VANCOUVER, Aug. 19 /PRNewswire-FirstCall/ - Commerce Resources Corp. (TSXv: CCE) (FSE: D7H) (the "Company") is pleased to report that the results from the first hole of the 2010 drilling program at the Eldor Project, located in northeastern Quebec, confirm the potential for a significant new REE discovery at the Ashram Rare Earth Zone.
The program's first hole, EC10-027 was collared in mineralization and had results as follows:
- 1.72% Total Rare Earth Oxides ("TREO") over 215.30 metres (3.74 to 219.04 m) Including 2.07% TREO over 29.48 m (105.59 to 135.07 m) - Followed by 0.94% TREO over 21.81 m (219.04 to 240.85 m); in a lithologically distinct zone - In increasing order, the four most abundant REE's reported are Praseodymium, Neodymium, Lanthanum and Cerium.
The hole was drilled at an azimuth of 230 degrees and dip of -50 degrees with BTW sized core. It tested surface mineralization to depth on the Ashram Peninsula, along the western flank of a magnetic low that defines the target area, which measures approximately 1 kilometre by 0.8 kilometres in size.
Complete analytical results along with a drill hole plan map will be posted on the Company's website at: http://www.commerceresources.com/s/Eldor.asp
All samples were analyzed by Activation Laboratories of Ancaster, Ontario using their method 8 - major oxide, rare earths and trace element package by Fusion ICP and ICP/MS.
Drilling to date does not yet allow for an accurate estimation of the dimensions of the Ashram REE-bearing zone at Eldor. For this reason, no estimation of true thickness from the drill holes has been made.
Starting directly at surface, three contiguous mineralized horizons with gradational contacts were encountered, termed the A-Zone, B-Zone, and the BD-Zone respectively. The units appear to be moderate to steeply dipping, with a north-northwest strike, and are in general, lithologically distinct.
The A-Zone is a very fine-grained, light to dark olive grey ferro-carbonatite with abundant and pervasive purple fluorite and associated red-brown mineralization, with minor disseminated sulphides.
The B-Zone is a fine-grained, pale to light-greenish-yellow magnesio-carbonatite with common, patchy purple fluorite and pervasive, very-fine-grained yellow-beige mineralization with minor sulphides.
The BD-Zone is the most distinct unit. It is a coarser-grained, cream to light-grey magnesio-carbonatite, strongly brecciated, with common reddish orange parasite-bastnaesite mineralization. This zone is unique and has not been described on the property prior.
Two additional drill holes, EC10-028 and EC10-029, have been completed at the Ashram Zone as 50 metre and 70 metre step-outs, at -45 degrees dip, to the NW and SW respectively of EC10-027. Both collared in mineralization and intersected significant intervals of all three zones (A, B, and BD). Analytical results are pending.
The Ashram Rare Earth Zone remains open to the east, south, north, at depth and is not fully constrained to the west. Drilling is ongoing with a further 10 holes (2,500 metres) planned over the Ashram, Southeast and Star Trench Zones. To date, the 2010 drill program has successfully identified a REE deposit at surface in the Ashram Zone which extends to significant depths.
The distribution of particular REEs for each zone has only briefly been evaluated; however, a variable distribution of elements is evident. Higher neodymium oxide-lanthanum oxide ratios (Nd(2)O(3)-La(2)O(3)), specifically Nd(2)O(3) averaging 1.2 times greater than La(2)O(3) within the BD zone, suggest an independent distribution from the main ore body. Neodymium oxide constitutes nearly 22% of all rare earth oxides present in this zone and is one of the more sought after of the rare earths for use in super magnets and related applications.
The Eldor Property covers a carbonatite complex located within the central Labrador Trough located in northern Quebec; approximately 130 km south of the town of Kuujjuaq. The property is 100%-owned by Commerce and encompasses 404 claims totaling approximately 19,006 hectares.
Geologically, the Eldor Project represents one of the largest carbonatite complexes known worldwide. Carbonatite related deposits are a major host for rare metals, such as niobium and tantalum, and rare earth elements. The world's largest niobium mine, Araxa in Brazil, and several of the world's largest rare earth element deposits, including Lynas Corporation's Mt. Weld deposit in Australia, and Molycorp's Mountain Pass deposit in the United States, are all hosted by carbonatites. Geologically similar exploration projects include Hudson Resources Inc.'s Sarfartoq Carbonatite Project in Greenland and Rare Element Resources Ltd.'s Bear Lodge Carbonatite Project in Wyoming.
Sufficient working capital is available to complete all of the Company's development and exploration plans. As at April 30th, 2010, the Company had $19.8 million in cash and investments.
NI 43-101 Disclosure
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 tantalum, niobium and rare metal deposits with a potential for economic grades and large tonnages. The Company is specifically focused on the development of its Upper Fir Tantalum and Niobium Deposit in British Columbia and is also exploring its Eldor Project in northern Quebec and the Carbo Project in northern British Columbia.
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.
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include that there is potential for a significant new REE discovery at the Ashram Rare Earth Zone; that analytical results are pending from two additional drill holes completed at the Ashram Zone; and that drilling is ongoing with a further 10 holes (2500 metres) planned over the Ashram, Southeast and Star Trench Zones.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Factors that could cause actual results to differ materially may include misinterpretation of data; that we may not be able to get equipment or labour as we need it; that we may not be able to raise sufficient funds to complete our intended exploration and development; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that equipment may not work as well as expected; that analysis of data may not be possible accurately and at depth; that results which we or others have found in any particular location are not necessarily indicative of larger areas of our properties; that we may not complete environmental programs in a timely manner or at all; that market prices for tantalum & niobium may not justify commercial production costs; and that despite encouraging data there may be no commercially exploitable mineralization on our properties.
Readers should refer to the risk disclosures outlined in the Company's Management Discussion & Analysis of its audited financial statements filed with the British Columbia Securities Commission.
SOURCE Commerce Resources Corp.