Commerce Resources Drills 392.8 m at 2.12% REO (21.6% NdPr) at the Ashram Deposit, Quebec, and Issues Options
Commerce Resources Drills 392.8 m at 2.12% REO (21.6% NdPr) at the
Ashram Deposit, Quebec, and Issues Options
February 21, 2023 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H0, OTCQX: CMRZF)
(the “Company” or “Commerce”) is pleased to announce assay results for the twelve (12)
holes completed at the Ashram Rare Earth and Fluorspar Deposit (“Ashram Deposit”) as part
of its 2022 drill program . The Ashram Deposit is one of the largest rare ear th element
(“REE”) deposits in the world, and monazite is its primary rare earth mineral resulting in a
strong NdPr oxide distribution (% of Nd+Pr oxide of the total REO).
Drill hole intersection highlights from the 2022 program include:
• 392.8 m at 2.12% rare earth oxide (“REO”) (21.6% NdPr) (starting from surface)
including,
o 34.5 m at 2.50% REO (20.2% NdPr) (EC22-197)
• 379.1 m at 2.04% REO (21.4% NdPr) (starting from surface) (EC22-199)
• 406.4 m at 1.99% REO (21.3% NdPr) (starting from surface) including,
o 36.0 m at 1.56% REO (24.0% NdPr) (EC22-198A)
• 278.2 m at 1.80% REO (22.2% NdPr), (starting from surface) including,
o 13.8 m at 1.54% REO (26.9% NdPr) and 11.1 m at 1.40% REO (33.3%
NdPr) (EC22-200)
The July through September 2022 program included twelve (12) drill holes totaling
2,778.6 m at the Ashram Deposit – EC22-194 to 200, and 204 to 20 7. The program was
completed in support of the Ashram Project’s advancing Prefeasibility Study (“PFS”), with
the primary objective of resource/pit infill to improve resource confidence from the
inferred/indicated categories to the indicated/measured categories within the planned
open-pit shell (focus of six holes – EC22-196, 197, 198, 198A, 199, and 200).
These resource/pit infill holes returned grades of REO and NdPr distributions consistent
with previous drilling, starting from surface and remaining mineralized over their entire
length (i.e., ended in mineralization a short distance past the base of the pit shell). Highlights
include 392.8 m at 2.12% REO (21.6% NdPr) (EC22-197), 379.1 m at 2.04% REO (21.4%
NdPr) (EC22-199), and 406.4 m at 1.99% REO (21.3% NdPr) (EC22-198A). Additionally,
several wide intervals with ≥24% NdPr distribution were returned including 36.0 m at
1.56% REO (24.0% NdPr) (EC22-198A), 32.6 m at 1.34% REO (25.8% NdPr) (EC22-196),
as well as 13.8 m at 1.54% REO ( 26.9% NdPr) and 11.1 m at 1.40% REO ( 33.3% NdPr)
(EC22-200) (Figure 1).
The 2022 drill hole plan was developed to target a revised pit shell which could
accommodate a production scenario approximately 50% larger than that which was
considered in the Project’s 2012 Preliminary Economic Assessment. This larger pit shell is
anticipated to underpin an initial mineral reserve estimate upon completion of the
Prefeasibility Study for the Project. All six (6) infill drill holes were collared along the
perimeter of the deposit pit shell design and targeted specific regions of the pit at depth.
Secondary objectives included improving the confidence of the geological model at the
southern end of the deposit where mineralization remains open (EC22-194, 195, 204, 205,
206, and 207). These holes were successful at confirming several primary geological contacts
as well as return ing several moderate to well -mineralized intervals including 180.1 m at
1.59% REO (21.5% NdPr) (EC22-207) and 25.5 m at 1.82% REO (20.8% NdPr) (EC22-194).
As announced September 8 th, 2022, in this area, drill hole EC22-195 extended the Ashram
Deposit southerly by approximately 100 m with a wide intersection of lower -grade A-Zone
(79.4 m at 1.47% REO (22.6% NdPr) ). Geochemical analysis of logged A -Zone in drill hole
205 have now extended mineralization an additional ~90 m southerly with intersections of
relatively small intervals of lower-grade A-Zone including 6.9 m at 1.01% REO (23.0% NdPr)
(EC22-205). These REO grades and intersections are lower than that of the main deposit and,
coupled with adjacent lithologies, indicate the southerly contact of the Ashram Deposit is
proximal.
The Ashram Deposit ranks as one of the largest REE (and fluorspar) deposits glob ally,
consisting of a monazite dominated (i.e., strong NdPr), single mineralized body outcropping
at surface, and through the 2022 have drill delineated footprint of over 700 m along strike,
300 m across, and 600 m deep, and remains open at depth.
Core sample assay results for all twelve (12) drill holes completed in 2022 at the Ashram
Deposit are presented in Table 1, and drill hole highlights and locations presented in
Figure 1.
Table 1: Core assay result summary for drill holes completed at the Ashram Deposit in 2022
Hole ID From
(m)
To
(m)
Interval
(m)
REO
(%)
NdPr
Distribition
(%)
CaF2
(%) Purpose Azimuth
(°) Dip (°) End of
Hole (m)
EC22-194 2.0 81.4 79.4 1.47 22.6 6.6 230 -45 255.0
Incl. 37.5 63.0 25.5 1.82 20.8 7.7
EC22-195 2.8 61.5 58.7 0.83 23.2 3.3 Geological Model 230 -45 110.0
EC22-196 3.1 236.0 232.9 1.73 22.3 7.0 - -90 236.0
Incl. 31.5 64.0 32.6 1.34 25.8 6.2
Incl. 67.0 105.5 38.5 2.08 20.3 7.2
EC22-197 2.2 395.0 392.8 2.12 21.6 5.7 90 -45 395.0
Incl. 346.5 381.0 34.5 2.50 20.2 1.5
EC22-198 2.4 50.0 47.6 2.00 20.1 4.0 Resource/Pit-infill 90 -53 50.0
EC22-198A 3.6 410.0 406.4 1.99 21.3 4.7 90 -53 410.0
Incl. 186.0 222.0 36.0 1.56 24.0 5.8
Incl. 389.0 410.0 21.0 2.83 18.7 1.4
EC22-199 3.5 382.6 379.1 2.04 21.4 5.1 90 -54 382.6
242.5 257.5 15.0 1.50 24.1 3.4
EC22-200 2.8 281.0 278.2 1.80 22.2 7.9 124 -45 281.0
Incl. 43.8 57.5 13.8 1.54 26.9 7.7
Incl. 139.0 165.5 26.5 2.04 18.8 14.6
Incl. 254.0 265.0 11.1 1.40 33.3 5.9
EC22-204 2.1 110.0 107.9 0.74 24.0 2.3 230 -45 110.0
Incl. 43.5 49.0 5.5 1.33 22.6 4.4
EC22-205 1.4 95.0 93.6 0.64 23.4 2.2 - -90 95.0
50.8 57.6 6.9 1.01 23.0 3.7
EC22-206 2.1 152.0 149.9 1.16 22.9 6.0 230 -45 152.0
Incl. 66.5 133.5 67.0 1.56 21.2 10.6
EC22-207 1.3 302.0 300.7 1.33 22.7 6.2 - -90 302.0
73.8 253.9 180.1 1.59 21.5 8.7
Incl. 182.0 206.5 24.5 1.87 21.2 7.8
(1) All intervals are NQ size and core length. True widths vary between each hole due to varied hole orientations and locations
(2) REO is sum of lanthanides (as oxides) + yttrium oxide
(3) NdPr distribution calculated as (Nd2O3 + Pr2O3) / REO x 100
(4) CaF2 calculated from fluorine assay using factor of 2.055 (F to CaF2). Assumes all fluorine is contained within the mineral fluorite
Geological Model
Geological Model
Geological Model
Resource/Pit-infill
Geological Model
Resource/Pit-infill
Resource/Pit-infill
Resource/Pit-infill
Resource/Pit-infill
Geological Model
Figure 1: 2022 drill assay highlights – Ashram Deposit
Quality Assurance / Quality Control (QAQC)
A quality assurance / quality control protocol following industry best practices was
incorporated into the program and included systematic insertion of quartz blanks and
certified reference materials into sample batches, as well as collection of quarter -core
duplicates, at a rate of approximately 5%. Drill holes were sampled from top to bottom and
shipped to Activation Laboratories in Ancaster, ON, for analysis.
Lab analysis included major oxides and multi-element, including the rare earth elements, by
ICP-OES/MS following a lithium borate fusion (package 8 -REE) and fluorine by Fusion
Specific Ion Electrode -ISE (Code 4F -F). Standard drill core sample preparation was
completed and comprised of crushing to 80% passing 10 mesh, followed by a 250 g riffle
split and pulverizing to 95% passing 105 µ (package RX1).
Option Issuance
The Company also announces that it has granted an aggregate of 4, 600,000 stock options
(each, an “Option”) to certain directors, officers, employees, and consultants of the Company
for the purchase of up to 4, 600,000 common shares of the Company pursuant to its Stock
Option Plan. Each Option is exercisable for a period of two (2) years at a price of $0. 185 per
common share. Of these Options, 400,000 ar e being granted to persons providing investor
relations services to the Company and, pursuant to the policies of the TSX Venture Exchange,
must vest over 12 months from the issuance date, with 25% vesting in each three (3) month
period after the grant of the Options.
About the Ashram Deposit
The Ashram Deposit ranks as one of the largest REE (and fluorspar) deposits globally,
consisting of a monazite dominated (i.e., strong NdPr), single mineralized body outcropping
at surface, and has a drill delineated footprint of over 700 m along strike, 300 m across, and
600 m deep, and remains open at depth. The deposit hosts a measured resource of 1.6 million
tonnes (Mt) at 1.77% rare earth oxide (REO) and 3.8% F, an indicated resource of 27.7 Mt at
1.90% REO and 2.9% F, and an inferred resource of 219.8 Mt at 1.88% REO and 2.2% F, at a
cut-off grade of 1.25% REO (Effective Date July 5 th, 2012). Note, mineral resources are not
mineral reserves as they do not have demonstrated economic viability. There is no certainty
that all or any part of the Mineral Resources will be converted into Mineral Reserves.
NI 43-101 Disclosure
Darren L. Smith, M.Sc., P.Geo., Dahrouge Geological Consulting Ltd., a Permit holder with the
Ordre des Géologues du Québec and ‘Qualified Person’ as defined in National Instrument 43-
101 – Standards of Disclosure for Mineral Projects, supervised the preparation of the technical
information in this news release.
About Commerce Resources Corp.
Commerce Resources Corp. is a junior mineral resource company focused on the
development of the Ashram Rare Earth and Fluorspar Deposit located in Quebec, Canada.
The Company is positioning to be one of the lowest cost rare earth producers globally, with
a specific focus on being a long -term supplier of mixed rare earth carbonate and/or NdPr
oxide to the global market. The Ashram Deposit is characterized by simple rare earth
(monazite, bastnaesite, xenotime) and gangue (carbonates) mineralogy, a large tonnage
resource at favourable grade, and has demonstrated the production of high -grade (>45%
REO) mineral concentrates at high recovery (>70%) in line with active global producers. In
addition to being one of the largest rare earth deposits globally, Ashram is also one of the
largest fluorspar deposits globally and has the potential to be a long -term supplier to the
met-spar and acid-spar markets.
For more information, pl ease visit the corporate website at www.commerceresources.com
or email [email protected].
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
“Chris Grove”
Chris Grove
President and Director
Tel: 604.484.2700
Email: [email protected]
Web: http://www.commerceresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in 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 statements, which includes any information about activities, events or
developments that the Company believes, expects or anticipates will or may occur in the future. Forward looking
statements in this news release include that we expect to complete a prefeasibility study for the Ashram Project, that
an open -pit shell is planned for the Ashram Project; that the Ashram Deposit has the potential to be a long -term
supplier to the met-spar and acid-spar markets; and that the Company is positioning to be one of the lowest cost rare
earth producers globally. 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: that we may not be
able to fully finance any additional exploration on the Ashram Project; that even if we are able raise capital, costs for
exploration activities may increase such that we may not have sufficient funds to pay for such exploration or
processing activities; the timing and content of any future work programs; geological interpretations based on drilling
that may change with more detailed information; potential process methods and mineral recoveries assumptions based
on limited test work and by comparison to what are considered analogous deposits that, with further test work, may
not be comparable; testing of our process may not prove successful and even if such tests are successful, the economic
and other outcomes may not be as expected; the availability of labour and equipment to undertake futur e exploration
work and testing activities; the required permits to build and operate the envisaged open-pit shell may not be obtained
in a timely or cost -effective manner, or at all; and despite the current expected viability of the Ashram Project,
conditions changing such that even if metals or minerals are discovered on the Ashram Project, the project may not
be commercially viable; The forward-looking statements contained in this news release are made as of the date hereof
and the Company assumes no res ponsibility to update or revise such information to reflect new events or
circumstances, except as required by law.