Commerce Resources Corp. (TSXv: CCE, FSE: D7H, OTCQX: CMRZF) (the “Company” or “Commerce”) is pleased to report that it is in receipt of analytical results for the remaining five holes from the 2010 drill program at the Ashram Rare Earth Zone. The Ashram Rare Earth Zone is located at the Company’s wholly-owned Eldor Project within northern Quebec. Highlights are as follows:
Drill hole EC10-045: 309.18 metres of 1.99% Total Rare Earth Oxides (“TREO”), including 172.89 m of 2.30% TREO.
Drill hole EC10-044: 239.66 metres of 1.78% TREO, including 71.11 m of 2.19% TREO, with heavy and middle rare earth oxide contents of individual samples up to 45.3%.
Importantly, the middle to heavy rare earth oxide (MREO, HREO) enriched zone previously identified in EC10-047 (see news release dated November 24, 2010) is evident 110 metres to the east in EC10-044 with 15.7% MREO+HREO over 55.56 m. This interval includes 19.8% over 17.13 m with a peak value of >45% MREO+HREO. Grades of TREO within the enriched zone range from 0.75 to 2.20%. The enriched zone is also evident in EC10-045 with 13.2% MREO+HREO over 19.0 m. MREO is defined as samarium through gadolinium and HREO as terbium through lutetium plus yttrium.
It appears that rare earth element (“REE”) fractionation has occurred during the emplacement of the rare earths at Ashram, resulting in pods or zones of MREO and HREO enrichment. This is very unusual for carbonatite-hosted REE bodies as they are typically light rare earth enriched, with only minor credits of the valuable heavy rare earths. The discovery of an enriched, near surface, middle and heavy REE zone at Eldor is significant and its delineation a priority for future drilling.
Complete results are as follows:
* All samples were analyzed by Activation Laboratories of Ancaster, ON using its method eight — major oxide, rare earths and trace element package by fusion ICP and ICP/MS. Fluorine analysis is being compiled. The four most abundant REEs that make up the TREO reported above are cerium, lanthanum / neodymium and praseodymium.
The 2010 drill program at the Ashram Rare Earth Zone consisted of 12 holes totalling 3,312.67 metres. REE mineralization occurs within an area measuring in excess of 650 m east-west, by 350 m north-south, to depths of 365 m. The mineralization remains open to the north, south, east, at depth, and is not fully constrained to the west.
A 43-101 compliant resource estimate, based on the first 12 holes at the Ashram Rare Earth Zone, will be forthcoming from SGS Geostat Ltd. (“SGS”) of Montreal, Quebec. All exploration data has been delivered to SGS and a property visit has been completed. It is anticipated that the resource estimate will be completed within the first quarter of 2011 and will be reported as soon as it is received.
In addition, Cartwright Drilling Inc. out of Goose Bay, Labrador has been contracted to conduct a minimum 3,000 metre winter drill program at the Ashram Rare Earth Zone with a drill rig capable of attaining depths in excess of 600 metres. The drill program is expected to begin at the end of February and continue for as long as the weather permits. Vertical holes from the pond in the centre of the zone will target the depth extension of the mineralization and define its eastern and northern boundaries. Based on exploration to date, the highest grades and the enriched MREO+HREO zone appear to be within the northeastern margins of the deposit.
The Company has also retained Roger Mitchell of Lakehead University in Ontario to conduct a preliminary mineralogical investigation of the REE mineralization at the Ashram Zone.
Click here to view the complete analytical results of all the holes drilled at Ashram as well as a drill plan map.
Additional Details on Holes EC10-039, 042, 043, 044 and 045
Drill holes EC10-044 (230° azimuth, 45° dip) and EC10-045 (vertical) were located approximately 110 m east of EC10-047 and 80 m north-northwest of EC10-028. They were collared from the same pad, intersecting mineralization directly from surface and continuing over their entire lengths.
EC10-045 returned one of the thickest 2+% TREO intersections to date with mineralization increasing with depth (final sample assaying 2.36% TREO). EC10-044 followed a similar pattern.
The two holes continue to reinforce the deposit’s potential for vast, near surface tonnages of REE mineralization, and confirm the presence of a significant near surface “pod” of MREO+HREO enrichment.
Drill holes EC10-042 (230° azimuth, 45° dip) and EC10-043 (50° azimuth, 45° dip) were collared from the same pad and are located approximately 160 metres east of EC10-029. A contact occurs near the collar as EC10-042 encountered A-Zone type material from surface while EC10-043 encountered a very heterogeneous breccia unit comprised of A and B zone, or similar, type lithologies. This unit is interpreted to be a late-stage, hydrothermal breccia with common fluorite and variable clast size.
EC10-039 (230° azimuth, 75° dip) tested the focus of the magnetic low that defines the Ashram Rare Earth Zone. It ended prematurely at 348.96 m and did not adequately test the target as the drill reached its maximum depth capabilities. TREO mineralization is less consistent down hole compared to EC10-043; however, TREO content increases with depth and the final 6.42 m returned 1.72% TREO.
Initial drilling at Ashram interpreted a cone-shaped deposit model with A-Zone material occupying the centre, rimmed on the outside by the B and BD zones respectively. Additional drilling suggests a lopolith-like (“bowl shape”) body; however, its base has yet to be penetrated and the deposit remains open at depth. Given the geological model, drill holes EC10-044 and 045 are considered near to true thickness, while EC10-039, 042, and 043 are considered apparent.
Drill data to date supports a TREO grade increasing to the north where the deposit remains open. Grade also appears to increase with depth as evidenced by EC10-027, 028, 044, 045, 046 and 047.
The Eldor Property covers a carbonatite complex located within the central Labrador Trough approximately 130 km south of the town of Kuujjuaq. The property is 100%-owned by Commerce and encompasses 404 claims totalling approximately 19,006 hectares.
Sufficient working capital is available to complete all of the Company’s development and exploration plans. The Company currently has approximately $11 million in cash and investments.
Change of Auditor
The Company also announces that it has changed auditors. At the request of the Company, BDO Canada LLP (“BDO”) has resigned as auditor of the Company and Chang Lee, LLP, Chartered Accountants (“Chang Lee”) have been appointed. The Audit Committee and Board of Directors of the Company have approved the appointment of Chang Lee as Successor Auditor.
There were no reservations in BDO’s reports for the two most recently completed fiscal years or for any period subsequent to the most recently completed period for which an audit report was issued and preceding the date of the BDO’s resignation. There were also no reportable events between the Company and BDO or between the Company and Chang Lee.
In accordance with National Instrument 51-102, a Notice of Change of Auditor together with the required letters from the Former Auditor and the Successor Auditor has been filed via SEDAR.
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.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
President and Director
Tel: 604 484 2700
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 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 the timing and content of the resource estimate on the Eldor Property, upcoming work programs as well as geological interpretations of the Eldor Property. 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.