June 16, 2015
June 16, 2015 - Commerce Resources Corp. (TSXv: CCE, FSE: D7H) (the “Company”) is pleased to announce results for an additional five drill holes from the recently completed winter/spring drill program at the Ashram Rare Earth Deposit located in northern Quebec.
Highlights are as follows:
- 6.75 metres of 3.04% Total Rare Earth Oxides (“TREO”), including 1.45 metres of 4.56% TREO and 345 ppm Dysprosium (Dy) oxide (Drill hole EC15-122)
- 42.31 metres of 2.35% TREO within a larger interval of 163.31 metres of 2.07% TREO (Drill hole EC15-121)
- Intersection of the Middle and Heavy Rare Earth Oxide (MHREO) Zone along the eastern margin of the Ashram Deposit
These five drill holes were located along the deposit’s western (EC15-118), northern (EC15-119), and eastern margins (EC15-120, 121, and 122). They were drilled for geotechnical, geomechanical, and hydrogeological purposes, in addition to infill drilling for the resource. Strong mineralization, including 2.23% over 32 m (EC15-119) and 2.35% over 42 m (EC15-121), continued to be encountered along the deposit margins (north and east) and are a higher grade intersection than the best intersections reported earlier from the first eight drill holes of the program.
Intersections of strong MHREO mineralization in drill hole EC15-121 and 122 were returned with 10.0% MH-T (MHREO divided by TREO expressed as a %) over 15.28 m at 1.85% TREO in EC15-122, including 1.45 m of 83 ppm Tb oxide, 345 ppm Dy oxide, 7,710 ppm Nd oxide, and 2,189 ppm Pr oxide for significant overall grade of magnet feed mineralization. Further, drill hole EC15-121 returned 15.5% MH-T over 1.67 m including 398 ppm Dy oxide. The highest Dy oxide assay returned to date is 791 ppm over 0.71 m in EC11-053 at 294 m depth.
Analytical results for the drill holes noted herein from the 2015 drill program are summarized in Table 1.
|End of Hole (EOH)|
|EC15-118||NQ||Drilled for primarily for geotechnical and hydrogeological purposes with no significant mineralization encountered||203.19|
- TREO is the summation of Ce2O3 + La2O3 + Pr2O3 + Nd2O3 + Eu2O3 + Sm2O3 + Gd2O3 + Tb2O3 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O3
- MH-T is the sum of the middle and heavy rare earth oxides (Eu2O3 + Sm2O3 + Gd2O3 + Tb2O3 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O3) divided by TREO, expressed as a per cent.
- Fluorite (CAF2) is calculated based on fluorine analysis, using a conversion factor of 2.055, as mineralogical work concludes fluorite is the dominant and only material source of fluorine.
- True thicknesses of drill intersections are estimated to be 50-70% along the deposit’s eastern margins; however, the cone like nature of the deposit effectively increases the true thickness to 100% as intersections move inwards, towards the deposit’s centre.
Each drill hole was terminated at a pre-determined depth (~200 m) for the purposes of the PFS, with four holes ending in strong mineralization led by EC15-121 at a grade of 2.56% TREO.
The MHREO mineralization returned from EC15-121 is one of the most well-balanced rare earth intersections to date for the Ashram Deposit with 15.5% MH-T over 1.67 m at 2.25% TREO, including 398 ppm Dy oxide. This intersection is significant as it highlights a rock type (or phase) that is more highly enriched in the middle and heavy REOs than is typical, yet is also of considerable TREO grade (i.e. significant Nd and Pr). Similar intersections have been returned over short intervals from past drilling at Ashram; however, the source remains to be discovered. This type of mineralization is best highlighted by the intersection in EC11-053 with 26% MH-T over 0.71 m at 2.60% TREO, including 791 ppm Dy oxide and 144 ppm Tb oxide. Mineralogy on this material type suggests increased amounts of xenotime are the source of the MHREO.
Drill hole EC15-119 was collared approximately 50 m to the northwest of the known resource and was well mineralized with 32.02 m of 2.23% TREO. The mineralization starts at surface and remains open to the north.
Drill hole EC15-118 was collared west of the known resource and drilled primarily for geotechnical, geomechanical, and hydrogeological purposes. As anticipated, no mineralization was intersected, and as such, no samples were analyzed.
All samples collected will be analyzed by Activation Laboratories in Ancaster, ON for major oxides by Fusion ICP, rare earths by ICP-MS, and for fluorine by Fusion ISE. Results will be released as they are received.
NI 43-101 Disclosure
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 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 has an REE distribution with enrichment in the light, middle, and heavy rare earth elements.
A Preliminary Economic Assessment (PEA) was completed in May of 2012 by SGS-Geostat of Montreal (Blainville) (see news release May 24, 2012). 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 PEA (effective date of July 5, 2015; revised January 7, 2015) is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. With respect to the ongoing Pre-feasibility Study (PFS), the results of the programs described in this news release will be incorporated, along with other necessary technical data including geological and engineering studies, into the PFS with costs and benefits to be described in more detail therein.
The REEs at Ashram occur 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.
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 and Niobium Deposit in British Columbia.
For more information please visit the corporate website at http://www.commerceresources.com or contact Investor Relations at 604.484.2700 or firstname.lastname@example.org.
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 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 but are not limited to any references to the PEA as they are preliminary in nature. 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 current data 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.