June 11, 2019 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H) (the “Company” or “Commerce”) is pleased to announce the final drill hole results from Saville Resources Inc. (TSXv: SRE, FSE: S0J) (“Saville Resources”) on the Mallard Prospect at the Niobium Claim Group Property (the “Property”), a subset of the Company’s Eldor claims, which are located approximately 130 km south of Kuujjuaq, Quebec. The Property covers several prospective and advanced-stage niobium-tantalum targets, with Saville Resources completing Year-1 of its Earn-in Agreement on these claims.
Sample assays for drill hole EC19-174A have now been received and have returned the strongest and widest mineralized intervals of niobium to date on the Property. Starting from only 17 m depth (core length), results include 0.80% Nb2O5 over 31.5 m, including 0.98% Nb2O5 over 13.5 m or 1.36% Nb2O5 over 4.5 m, as well as a second sub-interval of 1.04% Nb2O5 over 7.7 m. This near-surface mineralization is followed by a second well mineralized interval, starting from 96.5 m depth (core length), which assays 0.79% Nb2O5 over 37.0 m, including 1.01% Nb2O5 over 7.5 m, as well as a third mineralized horizon assaying 0.67% Nb2O5 over 20.0 m. A total of eleven (11) individual samples from EC19-174A returned >1% Nb2O5 with a peak sample of 1.68% Nb2O5 over 1.5 m.
Company President, Chris Grove states “The potential at Mallard only seems to grow with each drill hole completed. The results from the recent Saville Resources program have been excellent and we are excited to have them continue to advance this asset and unlock the additional value for our shareholders as we focus on the Ashram Rare Earth Deposit, located only 2 km away.”
To date, preliminary interpretation of the drill data indicates the Mallard Prospect is characterized by a series of sub-parallel, elongate, moderate-steep dipping, northwest trending mineralized horizons that extend from surface and remain open in all directions. These higher-grade mineralized horizons are separated by comparable horizons of moderate to low grade niobium mineralization. Given the elongate nature of the mineralized horizons, as well as their moderate-steep dip, the mineralized horizons encountered at depth in each hole have a reasonable potential to continue up-dip, and potentially to surface, and therefore, could be intersected at a shallower depth by stepping the drill forward.
In addition, strong grades of tantalum and phosphate continue to be returned in association with the niobium with a zonation between all three evident. Additional mineralogical work is planned as part of Phase II to advance the understanding of the mineral relationships across the mineralized horizons.
A summary of the analytical results is presented below in Table 1 as well as a map with assay summaries and hole locations at the link below.
Table 1: Summary of mineralized intercepts for drill hole EC19-174A
|Hole ID||From (m)||To
|Interval (m)||Ta2O5 (ppm)||Nb2O5 (%)||P2O5 (%)||Comments|
Results reported in news release dated June 3rd, 2019
Results reported in news release dated June 6th, 2019
Results reported in news release dated June 6th, 2019
No samples (hole lost at 81 m and recollared as 174A)
Entire Hole (second last sample 0.52% Nb2O5)
Mineralized Horizon 1
Mineralized Horizon 2
Mineralized Horizon 3
- Analytical detection limits are 0.003% (30 ppm) for Nb2O5 and Ta2O5, and 0.01% for P2O5.
- Fluorine analysis yet to be completed.
- All drill holes are NQ core size, with approximate strike/dip of 230/45
- True width is not fully constrained; however, the dip of mineralization is interpreted as moderate/steep to the northeast. Incorporation of the 2019 drill data is anticipated to provide a proper basis for true width to be reasonably estimated.
Figure 1: Drill holes with assay summary for the Mallard Prospect
Drill holes EC19-171, 172, and 174A were all completed southeast of the historical drilling at Mallard and all intersected significant intervals of niobium mineralization starting at or near-surface, while also effectively bottoming in mineralization. Drill hole EC19-174A was the final hole of the 2019 winter program and was completed as an approximate 50 m step-out along strike to the southeast from EC19-172. Collectively, the 2019 drill program has successfully extended the mineralized strike at Mallard to the southeast by approximately 100 m, and further, is marked by a notable increase in grade and width of the mineralized horizon(s). To the north, the intersection in EC19-173 has further advanced the potential in this area, towards the Spoke and Miranna targets, which remain to be drill tested.
The Mallard Prospect is the most advanced prospect on the Property, with 2,490 m over nine (9) drill holes completed by the Company (2008 and 2010), and 1,049 m over five (5) drill holes now completed by Saville Resources (2019). Coupled with the strong mineralization returned historically, Saville Resources’ Phase I drill program at Mallard will provide the foundation for advancement towards an initial mineral resource estimate. Further drilling at Mallard as well as several other high-priority targets, including Miranna, is planned as part of Phase II. The 2019 exploration of the Property is being carried out by Dahrouge Geological Consulting Ltd. and managed out of Quebec.
Quality Assurance / Quality Control (QAQC)
A Quality Assurance / Quality Control protocol following industry best practices was incorporated into the program and included systematic insertion of quartz blanks and certified reference materials into sample batches, as well as collection of quarter-core duplicates, at a rate of approximately 5%. Drill holes EC19-171, 172, 173, and 174A were sampled in their entirety, for a total of 764 samples including QAQC, and were shipped to Activation Laboratories in Ancaster, ON for analysis. No samples were collected from EC19-174 as it was unexpectedly lost at a depth of 81 m and recollared as EC19-174A.
Lab analysis included niobium, tantalum, and major oxides by XRF (package 8-Coltan XRF). Standard drill core sample preparation was completed and comprised of crushing to 80% passing 10 mesh, followed by a 250 g riffle split and pulverizing to 95% passing 105 µ (package RX1). Additional sample analysis is anticipated.
NI 43-101 Disclosure
Darren L. Smith, M.Sc., P.Geo., Dahrouge Geological Consulting Ltd., a Permit holder with the Ordre des Géologues du Québec and Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
Niobium is a shiny grey, ductile metal with a chemical symbol Nb and an atomic number 41. It is commonly marketed as ferroniobium and is dominantly used as an additive in high-strength low-alloy steel (HSLA) production. Niobium has the ability, with a very low percentage alloy, to significantly strengthen steel and is therefore an essential component used in bridges, buildings and automotive chassis. Niobium has seen significant increased demand from the HSLA steel market over the last decade and has maintained a relatively stable price range of approximately $38 to 45 per kg over this same period, and is currently trading for approximately $42 per kg (metalary.com).
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 Ashram Rare Earth Element Deposit in Quebec and the Upper Fir Tantalum-Niobium Deposit in British Columbia.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in 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 mineralized horizons encountered at depth in each hole have a reasonable potential to continue up-dip and that they could be intersected at a shallower depth by stepping the drill forward; that the 2019 drill program was successful in extending the mineralized strike at Mallard to the southeast; that the intersection in EC19-173 has further advanced the potential in the area; and that this work will provide the foundation for advancements towards an initial mineral resource estimate. These forward-looking statements 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; increased capital costs; 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; 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.