Stans Energy Corp (TSX-V: HRE, OTCQX: HREEF)(‘Stans’ or ‘The Company’) is pleased to report that a new mineralized zone has been found within the historic open pit boundaries of its past producing rare earth mine Kutessay II. The new zone is open along strike and to depth.
This new zone included 21.5 meters of 0.41% TREO with a HREE/LREE ratio of 68.4% to 31.6%. Six holes were drilled for a total of 2570 meters. The total HREE/LREE ratio for all the mineralized zones above the historic cut-off grade of 0.10% intersected in the 2011 drilling was 48.4% to 51.6%.
The main purpose of the 2011 drilling was to delineate the depth extension of the known mineralized zone of the Kutessay II deposit. The drilling confirmed the mineralization at Kutessay II extends below the 2093m level.
Six drill holes were drilled in the fall of 2011 from the Kutessay open pit (+2352m level). Drill hole No.D003 is 570m deep; No.D004 – 550m; No.D005 – 487m; No.D006 – 162m; No.D007 – 464m; and No.D009 – 337m deep respectively, on vertical sections, Profiles: X, XIV, VIII, XI, XII, and XV. Intervals between the Sections range between 50m and 65m.
The results of these six drill holes indicate the open pit may be enlarged and deepened based on the following parameters:
- Minimum mineralized thickness is 3m;
- Total rare earths cut-off grade is 0.1%
Exploration was also conducted on the Aktyuz ore field resulting in 50 geochemical anomalies, 36 of which were poorly explored in the past. The focus of the 2012 exploration program will be to expand the new mineralized zone discovered in the 2011 drilling along strike and to depth and to better define the extent of this mineralization. For a complete report on the 2011 exploration and drilling please see our website www.stansenergy.com
Robert Mackay, CEO and President, states, “The encouraging results from the 2011 exploration program indicate that ‘blind mineralized zones’ are present within the confines of the open pit and that these zones are open to depth and along strike. The 2012 exploration program will concentrate on expanding the known mineralization within the open pit boundary and testing some high priority targets in the Aktyuz Ore Field.”
Dr Gennady Savchenko QP is the qualified person on the Kutessay II project under National Instrument 43-101 and is responsible for this news release. Material for analysis has been obtained from drill core which was cut in half using a diamond saw. Each drill hole was sampled, and a total of 1798 core samples were submitted to the laboratory (including blank samples and quality standards).
Half of the core was sent to the lab for analysis, with the remaining half left on site for future reference. A strict QA/QC program, which includes the use of elemental standards, duplicates and blanks, is followed. Analyses were performed by Laboratory of Information Research Centre LLC. The laboratory quality system is accredited by the United Kingdom Accreditation Service for ISO/IEC 17025:2005 international standard and by the Kyrgyz National Center of Accreditation System of the Kyrgyz Republic.
About Stans Energy
Stans Energy Corp. is a resource development company focused on progressing Heavy Rare Earth (HRE) properties in areas of the Former Soviet Union. In December 2009, Stans acquired a 20-year mining license for the past producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant (KRP) the same plant that previously refined REEs historically from Kutessay II. The KRP was the only hard rock plant to produce all rare earth elements outside of China, producing 120 different metals, alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the former Soviet Union.
We seek safe harbour.
President & CEO
Manager, Investor Relations
FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the completion of the Offering, the continued advancement of the company’s general business development, research development and the company’s development of mineral exploration projects. When used in this press release , the words “will”, “shall”, “anticipate”, “believe”, “estimate”, “expect”, “intent”, “may”, “project”, “plan”, “should” and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.
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