Commerce Resources' Ashram Rare Earth Element Deposit Confirmed as a Large Inferred Resource, Eldor Project, Quebec
Inferred Mineral Resource: 117.34 Million Tonnes averaging 1.74% TREO
VANCOUVER, March 3 /CNW/ - Commerce Resources Corp. (TSXV: CCE), (FSE: D7H), (OTCQX: CMRZF) (the "Company" or "Commerce")is pleased to announce the first National Instrument 43-101 compliantmineral resource estimate for the Ashram Rare Earth Element ("REE")Zone at the Eldor Project in Quebec. The Eldor Project is located innortheastern Quebec approximately 130 kilometres south of the communityof Kuujjuaq. The resource estimate was prepared by SGS Canada Inc. -Geostat ("SGS Geostat") of Montreal, Quebec, who have recommended anaggressive exploration and development program to rapidly advance theproject.
Mineral resources were estimated by SGS Geostat applying four differentTotal Rare Earth Oxide ("TREO") cut-off grades, with a base-caseresource estimated using a TREO cut-off grade of 1.25%. At this cut-off, the Ashram Zone hosts an Inferred Resource of117,340,000 tonnes grading 1.74% TREO. The mineral resource estimate for TREO cut-offs of 1.00%, 1.25% (basecase), 1.50% and 1.75% are outlined in the table below.
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| Table: Mineral Resources Estimate - Eldor Property - Ashram REE Deposit |
Cut-off Grade
TREO (%) |
Resources
Categories |
Tonnes* |
TREO
(%)** |
LREO
(%)** |
IREO
(%)** |
HREO
(%)** |
Y2O3
(%)** |
CaF2
(%)*** |
| 1.00% |
Inferred |
134,970,000 |
1.663 |
1.538 |
0.067 |
0.018 |
0.040 |
5.30 |
1.25%
(base case) |
Inferred |
117,340,000 |
1.740 |
1.612 |
0.069 |
0.019 |
0.040 |
5.56 |
| 1.50% |
Inferred |
95,000,000 |
1.818 |
1.687 |
0.071 |
0.019 |
0.041 |
5.78 |
| 1.75% |
Inferred |
50,950,000 |
1.966 |
1.831 |
0.074 |
0.020 |
0.042 |
6.15 |
*Rounded to nearest 10,000. ** Rounded to nearest 0.001. *** Rounded tonearest 0.01
Notes:
- Effective date March 1, 2011.
- Mineral resources are not mineral reserves and do not have demonstrated economic viability.
- Bulk density of 3.0 t/m3 used.
- Total Rare Earth Oxides (TREO) include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3.
- Light Rare Earth Oxides (LREO) include: La2O3, Ce2O3, Pr2O3 and Nd2O3.
- Intermediate Rare Earth Oxides (IREO) include: Sm2O3, Eu2O3 and Gd2O3.
- Heavy Rare Earth Oxides (HREO) include: Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3 and Lu2O3.
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| Mineral Resources Estimate - Eldor Property - Ashram REE Deposit |
Cut-off Grade
TREO (%) |
Resources
Categories |
Tonnes* |
La2O3
(%)** |
Ce2O3
(%)** |
Pr2O3
(%)** |
Nd2O3
(%)** |
Sm2O3
(%)** |
Eu2O3
(%)** |
Gd2O3
(%)** |
Tb2O3
(%)** |
Dy2O3
(%)** |
Ho2O3
(%)** |
Er2O3
(%)** |
Tm2O3
(%)** |
Yb2O3
(%)** |
Lu2O3
(%)** |
| 1.00% |
Inferred |
134,970,000 |
0.411 |
0.759 |
0.080 |
0.288 |
0.037 |
0.009 |
0.021 |
0.002 |
0.010 |
0.001 |
0.003 |
0.000 |
0.002 |
0.000 |
1.25%
(base case) |
Inferred |
117,340,000 |
0.435 |
0.796 |
0.083 |
0.298 |
0.038 |
0.009 |
0.022 |
0.002 |
0.010 |
0.001 |
0.003 |
0.000 |
0.002 |
0.000 |
| 1.50% |
Inferred |
95,000,000 |
0.459 |
0.834 |
0.086 |
0.308 |
0.039 |
0.009 |
0.023 |
0.002 |
0.010 |
0.001 |
0.003 |
0.000 |
0.002 |
0.000 |
| 1.75% |
Inferred |
50,950,000 |
0.506 |
0.905 |
0.093 |
0.328 |
0.041 |
0.010 |
0.023 |
0.002 |
0.010 |
0.001 |
0.003 |
0.000 |
0.002 |
0.000
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| Effective date March 1, 2011. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Bulk density of 3.0 t/m3 used. TREO includes Y2O3. |
| * Rounded to nearest 10,000. ** Rounded to nearest 0.001. |
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"Commerce's exploration efforts at the Eldor Project have succeeded inoutlining a major new large-tonnage, near-surface rare earth elementdeposit in about six months from the completion of the first drill holeat the Ashram Zone," stated Mr. Jody Dahrouge, Vice President ofExploration. "Exploration during 2011, which will include both step-outand infill drilling, will provide us with the opportunity tosignificantly expand the deposit, outline locations with high grademineralisation, and define near-surface zones with significantenrichment in the middle and heavy rare earth elements."
The Ashram Zone begins at surface and is open to the north, south, east,at depth, and is not fully constrained to the west. During 2011,Commerce intends to advance the project with additional diamonddrilling at the Ashram Zone and at other high-priority REE explorationtargets located at the property. In addition, the Company will commencea program of metallurgical testing and continue ongoing mineralogicalstudies.
"This large tonnage, initial resource estimate is a significantmilestone for Commerce and the Eldor Project," said Mr. Dave Hodge,President. "The resource confirms the importance of the project andputs Commerce in a unique and attractive position in that we controlone of the largest rare earth deposits with NI 43-101 compliantresources outside of China. We intend to continue to advance theproject rapidly with the aim to expand the deposit and continue todefine zones of enrichment in the middle and heavy rare earths that areunique for these deposit types. The deposit is host to a significantinventory of high-demand, light-rare earths with significant zones ofenrichment in middle and heavy rare earths."
Commerce recently commenced a winter drilling program that will includea minimum of six drill holes totalling 3,000 metres. All holes will bedrilled from ice on an approximately 200 metre spaced grid. Since themajority of the 2010 drillholes at the Ashram Zone bottomed inmineralisation, the Company is using a drill rig capable of attainingdepths in excess of 600 metres to potentially penetrate the fullvertical extent of the mineralized system. The drill program commencedtoday, March 2nd, and will continue as long as weather permits.
Ashram Mineral Resource Estimate Details
The mineral resources were estimated using analytical results from 12diamond drill holes totalling 5,390 metres completed by Commerce at theAshram Zone in 2010. The mineral resource estimate has been completedusing a three-dimensional wireframe modelling followed by block modelinterpolation methodology. The wireframe model was interpreted byCommerce under the supervision of SGS Geostat.
The block model was defined by block size 10 metres long by 10 metreswide by 10 metres thick and covers 650 metres in the east-westdirection and 450 metres in the north-south direction to a maximaldepth of 430 metres below surface. The interpolation process wasconducted using ordinary kriging using assay composites of three metresin length. The mineral resources were estimated using the softwareSectCad version 5.5.18. No capping was applied to the assays. Resultsare presented undiluted and in situ. A bulk density of 3 tonnes percubic metre was used to calculate tonnages from the volumetricestimates of the mineral resources block model. The bulk density usedis an average of 449 specific gravity measurements taken from coresamples.
SGS Geostat determined the base case cut-off grade using a conceptualeconomic model based on a 7,500-tonne-per-day, 25-years life-of-mineopen pit mining scenario with a concentration plant on site and ahydrometallurgical plant located in Kuujjuaq to produce high purityrare earth oxides.
NI 43-101 Disclosure
Jody Dahrouge, P.Geo., Vice-President Exploration of Commerce ResourcesCorp., a qualified person as defined by National Instrument 43-101,supervised the preparation of the technical information in this newsrelease.
André Laferrière, M.Sc. P.Geo., from SGS Canada Inc. - Geostat, anindependent qualified person as defined by National Instrument 43-101,is responsible for the mineral resource estimate for the Ashram Zoneand has verified the data disclosed in this release.
The Technical Report, compliant with National Instrument 43-101standards, describing the mineral resource estimation and providingdetails of the 2010 drilling and sampling will be filed on SEDAR (www.sedar.com) within 45 days.
About Commerce Resources Corp.
Commerce Resources Corp. is an exploration and development company witha particular focus on tantalum, niobium and rare earth element depositswith a potential for economic grades and large tonnages. The Company isdeveloping its Upper Fir Tantalum and Niobium Deposit in BritishColumbia and is also exploring its Eldor Rare Earth Project in northernQuebec and the Carbo Rare Earth Project in northern British Columbia.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
(signed)
David Hodge
President and Director
Tel: 604 484 2700
TF: 866.484.2700
Email: info@commerceresources.com
Web: https://www.commerceresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (asthat 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 may contain forward-looking information and is subjectto a variety of risks and uncertainties and other factors that couldcause actual events or results to differ from those projected in theforward-looking statements. Forward looking information is based on theopinions and estimates of management and its consultants at the datethe information is given. It is subject to a variety of risks anduncertainties and other factors that could cause actual events orresults to differ materially from those projected in theforward-looking information. Information is based on reasonable assumptions which include but arenot limited to the timing and content of the resource estimate on theEldor Property, upcoming work programs as well as geologicalinterpretations of the Eldor Property. Forward-looking statementsaddress future events and conditions and therefore involve inherentrisks and uncertainties. Actual results may differ materially fromthose currently anticipated in such statements.
The forward-looking information contained herein is given as of the datehereof and the Company assumes no responsibility to update or revisesuch information to reflect new events or circumstances, except asrequired by law.