VANCOUVER, Aug. 19, 2014 /PRNewswire/ - Commerce
Resources Corp. (TSXv: CCE, FSE: D7H, OTCQX: CMRZF) ("Commerce"
or the "Company") is pleased to provide an update on its
metallurgical flowsheet for the Ashram Rare Earth Deposit,
including an outline of recommended next steps and potential
end-products to be targeted by these steps.
Overall, the Company continues to advance the Ashram Project
towards completion of its Prefeasibility Study. This work
includes the results of recently reported infill drilling
(see news release: July
2nd, 2014), and the metallurgical programs being
conducted at UVR-FIA GmbH (UVR) in Germany and Hazen Research Inc. (Hazen) in
Denver, CO.
Commerce President David Hodge
states: "We are again very encouraged by the successful usage of
the conventional and low-cost techniques detailed in the Ashram
flowsheet. This testwork has produced one of the highest grade
mineral concentrates in the REE sector and we believe that our
current results are the most logical indicators of Ashram's
potential for positive downstream economics. We look forward to the
results from the next phase of metallurgical testing and to a
better definition of our costs to produce final end
products".
The Company is pleased to report that it has now confirmed the
mineral processing flowsheet with the flotation + leach + Wet High
Intensity Magnetic Separation (WHIMS) process (reported previously
December 4th 2013), at the
bench scale. Further, the flowsheet has proven to be repeatable for
the production of high-grade mineral concentrates (>40% Total
Rare Earth Oxide, "TREO") using industry standard techniques
applicable at the commercial scale.
The objective going forward is to optimize specific aspects of
this mineral processing flowsheet. At the same time Commerce
intends to initiate downstream processing studies directed firstly
towards the production of a cerium-lanthanum depleted, and thorium
free, mixed rare earth carbonate (REC) concentrate. This is one of
many potentially saleable products which might be produced. It is
the preferred feed stock for numerous global rare earth element
(REE) processors. The company will also evaluate the production of
select separated oxides as final products.
Highlights
What follows is a synopsis of the mineral processing and
hydrometallurgical (hydromet) testwork carried out to date.
Specific highlights:
- Bench scale test confirmation of the mineral processing
flowsheet with demonstrated reproducibility of flotation, HCL
leach, and WHIMS components.
- Additional mineral concentrate of 41% TREO at 70% recovery and
3% mass pull was produced during repeat testing (See news release
December 4th, 2013 which
details first production of a 44% TREO mineral concentrate at 71%
recovery)
- A conceptual hydrometallurgical flowsheet was designed, and
partially tested at bench scale, to produce a representative mixed
rare earth oxide (REO) / (REC) as a potential saleable product.
- Demonstrated sulphation roast and pot digestion tests on
high-grade mineral concentrate (>40% TREO), to put REE into
solution, with staged TREO recoveries of 87% and 93%, respectively,
at low acid consumptions.
- Demonstrated removal of deleterious Th from the circuit using
industry standard methods.
- Demonstrated that flotation tailings have significant capacity
to neutralize leach liquor, suggesting there may be no
process need for costly lime as a neutralizing agent
- UVR-FIA and Hazen Research reports (which include high level
data review of test work to date) provide recommendations and
outline optimization testing for the next phase of work.
Hydrometallurgical Focus
Only ~3% of the whole rock material at Ashram is expected to
require downstream hydromet processing due to the significant
upgrading of the whole rock through to a >40% TREO mineral
concentrate prior to the hydromet stage, and based upon the mass
reduction of ~97%. This will result in considerable reductions in
capital (CAPEX) and operating expenditures (OPEX).
Conceptualized Flowsheet through to Saleable
Product(s)
The Ashram flowsheet has been bench scale demonstrated through
to dissolution of the mineral concentrate, creating a pregnant
liquor solution (termed "PLS") at a high recovery. This is a
significant milestone in the process towards a potentially saleable
product (see below for details).
The remainder of the hydromet flowsheet has now been fully
conceptualized and designed to refine the PLS into a potentially
saleable mixed REO/REC product. This includes the removal of Ce and
La as separate potentially saleable product(s), thereby,
significantly increasing the value of the primary mixed REO/REC
concentrate (i.e. an increased "basket price"). A mixed REO/REC
concentrate is seen as a major milestone for the Company as it is a
basic, relatively purified, feed stock for REE separation
facilities, in and outside, of China. Ability to purchase
such a concentrate aligns well with the interests of potential
Joint Venture Partners who have excess separation capacity and
need a concentrate source.
Further, due to the high-grade nature of the Ashram mineral
concentrates that are dissolved into solution (PLS), the impurity
content is relatively low. Low impurities allows for more options
and a potentially simpler means of downstream processing into
relatively pure saleable product(s).
There is a large array of intermediate and potentially saleable
products that may be considered as an economic alternative to
individually separated REO (SREO). Although SREOs bring a premium
price at market, they are also the most difficult, as well as
costly, to produce. Production of an intermediate product suite is
a common method of passing substantial CAPEX and OPEX to a third
party that would complete the final refining to end-user
specifications. A few of the many base (mixed) and intermediate
product (i.e. partial separation) options (representing only a
small percentage of that available) are listed as follows:
- Mixed rare earth oxide (REO)
- Mixed rare earth chloride
- Mixed rare earth carbonate (REC)
- Ce oxide, mixed REO/REC
- Ce-La oxalate, mixed REC (i.e. Ce-La depleted, Th free,
mixed REC concentrate targeted by the Company)
- Ce oxide, Eu oxide, mixed REO
- Mixed LREO (La, Ce, Pr, Nd), mixed MHREO (Sm, Eu, Gd, Tb, Dy,
Ho, Er, Tm, Yb, Lu, Y)
- Mixed LREO (La, Ce, Pr, Nd), mixed MREO (Sm, Eu, Gd), mixed
HREO (Tb, Dy, Ho, Er, Tm, Yb, Lu, Y)
- La oxide, Ce oxide, Pr-Nd oxide (didymium), mixed MHREO
- La oxide, Ce oxide, Pr-Nd oxide (didymium), mixed MREO, mixed
HREO
- La oxide, Ce oxide, Pr-Nd oxide (didymium), Sm oxide, Eu oxide,
Gd oxide, mixed HREO
The versatility afforded by Ashram's high-grade mineral
concentrates (i.e. lower-cost downstream processing and limited
impurities), allows for a greater number of potentially saleable
products to be evaluated. Such versatility is sought after by
potential Joint Venture Partners interested in partial/intermediate
products. Options for partial separation will be evaluated as part
of the next phase of hydromet work.
Additionally, Commerce expects to evaluate the production of a
range of separated oxide products, with a focus on the five
critical REOs (CREOs) that the Ashram Deposit is enriched in. Final
products such as neodymium oxide, europium oxide, terbium oxide,
dysprosium oxide, and yttrium oxide would be attractive to a large
number of end users and potential joint venture partners. They are
therefore seen as viable commercial targets for the next stages of
hydrometallurgical investigation.
Dissolution of the Mineral Concentrate (i.e. putting the REEs
into solution)
Two tests were completed to dissolve the high-grade Ashram
mineral concentrate, putting all REEs into solution (PLS): a
sulphation roast, and a pot digestion. Recoveries into solution for
this stage were 87% and 93%, respectively, for total recoveries
into solution (flotation + leach + WHIMS + roast/digestion) of 62%
and 65%. Most importantly, only ~2-3% of the whole rock mass is put
into solution for final processing, dramatically reducing costs
while simplifying the downstream processing due to fewer
impurities. Test data, with cumulative totals, can be viewed on the
Company's website at the following link:
http://www.commerceresources.com/i/pdf/2014-08-15-NR-Tables-1.pdf
Acid consumptions in the hydromet work have been very low owing
to the high-grade mineral concentrate feed. For the HCl leach (100%
basis), 90 kg/t is consumed (relative to whole ore) with the
sulphuric acid consumption from the sulphation roast and pot
digestions at 30 kg/t and 120 kg/t respectively (relative to whole
ore). Acid recycling/regeneration has not been incorporated into
the current flowsheet and will be a focus of optimization going
forward. Further reductions in acid consumptions are anticipated as
the methods for acid recovery in such systems are
well-established.
Flotation Tailings as an Effective Neutralization
Agent
Recent testwork has demonstrated that the flotation tailings
have a significant capacity to neutralize leach liquor, strongly
suggesting that lime will not be required as part of the
neutralization process steps. As many REE projects require a
considerable amount of lime, at significant cost of
purchase/shipping/storage, to neutralize liquors as part of their
flowsheet, this is an important potential cost reduction.
Benchmarking against Operating REE Mines: Mineral Concentrate
Requirements and Demonstrated Repeatability
Ashram's metallurgical work to date has had the objective of
generating the highest grade mineral concentrate possible, at high
recovery, and doing so with demonstrated repeatability. This
objective is rooted in the reality that, apart from the
ion-absorbed clay deposits of South
China, all major producing REE mines globally (Mountain
Pass, Mount Weld - CLD, Bayan Obo,
Kamasurt/Lovozero, Maoniuping, and Weishan) operate with a minimum
30% TREO mineral concentrate for downstream processing. This
strongly indicates that a >30% TREO mineral concentrate is a
baseline requirement for economic operation of any non-ionic clay
rare earth mine. Please note the illustration at the following
link:
http://www.commerceresources.com/i/pdf/2014-08-09-All-Min-Cons-Recovery.pdf
Commerce has confirmed that Ashram's base mineral processing
flowsheet can reliably produce one of the highest grade (if not the
highest) mineral concentrates in the entire REE project development
sector. The highest TREO grade mineral concentrates already
produced from the Ashram Deposit may be viewed on the Company's
website located at the link below:
http://www.commerceresources.com/i/pdf/2014-08-15-NR-Tables-2.pdf
To date, no optimization testing has been completed (e.g.
temperature, pH, reagent dosage, etc.). This suggests that
significant scope remains for increased recovery. The next steps of
optimization work will proceed in parallel with increasing
focus on the production of a variety of potentially saleable
end-product(s), using representative mineral concentrate feed
material, in preparation for a full-scale pilot plant to be run
before completion of the Prefeasibility Study.
Darren L. Smith, M.Sc., P.Geol.,
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.
Eric Larochelle, Eng, and Alain Dorval, Eng., Manager- Process,
Mining and Mineral Processing., of Roche Ltd, Consulting Group,
Qualified Persons as defined by National Instrument 43-101,
reviewed the technical information presented in this news
release.
About Hazen Research Inc.
Hazen Research Inc., located in Colorado U.S.A, is an industry leader in
metallurgical processing including rare earths. Their
expertise extends across many commodities including base, precious,
and rare metals, as well as pilot plant studies.
Over their 50+ year history, extensive experience in the metallurgy
of rare earths has been developed via direct involvement on many
rare earth projects with varying ore and gangue mineralogy.
They are therefore, very well-known to industry, within and outside
North America, as a leader in
mineral beneficiation and hydrometallurgical processing of raw
materials, including rare earth mineralized material.
Hazen is the primary metallurgical facility focused on defining
the beneficiation and hydrometallurgical flowsheet for the Ashram
Deposit.
About UVR-FIA GmbH
UVR-FIA GmbH, located in Freiberg
Germany, is a mineral processing and research facility with
roots dating back to 1954.
R. Gerhard Merker, a mineral
processing engineer (Dipl.-Ing.) and leading expert in flotation of
carbonate and fluorite-bearing bastnaesite ores, is consultant and
manager of the Ashram Deposit's test work at UVR. Mr. Merker
has over 30 years' experience in the raw material and recycling
industry including several years studying the Dong Pao Rare Earth
Deposit in Vietnam and other rare
earth deposits.
UVR-FIA is working in tandem with Hazen Research to complete the
flowsheet for the Ashram Depositwith a focus on fluorite separation
from the rare earth minerals.
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 of 2012 by
SGS-Geostat of Montreal
(Blainville) (see news release
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.
The company continues to advance the Ashram Deposit with
metallurgical programs at both UVR-FIA and Hazen Research.
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 but are not limited to
reference to the outlining of next steps and potential end-products
to be targeted; completion of a Prefeasibility Study; potential for
downstream economics; estimates of costs to produce end products;
intentions to initiate downstream processing studies; suggesting
there may be no process need for costly lime neutralizing agent;
references to reductions to capital and operating expenses; finding
a greater number of potential saleable products; projecting
increasing the value of primary mixed REO/REC concentrate; future
evaluation of the five critical elements; references to end users
and potential joint venture partners; the indication that
significant room remains for increasing recovery and preparation
for a full-scale pilot plant to be run before the completion of the
Prefeasibility 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
changing costs for mining and processing and their impact on the
cut off value established; increased capital costs and the ability
to further finance the Company; 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 limited test work and by comparison
to what are considered analogous deposits that with further test
work may not be comparable; 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 the
Ashram Deposit 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.