Inferred Mineral Resource: 117.34 Million Tonnes averaging 1.74% TREO
VANCOUVER, March 3 /PRNewswire/ - Commerce Resources Corp. (TSXV: CCE), (FSE: D7H), (OTCQX: CMRZF) (the "Company" or "Commerce") is pleased to announce the first National Instrument 43-101 compliant mineral resource estimate for the Ashram Rare Earth Element ("REE") Zone at the Eldor Project in Quebec. The Eldor Project is located in northeastern Quebec approximately 130 kilometres south of the community of Kuujjuaq. The resource estimate was prepared by SGS Canada Inc. - Geostat ("SGS Geostat") of Montreal, Quebec, who have recommended an aggressive exploration and development program to rapidly advance the project.
Mineral resources were estimated by SGS Geostat applying four different Total Rare Earth Oxide ("TREO") cut-off grades, with a base-case resource estimated using a TREO cut-off grade of 1.25%. At this cut-off, the Ashram Zone hosts an Inferred Resource of 117,340,000 tonnes grading 1.74% TREO. The mineral resource estimate for TREO cut-offs of 1.00%, 1.25% (base case), 1.50% and 1.75% are outlined in the table below.
|Table: Mineral Resources Estimate - Eldor Property - Ashram REE Deposit|
|Cut-off Grade TREO (%)||Resources Categories||Tonnes*||TREO (%)**||LREO (%)**||IREO (%)**||HREO (%)**||Y2O3 (%)**||CaF2 (%)***|
|1.25% (base case)||Inferred||117,340,000||1.740||1.612||0.069||0.019||0.040||5.56|
*Rounded to nearest 10,000. ** Rounded to nearest 0.001. *** Rounded to nearest 0.01
- Effective date March 1, 2011.
- Mineral resources are not mineral reserves and do not have demonstrated economic viability.
- Bulk density of 3.0 t/m3 used.
- Total Rare Earth Oxides (TREO) include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3.
- Light Rare Earth Oxides (LREO) include: La2O3, Ce2O3, Pr2O3 and Nd2O3.
- Intermediate Rare Earth Oxides (IREO) include: Sm2O3, Eu2O3 and Gd2O3.
- Heavy Rare Earth Oxides (HREO) include: Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3 and Lu2O3.
|Mineral Resources Estimate - Eldor Property - Ashram REE Deposit|
|Cut-off Grade TREO (%)||Resources Categories||Tonnes*||La2O3 (%)**||Ce2O3 (%)**||Pr2O3 (%)**||Nd2O3 (%)**||Sm2O3 (%)**||Eu2O3 (%)**||Gd2O3 (%)**||Tb2O3 (%)**||Dy2O3 (%)**||Ho2O3 (%)**||Er2O3 (%)**||Tm2O3 (%)**||Yb2O3 (%)**||Lu2O3 (%)**|
|1.25% (base case)||Inferred||117,340,000||0.435||0.796||0.083||0.298||0.038||0.009||0.022||0.002||0.010||0.001||0.003||0.000||0.002||0.000|
|Effective date March 1, 2011. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Bulk density of 3.0 t/m3 used. TREO includes Y2O3.|
|* Rounded to nearest 10,000. ** Rounded to nearest 0.001.|
"Commerce's exploration efforts at the Eldor Project have succeeded in outlining a major new large-tonnage, near-surface rare earth element deposit in about six months from the completion of the first drill hole at the Ashram Zone," stated Mr. Jody Dahrouge, Vice President of Exploration. "Exploration during 2011, which will include both step-out and infill drilling, will provide us with the opportunity to significantly expand the deposit, outline locations with high grade mineralisation, and define near-surface zones with significant enrichment in the middle and heavy rare earth elements."
The Ashram Zone begins at surface and is open to the north, south, east, at depth, and is not fully constrained to the west. During 2011, Commerce intends to advance the project with additional diamond drilling at the Ashram Zone and at other high-priority REE exploration targets located at the property. In addition, the Company will commence a program of metallurgical testing and continue ongoing mineralogical studies.
"This large tonnage, initial resource estimate is a significant milestone for Commerce and the Eldor Project," said Mr. Dave Hodge, President. "The resource confirms the importance of the project and puts Commerce in a unique and attractive position in that we control one of the largest rare earth deposits with NI 43-101 compliant resources outside of China. We intend to continue to advance the project rapidly with the aim to expand the deposit and continue to define zones of enrichment in the middle and heavy rare earths that are unique for these deposit types. The deposit is host to a significant inventory of high-demand, light-rare earths with significant zones of enrichment in middle and heavy rare earths."
Commerce recently commenced a winter drilling program that will include a minimum of six drill holes totalling 3,000 metres. All holes will be drilled from ice on an approximately 200 metre spaced grid. Since the majority of the 2010 drillholes at the Ashram Zone bottomed in mineralisation, the Company is using a drill rig capable of attaining depths in excess of 600 metres to potentially penetrate the full vertical extent of the mineralized system. The drill program commenced today, March 2nd, and will continue as long as weather permits.
Ashram Mineral Resource Estimate Details
The mineral resources were estimated using analytical results from 12 diamond drill holes totalling 5,390 metres completed by Commerce at the Ashram Zone in 2010. The mineral resource estimate has been completed using a three-dimensional wireframe modelling followed by block model interpolation methodology. The wireframe model was interpreted by Commerce under the supervision of SGS Geostat.
The block model was defined by block size 10 metres long by 10 metres wide by 10 metres thick and covers 650 metres in the east-west direction and 450 metres in the north-south direction to a maximal depth of 430 metres below surface. The interpolation process was conducted using ordinary kriging using assay composites of three metres in length. The mineral resources were estimated using the software SectCad version 5.5.18. No capping was applied to the assays. Results are presented undiluted and in situ. A bulk density of 3 tonnes per cubic metre was used to calculate tonnages from the volumetric estimates of the mineral resources block model. The bulk density used is an average of 449 specific gravity measurements taken from core samples.
SGS Geostat determined the base case cut-off grade using a conceptual economic model based on a 7,500-tonne-per-day, 25-years life-of-mine open pit mining scenario with a concentration plant on site and a hydrometallurgical plant located in Kuujjuaq to produce high purity rare earth oxides.
NI 43-101 Disclosure
Jody Dahrouge, P.Geo., Vice-President Exploration of Commerce Resources Corp., a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
André Laferrière, M.Sc. P.Geo., from SGS Canada Inc. - Geostat, an independent qualified person as defined by National Instrument 43-101, is responsible for the mineral resource estimate for the Ashram Zone and has verified the data disclosed in this release.
The Technical Report, compliant with National Instrument 43-101 standards, describing the mineral resource estimation and providing details of the 2010 drilling and sampling will be filed on SEDAR (www.sedar.com) within 45 days.
About Commerce Resources Corp.
Commerce Resources Corp. is an exploration and development company with a particular focus on tantalum, niobium and rare earth element deposits with a potential for economic grades and large tonnages. The Company is developing its Upper Fir Tantalum and Niobium Deposit in British Columbia and is also exploring its Eldor Rare Earth Project in northern Quebec and the Carbo Rare Earth Project in northern British Columbia.
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.
Forward Looking Statements
This news release may contain forward-looking information and 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 information is based on the opinions and estimates of management and its consultants at the date the information is given. It is 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. Information is based on reasonable assumptions which include but are not limited to the timing and content of the resource estimate on the Eldor Property, upcoming work programs as well as geological interpretations of the Eldor Property. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
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.