VANCOUVER, Sept. 16, 2015 /CNW/ - Commerce Resources
Corp. (TSXv: CCE, FSE: D7H, OTCQX: CMRZF) (the "Company") is
pleased to announce results for the three remaining drill holes
from the 2015 winter/spring drill program at the Ashram Rare Earth
Deposit located in northern Quebec.
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.
Drill hole EC15-135, located in the southwest corner of the
deposit, returned one of the highest-grade samples to date at
19.71% TREO over 0.82 m. The sample was collected at a shallow
depth (~63 m) from a late-stage, hydrothermal vein occurrence
containing coarse-grained (up to 1 cm) monazite/bastnaesite
mineralization throughout.
While this intersection is not reflective of the Ashram Deposit
as a whole, it highlights the potential for coarse-grained,
higher-grade pockets of REE mineralization to occur at relatively
shallow depths.
In addition, strong mineralization continued to be encountered
at the south end of the deposit with EC15-138 returning 90 m of
1.85% TREO, including 21 m of 2.03% TREO and 37 m of 2.01% TREO.
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(4)
(m)
|
TREO(1)
(%)
|
MH-T(2)
(%)
|
Fluorite(3)
(%)
|
End of Hole
(EOH)
(m)
|
|
EC15-131
|
HQ
|
Drilled primarily for
hydrogeological purposes, no significant mineralization
|
200.00
|
|
EC15-135
|
HQ
|
9.62
|
31.93
|
22.31
|
2.00
|
4.6
|
4.1
|
203.00
|
|
|
62.53
|
63.35
|
0.82
|
19.71
|
3.5
|
2.2
|
|
|
|
175.14
|
185.76
|
10.62
|
2.83
|
3.6
|
0.6
|
|
|
EC15-138
|
NQ
|
5.18
|
160.63
|
155.45
|
1.67
|
7.7
|
8.6
|
160.63
|
|
incl.
|
|
70.64
|
160.63
|
89.99
|
1.85
|
6.9
|
9.2
|
|
|
or
|
|
91.14
|
112.57
|
21.43
|
2.03
|
6.2
|
10.5
|
|
|
or
|
|
124.02
|
160.63
|
36.61
|
2.01
|
6.3
|
9.9
|
|
|
|
|
(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.
Drill holes EC15-131 and 135 were completed for resource infill
and hydrogeological testing purposes, while EC15-138 was completed
solely as a resource infill hole. All three drill holes were
terminated within a pre-determined depth range for the purposes of
the ongoing Pre-feasibility Study (PFS) with EC15-138 bottoming in
strong mineralization of 2.06% TREO.
Drill hole EC15-135 was completed at the southwestern margin of
the deposit and trended in and out of mineralization downhole.
Drill hole EC15-131, collared just outside of the deposit's western
margin, did not encounter any significant mineralization, as was
expected.
All samples collected were analyzed by Activation Laboratories
in Ancaster, ON, for major oxides
by Fusion ICP, rare earths by ICP-MS, and for fluorine by Fusion
ISE.
The second phase of the 2015 program is currently underway.
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.
For more information please visit the corporate website at
http://www.commerceresources.com or contact Investor Relations at
604.484.2700 or info@commerceresources.com.
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. 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.