in the Kutessay II Deposit
Note: REE distributions do not add up to 100% because the concentration for each element
was reported at the low end of a range.
The REE distribution defined in this report is the distribution estimate to be used for the Kutessay II feasibility study. It is important to note that individual REE distributions vary across elevations and mineral types. Near the surface of the deposit, a greater proportion of HREEs exist compared to LREEs. Stans plans to conduct drilling below the lowermost 2215 Adit Level of the deposit to: better define the rare earth element distribution, delineate and confirm inferred mineral resources identified in the JORC technical report, as well as to test the extension of REE mineralization below the currently known deposit.
The Kutessay II Mineral Resource Estimate Technical Report is now posted on www.sedar.com. N. N. Malyukova’s report , “Distribution of Mineral Ore Types and Grades of Rare Earth Elements in the Kutessay II Deposit” will also be posted on www.sedar.com shortly as a supplemental report to the Kutessay II JORC Mineral Resource Estimate.
Rare Earth Market Discussion
The sole source of the world’s HREE production comes from the ‘Ionic Clays’ in the south of China. Representatives of the Chinese Society of Rare Earths have repeatedly stated that it is likely that the country will become a net importer of HREEs in the near future. Kutessay II is one of the only sources of HREEs located outside of China prior to 1991, when the mine shut down.
HREE prices have increased substantially in recent history, due to increasing demand, and supply constraints from China. The international prices for all 15 REEs have been very volatile, and no long term price can be accurately determined based on conventional methods of valuation. Below is a table illustrating the current international price per kilogram of each REO on April 8, 2011 in USD, based on FOB surveys.
Note: REOs have standard purities but increased purities demand higher prices.
RE metals also demand higher prices than those shown above.
The United States Geological Survey has predicted that most critical REOs in terms of future supply versus expected demand are Yttrium (Y), Dysprosium (Dy), Terbium (Tb), Neodymium (Nd), and Europium (Eu). Based on the breakdown of REOs contained within the Kutessay II deposit and their respective oxide prices, these critical elements, with the exception of Europium, are likely to represent the majority of Kutessay II’s value.
Yttrium is most widely used in phosphors for white and grey colours in LEDs, and in tri-chromatic fluorescent lighting. For its physical and chemical properties, Yttrium is regularly alloyed with chromium, molybdenum, zirconium, titanium, aluminum and magnesium. Yttrium is used as a deoxidizer for vanadium and other nonferrous metals, and as a catalyst in the polymerization of ethylene. It has medical applications in cancer treatment, arthritis and joint inflammation, in artificial joints, prosthetic devices, and needles. The element can also be found in optical and camera lenses, cubic zirconia jewelry, super conductor materials, high performance spark plugs, yttrium-stabilized zirconia, solid electrolytes, exhaust systems, catalytic converters, turbocharger components, and piston rings.
Dysprosium’s thermal neutron absorption cross-section and high melting point enables it to be used in nuclear control applications. The element can be added to Neodymium-iron-boron magnets to raise the strength and corrosion resistance of applications like drive motors for hybrid electric vehicles. Like Terbium, Dysprosium is a component of Terfenol-D; a very promising material for future technology applications. It is also used in CDs, chemical reaction testing, laser materials, and dosimeters
Neodymium is essential in the production of the world’s strongest super magnets, which are present in hybrid cars, state-of-the-art wind and tidal turbines, industrial motors, air conditioners, elevators, microphones, loudspeakers, computer hard drives, in-ear headphones, and guitar pick-ups. When combined with Terbium, or Dysprosium, a Neodymium magnet can withstand the highest temperatures of any magnet, allowing the element to be used to be used in electric cars. Neodymium has many additional uses. It is utilized in incandescent light bulbs, cathode ray tubes, as a glass filter and colourant, as a doping agent in Yttrium-Aluminum-Garnet lasers, and for glare-reduction in rear-view mirrors.
Terbium is used in colour TV tubes and fluorescent lamps as a green phosphor. In combination with Europium blue and red phosphors, the three create trichromatic fluorescent lighting, which is much brighter than conventional fluorescent lighting. Another green application for Terbium can be found in combination with neodymium for production of the world’s most heat resistant super magnets. The element is also used in alloys, crystal stabilizers in fuel cells that operate at high temperatures, specialty lasers, and to dope calcium fluoride, sodium borate and strontium molybdate materials. Terbium is a component of Terfenol-D, a material that is used in transducers, high-precision liquid fuel injectors and in a new form of audio equipment that has the potential to revolutionize the speaker industry.
The scientific and technical information in this document was reviewed, verified and compiled by Stans Energy Corp.’s geological and mining staff under the supervision of the company’s qualified person, Dr. Gennady Savchenko FGS, Managing Director, Stans Energy KG.
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
This report was prepared under the guidance of N.N. Malyukova, Candidate of Science (Geology and Mineralogy), Associate Professor of the Kyrgyz-Russian Slavic University. The staff of the Metallogeny and Ore Formation Laboratory of the Institute of Geology under the National Academy of Science of Kyrgyzstan: Research Officer E.A. Ivleeva and Senior Research Officer, Candidate of Science (Geology and Mineralogy) N.T. Pak took part in preparation of the review.
The analytical data are from various historic sources. The analyses were made at various times and in various chemical laboratories including: the Central Analytical Laboratory of the Kyrgyz Mining and Metallurgical Complex (CAL KMMC), the Chemical Analytical Laboratory (CAL) of the Aktyuz Mine Group; the Chemical Analytical Laboratory of the All-Russian Institute of Mineral Resources (CAL VIMS), Moscow; the Chemical Analytical Laboratory (CAL) of the Institute of Geology under the Academy of Sciences of the Kyrgyz SSR, Bishkek; the Chemical Analytical Laboratory of the Institute of Mineralogy, Geochemistry and Crystal Chemistry of Rare Elements (CAL IMGRE), Moscow, and others. The determinations were made using various methods including chemical, quantitative spectral, X-ray, and other methods.