Commerce Resources Corp. Announces 2013 Summer Drill Program at the Ashram Rare Earth Element Deposit, Northern Quebec
VANCOUVER, June 19, 2013 /PRNewswire/ – Commerce Resources Corp. (TSXv: CCE, FSE: D7H, OTCQX: CMRZF) (the “Company” or “Commerce”) is
pleased to provide an overview of the pending 2013 field program at its
100% owned Ashram Rare Earth Element (REE) Deposit located in Northern
A six to eight week field program is anticipated to commence July 15,
2013, which will include 1,000 to 1,500 m of drilling targeted at the
Ashram Rare Earth Deposit. Drilling will focus on infill holes in
order to increase the resource confidence from the current inferred
category to the indicated and/or measured categories. The Deposit has
currently 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. (see news release dated May 24, 2012) An indicated or measured
resource category is required for all in-pit mineralized material in
order to convert mineral resources to ore reserves as required for the
ongoing Pre-feasibility Study (PFS).
Company President David Hodge states “We are fortunate to be in a
position to move the project forward at this stage with cash on hand
given the current markets. There is solid room for optimization in all
facets of this project and we are very excited about the de-risking we
have completed and continue to achieve during our Pre-feasibility
In Q3 2012 Roche Ltd. (Roche) was retained to complete the PFS for the
Ashram Rare Earth Deposit. Since this time, Roche has made significant
progress including the evaluation of potential docking facility
locations, mine-site airstrip and facility locations, and road route
optimization (mine-site to docking facility).
Programmed work will include required environmental and geotechnical
programs as well as reclamation of several historic trench sites. This
work will complement the field program completed during February-March
2013 that included a small mammal survey as well as installation of a
weather monitoring station.
As part of the PFS, a total of nine potential airstrip sites are being
evaluated, including five located directly on the Eldor Property. The
weather station installed in Q1 2013 will monitor seasonal local
climate fluctuations and, together with other local and regional data,
will support the selection of a preferred airstrip location. All
prospective locations have been selected based on an ability to
incorporate changes to the principal orientation as the weather and
other data will be required for final site confirmation. The site
selected will also be amenable to future expansion if required.
The road route from the mine-site to a northern docking facility has
been significantly optimized and improved from the initial route
evaluated in the PEA. Although the length cannot be finalized until an
exact docking facility location is confirmed, the length has been
reduced considerably by 25 km (from 185 km to 160 km) when compared to
the PEA. Further, the three crossings noted in the PEA (40 m, 50 m,
and 60 m) have also been significantly reduced in size (22 m, 28 m, and
42 m) due to the newly optimized route.
Metallurgy continues to make significant advancements with mineral
concentrate grades and recoveries continuing to improve. Additional
details of the physical upgrading and hydrometallurgical program will
be presented shortly in a forthcoming news release.
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.
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
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.
The Company continues to advance the Ashram Deposit with the planned
2013 field program and with metallurgical programs at both UVR-FIA and
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.
President and Director
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.
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 our results will be sufficient to support the
initiation of a pre-feasibility study; that we will be able to enhance
even further the quality of the resource; and that the REEs at Ashram
occur in simple and well-understood mineralogy. 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;
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 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.