TORONTO--(BUSINESS WIRE)--Stans Energy Corp (TSX-V: HRE)(Pink Sheets: HREEF)(‘Stans’ or ‘The Company’) is pleased to announce the following update on the progress of: refurbishment at the company’s Kashka Rare Earth Plant (KRP); formalization of the Company’s relationship with VNIIHT (Leading Research Institute of Chemical Technology); exploration activities at the Aktyuz Ore Field, and overall development of the Kutessay II and Kalesay projects.
Selected Highlights of Stans Energy’s progress:
Key Personnel Updates
Kashka Rare Earth Plant improvements
Framework
agreement with VNIIHT
Aktyuz Ore Filed Exploration Updates
Status
of Strategic Partnership Discussions
Kalesay Beryllium
Deposit
Boris Aryev, Stans’ Chief Operating Officer, comments: “These recent announcements demonstrate the expertise that Stans is employing towards resuming near term production at the Aktyuz Ore Field, specifically at Kutessay II. Through our exploration program and technical partnership with VNIIHT, Stans is rapidly acquiring key assets and expertise to capitalize on the current elevated market pricing trends we see with Rare Earths. After completion of our feasibility studies, we will have a solid blueprint to realize long term value for all of our shareholders.”
Stans Energy Key Personnel Update
Stans is pleased to
announce the appointment of Mr. Victor S. Kashtanov as the Director
General of KRP. Mr. Kashtanov has invaluable experience with the
technology of rare earth separation. Mr. Kashtanov recently served as
the Senior Technologist of Kyrgyzaltan OJSC, and had 26 years of
experience at the Company’s Kyrgyz Mining and Metallurgical Complex. Mr.
Kashtanov’s roles ranged from equipment operator, foreman, and chief
foreman, culminating in his role as Head of Plant #2 for Total Rare
Earth Oxide (TREO) concentrate production, as well as the separation of
light, medium and heavy REE concentrates. He was also responsible for
production of high purity yttrium and luminophores.
Stans now has 54 employees in Kyrgyzstan including mining engineers, metallurgists, geologists, chemical technologists, and various maintenance and administrative personnel employed by its subsidiaries: Stans Energy KG, Kutessay Mining and Kashka Rare Earth Plant.
Kashka Rare Earth Plant (KRP) Improvements
Stans has
recently hired Mr. Victor Kashtanov to lead the team of experts to
restart production of Heavy Rare Earth Elements (HREEs) from outsourced
concentrates at Plant #3 in 2012, and to assist our engineering team to
design of a new Plant #1 (a thorium extraction facility) and a solvent
extraction [SX] plant with a 1500 t.p.y. capacity. Stans is actively
engaged in the selection of an existing facility and site to host the
new SX plant. Going forward the plan is to have both the first module of
Plant #1 and the 500 t.p.y. SX plant in operation by 2013.
Process Engineering - VNIIHT
Recently Stans finalized a
framework agreement with VNIIHT that specifically outlines the short and
long term joint program of activities.
The agreement is for a period of three years and may be automatically extended for subsequent years. The agreement outlines the implementation of joint activities such as:
- Creation and advancement of joint science-intensive and high technology projects
- Providing experts for conducting technological and economic examination of projects, conducting market research necessary for the commercialization of research and technology developments
- Processing of various types of ore and extraction of REE and possible by-products
- Environmental Protection
- Processing technogenic waste
- Providing support in realization of joint programs in the area of education
- Development of innovative entrepreneurship based on technologies developed by the joint program
Exploration Update
As announced on August 23rd,
Stans commenced further exploratory diamond drilling at the Kutessay II
deposit and at the former Aktyuz mine. As of October 15th,
Stans has completed 3 of 4 planned drill holes (DH) at the Kutessay II
deposit to test the depth potential of known mineralization. The fourth
hole will be completed by November 15th. The assay of the
core and the full report of results will be published by the end of
December.
A second diamond drill will be put into operation this week to start drilling two drill holes totaling 1100m at the former Aktyuz Mine to explore lower horizons with known historical rare earth mineralization. Further exploratory drilling of an additional 400m will be undertaken to explore other untested anomalies in the Aktyuz Ore Field. The two drilling programs will be completed by December 15th and a report will be ready by the end of January 2012.
Strategic Partnership Discussions Initiated
Throughout 2010
and 2011, various Fortune 500 companies and governmental agencies that
have expressed interest in developing strategic partnerships in respect
to its Kutessay II project in Kyrgyzstan have approached Stans. These
firms have the ability to assist with financial, technical, marketing
and other necessary prerequisites that would accelerate early production
at Kutessay II.
Stans conducted site visits with the representatives of various potential strategic partners in April, July, August and October 2011, and is planning to host another site visit in early November. The company is working towards signing agreements with one or more of these strategic partners, and will be releasing information as it becomes available.
Kalesay
The underground resampling program for the Kalesay
Beryllium deposit completed earlier this year returned results that were
inconsistent and could not be used to confirm the historical Soviet
data. The sampling was conducted on an area that was open to weathering;
so the new sample program will be conducted in the un-weathered, central
part of the deposit. Stans has decided to reopen the underground
workings to resample the beryllium mineralization much deeper in the
underground exploration drift closer to the core of the historic
deposit. Stans has contracted Prospecting LLC to do this work and has
submitted an application to the Kyrgyz government to reopen the
underground workings for further sampling.
About VNIIHT
VNIIHT has developed technologies and
technological schemes of individual REE production out of different
types of raw materials that were implemented at plants in Russia,
Kazakhstan, Ukraine and Estonia. REE extraction technologies developed
at VNIIHT were utilized in the production cycle for over 20
hydrometallurgical plants. Over 2600 inventors’ certificates and patents
have been issued to VNIIHT. Of the 1000 employees at VNIIHT, over 100
are PhDs.
About Stans Energy
Stans Energy 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 Plant (KRP) the same plant that
historically refined REEs from the Kutessay-II open pit mine. 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.
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, and 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.