Commerce Resources Corp. Reports Significant Increase in Resources and Grade at the Ashram Rare Earth Element Deposit, Northern Quebec
Highlights
-- SGS Geostat has determined a base case Inferred mineral
resource of 219.8 million tonnes containing 1.88% TREO, an
Indicated mineral resource of 27.7 million tonnes containing
1.90% TREO, and a Measured mineral resource of 1.6 million
tonnes containing 1.77% TREO
-- The deposit includes a near-surface zone of middle and heavy
rare earth element enrichment; most significantly in neodymium,
europium, terbium, dysprosium, and yttrium. Defined resources
are presented herein
-- The selected base case resource model provides the foundation
for a Preliminary Economic Assessment, which is nearing
completion under the direction of SGS Geostat
VANCOUVER, March 6, 2012 /PRNewswire/ – Commerce Resources Corp. (TSXV: CCE) (FSE: D7H) (OTCQX: CMRZF) (the “Company”) is pleased to
announce an updated National Instrument 43-101 compliant resource
estimate for the Ashram Rare Earth Element Deposit at the Eldor Project
in Quebec. The Eldor Project is located in northeastern Quebec
approximately 130 kilometres south of the community of Kuujjuaq. The
resource estimate was completed by SGS Canada Inc. – Geostat (SGS
Geostat) of Montreal (Blainville).
SGS Geostat used a total of 43 drill holes comprising 15,604 metres of
NQ and BTW size drill core to develop the mineral resource estimate.
Table 1 below shows the sensitivity of the Ashram mineral resources to
different cut-off grades.
Table 1: Ashram Deposit Sensitivity of Cut-off Grades
Confidence Density TREO LREO MREO HREO MHREO F MH/T
Cut-off Category Tonnage (t) (t/m3) (%) (%) (%) (%) (%) (%) Ratio
0.50 Measured 1,980,000 3.04 1.55 1.40 0.079 0.074 0.15 3.18 9.9%
Indicated 37,200,000 2.99 1.61 1.49 0.065 0.050 0.11 2.35 7.1%
Inferred 383,560,000 2.96 1.45 1.35 0.058 0.042 0.10 1.64 6.9%
0.75 Measured 1,600,000 3.07 1.77 1.60 0.089 0.084 0.17 3.75 9.8%
Indicated 30,130,000 3.01 1.83 1.70 0.071 0.054 0.12 2.72 6.8%
Inferred 336,610,000 2.97 1.56 1.46 0.061 0.043 0.10 1.75 6.6%
1.00 Measured 1,600,000 3.07 1.77 1.60 0.089 0.084 0.17 3.75 9.8%
Indicated 28,680,000 3.01 1.88 1.75 0.072 0.055 0.13 2.81 6.7%
Inferred 259,400,000 2.99 1.76 1.65 0.065 0.044 0.11 2.02 6.2%
1.25 Measured 1,590,000 3.07 1.77 1.60 0.089 0.085 0.17 3.76 9.8%
Indicated 27,670,000 3.02 1.90 1.77 0.073 0.056 0.13 2.89 6.7%
Inferred 219,800,000 3.00 1.88 1.77 0.068 0.045 0.11 2.21 6.0%
1.50 Measured 1,320,000 3.07 1.85 1.68 0.088 0.084 0.17 3.88 9.3%
Indicated 25,420,000 3.01 1.95 1.82 0.072 0.054 0.13 2.88 6.5%
Inferred 210,590,000 3.00 1.91 1.79 0.069 0.045 0.11 2.22 5.9%
1.75 Measured 815,400 3.05 1.99 1.83 0.083 0.076 0.16 3.77 8.0%
Indicated 20,937,600 3.01 2.01 1.89 0.071 0.051 0.12 2.80 6.0%
Inferred 164,109,100 3.00 1.98 1.86 0.070 0.044 0.11 2.26 5.8%
* Base case is in bold.
* LREO (Light Rare Earth Oxides) = La(2)O(3) + Ce(2)O(3) + Pr(2)O(3) + Nd(2)O(3)
* MREO (Middle Rare Earth Oxides) = Sm(2)O(3) + Eu(2)O(3) + Gd(2)O(3)
* HREO (Heavy Rare Earth Oxides) = Tb(2)O(3) + Dy(2)O(3) + Ho(2)O(3) + Er(2)O(3) + Tm(2)O(3) + Yb(2)O(3) + Lu(2)O(3) + Y(2)O(3)
* MHREO (Middle and Heavy Rare Earth Oxides) = MREO + HREO
* MH / T = MHREO / TREO, expressed as a percent
A complete listing of mineral resources at the various cut-off grades,
along with individual oxide values, will be posted shortly on the
Company’s website.
The updated resource represents a near 100% increase in tonnage and 8%
increase in grade over the initial NI 43-101 compliant inferred mineral
resource estimate (see News Release dated March 3, 2011). Further,
pervasive enrichment in the middle and heavy rare earth oxides (MHREO)
remains prevalent throughout the deposit with an average of 6.1% MHREO
(% of TREO) providing a well-balanced and favourable distribution that
is highly unusual for carbonatite hosted REE systems.
The rare earth mineralized footprint at Ashram extends approximately 700
metres along strike, over 500 metres across, and to depths exceeding
600 metres. Mineralization remains open to the north, south, at depth,
and is not fully constrained to the west and east.
Middle and Heavy Rare Earth Element Oxide Zone
Within the overall defined resource, there exists a zone of Middle and
Heavy Rare Earth Oxide enrichment that extends from surface. This
mineralized zone has been included in the overall mineral resource
calculation and its details are in Table 2 below:
Table 2: Ashram Deposit Middle and Heavy Rare Earth Oxide Zone (MHREO Zone)
Confidence Tonnage Density TREO LREO MREO HREO MHREO F MH/T
Category Zone (t) (t/m3) (%) (%) (%) (%) (%) (%) Ratio
Measured Central 1,140,000 3.10 1.69 1.50 0.098 0.099 0.20 4.18 11.6%
Indicated Central 5,420,000 3.10 1.62 1.44 0.091 0.091 0.18 3.90 11.3%
Inferred Central 2,790,000 3.10 1.57 1.39 0.085 0.088 0.17 3.43 11.1%
* The mineral resource estimate is supported by a base case TREO cut-off
grade of 1.25%.
* LREO (Light Rare Earth Oxides) = La(2)O(3) + Ce(2)O(3) + Pr(2)O(3) + Nd(2)O(3)
* MREO (Middle Rare Earth Oxides) = Sm(2)O(3) + Eu(2)O(3) + Gd(2)O(3)
* HREO (Heavy Rare Earth Oxides) = Tb(2)O(3) + Dy(2)O(3) + Ho(2)O(3) + Er(2)O(3) + Tm(2)O(3) + Yb(2)O(3) + Lu(2)O(3) + Y(2)O(3)
* MHREO (Middle and Heavy Rare Earth Oxides) = MREO + HREO
* MH / T = MHREO / TREO, expressed as a percent
The grade and distribution (% of TREO) of europium oxide within the
central MHREO Zone is 123 ppm and 0.76% respectively, and currently
ranks second (0.77% ranking 1(st)) out of all 27 deposits being explored or under development (with NI
43-101 / JORC compliant resources >0.25% TREO) as currently listed by
Technology Metals Research. (http://www.techmetalsresearch.com/metrics-indices/tmr-advanced-rare-earth-projects-index/).
Europium is primarily used as a phosphor to produce the red colour in
various lighting and display applications with no acceptable
substitutes, thus demanding one of the highest of all REO prices. In
addition to europium, the central MHREO Zone is also enriched in
neodymium, terbium, dysprosium, and yttrium, all of which are facing
short term and long term supply issues.
This type of MHREO enrichment is unique to Ashram as it extends from
surface with significant tonnage and grade (6.55 Mt at 1.63% TREO of
measured and indicated, and 2.79 Mt at 1.57% TREO of inferred) along
with a well-balanced distribution. As the enrichment includes neodymium
(18.6 % of TREO) along with appreciable grades of cerium, lanthanum,
and praseodymium, the distribution remains favourable over all of the
light rare earth oxides (LREO), middle rare earth oxides (MREO), and
heavy rare earth oxides (HREO). This is in contrast to most alkaline
and per-alkaline deposits which are typically enriched only in the
HREO’s while strongly deficient in the LREO’s (Ce, La, Pr, Nd) and
MREO’s (Sm, Eu, Gd), and especially the highly sought after neodymium
and europium.
Resource Classification & Methodology
The mineral resource estimate has been completed using three-dimensional
wireframe modelling followed by block model interpolation methodology.
Three wireframe models (outer, inner, central) were created based on
lithology, mineralogy, geochemistry, and various other parameters. The
wireframe model was interpreted by Commerce under the supervision of
SGS Geostat.
The block model was defined by a block size of 10 metres long by 10
metres wide by 10 metres thick, and covers 750 metres in the east-west
direction and 740 metres in the north-south direction to a maximal
depth of 650 metres below surface. The interpolation process was
conducted using ordinary kriging and assay composites of three metres
in length. The mineral resources were estimated using the software
SectCad version 5.5.41. No capping was applied to the assays. Results
are presented undiluted and in situ. Classification was attributed to
individual blocks. A drill grid of 25 m is considered as measured, a
grid of 50 m is considered indicated. Some areas contain inferred
resources up to about 150 m from drill hole information. A bulk density
between 2.9 and 3.1 tonnes per cubic metre was used depending on the
mineralization. The bulk densities were chosen from a total of 2,533
specific gravity measurements taken from core samples. The information
is summarized in Table 3.
Table 3: Ashram Deposit Bulk Densities
Number of Density Chosen for Resource
Zone Samples Average Estimation
Central 260 3.12 3.10
Inner 1,339 3.02 3.00
Outer 934 2.92 2.90
Geological Setting
The Ashram Deposit is central to the Eldor Carbonatite Complex, lies
within a magnetic low, is marked by a gravity anomaly, and appears to
be bordered by an earlier staged calcio-carbonatite and various
‘glimmerite’ related units. Currently, the deposit’s geometry and
geology can best be described as a moderate to steeply NE dipping ovoid
or sheet, with simple rare earth mineralogy (monazite, bastnaesite,
xenotime) yet texturally complex with multiple episodes of dolomitic
carbonatite emplacement, brecciation, and low temperature
(hydrothermal) overprinting.
2012 Work Program
In 2012, the Company intends to further expand its knowledge on the size
and grade of the deposit with further drilling, in addition to
tighter-spaced diamond drilling in the MHREO enriched zone. A program
of expanded mineralogical and metallurgical testing and more detailed
engineering is also planned in preparation for an anticipated
Prefeasibility Study. Details will follow based on recommendations
arising from SGS Geostat’s PEA.
“The SGS Geostat Resource Estimate for the Ashram Deposit is further
confirmation that we are defining one of the largest rare earth element
deposits in the world,” said Mr. Dave Hodge, President. “With the
delineation of a middle and heavy rare earth zone from surface, we are
excited by the potential of the project to provide light, middle, and
heavy rare earth oxides to the market. We are eagerly awaiting the
results of SGS Geostat’s PEA.”
NI 43-101 Disclosure
Yann Camus, Eng. is an employee of SGS Geostat and is the Qualified
Person responsible for the mineral resource estimate above. Mr. Camus
has read and approved the contents of this news release with respect to
the resource estimate.
Darren Smith, M.Sc., P.Geol., of Dahrouge Geological Consulting Ltd., a
Qualified Person, read and approved the disclosure of the technical
information in this news release with respect to the exploration. A
Technical Report compliant with National Instrument 43-101 standards
describing the resource estimation and providing details of the
2010-2011 drilling and sampling as well as the associated QAQC review
will be filed on SEDAR (www.sedar.com) within 45 days.
About Commerce Resources Corp.
Commerce Resources Corp. is an exploration and development company with
a particular focus on tantalum, niobium and rare metal deposits with
potential for economic grades and large tonnages. The Company is
focused on the development of its Upper Fir Tantalum and Niobium
Deposit in British Columbia, and Eldor Rare Earth Project in northern
Quebec.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
David Hodge
President and Director
Tel: 604 484 2700
TF: 866.484.2700
Email: info@commerceresources.com
Web: http://www.commerceresources.com
Neither the 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 may contain forward-looking information and 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 information is based on the
opinions and estimates of management and its consultants at the date
the information is given. It is 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. Information is based on reasonable assumptions which include but are
not limited to those regarding actual costs for mining and processing
and their impact on the cut off grade established, actual capital
costs, forecasts of mine production rates, the timing and content of
upcoming work programs, geological interpretations, potential process
methods and mineral recoveries, the availability of markets for the
products produced, market pricing for the products produced, etc.
Forward-looking statements address future events and conditions and
therefore involve inherent risks and uncertainties. Actual results may
differ materially from those currently anticipated in such statements.
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.
