FSC / Press Release
Stans Energy Provides Corporate Update
Toronto, Ontario CANADA, February 27, 2013 /FSC/ - Stans Energy Corp. (HRE - TSX
Venture, OTCQX: HREEF),("Stans" or the "Company"), is pleased to report on the
Company's completed initiatives for 2012 and to outline the Company's strategic
objectives for 2013.
Last year, Stans faced a shortened field season due to administrative and
licencing delays within the Kyrgyz State Geological Agency. Engineering and
geological programs could not commence until the unanimous approval of Licence
Agreement #3 was granted on June 15, 2012. Subsequently, a 30-day work stoppage
was issued on August 30, 2012, which further shortened the 2012 Field Program.
Nevertheless, the Company was able to continue its development of key components
required for the project. Stans, together with its contractors succeeded in
advancing the following initiatives:
- Engaged Ecoservice LLC to upgrade the paved road to the Kutessay II open pit,
to design a 14.5-thousand m3 tailings impoundment, and to design a 1 million
tonne per year mill.
- Engaged Asiarudproject CJSC for the engineering of a new mine complex design,
and assessing combined open-pit and underground mine options to determine
Design and Testing:
- Hired The Geomechanics and Subsurface Resources Development Institute under
the Kyrgyz National Academy of Sciences to define the mechanical properties of
rocks from Kutessay II deep deposit levels and assess the open pit bench
- Analyzed 2,860.8 meters of drill core from 11 core holes at the Kutessay II
deposit. The purpose of the drilling was to explore and delineate the extension
of rare earth mineralization in the vicinity of the Central Deposit to depth,
and to further delineate the new mineralized zones discovered at its flanks in
- Renovated and upgraded mine site facilities; the administrative building, the
machining and electric shop, the instrumentation and automation shop.
Metallurgical Process Confirmation:
- The Information Research Centre LLC (IRC LLC), in association with the Russian
Scientific Research Institute of Chemical Technology (VNIIHT OJSC) successfully
developed and tested a process flow sheet for milling of Kutessay II ore,
including two-stage gravity preparation with concentrate finishing employing
flotation. The recommended flow sheet achieved 65% TREE recovery and a minimum
5% TREE content of concentrate.
- VNIIHT OJSC successfully tested a new, environmentally friendly technology for
extracting thorium and radium from Kutessay II RE concentrates, yielding a
greater rare earth recovery - 95% at the impurity removal stage and 93% at the
nitrate creation stage. The use of new flotation agents, along with more modern
equipment, yielded a 25-35% increase in efficiency over historical techniques.
- VNIIHT OJSC conducted successful testing on this concentrate product to
selectively extract specific rare earth oxides.
Based on the positive outcome of the 2012 program, the Company is planning
engineering and field programs in 2013 to resume fast-tracking production at
Kutessay II. Several of these projects have commenced and the objectives for the
coming year include:
- Testing of new milling techniques by IRC LLC, in coordination with VNIIHT
OJSC. Research on Kutessay II milling, using innovative solvents for flotation
is ongoing in an effort further to increase Heavy Rare Earth recoveries and
decrease milling costs.
- Testing of new cracking and selective REO separation technology by VNIIHT
OJSC. Summary report can only be publicized upon approval by the Russian State
Export Control Service Agency.
Design and Engineering:
- Geological engineering and surveying of the new Milling and Processing
- Design of the new combined mining project (open pit/underground).
- Design of a new 1 million tonne per year mill and new Plant #1 (cracking
- Design of a new 14,500 m3 tailings impoundment.
- Design of the power supply system for the mine and processing facilities
- Local projects consisting of: open pit mining operations preparation including
local creek water diversion system, pit walls reinforcement, mechanical and
electric shops, instrumentation and automation shop, fueling stations, mining
- Overall road repairs to, and within the existing open-pit.
- Resampling and survey of historic mine site stockpiles.
- Renovating adits to provide access to underground workings for resampling to
further define quantities of individual rare earth elements, in order to convert
the existing JORC mineral resource estimate to NI 43-101 standard compliance.
- 1000 m drilling program to obtain samples for rock mechanics studies.
- Commencing an Environmental Impact Assessment for inclusion in a feasibility
Boris Aryev, COO of Stans Energy explained, "Stans Energy Corp is eager to
resume its pace of infrastructure and engineering development of the project.
The company is commencing Pilot Plant Testing on proven, and improved upon
milling, and cracking methods, while adding an innovative, selective REO
separation process. Our strategic advantage in developing and proving REO
technologies will allow the company to maintain a stronger treasury balance,
while focusing expenditures on project and infrastructure development, instead
of constant metallurgical testing on unproven REO extraction methods. Despite
current uncertainty in capital markets, we remain steadfast on proving that the
Kutessay II HREE mine is an excellent option for end-users to obtain a secure,
non-Chinese HREE source. Implementation of our recent technological
advancements in rare earth cracking and separation technologies at the Kashka
Rare Earth Plant will demonstrate the Company's progress towards being a leader
in the Heavy Rare Earth sector, both to potential partners and to the market."
About Stans Energy
Stans Energy Corp. is a resource development company focused on advancing Heavy
Rare Earth (HRE) properties in areas of Central Asia and Russia. 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 from Kutessay II ores. 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.
About VNIIHT OJSC
The Russian Scientific Research Institute of Chemical Technology (VNIIHT) was
founded in April 1951. VNIIHT's objective was to focus on the exploration and
development of technologies and raw materials for use in the Soviet nuclear
energy sector. VNIIHT technologies continue to be implemented in the main stages
of the nuclear fuel cycle. This includes the processing of Uranium and Rare
Metal Ores through to the generation of nuclear-pure materials. 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 Corp. a significant advantage relative to its
competitors outside of China.
About IRC LLC
The Information Research Centre LLC is an internationally accredited laboratory
under United Kingdom Accreditation Standards, Great Britain (Laboratory #4431),
and the Kyrgyz Center of Accreditation (Accreditation Certificate
#KG417/KCS.IL.007). The laboratory is accredited for compliance with the
international standard ISO/IEC 17025:2005. The accreditation includes the
determination of the concentration of elements using Atomic Absorption,
Inductively Coupled Plasma Mass Spectrometry and X-ray fluorescence techniques.
About EcoService LLC
EcoService LLC has been retained as General Contractor of the project with the
specific task of designing the milling and tailing facilities. The key engineers
and leaders of the company have over 30 years of experience in the design-build
of mining projects, from the Soviet period to the present. Two of their most
recent projects were the design-build of the Ishtamberdy gold mine, and the
Tudybulak gold mine, both in Kyrgyzstan. EcoService LLC is is the leading, fully
licensed firm to carry out all work related to the design and construction of
mining facilities in Kyrgyzstan. Under Kyrgyz law, companies working on mining
projects that have to be approved by the various State Agencies, must themselves
be approved and licenced by the Kyrgyz Government
Asiarudproject Mining Planning-Production Company CJSC (Asiarudproject) has been
retained for the mine design and planning. Asiarudproject has completed more
than 90 designs and feasibility studies of mining enterprises. Twenty of which
were implemented, including work on the Kumtor open pit for Centerra Gold Inc.,
together with preparation of a feasibility study for the underground mine
portion. Asiarudproject is the leading licenced operator to conduct such work in
We seek safe harbour.
Robert Mackay David Vinokurov
Stans Energy Corp Stan Energy Corp
President & CEO VP Corporate Development
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",
"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.
This press release is available in PDF. To view the PDF file please click on the
Source: Stans Energy Corp. (TSX-V: HRE) www.stansenergy.com
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-0- Feb/27/2013 17:32 GMT
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