Stans Energy Corporate Update
Stans Energy Corporate Update
TORONTO--(BUSINESS WIRE)-- Stans Energy Corp., ("Stans Energy" or the "Company"), (TSX-V: HRE, OTCQX: HREEF), is pleased to provide an update on continuing corporate development issues surrounding the Aktyuz Licence Area, the engineering projects carried out by the Company's contractors for feasibility study purposes and the impact of ongoing legal procedures on project development at Kutessay II, the company's 100% owned flagship project in Kyrgyzstan.
Aktyuz Licence Area
Stans Energy has received the physical copy of the exploration licence for the Aktyuz Licence Area. As earlier reported on June 24, 2013, Stans Energy had been granted a licence extension for the Aktyuz Licence Area by the State Agency for Geology and Mineral Resources of Kyrgyzstan (SGA). Now the company is pleased to report that the licence was issued including Licence Agreement #4 negotiated by the Company over the last month. Licence Agreement #4 for Licence 2512 MP outlines the parameters for satisfaction of all obligations between both Stans Energy and the SGA. Licence 2512 MP, valid through December 31 2015, will be posted to the company's website.
In 2012 Stans Energy engaged the services of both local Kyrgyz and international contractors to complete design and engineering required for resuming production at Kutessay II. These projects are to be included in technical reports required for compliance with Licence Agreement #3 for Kutessay II.
- Information Research Centre LLC (IRC LLC) has completed testing of the historic milling methods and has optimized the flow sheet to produce concentrate amenable for full separation with 65% TREE recovery and 6% REO content. The new milling flow sheet which incorporates:
- Ball Milling
- Gravitational separation
- The Russian Research Institute of Chemical Technology (VNIIHT OJSC) has completed testing of the new cracking technology to produce a concentrate free of radioactive and gangue minerals. The Russian State Export Control Agency and the Canadian Nuclear Safety Commission are arranging customs clearance of the summary report for export to Stans Energy. Once the report is cleared, the Company will be able to publish and incorporate those findings in a feasibility study.
- The separation of the individual Rare Earths using solvent extraction is also being developed by VNIIHT and the Company will receive volume one of the five volume report once it has been released by customs agency, with the other four to follow.
Design and Engineering
- Geological engineering and surveying of the new Milling and Processing site is 70% complete.
- Design of a new 14,500 m3 tailings impoundment is in progress with completion expected by September 2013.
- Design and mining conditions feasibility of the combined open pit and underground mine are complete.
All outstanding project development and construction as outlined in the Company's February 27, 2013 Corporate Update are on hold due to the injunction filed by the State Prosecutors Office of Kyrgyzstan in May 2013. The injunction blocks any communication between Stans Energy's local subsidiary; Kutisay Mining LTD., and the State Agency for Geology and Mineral Resources of Kyrgyzstan (SGA). As part of the Company's ongoing obligations to satisfy conditions of Licence Agreement #3, dated June 15, 2012, Stans Energy is required to submit the completed Design and Engineering Reports, as described above for state approval. The current injunction prevents the Company from delivering the reports. Once approved by the SGA these documents would form the basic elements of the feasibility study, which can only then be published.
Stans Energy has undertaken a review of its existing operations in Kyrgyzstan and has laid-off 50% of its staff at the Kashka Rare Earth Processing Facility. The services of the Company's design and engineering contractors were engaged prior to the injunction of May 2013. Further engagement of the contractors beyond the original scope of work outlined above is on hold pending the successful outcome of the ongoing court cases.
"We hope to resolve these legal matters in a timely manner which would allow us to focus full attention on developing our current assets and help end users secure a safe supply of non-Chinese rare earth elements. The Company will continue to carefully manage and conserve its treasury balance," states Robert Mackay, President and CEO.
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 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.
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", "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.
KEYWORDS: Kyrgyzstan Asia Pacific North America Canada
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