VANCOUVER,
Jan. 10, 2014 /PRNewswire/ -
Commerce Resources Corp. (TSXv: CCE, FSE: D7H) (the
"Company" or "Commerce") is pleased to report the results from the
2013 drill program at its 100% owned Ashram Rare Earth Deposit
located in Northern Quebec.
Highlights are as follows:
- Drill Hole EC13-089: 61.40 metres of 2.15% Total Rare
Earth Oxide ("TREO"),
- Drill Hole EC13-087: 57.36 metres of 2.28%
TREO,
- Expansion of the deposit footprint 60 metres to the
northwest,
- Confirmation of additional mineralization where un-mineralized
material was expected and modelled,
- Additional Middle and Heavy Rare Earth Oxide (MHREO) enrichment
near surface with EC13-090A returning 30.64 metres of 1.51% TREO
with 12.4% MHREO/TREO (MH/T).
The intent of the 2013 drilling program,
consisting of 12 NQ size drill holes totaling 1,177 m, was to
upgrade the inferred mineral resource located where the starter pit
is anticipated to be, as discussed in the 2012 Preliminary Economic
Assessment (PEA), to the indicated category in support of the
ongoing Pre-feasibility Study (PFS). The results of the
program were surprising due to several unexpected outcomes,
including the expansion of the deposit to the northwest and the
encountering of mineralized REE material at surface, and within the
pit, where waste rock had been expected and modelled in the
PEA. Additionally, high grade zones were encountered and all
holes were collared in mineralized material ranging from 0.94% to
2.48% TREO.
The mineralized footprint at the Ashram Rare
Earth Deposit has now been expanded with an additional 60+m to the
northwest, and the MHREO Zone is further delineated.
Highlights include EC13-087 with 2.28% TREO over 57.36 m and
EC13-089 with 1.94% over 144.57 m, including 2.15% TREO over
61.40 m. In addition, extending from surface, the MHREO
Zone continued to be intersected with EC13-090A returning 1.51%
TREO over 30.64 m with 12.2% MH/T.
Complete results from the drilling are as
follows:
| Table 1: 2013
Drill Analytical Results |
| Hole ID |
From
(m) |
To
(m) |
Interval
(m) |
TREO(1)
(%) |
MH/T(2)
(%) |
| EC13-087 |
4.39 |
61.75 |
57.36 |
2.28 |
4.4 |
| EC13-088 |
5.18 |
97.48 |
92.30 |
2.06 |
6.1 |
| EC13-089 |
7.98 |
152.55 |
144.57 |
1.94 |
7.4 |
| including |
32.50 |
93.90 |
61.40 |
2.15 |
6.8 |
| including |
119.50 |
140.05 |
20.55 |
1.62 |
10.2 |
| EC13-090 |
- |
- |
- |
- |
- |
| EC13-090A |
7.00 |
160.63 |
153.63 |
1.86 |
8.6 |
| including |
35.50 |
66.14 |
30.64 |
1.51 |
12.4 |
| EC13-091 |
4.15 |
133.20 |
129.05 |
2.00 |
6.5 |
| EC13-092 |
12.15 |
82.04 |
69.89 |
1.96 |
6.1 |
| EC13-093 |
2.50 |
16.76 |
14.26 |
2.16 |
4.6 |
| including |
70.37 |
95.73 |
25.36 |
1.96 |
4.3 |
| EC13-094 |
1.57 |
22.44 |
20.87 |
2.00 |
4.2 |
| EC13-095 |
6.00 |
115.95 |
109.95 |
1.86 |
6.1 |
| EC13-096 |
52.25 |
59.50 |
7.25 |
1.96 |
4.5 |
| EC13-097 |
32.50 |
46.00 |
13.50 |
2.18 |
4.5 |
| (1) |
TREO is the summation of Ce2O3 +
La2O3 + Pr2O3 +
Nd2O3 + Eu2O3 +
Sm2O3 + Gd2O3 +
Tb2O3 + Dy2O3 +
Ho2O3 + Er2O3 +
Tm2O3 + Yb2O3
+ Lu2O3 + Y2O3 |
| (2) |
MH/T is the sum of the middle and heavy rare earth oxides
(Eu2O3 + Sm2O3 +
Gd2O3 + Tb2O3 +
Dy2O3 + Ho2O3 +
Er2O3 + Tm2O3 +
Yb2O3 +
Lu2O3 + Y2O3) divided
by TREO, expressed as a per cent. |
| |
|
With the exception of EC13-090, all drill holes
were deliberately ended shortly below the base of the anticipated
pit shell, each ending in mineralized material with several holes
ending in >2.00% TREO, with the last sample of EC13-091
returning 2.48% TREO. Drill casings were left in where practical to
allow for easy access to deepen if required for further pit
optimization during the ongoing PFS. Drill hole EC13-090
ended prematurely at 7.62 m due to drilling complications and was
not analyzed.
A map illustrating the location of drill holes,
along with select analytical results is available at
http://www.commerceresources.com.
MHREO Zone
The previously identified MHREO Zone, targeted in 2013 by EC13-090A
and 089, was intersected with strong MHREO mineralization over
significant widths; EC13-090A returned 1.51% TREO over 30.64 m
with 12.2% MH/T, and EC13-089 returned 1.62% TREO over 20.55
m with 10.2% MH/T. The individual critical rare earth
oxide (CREO) grades for EC13-090A are listed below in Table 2.
|
Table 2: Individual CREO Grades over the 30.64 m MH/T
Interval in EC13-090A |
| REE |
Group |
Average Grade
(ppm) |
Peak Grade
(ppm) |
REE Distribution
(%) |
|
Nd2O3 |
Light |
2,879 |
3,592 |
19.1 |
|
Eu2O3 |
Middle |
143 |
212 |
0.95 |
|
Dy2O3 |
Heavy |
144 |
230 |
0.96 |
|
Tb2O3 |
Heavy |
37 |
52 |
0.24 |
|
Y2O3 |
Heavy |
626 |
1,015 |
4.14 |
The individual heavy rare earth oxide (HREO)
grades at Ashram compare very favourably to well-known HREO
deposits in development as Table 2 illustrates. Further, all
five of the critical rare earth oxide (CREO) grades compare very
favorably (Dy2O3 and
Tb2O3) or exceed (e.g.
Nd2O3 and Eu2O3)
several of the well-known HREO deposits. For example, the
distribution of europium oxide (Eu2O3), the
most expensive of the CREOs, is among the highest in the world of
any rare earth deposit in development or production.
Deposit Expansion and Additional Mineralized
In-pit Material
The five most northwesterly drill holes (EC13-087, 091, 092, 093,
and 094) were collared in mineralization, successfully extending
the deposit more than 60 m further to the northwest than had been
previously modelled. Intersections include 2.28% TREO over
57.36 m (EC13-087) and 2.00% TREO over 129.05 m (EC13-091).
The presence of strongly mineralized material at
surface in drill holes EC13-093 and 094, 2.16% TREO over 14.26 m
and 2.00% TREO over 20.87 m respectively, suggests a lip or
'fanning' of the mineralized body near surface in the northwestern
area of the deposit.
As three of these holes were expected to collar
in un-mineralized in-pit material, the mineralization encountered
is anticipated to lower further the existing strip ratio as
currently outlined in the Preliminary Economic Assessment (0.19:1,
waste : mineralized material). As less waste would be mined
to access the mineralized material, the economics of the mining
phase could be further improved.
The deposit remains open to the north, south, at
depth, and is not fully constrained to the east and west.
NI 43-101 Disclosure
Darren L. Smith, M.Sc., P.Geol., of
Dahrouge Geological Consulting Ltd., a Qualified Person as defined
by National Instrument 43-101, supervised the preparation of the
technical information in this news release.
All samples were analyzed by Activation
Laboratories Ltd. of Ancaster,
Ontario, using its method eight -- major oxide, rare earths
and trace element package by fusion ICP and ICP/MS in addition to
fluorine by method 4F-F.
Voluntary Delisting from OTCQX
Commerce Resources also announces that the common shares of the
Company have been delisted from the OTCQX. The Company's
shares will continue to trade on the TSX Venture Exchange under the
symbol "CCE" and the Frankfurt Stock Exchange under the symbol
"D7H".
About the Ashram Rare Earth Element
Deposit
The Ashram Rare Earth Element (REE) Deposit is a carbonatite within
the Eldor Property, located in north-eastern Quebec. The Deposit has a measured and
indicated resource of 29.3 million tonnes at 1.90% TREO and an
inferred resource of 219.8 million tonnes at 1.88% TREO. The
deposit boasts a well-balanced distribution with enrichment in the
light, middle and heavy rare earth elements including all five of
the most critical elements (neodymium, europium, dysprosium,
terbium, and yttrium).
The REEs at Ashram occur in simple and
well-understood mineralogy, being primarily in the mineral monazite
and to a lesser extent in bastnaesite and xenotime. These minerals
dominate the currently known commercial extraction processes for
rare earths.
A Preliminary Economic Assessment, completed in
May 2012 by SGS-Geostat of
Montreal (Blainville) (see news release dated
May 24, 2012), outlines robust
economics for the Ashram Deposit. The PEA is based on a 4,000
tonne per day open-pit operation with an initial 25-year mine life
(300 years at economic cut-off if open-pit + underground
development), a pre-tax and pre-finance Net Present Value (NPV) of
$2.32 billion at a 10% discount rate,
a pre-tax/pre-finance Internal Rate of Return (IRR) of 44%, and a
pre-tax/pre-finance payback period of 2.25 years.
About Commerce Resources Corp.
Commerce Resources Corp. is an exploration and development company
with a particular focus on deposits of rare metals and rare earth
elements. The Company is focused on the development of its Upper
Fir Tantalum and Niobium Deposit in British Columbia and the Ashram Rare Earth
Element Deposit in Quebec.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
"David Hodge"
David Hodge
President and Director
Tel: 604.484.2700
Email: dhodge@commerceresources.com
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains forward-looking information which is
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ from those
projected in the forward-looking statements. Forward looking
statements in this press release include that the casings were left
in for further pit optimization and ongoing PFS; drill holes
EC13-093 and 094 suggest fanning of the mineralized body;
anticipated lowering of strip ration; improvement of mining phase
economics; and all reference to and information contained in the
pre-feasibility study. These forward-looking statements are
based on the opinions and estimates of management and its
consultants at the date the information is disseminated. They are
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from
those projected in the forward-looking information. Risks
that could change or prevent these statements from coming to
fruition include the ability to finance ongoing exploration,
development and metallurgical programs, changing costs for mining
and processing; changing forecasts of mine production rates; the
timing and content of upcoming work programs; geological
interpretations based on drilling that may change with more
detailed information; potential process methods and mineral
recoveries assumption based on test work; the availability of
labour, equipment and markets for the products produced; market
pricing for the products produced; and despite the current expected
viability of the project, conditions changing such that the
minerals on our property cannot be economically mined, or that the
required permits to build and operate the envisaged mine can be
obtained. The forward-looking information contained herein is given
as of the date hereof and the Company assumes no responsibility to
update or revise such information to reflect new events or
circumstances, except as required by law.
SOURCE Commerce Resources Corp.