VANCOUVER, Oct. 19, 2011 /PRNewswire/ - Commerce Resources Corp. (TSXv: CCE, FSE: D7H, OTCQX: CMRZF) (the "Company" or "Commerce") is pleased to report the results for the first two drill holes completed during the summer/fall exploration program at the Ashram Rare Earth Element ("REE") Zone at the Eldor Project in northern Quebec. To date, 32 drill holes have been completed at Eldor as part of this year's ongoing exploration program.
The initial two drill holes were successful in intersecting significant Middle and Heavy Rare Earth Oxide ("MHREO") enrichment at and near surface. Results from EC11-056 include 1.76% Total Rare Earth Oxides ("TREO") over 44.56 metres with a MHREO/TREO ratio of 15.6%; including 1.28% TREO over 12.26 metres with a MHREO/TREO ratio of 27.9%. The enriched zone was within a wider zone of mineralization of 2.00% TREO over 92.28 metres with a MHREO/TREO ratio of 10.6%. Of particular importance are the high values of dysprosium, europium, terbium and yttrium as well as enrichment in neodymium (neodymium consistently exceeds 15% of the TREO) which compare favorably with other advanced rare earth deposits.
Complete results are as follows:
(% of TREO)
(% of TREO)
* All samples were analyzed by Activation Laboratories of Ancaster, ON using its method eight -- major oxide, rare earths and trace element package by fusion ICP and ICP/MS in addition to niobium by XRF and fluorine by method 4F-F. The four most abundant REEs that make up the TREO reported above are cerium, lanthanum/neodymium and praseodymium. All holes are BTW in size. The true width of drill intersections is not confirmed.
The MHREO enrichment encountered in both EC11-056 and EC11-057 expands the zone of middle and heavy enrichment approximately 50 metres north-northwest of EC10-047. A peak value of 41% MHREO, of the total TREO, was returned from EC11-056. In addition, the grade of the enriched zone increased significantly in EC11-056 with a grade of 1.78% TREO over 44.56 metres at 15.6% MHREO, thereby demonstrating the potential of further increased grade within the MHREO enriched zone. By comparison, EC10-047 intersected 1.41% TREO over 61.19 metres at 19.7% MHREO. Furthermore, neodymium enrichment continues to be prevalent within the MHREO zone (peak of 29% of TREO in EC11-056, 37% in EC10-047) with other portions of the deposit commonly exceeding 20% neodymium as a percentage of the TREO content.
Very few carbonatites are host to REE deposits that are significantly enriched in the middle and heavy REEs such as at Eldor. This unique zone of mineralization is dominated by large, fluorine rich ferrocarbonatite dykes of near massive texture and dark, olive-green to brown colour. They appear concentrated at or near surface within A-Zone type material.
The main area of MHREO enrichment is more extensive than previously thought and may exist at higher grades near to or exceeding the deposit average (1.74% TREO) as defined from the recent 43-101 resource estimate (SGS Canada Inc. - Geostat, April 2011). The zone is central to the northwest part of the deposit, is present at or near surface (<100 m) and is underlain and adjacent to some of the higher grade (2+% TREO) material within the deposit. In addition, signficant 2+% TREO interections continue to be prevalent throughout the deposit with drill hole EC11-057 returning 2.06% over 279.22 metres thereby highlighting the continuity and vast extent of mineralization within the deposit
David Hodge, President of Commerce stated, "We are very pleased with the initial results from the summer program at the Eldor Project. We had indications from hole 47 drilled last year that there may be a significant near-surface middle and heavy rare earth component to the Ashram Deposit and these two holes confirm the zone and expand it."
Drill holes EC11-056 (230 azimuth, 45 dip) and EC11-057 (vertical) were collared in mineralization and drilled from the same pad. They targeted the western contact of the deposit. A map showing the location of the drill holes, along with an Excel spreadsheet with detailed analytical results, will be posted on the Company's website at: http://www.commerceresources.com/s/Eldor.asp
Further Results to Come
The summer/fall drilling program has been expanded beyond the minimum 7,500 metres. As of October 17, 2011 a total of 9,338 metres over 32 holes have been completed including 25 holes (8,230 metres) at the Ashram Zone and a further 7 holes (1,108 metres) at regional targets. Analytical results from the remaining holes will be reported in batches as they are received. Surface exploration, as well as metallurgical, mineralogical and environmental studies are ongoing.
The Eldor Property is located in northern Quebec approximately 130 kilometres south of the town of Kuujjuaq and 100 kilometres north of Adriana Resources Inc.'s Lac Otelnuk Iron Deposit. The property is 100%-owned by Commerce and encompasses 404 claims totalling approximately 19,006 hectares. The Company is well financed and has sufficient working capital available to complete all of its development and exploration plans. The Company currently has approximately $12 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.
Middle and Heavy Rare Earth Oxides ("MHREO") is defined as the sum of the middle rare earth oxides (Sm2O3, Eu2O3, Gd2O3) and the heavy rare earth oxides (Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3) plus Y2O3 expressed as a percentage out of the TREO content.
Total Rare Earth Oxides ("TREO") include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3.
About Commerce Resources Corp.
Commerce Resources Corp. is focused on building shareholder value through the discovery and development of Canadian rare metal and rare earth element deposits. Commerce's principal assets are its Blue River Tantalum-Niobium Project in British Columbia and its Eldor Rare Earth Project in Quebec.
At Blue River, Commerce is advancing its Upper Fir Tantalum and Niobium Deposit through development with a Preliminary Economic Assessment in the advanced stages of completion. At the Eldor Project, Commerce's 2010 exploration program led to the discovery of a significant new rare earth deposit known as Ashram. Commerce reported an initial NI 43-101 Inferred Resource Estimate for Ashram and is continuing exploration and drilling in combination with metallurgical, mineralogical and environmental work. The data from these studies will be used to undertake a resource update and Preliminary Economic Assessment for the deposit.
Commerce Resources Corp. trades on the TSX Venture Exchange under the symbol "CCE", the Frankfurt Stock Exchange under the symbol "D7H" and the U.S. OTCQX under the symbol "CMRZF."
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
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 analytical results from the remaining holes from the summer/fall drill program at Eldor will be reported in batches as they are received..
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; 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 rare earth elements 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.