June 28, 2006
Commerce Resources Corp. (“the Company”) is pleased to provide the following update on exploration at its wholly owned Blue River Tantalum-Niobium Project. Based on the results of the 2005 drilling and upon historic work, the company anticipates collecting and processing an approximate 10,000 to 20,000 tonne bulk sample from the Upper Fir Carbonatite. This work program is warranted by the need to repeat, on a commercial-sized sample, the metallurgical work completed by SGS Lakefield (2004) concluding that the carbonatite host rock gives Commerce a higher recovery rate (83% - 91%) than the industry standard (55%), and lower than industry average hydrometallurgical costs.
The bulk sample program is planned for the summer exploration season. It has been preceded by a soil geochemical survey and radiometric survey (May 8-15, 2006), over the presumed extensions to the Upper Fir and Bone Creek showings. Based on favourable results, the extensions to these carbonatites will be verified by trenching and diamond drilling which is scheduled for July and August. Following receipt of the applicable permitting, the commercial bulk sample will then be taken from the known outcrops within the vicinity of either the Verity, Fir or Upper Fir carbonatites.
The sampled material will be pre-concentrated on site by crushing and gravity separation and upgraded by flotation to approximately 60% combined Ta/Nb under the supervision of Jeff Austin, P.Eng (International Metallurgical Consulting). The concentrated material will then be shipped to processing facilities of potential industry partners including Fogang Jiata Metals (China), and NAC Kazatomprom/Ulba Metallurgical Plant (Kazakhstan). Commerce expects to receive full-scale operating cost data from these major processors. These commercial-size results will be fundamental to the completion of a pre-feasibility study.
Access to this area is exceptional given existing access roads and clear cuts within in the vicinity of the proposed soil survey. In addition to using rehabilitated logging roads and trails, there are laydown and turnaround yards of sufficient size within the area; hence, sites are available where for the pre-concentrating work.
The results of the 2005 drilling demonstrated that the grade and tenor of the mineralization at the Upper Fir Carbonatite is comparable to that previously encountered at the Fir Carbonatite. At the Upper Fir Carbonatite, mineralized intercepts varied from 8.75m to 17m, over a strike length of about 250m. As the 2005 holes were vertical and the carbonatites are near flat-lying, drill intersections represent approximately true thickness. The deposit remains open in all directions. A map showing the locations of the 2005 holes is available at the Company’s website (www.commerceresources.com).
Jody Dahrouge, professional geologist and director of Commerce, is responsible for the design and conduct of the exploration programs and the verification and quality assurance of analytical results. Mr. Dahrouge is a qualified person as defined under National Instrument 43-101.
About Commerce Resources Corp. (http://www.commerceresources.com)
Commerce Resources Corp. is focused on the development and exploration of its Fir and Verity tantalum and niobium projects covering 49 square kilometers in British Columbia, Canada. The Company is one of the most active tantalum explorers in North America, conducting detailed exploration of its Fir and Verity deposits. Exploration to date at the Fir deposit has outlined an indicated resource of 5.65Mt with 203.1g/t Ta2O5 and 1,047g/t Nb2O5 (Verzosa, 2003). The Fir is also host to an inferred resource of 6.7Mt with 203.1g/t Ta2O5 and 1,047g/t Nb2O5 (Verzosa, 2003). The Verity deposit, 10 km north of the Fir property, is host to an estimated inferred resource of 3.06Mt with 196g/t Ta2O5, 646g/t Nb2O5 and 3.20% P2O5 (McCrea, 2001). Detailed information on both resource estimates may be viewed in the company’s public disclosure on SEDAR.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.