Commerce Resources Corp V.CCE

RE: An interesting summary

[somchai]

Hi Mike, Here is a summary that may be of interest to you. By the way do you have anything on galium that would give me a bit of an overview? Thanks in advance. Gerard CANADA VENTURE: Commerce Resources Seeks Mining Capacity 12:14pm ET (Dow Jones Newswires) By Brian Truscott Of DOW JONES NEWSWIRES VANCOUVER (Dow Jones)--Tantalum isn't a household word, but the mineral concentrate has become essential, especially in the electronics market, because it's used to make capacitors - very small capacitors, which are ideal for high-tech stuff such as digital cameras, mobile telephones, airbags and even pacemakers. While metals such as gold, nickel and copper are making most of the resource headlines these days, a Vancouver-based exploration company called Commerce Resources Corp. (CCE.V) is rapidly moving towards production of the little-known ore. "Tantalum has by far the greatest capacity to hold electricity per gram than any other material," said Chris Grove, director of corporate communications at Commerce Resources. "It has, for example, revolutionized the hand-held electronics market." The company owns three significant properties, the Fir, the Upper Fir and Verity deposits, which are in central B.C. just north of the Blue River in the Kamloops mining district. Grove said Commerce is sitting on what is "quite possibly the lowest-cost production (site) of tantalum on the planet." He said this has already been shown in a laboratory sample in 2004, a test which is being repeated on a commercial-sized sample. Those results should be released in May, he said. For logistical reasons, Commerce Resources is focusing on its Upper Fir deposit, the area that will most likely be the site of its first open-pit mine. Infill drilling this year plus an environmental assessment, permit applications and negotiations with First Nation bands will consume most of the company's time over the next year or two. Niobium Garnering Attention And while tantalum has been the company's focus, another metal called niobium is also demanding attention, if only because its market price has spiked a few hundred percent recently. Niobium - another non-household word - is an additive to steel that exponentially increases tensile stength. Given the current demand for steel in global markets, it's clear that niobium demand should also be on the rise. "Commerce Resources is the most active tantalum and niobium explorer in North America," Grove said. "And it's our intention to prove that we are the lowest-cost producer of tantalum." If Commerce Resources makes it to production, its main competitors will be from Australia and Brazil, the two leading producers of tantalum and niobium, respectively. "It is our intention to take these projects into production," he said, noting that the company is working on a feasibility study to prove the economics of the project. He said an open-pit mine on the Upper Fir site would cost in the neighborhood of C$30 million. At the moment, the company has about C$4.5 million in working capital as well as C$5 million in outstanding warrants. Grove said there's no need to tap the market for extra funds in the near future. However, once the mine becomes a reality, a combination of forward sales, debt and a small equity component will probably be used to finance the project. In terms of a timeline, Grove said the environmental assessment, which started in June 2006, could take 18 to 24 months to complete. Once done, there would be a submission for a mining permit, which would take a minimum of three months to obtain. "Once we have that in hand, it will be relatively simple to put the mine into production, probably within three months," he said. Ultimately, Commerce Resources could be a viable resource producer by late 2008. Company Web Site: https://www.commerceresources.com -Brian Truscott, Dow Jones Newswires; 604-669-1595; [e-mail]