VANCOUVER, June 16, 2015 /CNW/ - Commerce Resources
Corp. (TSXv: CCE, FSE: D7H) (the "Company") is pleased to
announce results for an additional five drill holes from the
recently completed winter/spring drill program at the Ashram Rare
Earth Deposit located in northern Quebec.
Highlights are as follows:
- 6.75 metres of 3.04% Total Rare Earth Oxides ("TREO"),
including 1.45 metres of 4.56% TREO and 345 ppm Dysprosium (Dy)
oxide (Drill hole EC15-122)
- 42.31 metres of 2.35% TREO within a larger interval of 163.31
metres of 2.07% TREO (Drill hole EC15-121)
- Intersection of the Middle and Heavy Rare Earth Oxide (MHREO)
Zone along the eastern margin 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 18
holes for 1,990 m remaining to be reported.
These five drill holes were located along the deposit's western
(EC15-118), northern (EC15-119), and eastern margins (EC15-120,
121, and 122). They were drilled for geotechnical, geomechanical,
and hydrogeological purposes, in addition to infill drilling for
the resource. Strong mineralization, including 2.23% over 32 m
(EC15-119) and 2.35% over 42 m (EC15-121), continued to be
encountered along the deposit margins (north and east) and are a
higher grade intersection than the best intersections reported
earlier from the first eight drill holes of the program.
Intersections of strong MHREO mineralization in drill hole
EC15-121 and 122 were returned with 10.0% MH-T (MHREO divided by
TREO expressed as a %) over 15.28 m at 1.85% TREO in EC15-122,
including 1.45 m of 83 ppm Tb oxide, 345 ppm Dy oxide, 7,710 ppm Nd
oxide, and 2,189 ppm Pr oxide for significant overall grade of
magnet feed mineralization. Further, drill hole EC15-121 returned
15.5% MH-T over 1.67 m including 398 ppm Dy oxide. The highest Dy
oxide assay returned to date is 791 ppm over 0.71 m in EC11-053 at
294 m depth.
Analytical results for the drill holes noted herein from the
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)
|
|
EC15-119
|
NQ
|
5.50
|
37.52
|
32.02
|
2.23
|
4.5
|
5.8
|
218.54
|
|
|
55.24
|
70.20
|
14.96
|
2.06
|
4.8
|
6.1
|
|
|
|
203.50
|
218.54
|
15.04
|
1.93
|
4.1
|
1.3
|
|
|
EC15-120
|
NQ
|
58.09
|
200.09
|
142.00
|
1.91
|
6.3
|
6.8
|
200.09
|
|
incl.
|
|
59.76
|
111.50
|
51.74
|
2.10
|
5.7
|
7.3
|
|
|
incl.
|
|
140.68
|
175.09
|
34.41
|
2.08
|
5.6
|
7.7
|
|
|
EC15-121
|
NQ
|
5.79
|
222.81
|
217.02
|
1.91
|
7.2
|
7.2
|
222.81
|
|
incl.
|
|
59.50
|
222.81
|
163.31
|
2.07
|
6.8
|
7.1
|
|
|
or
|
|
146.00
|
222.81
|
76.81
|
2.22
|
6.3
|
8.3
|
|
|
or
|
|
180.50
|
222.81
|
42.31
|
2.35
|
6.2
|
6.6
|
|
|
MHREO
|
|
18.22
|
52.00
|
33.78
|
1.29
|
10.6
|
6.8
|
|
|
MHREO
|
|
135.11
|
146.00
|
10.89
|
1.67
|
9.6
|
7.9
|
|
|
EC15-122
|
NQ
|
135.00
|
209.40
|
74.40
|
1.72
|
7.8
|
4.3
|
209.40
|
|
incl.
|
|
137.00
|
143.75
|
6.75
|
3.04
|
8.8
|
1.8
|
|
|
MHREO
|
|
126.58
|
141.86
|
15.28
|
1.85
|
10.0
|
3.2
|
|
|
MHREO
|
|
146.33
|
149.43
|
3.10
|
1.28
|
15.8
|
5.6
|
|
|
MHREO
|
|
186.10
|
189.58
|
3.48
|
1.57
|
10.9
|
1.0
|
|
|
MHREO
|
|
199.31
|
202.70
|
3.39
|
1.24
|
15.7
|
1.5
|
|
|
EC15-118
|
NQ
|
Drilled for primarily
for geotechnical and hydrogeological purposes with no significant
mineralization encountered
|
203.19
|
|
(1)
|
TREO is the summation
of Ce2O3 + La2O3 + Pr2O3 + Nd2O3 + Eu2O3 + Sm2O3 + Gd2O3 + Tb2O3 +
Dy2O3 + Ho2O3 + Er2O3 + Tm2O3 + Yb2O3 + Lu2O3 +
Y2O3
|
|
(2)
|
MH-T is the sum of
the middle and heavy rare earth oxides (Eu2O3 + Sm2O3 + 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
eastern 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.
Each drill hole was terminated at a pre-determined depth (~200
m) for the purposes of the PFS, with four holes ending in strong
mineralization led by EC15-121 at a grade of 2.56% TREO.
The MHREO mineralization returned from EC15-121 is one of the
most well-balanced rare earth intersections to date for the Ashram
Deposit with 15.5% MH-T over 1.67 m at 2.25% TREO, including 398
ppm Dy oxide. This intersection is significant as it highlights a
rock type (or phase) that is more highly enriched in the middle and
heavy REOs than is typical, yet is also of considerable TREO grade
(i.e. significant Nd and Pr). Similar intersections have been
returned over short intervals from past drilling at Ashram;
however, the source remains to be discovered. This type of
mineralization is best highlighted by the intersection in EC11-053
with 26% MH-T over 0.71 m at 2.60% TREO, including 791 ppm Dy oxide
and 144 ppm Tb oxide. Mineralogy on this material type suggests
increased amounts of xenotime are the source of the MHREO.
Drill hole EC15-119 was collared approximately 50 m to the
northwest of the known resource and was well mineralized with 32.02
m of 2.23% TREO. The mineralization starts at surface and remains
open to the north.
Drill hole EC15-118 was collared west of the known resource and
drilled primarily for geotechnical, geomechanical, and
hydrogeological purposes. As anticipated, no mineralization was
intersected, and as such, no samples were analyzed.
All samples collected will be analyzed by Activation
Laboratories in Ancaster, ON for
major oxides by Fusion ICP, rare earths by ICP-MS, and for fluorine
by Fusion ISE. Results will be released as they are received.
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
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 has an REE distribution with enrichment in the light,
middle, and heavy rare earth elements.
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 (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.
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. 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.
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.
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.
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.