June 28, 2011 - Commerce Resources Corp. (TSXv: CCE, FSE: D7H, OTCQX: CMRZF) (the “Company” or “Commerce”) is pleased to report the assay results for the first four of seven drill holes completed during the 2011 winter drilling program at the Ashram Rare Earth Element (“REE”) Zone at the Company’s Eldor Project in northern Quebec.
The thickness and north-south extent of the REE mineralization at the Ashram Zone has been significantly expanded by this set of drill holes. The highlight is EC11-048 which intersected REE mineralized carbonatite over its entire length returning 2.10% Total Rare Earth Oxides (“TREO”) over 586.92 metres including 36.99 metres of 3.00% TREO. EC11-048 is the best hole reported to date in terms of grade and thickness with seven sample intervals returning greater than 4% TREO to a peak value of 9.88% TREO. The hole ended in mineralization as the depth limitations of the drill were reached.
Further results from holes EC11-048, 49, 50 and 51 are included in the table below:
As the deposits geometry is still being determined actual drill widths are unknown but are estimated to be near to true thickness.
These step-out holes have expanded the REE mineralization at Ashram by 150 metres to the northeast and extended the depth of known mineralization by 235 metres from 365 metres to approximately 600 metres. REE mineralization at the Ashram has now been defined over an area measuring in excess of 600 metres east-west, by 500 metres north-south, to depths in excess of 600 metres. The mineralization remains open to the north, south, east, at depth, and is not fully constrained to the west.
Eight holes totaling 3,656 metres were completed during the winter program. Seven of the holes (3,367 metres) were drilled at the Ashram Zone and were vertically collared on Centre Pond to test the northern, eastern, and depth extensions of the Ashram Deposit. The final hole of the program was drilled at a separate location approximately 1 kilometre north of Ashram known as the Triple D Target. Assay results for the remaining four holes (EC11-052, 053, 054, and 055) are pending. A total of 6,680 metres of drilling has now been completed at the Ashram Zone over 19 holes.
A map showing the location of drill holes, along with detailed analytical results, will be posted on the Company’s website at:/projects
The deposit continues to display increased grade moving north as well as enrichment in the middle and heavy rare earth elements. As drilling has progressed northward drill intersections of greater than 3% TREO have increased in occurrence with 4% TREO assays becoming more common. Zones of enrichment in the middle and heavy rare earth oxides (“MHREO”) as well as neodymium oxide (“Nd2O3”) continue to be encountered. EC11-050 returned 11.4% MHREO and 22.5% Nd2O3 over 34.69 metres at 1.46% TREO (238.42 - 273.11 metres) as well as 13.6% MHREO and 19.6% Nd2O3 over 72.13 metres at 1.23% TREO (305.65 - 377.78 metres). The MHREO values are significant compared to the already anomalously high average for the Ashram Deposit of 7.4% MHREO. Neodymium enrichment is prevalent in the drill holes as well. For example, EC11-051 intersected 22.7% MHREO and 31.5% Nd2O3 over 14.53 metres at 0.83% TREO (500.41 - 514.94 metres) in addition to numerous other similar intersections up hole.
Currently, two types of MHREO enriched zones are apparent in the deposit. The first is a ferro-carbonatite of approximately 1.20-1.45% TREO that averages 12-20% MHREO with high fluorite content and xenotime-(Dy) as the main REE bearing phase (e.g. EC11-047). The second, is a magnesio-carbonatite of approximately 0.80-1.00% TREO that averages 10-15% MHREO with low fluorite content and courser grained rare earth fluorocarbonates (bastnaesite, parisite, and synchysite) as the main REE bearing phase. The geometry of the enriched zones is still not well constrained, however, both appear to be extensive with the first being closer to the centre of the deposit and the later potentially forming an enriched outer halo around the deposit. Increased enrichment in neodymium oxide is commonly associated with increased MHREO in both settings.
The Ashram Deposit is a large tonnage rare earth discovery and is ranked as one of the largest rare earth deposits outside of China. In early 2011, Commerce reported an initial NI 43-101 resource estimate for the Ashram Zone of 117.34 million tonnes averaging 1.74% TREO in the Inferred Category using a base case cutoff of 1.25% TREO (SGS Geostat, April 2011). The resource estimate was based on twelve holes totaling 3,313 metres drilled in 2010.
Preliminary mineralogical work completed by Roger Mitchell of Lakehead University, ON has indicated that monazite-(Ce) along with lesser bastnaesite-(Ce) and trace amounts of xenotime-(Dy) and nioboaeschynite-(Dy) are the main REE bearing minerals at the Ashram. Areas of enrichment in the middle and heavy rare earth elements are marked by an increase in xenotime-(Dy), which is a dominantly heavy rare earth bearing mineral, and/or a decrease is monazite-(Ce).
Hazen Research Inc. of Golden, Colorado is conducting preliminary metallurgical work on material from the 2010 drilling program. Commerce will also be continuing exploration and drilling through the spring and summer in combination with the metallurgical work with the aim to collect the data necessary to complete a Preliminary Economic Assessment for the Ashram Deposit. Details of the spring and summer work program will be provided upon receipt of the final assays from the winter program.
The Eldor Property is located in northern Quebec approximately 130 kilometres south of the town of Kuujjuaq and 100 kilometres north of Adriana Resources’ Lac Otelnuk Iron Deposit. The property is 100%-owned by Commerce and encompasses 404 claims totaling approximately 19,006 hectares. The Company is well financed and has sufficient working capital available to complete all of the development and exploration plans. The Company currently has $14 million in cash and investments.
NI 43-101 Disclosure
Darren L. Smith, M.Sc., P.Geol., a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
Middle and Heavy Rare Earth Oxides (“MHREO”) is defined as the sum of the middle rare earth oxides (Sm2O3, Eu2O3, Gd2O3) and the heavy rare earth oxides (Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3) plus Y2O3 expressed as a percent out of the TREO content.
Total Rare Earth Oxides (“TREO”) include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, and Y2O3.
Neodymium Oxide (“Nd2O3”) is expressed as a percent out of the TREO content.
About Commerce Resources Corp.
Commerce Resources Corp. is focused on building shareholder value through the discovery and development of rare metal deposits with a 100% focus on Canadian assets. Commerce’s principal assets are its Blue River Tantalum-Niobium Project in British Columbia and its Eldor Rare Earth Project in Quebec.
At Blue River, Commerce is advancing its Upper Fir Tantalum and Niobium Deposit through development with a Preliminary Economic Assessment in the advanced stages of completion. At the Eldor Project, Commerce’s 2010 exploration program led to the discovery of a significant new rare earth deposit known as the Ashram. Commerce recently filed an initial NI 43-101 Inferred Resource Estimate for the Ashram and is continuing exploration and drilling in combination with metallurgical work with the aim to collect the data necessary to complete a Preliminary Economic Assessment for the deposit. The Ashram Deposit is a large tonnage rare earth discovery and is ranked as one of the largest rare earth deposits outside of China.
Commerce trades on the Toronto Venture Exchange under the symbol “CCE”, the Frankfurt Exchange under the symbol “D7H” and the U.S. OTCQX under the symbol “CMRZF.”
For more information on Commerce Resources Corp. visit the corporate website at http://www.commerceresources.com or contact investor relations at 1.866.484.2700 or email@example.com
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.
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include that the company will be continuing exploration and drilling through the spring and summer in combination with metallurgical work with the aim to collect the data necessary to complete a Preliminary Economic Assessment for the Ashram Deposit and that details of the spring and summer work program will be provided upon receipt of the final assays from the winter program.
It is important to note that actual outcomes and the Company’s actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include economic, competitive, governmental, environmental and technological factors that may affect the Company’s operations, markets, products and prices. Factors that could cause actual results to differ materially may include misinterpretation of data; that we may not be able to get equipment or labour as we need it; that we may not be able to raise sufficient funds to complete our intended exploration and development; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that equipment may not work as well as expected; that analysis of data may not be possible accurately; that results which we or others have found in any particular location are not necessarily indicative of larger areas of our properties; that we may not complete environmental programs in a timely manner or at all; that market prices for rare earth elements may not justify commercial production costs; and that despite encouraging data there may be no commercially exploitable mineralization on our properties.
Readers should refer to the risk disclosures outlined in the Company’s Management Discussion & Analysis of its audited financial statements filed with the British Columbia Securities Commission.