VANCOUVER, Sept. 21, 2012 /CNW/ - Commerce Resources Corp. (TSXv: CCE; FSE: D7H; OTCQX: CMRZF) (the "Company") is pleased to
announce that it has engaged Roche Ltd. (Roche) to complete a
Pre-feasibility Study (PFS) on the Ashram Rare Earth Element Deposit,
located within the Labrador Trough in north-eastern Quebec. Work on
the PFS has commenced and is planned for completion in Q4 2013 / Q1
Roche is an engineering firm with extensive experience in the mining
industry in Quebec. They have established a strong background in rare
earth project development that is particularly suited to the Ashram
Rare Earth Element Deposit. Roche's experience is multi-disciplinary
(building, construction, environmental, energy, industrial etc.) and
extends through the Feasibility Study (FS) level of mine planning and
development with various commodities including rare earth elements,
iron ore, base metals, and specialty metals.
Also involved in the PFS, and under the direction of Roche, are the
following specialist consulting companies:
- Forchemex Ltd., Consulting Group (Forchemex), a member of the Roche
Group, is a consultant group specializing in forestry services. The
firm offers services relating to forest road planning and engineering,
forest management and operations planning. Forchemex will focus on the
road layout from proposed mine site to Kuujjuaq,
- Environnement Illimité Inc., is an environmental services company
specializing in aquatic ecosystem studies and related biophysical and
technical surveys. Environnement Illimité will work directly with Roche
to collect and provide all environmental baseline data for the PFS.
All metallurgical aspects of the project will continue under the
supervision of Hazen Research Inc. (Hazen) of Colorado, USA. Hazen
has been involved with the project since April 2011, and is working
with UVR-FIA GmbH (UVR) of Germany to further refine the metallurgical
flowsheet for the project. Roche representatives will be involved with
Hazen and UVR as they work to optimize the flowsheet required for the
The metallurgical work at Hazen will focus on 1.) Improving mineral
concentrate grades and recoveries beyond the base case stated in the
PEA, 2.) Testing to evaluate the potential for a fluorine based
by-product, 3.) Conducting test work to produce a pure rare earth oxide
or rare earth carbonate saleable end-product, and 4.) Performing
environmental characterization of all mineralized and waste material.
The metallurgical work at UVR will focus on 1.) Evaluation of
optimization parameters for the flotation process (temperature, pH,
etc.), and 2.) Improving separation of the rare earth minerals from
fluorite in order to increase mineral concentrate grades.
An update on all current metallurgical programs will be forthcoming from
2012 Work Program
The 2012 field program at Ashram has focused on the extraction of a bulk
sample, preparing the site for additional drilling, and the collection
of environmental baseline data.
A bulk sample of approximately 30 metric tonnes of representative
mineralized material was collected from three sites located along an
~65 m strike length, within the southern portions of the planned pit.
The material will be used for ongoing metallurgical test work and
initial pilot plant studies at Hazen and UVR.
In terms of site preparation, field crews have cleared drill site
access, conducted structural mapping, and upgraded the camp
facilities. In addition, site visits for data collection by personnel
of Roche and its affiliates, including mine site, road route, docking
facilities near Mackays Island, and airstrip location have been
The PFS will be based on a National Instrument 43-101 updated resource
estimate completed by Roche following drilling planned for Q1-Q2 of
About the Ashram Rare Earth Element Deposit
The Ashram Rare Earth Deposit is a carbonatite within the Eldor
Property, located in north-eastern Quebec. The Ashram Deposit has a
measured and indicated resource of 29.3 million tonnes at 1.90% TREO
and an inferred resource of 219.8 million tonnes at 1.88% TREO. The
deposit boasts a well-balanced distribution with enrichment in the
light, middle and heavy rare earth elements including all five of the
most critical elements such as neodymium, europium, dysprosium,
terbium, and yttrium.
The rare earth elements at Ashram occur in simple and well-understood
mineralogy, being primarily in the mineral monazite and to a lesser
extent in bastnaesite and xenotime. These minerals dominate the
currently known commercial extraction processes for rare earths.
A Preliminary Economic Assessment, completed in May of 2012 by
SGS-Geostat of Montreal (Blainville) (See news release dated May 24,
2012), outlines highly robust economics for the Ashram Project. The
PEA is based on a 4,000 tonne per day open-pit operation with an
initial 25-year mine life (300 years at economic cut-off if open-pit +
underground development), a pre-tax and pre-finance Net Present Value
(NPV) of $2.32 billion at a 10% discount rate, a pre-tax/pre-finance
Internal Rate of Return (IRR) of 44%, and a pre-tax/pre-finance payback
period of 2.25 years.
Darren L. Smith, M.Sc., P.Geol., a qualified person as defined by
National Instrument 43-101, supervised the preparation of the technical
information in this news release.
About Commerce Resources Corp.
Commerce Resources Corp. is an exploration and development company with
a particular focus on rare metal and rare earth element deposits with
the potential for economic grades and large tonnages. The Company is
focused on the development of its Upper Fir Tantalum and Niobium
Deposit in British Columbia, and Ashram Rare Earth Element Project in
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
President and Director
Tel: 604 484 2700
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.
This news release contains forward-looking information which are 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 our projected timeline and consultants for the PFS, the
focus of our metallurgical work, our planned drilling program, that the
Ashram deposit can be developed economically as an open-pit mine; all
information contained in the pre-feasibility study; and that we can
build shareholder value through the discovery and development of
Canadian rare metal and rare earth element deposits. 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; 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; 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.
SOURCE: Commerce Resources Corp.
For further information:
For more information on Commerce Resources Corp., visit the corporate website at http://www.commerceresources.com or email firstname.lastname@example.org.