Commerce Resources Corp. Completes 2017 Field Program at the Ashram Rare Earth Deposit
Commerce Resources Corp. Completes 2017 Field Program at the Ashram
Rare Earth Deposit
October 11, 2017 - Commerce Resources Corp. (TSXv: CCE, FSE: D7H) (the “Company” or
“Commerce”) is pleased to announce that it has successfully completed the 2017 field program
at its 100% owned Ashram Rare Earth Deposit, in northern Quebec. The work focused on
programs that are in support of the ongoing Pre-feasibility Study (PFS) as well as additional
prospecting near the Miranna Target, considered prospective for niobium, tantalum, and
phosphate mineralization.
The field program began September 10th and ran for approximately three weeks.
Highlights include:
Collection of 1,256 core samples from drill holes completed at Ashram during the 2016
field campaign
Collection of nine (9) composite core samples for comminution testing
Data downloads and maintenance of various instrument loggers throughout the Ashram
Project area
Collection of 36 prospecting rock samples focused on further refining the Miranna Target
ahead of drill testing
During the 2016 field campaign, a total of 14 drill holes for approximately 2,014 m were
completed as part of the remaining resource definition drilling, focused along the northern,
western, and southern margins of the Ashram Deposit. Over the course of the 2017 field
program, 1,256 samples were collected from this core and are currently en route to Activation
Laboratories in Ancaster, ON for analysis.
The comminution samples are comprised of drill core composites collected from various depths
and rock domains throughout the deposit, so to best represent the rock geomechanical variability
of Ashram. These samples will undergo various geomechanical tests that will feed into the
design of the process plant. Initial comminution testing indicates that the Ashram material is
relatively soft, which directly corelates to lower energy consumptions during the crushing and
grinding process, where often the bulk of a mining operations energy is consumed.
The 2017 program also included minor instrument maintenance and installation, and data
downloads from the on-site weather station, as well as the lake and downhole data loggers
installed throughout the Ashram Deposit. The data will form an integral component in the
development of the hydrogeological model for the Project.
Miranna Target
In addition to the work in support of the Ashram PFS, a total of 36 samples were collected
during the program, with a strong focus on the Miranna Target. Field observations indicate that
significant niobium-tantalum mineralization continues to be discovered on surface, with two
distinct and overlapping mineralized boulder trains identified that appear to terminate in the
same area. This potentially indicates proximal or interfingering of sources and increases the
potential of the target.
The Miranna Area boast grades of up to 5.9% Nb2O5 and 1,220 ppm Ta2O5 in boulders (see
news release dated September 13, 2016) with ground work having identified several high priority
targets for drill testing. The 2017 samples are en route to Activation Laboratories in Ancaster,
ON for analysis.
The Miranna Area is located approximately 1 km east of the Ashram Rare Earth Deposit, which
suggests there could be significant potential for development synergies in the event a deposit of
merit is defined at Miranna.
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 Nunavik, 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.
Mineral resources are not mineral reserves as they do not have demonstrated economic viability.
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 by SGS-Geostat of Montreal
(Blainville) with an effective date of July 5, 2012 (revised date of January 7, 2015). 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.
This economic assessment is by definition preliminary in nature and it includes inferred mineral
resources that are considered too speculative to have the economic considerations applied to
them that would enable them to be categorized as mineral reserves. There is no certainty that the
PEA will be realized. 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.
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 [email protected].
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 that our Miranna Target, is prospective for
niobium, tantalum, and phosphate mineralization; that samples will undergo various geomechanical tests that will
feed into the design of the process plant; that data indicates proximal or interfingering of sources and increases the
potential of the target; that there could be significant potential for development synergies in the event a deposit of
merit is defined at Miranna; our prospecting and drill programs’ timing, focus and expected results. 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 drilling 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.