Commerce to Keep Drilling at Eldor Rare Earth ProjCommerce Resources to Keep Drilling at Eldor Rare Earth Project, Plans Maiden Resource Estimate
These are good times for rare earth element exploration and production companies. The number of applications for this group of seventeen metals is rising, and in turn demand is rising. But China, which produces 97% of world supply, has cut its export quota by 72% for the second half of 2010 and announced that it has only limited resources of the critical 'heavy' rare earth metals.
Meanwhile recognition of the strategic importance of rare earths is growing. An act was recently tabled in the US to take all necessary initiatives to reintroduce a domestic rare earth supply chain so as to ensure a secure source of these vital metals. Countries such as Korea and Japan, both heavily dependent on the metals for hi-tech manufacturing, are scrambling to secure future supplies. Prices of the rare earths are soaring, up on average by 300% between January and August 2010, with the rises for each individual metal ranging from 22% to as much as 720%.
For companies like Commerce Resources (TSX-V:CCE) this is all rather good news, as it is focused on advancing several rare earth properties in Canada. It also explains in part why the junior explorer confirmed this morning that it would be drilling an additional six holes, or 1500 meters, at the Eldor Rare Earth Project in Quebec, and has commissioned SGS Geostat in Montreal to prepare a maiden mineral resource estimate for the property once this year`s drilling is complete. Commerce has already drilled approximately 3,000 meters at Eldor in 2010, and reaffirmed this morning that it was “encouraged by results to date”.
Assay results reported in September from drill hole EC10-028, which was cut into the Ashram Rare Earth Zone at Eldor, hit 243.8 meters averaging 1.95% TREO (total rare earth oxides) from just 2.5 meters. The broad zone included a higher grading 28.3 meters averaging 2.41% TREO from 130.5 meters. The four most abundant rare earth elements in the mineralization were cerium, lanthanum, neodymium, and praseodymium.
EC10-028 was drilled with BTW size core at an azimuth of 230° and dip of -45°, and was located approximately 50 m northwest of the programs first hole, EC10-027 – the first hole drilled at Ashram which intersected 1.72% TREO over 215.30 meters.
Eldor covers a carbonatite complex located within the central Labrador Trough located in northern Quebec. Carbonatite related deposits are the main host for rare metals such as niobium and tantalum and rare earth elements. Several mining companies are focused on exploring carbonatite projects, including Hudson Resources (TSX-V:HUD) and Rare Element Resources (TSX-V:RES, AMEX:REE) in Greenland and Wyoming respectively.
“Significant tonnage potential has been indicated by the broad thickness and relative continuity of grade encountered thus far in the first two holes at the Ashram Zone. Geologically, the Eldor Project represents one of the largest carbonatite complexes known worldwide,” Commerce noted this morning.
Commerce Resources key project is the Upper Fir Tantalum and Niobium Deposit in British Columbia.