Commerce Resources Corp. Updates Metallurgical Programs for the Ashram Rare Earth Deposit

December 10, 2014

December 10, 2014 - Commerce Resources Corp. (TSXv: CCE, FSE: D7H) (the “Company” or “Commerce”) is pleased to provide an update on its metallurgical programs for the Ashram Rare Earth Deposit. The primary objectives of the current programs are to demonstrate the entire flowsheet (mini-pilot / bench testing) through to production of several kilograms of marketable mixed rare earth carbonate concentrate (REC), as well as to produce a sample of high purity mixed RE chloride concentrate, to further establish flowsheet product versatility.

Commerce Resources President Chris Grove states “These are significant results showing continued advancements on the fundamentals for our Ashram REE Deposit. We are fortunate to be able to underwrite programs both in the lab and in the field to advance our world class asset, and further, appreciate the interest we are receiving from industry.”

Highlights:
  • Reproduced baseline flotation flowsheet using varied Ashram feedstock material
  • Improved flotation concentrate grades
  • Improved flotation concentrate recoveries
  • Initial program expanded to produce 500 g of mixed RE chloride concentrate, of high purity, anticipated to further demonstrate flowsheet product versatility
  • Demonstrated successful hydrochloric (HCL) acid regeneration on synthetic solution with up to 66% recovery into 24-26% HCl concentrated solution.
The current testwork is aimed at optimizing the grinding and flotation circuits in a lead up to the implementation of a flotation mini pilot plant that remains on schedule for late January 2015 initiation.

Recent work has successfully reproduced and improved flotation grades and recoveries achieved previously. This further confirms the robustness of the baseline flowsheet developed to date [test sequence of Flotation + HCl leach + WHIMS], which has produced high-grade mineral concentrates of >40% TREO at >70% recovery. Select flotation concentrate results are summarized in the table below.

Table 1: Recent Flotation Results Compared to the Baseline

TestStageMineral Concentrate
(% TREO)
Recovery
(%)
Mass Pull
(%)
55-25/279Flotation17%73%9%
55-25/298Flotation13%78%12%
III Ro 002Flotation12%77%14%
58.34 R+SFlotation9%87%18%
III Ro 004Flotation10%81%17%
BaselineFlotation9%81%17%


It is anticipated that improvements to the baseline flotation concentrate (9% TREO at 81% recovery and 17% mass pull) will improve the performance of the subsequent HCl pre-leach (e.g. resulting in lower acid consumption) and WHIMS stages (cleaner separation). This potentially will result in a mineral concentrate of even higher-grade and/or recovery than previously produced (44% at 71% recovery). A simplified version of the baseline flowsheet is illustrated below.

Figure 1: Base Ashram Flowsheet for Production of High-grade (>40% TREO) Mineral Concentrate



Both mineral processing and hydrometallurgical testing is being undertaken in parallel to optimally advance the schedule for full demonstration of the flowsheet (mini pilot plant and bench tests).

In addition to a mixed REC product, the flowsheet circuit will also now produce approximately 500 g of mixed RE chloride of high purity (i.e. meets impurity tolerances of typical industry processors) for evaluation by third party processors and strategic investors. Mixed RE chloride concentrate is a common feedstock to world separation facilities and the Ashram flowsheet can be easily modified to produce this as well as a mixed REC concentrate, further demonstrating the versatility of its metallurgical flowsheet.

Testing of the hydrometallurgical flowsheet has focused first on HCl acid recovery from the pre-leach circuit. Preliminary results on synthetic samples indicate at least 66% recovery is attainable into a solution of ~24-26% concentration. This suggests the majority of the acid consumed in the pre-leach may be recovered and fed back into the circuit, significantly reducing operating costs.

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.

Eric Larochelle, Eng, and Alain Dorval, Eng., Manager- Process, Mining and Mineral Processing., of Roche Ltd, Consulting Group, Qualified Persons as defined by National Instrument 43-101, reviewed the technical information presented 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 Element Deposit in Quebec and the Blue River Tantalum-Niobium Project in British Columbia. For more information please visit the corporate website at http://www.commerceresources.com or contact Investor Relations at 1.866.484.2700 or info@commerceresources.com.

On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.

“Chris Grove”
Chris Grove
President
Tel: 604.484.2700
Email: info@commerceresources.com

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.


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 but are not limited to reference to the objectives of the current programs; to produce a sample of high purity mixed RE concentrate; implementation of a flotation mini pilot plant for January 2015; anticipated improvements to the baseline floatation concentrate; improving the performance of the HCI pre-leach; producing a mineral concentrate of higher grade and recovery than previously produced; recovery of 66% into a solution of ~24-26% concentration and projections that the majority of acid consumed in the pre-leach may be recovered and fed back into the circuit to significantly reduce costs.

These forward-looking statements are based on the opinions and estimates of management and its consultants at the date the information is disseminated. They 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 and their impact on the cut off value established; increased capital costs; changing forecasts of mine production rates; the timing and content of upcoming work programs; 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; the availability of labour, equipment and markets for the products produced; market pricing 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.