Commerce Resources Corp. Updates Rare Earth Element Exploration at Eldor Project, Quebec
VANCOUVER, Aug. 25, 2011 /PRNewswire/ - Commerce Resources Corp. (TSXv: CCE), (FSE: D7H), (OTCQX: CMRZF) (the "Company" or "Commerce") is pleased to provide an update on the summer exploration activities at the Company's Eldor Project in northern Quebec.
Commerce's 2011 summer drilling program is well underway with two drill rigs currently operating on site. The Company plans to complete a minimum of 7,500 metres of drilling as part of the program. The objective of the program is threefold: (i) to upgrade a portion of the current resource at the Ashram Zone from the "inferred" to the "indicated" category; (ii) to continue to expand the size of the Ashram Zone and to test for areas of higher grades and middle and heavy rare earth element ("REE") enrichment; and (iii) to test additional REE targets within the Eldor Carbonatite Complex.
The bulk of the drilling (~6,000 metres) will be conducted at Ashram. The remaining drilling will test additional exploration targets along the ring structure of the Eldor Carbonatite Complex. The drill core will be sent in batches to Activation Laboratories in Ancaster, Ontario for assaying. Results are expected continuously throughout the fall.
Commerce is also working with Hazen Research Inc. of Golden, Colorado to complete preliminary metallurgical studies for Ashram. Additionally, the Company has retained Roger Mitchell of Lakehead University, Ontario to complete advanced mineralogical studies and Environnement Illimite Inc. of Montreal, Quebec to complete a baseline environmental study. The data from these studies and the summer drilling program will be used to undertake a resource update and Preliminary Economic Assessment for Ashram which will be completed by SGS Canada Inc. - Geostat.
"Over the past twelve months we have had many significant achievements and milestones at Eldor including the discovery of the Ashram Zone, an initial resource estimate and a successful winter drill program which expanded the deposit significantly," said Dave Hodge, Commerce's President. "Now we are rapidly moving through the next stage of development, with additional drilling, as well as metallurgical, mineralogical and environmental studies which will lay the foundation for a resource update and Preliminary Economic Assessment."
The Ashram Zone is a large tonnage rare earth discovery and is ranked as one of the largest REE deposits outside of China. In early 2011, Commerce reported an initial NI 43-101 resource estimate for Ashram of 117.34 million tonnes averaging 1.74% TREO in the Inferred Category using a base case cutoff of 1.25% TREO (SGS Canada Inc. - Geostat, April 2011). The resource estimate was based on twelve holes totalling 3,313 metres drilled in 2010. Following the resource calculation, Commerce completed a follow-up winter drill program consisting of seven holes totalling 3,367 metres. The program significantly expanded the footprint and depth extent of the Ashram Zone beyond that of the current Inferred Resource. Mineralization at Ashram has now been confirmed over an approximate area of 600 metres east-west, by 650 metres north-south, to depths of greater than 600 metres. The deposit remains open to the north, east, south, at depth, and is not fully constrained to the west. Altogether since its discovery in 2010, a total of 6,680 metres of drilling has been completed at Ashram. The 7,500 metre summer drilling program at Eldor will be the most extensive program completed to date.
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.
About Commerce Resources Corp.
Commerce Resources Corp. is focused on building shareholder value through the discovery and development of rare metal and rare earth element deposits with a 100% focus on Canadian assets. 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. The Ashram Deposit is a large tonnage rare earth discovery and is ranked as one of the largest rare earth deposits outside of China.
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 the company will complete a minimum of 7,500 metres of drilling at the Eldor Project as part of the summer program, that the bulk of the drilling will be conducted at the Ashram Zone, that the remaining drilling will test additional exploration targets along the ring structure of the Eldor Carbonatite Complex, and that data from the metallurgical, mineralogical, and environmental studies and the summer drilling program will be used to undertake a resource update and Preliminary Economic Assessment for Ashram.
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.