Commerce Resources Corp. Intersects 2.44% TREO over 45 metres at the Ashram Rare Earth Deposit, Northern Quebec

VANCOUVER, Sept. 1, 2015 /CNW/ - Commerce Resources Corp. (TSXv: CCE, FSE: D7H, OTCQX: CMRZF) (the "Company") is pleased to announce results for an additional eleven drill holes from the recently completed winter/spring drill program at the Ashram Rare Earth Deposit located in northern Quebec. 

Highlights are as follows:

  • 199.11 metres (m) of 1.98% TREO(1), including  45.42 m of 2.44% TREO (EC15-129)
  • 149.42 m of 1.88% TREO, including 43.87 m of 2.20% TREO (EC15-139)
  • Expansion of rare earth element (REE) mineralization south, and potentially north, of the Ashram Deposit

 

The primary goal of the drill program was to increase the resource confidence from the current inferred category to the measured and/or indicated categories with infill drilling, as required for the ongoing Pre-feasibility Study (PFS). A total of 31 drill holes for 4,146 m were completed in the program, with 3 holes for 563.63 m remaining to be reported.

The results from three drill holes have highlighted the potential for further expansion and discovery of rare earth mineralization past the northern and southern extents of the known deposit.

These three drill holes (EC15-129, 137, and 139) targeted resource infill and returned significant REE mineralization. Hole EC15-129 is the northernmost drill hole completed to date to collar in mineralization, returning 1.98% TREO over 199 m, including 2.44% TREO over 45 m, with a peak sample of 3.08% TREO. Further, hole EC15-137 is the most southeastern hole completed to date, and returned significant mineralization that increased with depth, ending with 2.18% TREO at 203 m. Additionally, drill hole EC15-139, located near the northeast corner of the deposit returned 1.88% TREO over 149 m, including 2.20% TREO over 44 m and a peak sample of 3.28% TREO.

Five of the drill holes (EC15-124 through 128) were completed at the anticipated dyke location, for geotechnical purposes, and ranged from 7 m to 26 m in depth. The drilling confirmed a shallow depth to bedrock and indicates favourable soil characteristics. 

Three of the drill holes (EC15-130, 132, and 136) were completed for hydrogeological purposes as twins of EC15-129, 131 and 135, respectively. These three holes were not sampled for analysis as sufficient sampling was completed on the immediately adjacent twin hole (i.e. EC15-129, 131, and 135).

Analytical results for the drill holes noted herein from the winter/spring 2015 drill program are summarized in Table 1.

Table 1.

Hole ID

Core
Size

From
(m)

To
(m)

Interval
(m)

TREO(1)
(%)

MH-T(2)
(%)

Fluorite(3)
(%)

End of Hole (EOH)
(m)

EC15-124

NQ

Drilled for geotechnical purposes at anticipated dyke location

10.36

EC15-125

NQ

Drilled for geotechnical purposes at anticipated dyke location

7.06

EC15-126

NQ

Drilled for geotechnical purposes at anticipated dyke location

10.67

EC15-127

NQ

Drilled for geotechnical purposes at anticipated dyke location

11.28

EC15-128

NQ

Drilled for geotechnical purposes at anticipated dyke location

26.00

EC15-129

HQ

0.89

200.00

199.11

1.98

5.3

5.3

200.00

incl.


77.58

123.00

45.42

2.44

4.2

6.0


or


86.16

92.00

5.84

3.02

3.1

4.9


EC15-130

HQ

No samples collected, drilled for hydrogeological purposes as twin of EC15-129

62.00

EC15-131

HQ

Assays pending

200.00

EC15-132

HQ

No samples collected, drilled for hydrogeological purposes as twin of EC15-131

62.00

EC15-133

HQ

See News Release dated July 24th 2015

239.00

EC15-134

HQ

See News Release dated July 24th 2015

200.00

EC15-135

HQ

Assays pending

203.00

EC15-136

HQ

No samples collected, drilled for hydrogeological purposes as twin of EC15-135

68.00

EC15-137

NQ

5.93

203.30

197.37

1.55

8.2

6.4

203.30

incl.


89.27

167.88

78.61

1.73

8.0

7.3


or


89.27

96.43

7.16

2.08

7.0

7.4


or


160.23

167.88

7.65

2.13

5.9

8.7


MHREO


94.79

103.44

8.65

1.58

11.7

3.9


MHREO


111.86

123.40

11.54

1.60

9.6

5.4


EC15-138

NQ

Assays pending

160.63

EC15-139

NQ

2.07

151.49

149.42

1.88

7.0

9.1

151.49

incl.


26.73

70.60

43.87

2.20

6.0

10.0


incl.


113.63

123.40

9.77

2.18

6.6

12.6


MHREO


72.07

76.77

4.70

1.53

10.7

3.9


 

(1)

TREO is the summation of Ce2O3 + La2O3 + Pr2O3 + Nd2O3 + Sm2O3 + Eu2O3 + Gd2O3 + Tb2O3 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O3 

(2)

MH-T is the sum of the middle and heavy rare earth oxides (Sm2O3 + Eu2O3 + Gd2O3 + Tb2O3 + Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 + Y2O3) divided by TREO, expressed as a per cent.   

(3)

Fluorite (CAF2) is calculated based on fluorine analysis, using a conversion factor of 2.055, as mineralogical work concludes fluorite is the dominant and only material source of fluorine.

(4)

True thicknesses of drill intersections are estimated to be 50-70% along the deposit's margins; however, the cone-like nature of the deposit effectively increases the true thickness to 100% as intersections move inwards, towards the deposit's centre. 

 

A map showing the drill hole locations is available on the Company's website at http://www.commerceresources.com.

All eleven drill holes were terminated within a pre-determined depth range for the purposes of the ongoing Pre-feasibility Study (PFS) with EC15-129, 137, and 139 all bottoming in strong mineralization of 1.99% TREO, 2.18% TREO, and 1.94% TREO, respectively.  

All samples collected are analyzed by Activation Laboratories in Ancaster, ON for major oxides by Fusion ICP, rare earths by ICP-MS, and for fluorine by Fusion ISE.

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.  

About the Ashram Rare Earth Element Deposit
The Ashram Rare Earth Element (REE) Deposit is located in north-eastern Quebec. The Deposit has a measured resource of 1.6 million tonnes (Mt) at 1.77% TREO, an indicated resource of 27.7 Mt at 1.90% TREO, and an inferred resource of 219.8 Mt at 1.88% TREO.

The REEs at Ashram occur 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. The Ashram Deposit mineralization has an REE distribution with enrichment in the critical and magnet feed REEs (Nd, Pr, Eu, Tb, Dy, and Y).

A Preliminary Economic Assessment (PEA) was completed in May of 2012 by SGS-Geostat of Montreal (Blainville) (see news release May 24, 2012). The PEA is based on a 4,000 tonne per day open-pit operation with an initial 25-year mine life ), a pre-tax 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.

The PEA (effective date of July 5, 2015; revised January 7, 2015) is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources are not mineral reserves as they do not have demonstrated economic viability. The current Ashram Technical Report dated January 7, 2015 explains why no after-tax case is included, and that a combined tax rate of around 32.5% may apply to production.

With respect to the ongoing Pre-feasibility Study (PFS), the results of the programs described in this news release will be incorporated, along with other necessary technical data including geological and engineering studies, into the PFS with costs and benefits to be described in more detail therein.

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 Upper Fir Tantalum and Niobium Deposit in British Columbia.

On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.

"Chris Grove"

Chris Grove
President
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.

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 any references to the PEA as they are preliminary in nature; any increase in the resource confidence to the inferred category to measured and/or indicated; potential for further expansion and discovery of rare earth mineralization past the northern and southern extents of the known deposit and references to the anticipated dyke location;. These forward-looking statements 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; increased capital costs; the timing and content of upcoming work programs; geological interpretations based on current data 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; 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: please visit the corporate website at http://www.commerceresources.com or contact Investor Relations at 604.484.2700 or info@commerceresources.com

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