July 23 2020 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H0) (the “Company” or “Commerce”) is pleased to provide an update on the data review and interpretation of the fluorspar (CaF2) potential in the Mallard area of the Company’s Niobium Claim Group Property (the “Property”), Quebec. The Mallard Prospect is characterized by numerous drill intersections of high-grade niobium, along with variably associated high grades of tantalum, phosphate, and fluorspar.
The Mallard Prospect is a part of the Niobium Claim Group which is being advanced by Saville Resources (TSX V – SRE) as detailed in the Earn In Agreement between the companies, first announced on January 11, 2018.
The fluorspar potential at the Mallard Prospect was first highlighted in news release dated November 26th, 2019, where several historical drill holes intersected strong mineralization. This includes drill holes EC08-016, EC10-033, and EC11-040 with 31.6% CaF2 over 20.8 m, 26.1% CaF2 over 32.4 m, and 39.8% CaF2 over 6.6 m, respectively. Further review of the historical drill logs, coupled with the findings from the recent 2019 drilling, has outlined a mineralized fluorspar trend, within the primary niobium trend, which is broader and more extensive than previously understood.
The fluorspar trend extends northwest from a 2008 drill hole fence, located approximately 425 m southeast of EC19-174A, and continues through the Mallard Prospect (see Figure 1). The fluorspar trend extends for at least 600 m and is open to the northwest, southeast, downdip, and is interpreted to continue to surface where it is obscured by a shallow veneer of overburden. Fluorspar mineralization is readily observable to the naked eye as the fluorspar present is purple in colour and relatively abundant where grades are of interest.
As a next step, Saville is compiling the available sample assay pulps for the 2008 and 2019 drill core for the intervals of interest, which will be sent to Activation laboratories in Ancaster, ON for fluorine analysis. Drill holes included in this assay batch are EC08-014, 016, 018, 021, 024, EC19-172, 173, and 171A.
Potential for high-grade niobium intervals with fluorspar mineralization
The fluorspar at Mallard is purple in colour and may be pervasive to banded within its carbonatite host. Textures of the fluorspar horizons indicate crystallization from late stage hydrothermal fluids, which either replaced the host rock (i.e. altered) or was emplaced as veins and breccia infill. The replacement style is interpreted to have a stronger potential for fluorite enrichment (i.e. higher grades). Based on the assays to date, the fluorspar is found to be associated with moderate grades of niobium, tantalum, and phosphate, each considered to be a potentially recoverable commodity in this geological setting. Further, the fluorine analytical data also indicates there is no grade correlation with niobium. This finding suggests that high-grade niobium zones have the potential to overlap with high-grade fluorspar zones and highlights a key style of mineralization to target within these two overlapping trends.
Fluorspar is an essential raw material to the steel, aluminum, and chemical industries and is consumed during use and therefore cannot be recycled, resulting in new production being required over time to meet global demand. China is the world’s largest producer and consumer of fluorspar and in the last few years has become a net importer of the commodity. This has driven significant price appreciation for fluorspar, and market interest from industry in new sources.
Acid-spar (> 97% CaF2), accounting for roughly two-thirds of the market, is primarily used to manufacture hydrofluoric acid (HF) and subsequent fluorochemicals, which are used in a variety of modern consumer products including an estimated half of all new medicines (Roskill, 2019). Acid-spar is also used in the production of aluminum metal, to reduce process temperatures and energy consumption, and is also a key raw ingredient of materials used in enhancing the operational performance of lithium-ion batteries.
Met-spar (> 60% CaF2), accounting for roughly one-third of the global fluorspar market, is primarily used as a flux in the steel making process to lower the melting temperature, as well as to reduce slag viscosity and remove impurities. Met-spar is also used as a flux in the cement industry to speed up the calcination process.
Figure 1: Interpreted fluorite mineralized trend within the wider niobium trend
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.
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 and Fluorspar Deposit in Quebec and the Upper Fir Tantalum-Niobium Deposit in British Columbia.
For more information, please visit the corporate website at www.commerceresources.com or email email@example.com.
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 each of niobium, tantalum, and phosphate are potentially recoverable commodities on the property, that high-grade niobium zones have the potential to overlap with high-grade fluorspar zones, the sale of the fluorspar would reduce the footprint of the Project’s tailings management facility as well as provide another revenue stream while also serving as a source of secure supply for the market; and that additional infill drilling may be considered ahead of a resource update, anticipated in 2020. 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 and reports produced on work done; 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; testing of our process may not prove successful and even it tests are successful, the economic and other outcomes may not be as expected; 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.