RUU looks to be headed for double digits in share price....$$$...heres todays article by Byron King down below.....he says it has 14 billion in resourses and puts a value of $30.00 per share for RUU......its closed at $2.00 has alot of catching up to do....big gap up coming tomorrow.

DO your own dd before buying any stock.


The Great Rare Earth Supply Crunch

By Byron King | January 20, 2011 |

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How You Could Make 8,577% Gains From Today’s “Technology Metals” Juggernauts…

“America Has a New Dependency and It’s Not Middle East Oil.
It Is Instead Several Arcane Elements Known as Rare Earth Elements (REE).”
~ Forbes

The rare earths supply crunch is here.

In fact, in all my 30 years of energy and geological research, thisis one of the most unique opportunities I’ve ever come across.

And right now, you can stake a claim before the mainstream catches wind of it…

Giving you the chance to make 85 times your money or more.

It’s the kind of money that can change your life… overnight.

But please bear in mind: this situation will not remain quiet for long.

It’s simply a matter of time before Wall Street sniffs out thisunprecedented opportunity and your chance to make a fortune vanishes…forever.

In the following pages I’ll give you every profitable detail. You’lllearn all about the tiny Canadian company set to soar, along with twoother amazing rare earth opportunities.

But before I tell you more about these specific opportunities you’llwant to know a little background information. So let’s not waste anothersecond…

Your Crash Course on Rare Earths

None of these “Rare Earth” elements are famous like gold or sliver.None gets shipped in giant ore freighters, like iron, aluminum orcopper. You sure don’t learn much about these 17 elements in high-schoolchemistry class, unless maybe it’s the school that feeds lots of kidsinto MIT or Caltech.

In fact, the only people who really study these elements aremaster’s- and Ph.D.-level chemists and solid-state physicists. Oh, andnational leaders in places like China — see below. But without theseelements, much of the modern economy will just plain shut down.

“Just plain shut down? C’mon,” you might say.

But yes, these elements are critical to the modern economy, and that is not hyperbole.

The New York Times calls them, “the world’s most obscure, but valuable minerals.”

We are addicted to rare earths as much as we are addicted to oil,except most people don’t know about the rare earth addiction. But I amgoing to explain it to you in this report — along with three amazingways to profit.

Say Goodbye To TV Screens, Computer Hard Drives, GPS, and More…

These 17 elements are strategic. They play a critical role inpetrochemicals, environmental protection, “clean” technology,electronics, automotive applications, optics, telecommunications,computing and defense. They are indispensable to a myriad ofintermediate and end uses.

Really, without these 17 elements, you can say goodbye to much ofmodernity. There will be no more television screens and computer harddrives, fiber-optic cables, digital cameras and most medical imagingdevices.

Rare earths possess unique magnetic, electronic and opticalproperties that you don’t find in any other groups in the periodictable. This is because of the quantum physics that control the electronstructures of these elements.

Within all the realm of materials science, these exotic elementsmay be the only bridge” to higher levels of dramatically improvedperformance.

That is, rare earths are the key to possible improvements in numerousmetal alloys, electrical and magnetic properties, optical propertiesand instrument sensitivity. If mankind is ever going to live in a StarTrek-like future, this is how we’ll get there. It’s safe to say thatwe’re still near the beginning of the knowledge base in terms of knowingwhat rare earths can actually accomplish.

You can say farewell to space launches and the satellites that doeverything from show you the weather to offer global positioning down toa few inches. And the world’s system for refining petroleum will breakdown, too. That’s pretty serious.

In fact, without these “technology metals” many modern technologies would cease to exist — including millions of…

  • iPods…
  • Hybrid car batteries…
  • Cordless drills…
  • Digital cameras…
  • DVD players…
  • Flat screen televisions…
  • Laptops…
  • Cell phones…

Imagine your life without all of these modern day technologies.

Heck, imagine the economy without them!

But even more important is their use in our high-tech strategicmilitary and defense systems. Because ALL of the really advanced weaponsuse some amount of rare earths — all of ‘em!

For example… we couldn’t manufacture jet engines without rare earths.Or advanced radars. Or rocket engines and the satellites that therockets blast into orbit… our military’s “eyes in the sky.”

Yes, guided missiles and other precision weapons rely on rare earth metals and magnets to help direct their course.

Just the critical military uses alone could bring huge BILLION DOLLARgovernment contracts to this tiny firm, and potentially explosivereturns to savvy early investors.

In 2010, President Obama’s Department of Defense budget ballooned to a staggering $533.8 billion!

So you know that American defense spending isn’t going down significantly anytime soon.

Right now, almost all of the world’s supply of rare earths comes fromChina, which is why our non-China investment opportunity is soappropriate. Before we get to the actual investment ideas, let’s look atthe setting for this opportunity.

“There is Oil in the Middle East; There is Rare Earths in China.”

~Former Chinese Premier Deng Xiaoping

China is one of the very few places on the planet where rare earth metals exist in areas large enough to be mined.

China also holds the world’s largest known reserve of rare earth metals.

So much like OPEC controls oil; China controls the market for rare earths.

Defense News reports, “China today controls 97% of the world marketat the very time rare earths are in soaring demand.” You heard thatright — 97%!

China also controls pretty much 100% of the world’s rare earthrefining, alloying, and manufacturing. (To be perfectly straight andaccurate with you, there are some small, laboratory-scale operationshere and there in the West — but nothing at a major industrial level.)

Yet China didn’t always dominate the global rare earths market…

Up until the 1990’s, the United States used to be China’s primary rare earth supplier.

But all that changed when the Chinese lowered their rare earth pricesto cost — if not below — driving rare earth operations around the globeout of business. Kind of a familiar “China story,” eh? Well, it applieshere, with rare earths, as well.

The low prices out of China are why the Kyrgyzstan government, whichI’ll tell you about in full depth below, shut down its rare earthoperation a decade ago.

It’s also why rare earth mining came to a screeching halt here in the U.S.

With China undercutting the Americans on price at the same time theU.S. rare earths mine was facing heavy environmental regulation, it wasforced to close.

Now China’s spent the past 15 years carefully… and brilliantly —you’ve got to give them credit! — establishing itself as the world’sONLY producer of rare earth elements. The Chinese are now in thedriver’s seat on this one…

So if China were to, possibly, tighten or threaten to cut off thesupply of rare earths, a large part of the modern economy would becrippled. So would our military.

Whoops! As I speak, that’s already happening…

Did you see the news all through the fall of 2010, about how Chinawas placing an embargo on rare earths exports to Japan and the West?Heck, the issue was important enough that President Obama, and Secretaryof State Clinton, discussed the problem with their Chinese counterpartsduring trips to Asia.

Think about this… Ten years ago China exported 75% of its productionof rare earth metals to the rest of the world. Today it exports lessthan 25%, even though the production in the last 10 years has more thandoubled.

Bottom line: China’s rare earth exports to the rest of the world willsoon be reduced to ZERO. In fact, on December 28, 2010, China rockedthe world markets by cutting its rare earths export quota by astaggering 35% for 2011.

So how soon could it be before China completely shuts off exports to the entire world?

The Chinese domestic demand for rare earth metals is expected to surpass production around 2012.

That means in less than a year it could be impossible to manufacture products with rare earths outside of China!

  • That’s why the U.S. Department of Commerce warns, “A crisis point could be reached as early as the period 2012 to 2014.”
  • The U.S. Magnetic Materials Association says, “Chinese domestic consumption of rare earth materials is expected to surpass domestic production around 2012.”
  • Manufacturing & Technology News reports, “With growing global demand and China controlling 97% of the global market for mining rare earth metals, China could reach its production capacity by 2012.”

Bottom line: A worldwide shortage of “technology metals” is rapidly approaching!

That’s why there’s such an urgent global need to find new sources of rare earths outside China.

And with a shortfall in supply looming and demand soaring, prices for rare earth metals have simply exploded…

We’re in a full-blown bull market for rare earths! Yeah, it’s a problem. But it’s also a huge opportunity for you.

There are simply NO substitutes!

Global demand for rare earths tipped the scales at 110,000 tons in 2010.

Global demand for rare earths by 2015 is expected to be 250,000 tons. That’s more than double!

Well, on that one, let’s just say that it’ll be an “interesting” time.

Driving this demand are giant multi-billion dollar companies likeGeneral Electric, which uses rare earths in wind turbines, Toyota andNissan for their hybrid and electric cars, and Research In Motion andApple for their increasing array of smartphones and tablets.

And by 2025, global demand could be a jaw-dropping 2 MILLION TONS,including over 1.5 million tons applied in electric and hybrid vehicles!

By comparison, 2 MILLION TONS would be about 20 aircraft carriers made of pure rare earth metals.

The only thing that isn’t growing is our supply.

That’s why Senator Lisa Murkowski from Alaska says, “Unless action istaken, we will trade our dependence on foreign oil for an equallyunsettling dependence on foreign minerals.”

But it’s just not that easy to resume full production… Not like turning on a switch.

Getting ore from rocks, and taking the many steps to turn it into thepure metals needed for manufacturing involves highly sophisticatedtechnology — and, sad to say, U.S. companies no longer have the know howor proper tools to accomplish this.

What do I mean? Well… The engineering knowledge and expertise have moved overseas…

That’s why the National Mining Association says, “When you stopmining in this country, as investment goes down, expertise oncutting-edge technologies is exported as well.”

Plus, the old processes from the U.S.’s heyday can’t be used: They’renow economically and environmentally unsustainable — the old processesuse all sorts of exotic acids and heat treatments.

Bottom line: It will be difficult, costly, and time-consuming to ramp up again.

The U.S. Department of Energy says it takes 7 to 10years to obtain permits to open a new rare earth mine in the U.S., thelongest among the top-25 mining countries.

And a recent U.S. Government Accountability Office (GAO) review saidit could take up to 15 years for the U.S. to produce an adequate supplyof its own and break its dependence on China.

Make no mistake: governments and industries from all over theglobe will fill the coffers of companies that secure long-term suppliesof rare earths with BILLIONS of investment dollars!

Companies that have absolutely NOTHING to do with China.

That’s why right now is the perfect time to be buying a few specific rare earth stocks…

The Most Explosive Rare Earth’s Play on the Market — With Potential of 8,577%!

The first rare earth opportunity I’d like to share with you isexplosive. When word hits Wall Street about this tiny Canadian company’sgiant $14 billion discovery of rare earths in the former Soviet Union,it’s likely to send its stock price into the stratosphere!

Fact is, anytime you have a tiny company that’s secured the rights toan estimated $14 billion rare metals find — some people should begetting rich.

And today I want YOU to be one of them?

Based on a 1996 estimate, the mine holds 20 MILLION TONS of “technology metals”!

Just this alone puts the penny stock’s present value at $30 per share.

The bottom line is this… at today’s current share price… this tiny company is way underpriced.

But make no mistake: Wall Street will not ignore this situation for long…

You could see gains of 8,577% off this stock once investors discover this little-known “technology metals” juggernaut.

Turning a small stake of just $5,000 into $428,500 or $10,000 into $857,000 starting just days from now…

And remember… this is just an estimate of this penny stock’svalue based on an initial finding from this monster “technology metals”discovery.

So without further ado, let’s get started…

If You Want to Invest in Rare Earths, You MUST Own Shares of this Company…

I found out about this opportunity in Hong Kong. I flew one ofDelta’s longest scheduled flights — direct from Detroit — up and almostover the North-freezing-Pole (got as far as 81 degrees north), and thendown across Siberia, Mongolia and China to get there.

Why the long haul? Why travel so far? I was there to attend theRoskill International Rare Earths Conference. This is THE globalconference for rare earths. One highly respected resource sector playertold me, “If you don’t go to the Roskill conference, you aren’t reallyin the rare earths business.”

As with all world-class get-togethers, this conference has a bunch ofinteresting talks and presentations on the agenda. But the real importof the meeting is who is here. The list of attendees is pure gold. I wasin the company of the key rare earths players in the world.

The Chinese were there, and as you know, they run the rare earthsshow, with their global market share of 97%. The big end-users were alsothere, from Japan and Korea. The North American players and developerstoo, along with the Australians and the top people from Europe. Ticketswere sold out.

A Hidden Gem — And Your Best Chance for Rare Earth Profits…

When I attended this conference I discovered a hidden gem of acompany — and trust me, this is a stock that has flown well under WallStreet’s radar. So without further ado, let me introduce you to Stans Energy (RUU: TSX-V).

Stans trades on the Toronto Venture Exchange, and also on U.S. PinkSheets. If at all possible, go for the Venture shares, because there’smore float (meaning you’ll get the most liquid, fairest price). Here inESI, we’ll track the Venture shares, not the Pink Sheets.

Like many Canadian resource plays, Stans is headquartered is inToronto. Unlike most other publicly traded companies, the main actionfor Stans is in the former Soviet Union.

Let me address a question that probably just popped into your head.The former USSR? Home of the old Gulag Archipelago? Isn’t the formerUSSR a risky place to invest?

Yes and no. The USSR was, of course, Communist. That was then. But asyou know, Communism fell. So this is now. The numerous regions of theformer USSR are a hodgepodge of developing nations. There’s nothing easyabout it. You’re not in Kansas anymore. You always have to know whatyou’re doing.

So still, is the former USSR risky? Hey, if you don’t know whatyou’re doing, yes, it’s very risky and you’ll lose only your shirt ifyou’re lucky.

But if you know what you’re doing? If you’ve got your act together?Then the Eurasian landmass is an emerging market that offers theprospect of phenomenal returns.

Fortunately for us, I’m convinced that the people at Stans know what they’re doing, which is why I’m writing this article.

Things Going Right for Stans

First and foremost, Stans holds rare earths assets in Kyrgyzstan,formerly part of the USSR but now an independent nation that’s lookingto grow and develop. The assets are spectacular, as I’ll describe below.

Second, Stans has good — as in, seriously good — relations with key players in Moscow, if you know what I mean. I’ll discuss that some more, too.

Third, Stans has tremendous support for what it’s doing from thehighest levels of the Canadian government — with a former Canadianambassador to Russia on its board of directors.

Any more aces in the hole? I believe it’s safe to say that Stans hasan inside track to pick up its preference of any of up to 50 (no typo,50) world-class rare earths deposits across the Eurasian landmass of thecurrent Russian Federation.

Fabulous Assets!

So here’s the first big thing you need to know about Stans: It’s richin hard-rock rare earths resources. Wait, that’s an understatement.When it comes to the rock bodies and downstream assets, the word“fabulous” comes to mind — in its classical English sense. It’s notoverstating things to say that Stans is a country mile ahead of thenon-Chinese competition. There’s Stans. Then there’s everybody else.

Let me amplify that last comment. Over and above an outstandingseries of connected ore bodies, Stans holds the keys — literally — to ageostrategic ore and refining asset in Kyrgyzstan.

One critical asset has the practical, ex-Soviet name of Kutessay II.But don’t let the unsexy name bore you. Indeed, this mine in Kyrgyzstanholds a massive $14 BILLION reserve of rare earth metals and other strategic metals!

The Soviets built Kutessay II in Kyrgyzstan back during the Cold War.The plant processed ore from a nearby mine and produced materials forthe Soviet nuclear energy and weapons program. The ore was (and stillis) rich in heavy rare earths (HREs), especially dysprosium (Dy),europium (Eu) and terbium (Tb). Here’s an illustration with theelemental breakdown:

Kutessay II Rees Historical Ore Distribution.

Today, this kind of ore distribution is where the demand and bigmoney is. Here’s another illustration of the value chain, showing howcertain of the elements command huge price markups:

KutessayII Ore Distribution by Oxide Value USD - Avergage Price of REO/Kg =$57.75 (prices taken from in July, 2010)

Those Good Old Soviets…

Now for some history. Let me say a few kind words about the old USSR.

As you may know, when it came to building atom bombs to defend the Motherland, the Soviets spared no resource or expense.

You may or may not know that you need rare earths to build some kindsof nuclear weapons. Thus, during the Cold War, the Soviets built upKutessay II into a massive HRE refinery complex. Kutessay II comescomplete with stainless steel and titanium tanks, porcelain linings,glass piping, heavy-duty electrical systems and so much more. Plus,there are roads, power lines, natural gas, rail facilities, water, wastedisposal facilities and maintenance shops. It’s beyond gold-plated.

Kutessay II was a Soviet strategic state asset. The former SovietFive-Year Plans lavished material resources and human talent on KutessayII. Think in terms of a U.S. national laboratory, only with more peopleand more assets and lots more money. Plus, it was tightly guarded andwell cared for over many years.

After the USSR fell, Kyrgyzstan gained independence. The Kutessay IIplant remained in operation for about a decade, but without theSoviet-era level of resources. The plant finally closed about 10 yearsago, in the face of bad economics caused by low-priced Chinese output.It’s the same thing that put all the other non-Chinese producers out ofbusiness across the world.

Still, the successive Kyrgyz governments understood what they have.Through several different political eras, the Kyrgyzs protected theKutessay II site. The plant remains intact. It’s not like peoplestripped it down and sold off parts for scrap.

Kutessay II needs plenty of maintenance, to be sure. But the point isthat right now — today — the Kutessay II plant is the only fully built,non-Chinese HRE facility in the world. It has a history of pastproduction. There’s a license to dispose of nuclear-contaminated wasteproducts (try obtaining such a license in most Western countries!) AndStans owns a 25-year renewable operating license for the property. Lock,stock and barrel.

People, People and People

You’re beginning to see why I like Stans, right? Even better, thereare still people around who remember how Kutessay II all works.

It gets back to that old saying about “people, people and people.”Many of the former techs and engineers, the electricians and pipefitters and so many more former employees are still there. Heck, eventhe security guards are still hanging around. Most of them haven’t diedoff or moved away. They’ve been waiting, waiting, waiting for somethingto happen.

Now along comes Stans, with money and a business plan to get the Kutessay II site back up and running. Could it get better?

Well, yes. It’s better. The archives at Kutessay II hold a vast bodyof technical literature on operations, maintenance and metallurgy forturning ore into finished product. This is all part of the legacy of theformer USSR. I’m talking about warehouses full of technical data, basedon years of operations. It’s the entire Soviet-era learning curve,available for the cost of turning on the lights at the library.

Compare Stans to the Other Players

What a story, eh? Stans has control over the HRE mine. It’s workingon the mill side of things, although the old Soviet-era mill is not ascritical as Kutessay II HRE refinery, which is already under contract.There are trained people to do the work and mentor a younger generationthat wants to work there. And there’s technical literature to supportoperations for producing HRE materials.

Think about what this means to the non-Chinese rare earths business.Stans is that proverbial “first mover” in a breakaway business. Allwhile other non-Chinese companies talk about the mills and plantsthey’re “going to build.”

Stans controls a working mine and has the Kutessay II refinery. Thisis a plant with a history of running ore and producing HRE materials.The refinery at Kutessay II is built. It’s there. It’s on the map.

Sure, after many years of sitting idle, Kutessay II needs work,including a lot of fixing up. But for, say, $100 million, the KutessayII facility will be cranking out HRE materials — sooner, not later —compared that to the half a billion or billion dollars that newconstruction costs. It makes Stans that much more attractive. That’s whyStans is beyond rich in further development potential. The upside isstellar.

Who’s Going to Make It?

Let me beat this drum some more. Let me state this point another way.There are a slew of new non-Chinese rare earths players out ininvestment-land. There are, perhaps, 200 publicly traded “rare earths”companies out there. There’s even an exchange-traded fund (ETF) for rareearths, except you’re likely to be trading the bubble, not thefundamentals.

Of those 200 plays, I’d say that there are about 15–20 companies thathave even a fighting chance of turning their asset into somethingworthwhile in the next 10 years. That’s if many of them roll up witheach other and form strategic alliances with third parties that aremajor end-users. And if the U.S. government and governments in Japan,Australia, Canada and the European Union really get behind the effortsand offer political and regulatory support — let alone tax breaks and/ordirect funding.

So of those 15–20 companies I just indicated, there’s room forperhaps four-six rare earths refinery complexes outside of China. Itdepends on lots of things we cannot control, from future demand toChinese supply to government subsidies.

Staring Down the Barrels

The best of the rare earths development players, with the best assetsand the best management teams, are all living with the same issue.They’re staring down the double barrels of the time-and-money shotgun.

That is, the BEST of them are mulling over the very unpleasantprospect of spending billions of dollars, and many years, on feasibilitystudies, engineering studies, permitting, construction, training, pilotprocessing and debugging operations. Then, MAYBE they’ll have a rareearths end product to sell, in head-to-head competition with theChinese. You want risk? You’ve got risk!

No Vaporware

But with Stans? No vaporware here. This is not just another companymaking an arm-waving presentation in front of a geologic map with thepromoter talking about how promising are the “geophysical indications”and “mineralized anomalies.” Nope.

With Stans, you’re getting the real McCoy. Stans has the Right Stuff.Stans has real rocks, a real mine, a real processing plant, realtechnical people and — most importantly — unduplicable sets of realrelationships with the right people in the right places.

The Right People

On that last point, let me just say that the list of Russian andKyrgyz advisers to Stans is a who’s who of players from the former USSRand current go-to folks in Russia and Kyrgyzstan.

Stans has close relationships with individuals who are members of theold Soviet Academy of Sciences, now the Russian Academy of Sciences.These people are on the speed-dial list for the likes of Prime MinisterVladimir Putin. In my research on rare earths, reading hundreds ofpapers and abstracts, I’ve seen many of the same Russian names over andover. These are “the” players, and they’re working with Stans.

Furthermore, there’s a former Canadian ambassador to Russia workingwith Stans. The diplomatic channels in all this are simply unparalleled.Here we have the leadership of the world’s largest nation — Russia —working with the leadership of the world’s second-largest nation —Canada — to make things happen.

It all gets back to that “political risk” issue. When you build theright relationship — which is exactly what Stans has done — you derisk alot of the rest of your effort. The entire project becomes more andmore doable.

Where to From Here? Some Ideas…

So where is this project going? What is Stans going to do?

Here are a few ideas, although I caution you that things arehappening fast and are subject to change. The recent dust-up in the rareearths space has compressed the next few years of developments into atime frame of a few months.

On a practical level, Stans management is working to nail down thefinal issues of getting the Kutessay II project up and running. I won’tgo into the details. I’ll save that for a future discussion. Suffice itto say that Stans management will burn many buckets of midnight oil insome pretty exotic places. They’re earning their paychecks and buildingvalue for shareholders.

When Kutessay II is ready to move back into operation — as soon as 12months from now, I believe — funding will not be an issue. There’s justtoo much money out there awaiting the opportunity to catch the firstwave of non-Chinese rare earths production. In fact, much of that moneyis from Japan and Korea — these were the guys attending the Roskillconference.

Along the way, the Kyrgyz government is very much on board with whatStans wants to do. There’s strong support for the Kutessay II project.

Likewise, the Russian government also appears to be on board. Thinkin terms of Russian strategic interests. Russia has a natural interestin what happens in Kyrgyzstan, which is part of what Russia considersits “near abroad.” Plus, Russian leadership is quite mindful of thetechnical, economic and strategic merits of Kyrgyz HRE output. TheRussians do NOT want this deal to fall into the hands of the Chinese andare more than happy to let the Canadians take the lead.

More specifically, there are many Russians who want to see theKutessay II refinery — a former Soviet state strategic asset — back upand running. I believe that one key booster is Russian President DmitryMedvedev, who hopes to create a Russian version of Silicon Valley.

That is, if a Russian Silicon Valley is going to happen, Russia willneed its own assured supplies of high-tech metals, particularly HREs. Solook for a favorable HRE off-take agreement toward Russia and watchRussia become an HRE player in the world.

Here’s one other point for you to consider about Stans. In Russia,there are 50 or so known rare earths deposits, some of which areunbelievably massive. I’ll discuss this more in future articles, but allacross Russia are sites that the Soviets discovered and did notdevelop. The Soviets needed the output from just Kutessay II. That wassufficient for the Soviets, and thus they never developed the othersites.

So now Stans is in a position to obtain mining and extraction rightsin many other prospective locales. When that happens — which will take alonger time to play out, to be sure — the idea will be to put the oreon a train, and haul it to you-know-where, in Kyrgyzstan.

Thus over time can Stans become an even more dominant player in the rare earths space using Russian ore.

The Disruptive Force in the Rare Earths Space

Stans Energy has been working for several years behind the cloak ofthe former USSR. There was not a lot of visibility. Stans was “toorisky” for a lot of people.

But this year I expect that Stans is going to decloak and announcethat it’s ready to restart Kutessay II, refining HRE materials. Thiswill put Stans out in front of everybody and, in my view, seriouslydisrupt all the other investment plans of the rest of the rare earthsplayers.

What happens when Stans nails down its plans to take out Russian ore,refine it at Kutessay II and send it back to Russia (or Japan orKorea)? That’ll be a major disruptive blast to the rare earths space.

Buying Stans

Right now, Stans has about 132 million shares outstanding trading.The share price has risen significantly in the past month or so, and thetrend is upward.

Most shares of Stans are closely held by people who understand therare earths story very well, and they are not selling. Thus, on anygiven day, there are about 25 million shares that actually trade. Asmore and more people learn the Stans story, fewer and fewer of them wantto sell.

Will Stans eventually get bought out? Doubtless, yes. But it’ll haveto be very friendly, and very good for the shareholders. There’s toomuch at stake for someone just to swoop in and try a raw takeover. Thepersonal relationships in Russia and Kyrgyzstan are critical.

So get your shares of Stans, and get them soon. Buy judiciously. Buyon down days. Watch the chart. Buy at your best opportunity. But getsome shares. Buy and hold. Do NOT trade out. If you sell, you’ll likelyhave to pay more when you want to buy back in. This story is unfolding,and unfolding fast.

If you’re interested in this idea, I recommend paying no more than $2 to get into Stans Energy. Don’t chase the stock higher and higher.

Remember, I expect the market to catch on within a matter of weeks ormonths. Also, we’re probably going a lot of positive press in the nearfuture.

Watch the stock, buy carefully and build your position over time.

Again, right now, $2 is my recommended ceiling on this one. Youshould have more than enough opportunity to get in below that price inthe coming weeks.

Action to take: Use a strict limit order to buy Stans Energy (RUU: TSX-V) up to $2.00.

Your 2nd Chance to Grab Rare Earth Profits:
The Rare Earth Company Down Under — Set to Profit from the China Squeeze…

Okay so by now you know the story. China controls 97% of the outputof rare earths and the industrial world is scrambling to find suppliers.This leads directly to your next opportunity to profit.

Let me introduce you to Lynas Corp. Ltd. (LYC: ASX)with headquarters in Sydney, Australia. Lynas trades on the AustralianSecurities Exchange (ASX). Lynas has remarkable potential going forward.

Lynas controls the Mount Weld carbonatite in Western Australia. MountWeld is a world-class ore body and, indeed, one of the largest rareearth deposits ever discovered. Lynas has all necessary permits toproceed with mining operations to recover rare earths.

In fact, Lynas has been moving ore since July 2007 and stockpiling itwhile the processing facilities are being constructed — talk aboutforward thinking! Almost all of this ore has been sold or is undercontract. One of the largest customers is French chemical giant Rhodia.

Lynas has two other Australian prospects also, the Crown polymetallicresource and another rare earth deposit in Malawi. Currently, Lynas isperforming early-stage efforts and due diligence, including assessmentdrilling.

These deposits have good potential downstream. In short, Lynas has arich series of ores in its development pipeline, in the arenas of bothrare earths and other important elements.

Based on its efforts at Mount Weld, Lynas has developed its ownproprietary RED (Rare Earths Direct) brand. All rare earth productsmarketed by Lynas will bear the RED brand.

The aim is to make RED a global benchmark for quality and continuityof supply, because much of the current Chinese output comes in varyinglevels of quality (see below). And the trend within the global industryis that raw, primary rare earth ores are gradually being replaced bymore refined chemical products that are purer and closer to the end-usestate.

Lynas has developed proprietary technology for separating the rareearth elements from the mined ore and upgrading the final product to ahigh standard that will command a premium price. And Lynas has alreadysigned several long-term supply contracts with overseas users.

The contracts have price floors and relatively open-ended escalationclauses. This will protect Lynas from any unanticipated declines inmarket prices and allow the firm to capture most of the premium fromfuture price increases.

Lynas will process the minerals from Mount Weld near the mine, withadditional processing and refining planned for a new, state-of-the-artfacility site in Kemaman, on the east coast of Malaysia.

When it’s up and running, this facility will be one of the worldsonly high capacity rare earth processing facility outside of China.

The Kemaman facility is located near large-scale sources of power andother infrastructure, including a skilled work force. The Malaysiangovernment offers a solid degree of political stability and is highlysupportive of the Lynas project.

Managements goal is to have ore running through the processingfacility in less than 24 months. This is a solid goal, and could meansubstantial gains for early investors.

Lynas Offers a Great Chance to Profit from the China Rare Earth Squeeze

Lynas plans to exploit a number of features within the Chinese rareearth industry that are turning into long-term strategic weaknesses.First, the Chinese government is clearly increasing control over thenation’s rare earth industry and tightening supply in order to causeprices to rise. This has dampened some of the local Chineseentrepreneurial spirit, and replaced it with a lethargic andbureaucratic approach to operations and problem solving.

Second, the Chinese government has imposed mining quotas and placedrestrictions on both rare earth output and exports. Some of therestrictions are due to enforcing Chinese environmental laws (lax asthey are), which has caused numerous smaller operations to close shop.Other restrictions have to do with China’s industrial policy to favorthe establishment of industry that uses rare earths within China. Inother words, China has allocated much of its future rare earthproduction to internal users. By default, there is less rare earthproduct available for export despite overseas price signals.

At the same time, China is approaching its own limits on the outputof rare earths for both geological and technical reasons. China’slargest rare earth mine, at Baotou, is running at full capacity andcannot increase output. And as mining in China reaches the limits ofsome of the ore bodies, the quality of China’s rare earth products hasbeen quite variable.

It does not help that Chinese rare earth enterprises are obsessedwith low-cost production techniques that work against improving qualityfor the final product.

So the bottom line is that Lynas is turning into the globalalternative to purchasing rare earths from China. Along with StansEnergy it represents a legitimate way to profit from the rare earthsrun-up.

As world rare earth demand skyrockets, Lynas is going to make someserious money out of this — and now’s your chance to join them!

Action to take: Buy shares of Lynas Corp. Ltd. (LYC: ASX). Note: Lynas Corp. trades on the Australian Securities Exchange.

Your 3rd Chance to Grab Rare Earth Profits:
Profit from a “Heavyweight” Rare Earth Exploration Company — Right Here in the U.S.!

Now that I’ve explained the basics of rare earths, it’s time to throwmore opportunities into the investment ball-and-rod mill. Because thereare really two kinds of rare earths. In fact, there are two entirelydifferent markets for rare earths.

There are the “light” and “heavy” rare earths. The distinction isbased on the atomic numbers of the elements (see numbers below thechemical symbols in the image below).

The light rare earths range from lanthanum (La) to gadolinium (Gd).Then, with some overlap, the heavy rare earths range from samarium (Sm)to lutetium (Lu). As I mentioned, samarium, europium and gadolinium areviewed as falling in both camps.

Light rare earths are fairly abundant in terms of volumes. The marketdrivers for the light elements are mostly in the field of magnets.Think in terms of neodymium, going into those big windmill magnets tothe tune of 500 pounds each.

Heavy rare earths are far less abundant in terms of volumes. Themarket drivers for heavy rare earths are more in electronics. Think interms of a fraction of an ounce of material going into the chips andother electronic circuitry in your cell phone or in a small medicaldevice.

The chemical distinctions, let alone the market forces, are prettyhairy within the industry. What it means to us as investors, however, isthat we need to look for companies with ore bodies that are rich inheavy rare earths. For all of their respective virtues, Lynas and U.S.based Molycorp have lots of light rare earths and not so much in the wayof heavy rare earths.

So is there is a company out there with control over heavy rare earth bodies?

I’m glad you asked, because yes, there is — the company is Ucore Rare Metals (UCU: TSX-V).

Profit from this “Heavyweight” Rare Earth Explorer

Ucore Rare Metals is an exploration company. Its flagship property is at Bokan Mountain, Alaska.

Ucore shares trade on the Toronto Venture Exchange. The company usedto be called “Ucore Uranium,” but management recently changed the name.Why? The Bokan Mountain, Alaska, claim is the site of a prolific formeruranium mine from the Cold War. Thing is, the uranium mine also holdslarge amounts of rare earths, including heavy rare earths.

Indeed, the old uranium mine is what makes this new rare earths playso intriguing. If Ucore controlled a hunk of undeveloped rock out in themiddle of the Alaska forest, I might not be interested. But Ucorecontrols a set of claims with serious mining development andinfrastructure already in place.

So why change the name? Management wanted to move attention away fromthe uranium side of things and focus more on the rare earths in theportfolio. Fair enough.

An Amazing Find, Hidden Right in Our Own Back Yard…

Just as the Molycorp Mountain Pass site was discovered by uraniumprospectors looking for ore, so goes the history of Bokan Mountain. Backin 1955, a couple of prospectors were flying over Prince of WalesIsland in a Piper Cub airplane. They were towing a “Nucliometer” behindthem, a souped-up Geiger counter device that measures radioactivity.

When the prospectors crossed over Bokan Mountain, in the midst of theTongass National Forest, the nuclear readings began to go through theroof. These prospectors knew that they had found something, and in thosedays it meant that the Atomic Energy Commission (AEC) moved in fast toexploit the resource.

By 1957, there was a permitted uranium mine up and running. Since itwas all happening in the Tongass National Forest, there were few humanbeings to get in the way, protest or otherwise interfere with things.Between 1957–71, the Mt. Bokan site became home to the Ross-Adams Mine,which produced over 1.3 million pounds of uranium yellowcake.

To produce that amount of product, the mining firm built out anextensive system of heavy-duty mining roads, along with a pier facility.It’s all still there, southwest across the water from today’s fishingand cruise ship port of Ketchikan, Alaska.

The uranium mine closed in 1971, and nothing much else happened forquite a while. There was a modest amount of regional geological work inthe 1970s and 1980s by the U.S. Bureau of Mines.

Geological Studies

On a broad scale, in the 1980s, the geological community figured outthat Prince of Wales Island is part of what’s called the “Alexanderterrane” of Alaska. “Terrane” is a plate tectonics concept. It meansthat the rock bodies we’re looking at formed far to the south, and inCretaceous time were transported north, to collide with the NorthAmerican continent.

Alaskan geology is very complex, and the terrane concept adds to thedifficulty of deciphering the past. What we’re left with, in this MountBokan area, is a wide variety of exotic mineral deposits — really, it’syears beyond the stuff you learn in Geology 101. It’s much more like agraduate-level course in mineralogy and geochemistry. The bottom line isthat, when people looked closely, they determined that Mount Bokan isunusually rich in the heavy rare earths.

The rare earths are mostly hosted in volcanic rocks called andesite,via coarse-grained pegmatites that form intrusive dikes around MountBokan. Thus, there are strong structural controls that make explorationmore systematic. The original magmas probably came from deep within thevolatile and rich upper mantle and cooled from molten rocks thatoriginated in the deep crust. So when I say “rare” earths, I mean reallyrare minerals.

At Mount Bokan, rare earths mineralization is associated withelevated uranium, as well as thorium levels. This makes radiometricsurveys very successful in identifying new sites of rare earthsmineralization.

In the late 1980s, the U.S. Geological Survey published aneye-catching estimate of rare earths resources: nearly 374 millionpounds of combined yttrium and rare earths oxide (note that it’s NOTcompliant with current rules for Canadian National Instrument 43–101).Still, the rough U.S. government work indicated that in addition to itsproven uranium resource, Mount Bokan may be among the largest heavy rareearths deposits in the U.S.

Where to Go From Here?

In 2006, Ucore Uranium acquired the claim. Now Ucore is in the driver’s seat, with no title issues.

Just with uranium alone, Ucore may be sitting on top of over 11million pounds of potential yellowcake. As for the rare earths, there’sno solid estimate yet, because the company is in the midst of a drillingand assaying program.

There’s a fair degree of certainty, however, that there’s somethingsignificant out there at Mount Bokan. But as with many old sites, thearea hasn’t ever been systematically or comprehensively explored withmodern chemical and geophysical techniques and technologies. Really,there’s been no significant mining or capital investment there foralmost 40 years.

Still, we know that there’s a proven ore body at Mount Bokan, withuranium and rare earths that have been identified and investigated tosome extent. Plus, there’s an extensive historical database containingprevious exploration and mining data.

Just from the first pass of new exploration and assaying, there aremultiple prospects and multiple ore commodities at Mount Bokan, of bothuranium and rare earths. The place has existing infrastructure andimprovements, which leads to near-term production potential. And it’slocated in a part of Alaska that’s mining friendly. That is, this formermine site is specifically set aside for resource development and thereare no residential or indigenous populations in proximity.

The Ucore Story

Ucore has some very good people on its management and technical team,so right away it’s got a leg up. Take this great ore body in a knownmining district with historical production. Add a group of people whoknow what they’re doing. And where can this company go? In a world whererare earths are about to become hot commodities, Ucore could be a greatupstream play.

What are the risks? You mean, aside from being a rare earths play,and all the other issues I’ve discussed before with other companies? I’dlike to see Ucore more cashed up, but that probably means diluting thecurrent shareholders. I’d also like to see any new cash go for fasterprogress with drilling results and assays. Right now, I’m not entirelysure that the company has the financial depth to do everything it’lltake to make the Mount Bokan program work.

So why look at Ucore? Because of the ore body. Because of the mininghistory. Because of location, location and location. Because in thecoming rare earths crunch, I can see Ucore teaming up with a larger,better-capitalized firm. Meanwhile, I believe that Ucore has a good rareearths story to tell and it can keep delivering good results until theright partner comes along.

Don’t chase this stock. But accumulate a position. Get on board.Something good ought to come down the road, and sooner, rather thanlater.

Action to take: Buy Ucore Rare Metals (UCU: TSX-V).

Stay Tuned for Future Updates On these Rare Earth Companies and Fresh New Profit Opportunities…

I’ll be consistently monitoring the companies listed in this reportand staying on top of any new information. As news surfaces I’ll keepyou posted through email alerts.

Stay tuned for more information PLUS exciting new opportunities to profit from energy and natural resources.

That’s all for now. Thanks for reading.

Byron King
Editor, Energy & Scarcity Investor

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