April 14, 2022 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H0, OTCQX: CMRZF) (the “Company” or “Commerce”) is pleased to announce a new metallurgical collaboration with CanmetMINING focused on beneficiation testwork for the Ashram Rare Earth and Fluorspar Deposit. The primary focus for the test program will be to optimize and enhance the development of the Ashram Project’s base flowsheet, which is currently in the final stages of Prefeasibility design at Hazen Research in Golden, Colorado.
Federal R&D assistance is provided through a collaboration agreement with CanmetMINING, under their Critical Minerals Research, Development and Demonstration program. This program targets research and development for upstream critical minerals processing, and aims to stimulate the development of battery and permanent magnet value chains in Canada.
The test work is anticipated to include comparative grinding testing, flotation (dosage optimization, reagent conditioning, varying equipment technologies), magnetic separation, ore sorting, and dense medium separation (DMS). CanmetMINING scientists are working closely with the Company and Ashram’s Qualified Person for mineral processing to design a comprehensive and optimal testing approach that builds on previous work that has produced high-grade rare earth mineral concentrates comparable to major global producers. The overarching objective of the funding and collaboration is to facilitate and support advancement of the Ashram Project towards production in a complementary manner to the Company’s ongoing efforts.
In January 2022, a total of 1.9 tonnes of mineralized Ashram Deposit bulk sample material was shipped to SGS Canada’s Lakefield facility in Ontario for crushing and sizing ahead of test work. The material preparation has now been completed and the initial test programs at CanmetMINING have begun.
CanmetMINING, a science and technology branch of the Lands and Metals sector of Natural Resources Canada, is a world-class leader in the development and deployment of green mining innovation technologies. Much of its research is undertaken in partnership with industry, provincial governments, other federal departments, universities and international agencies.
CanmetMINING’s $47.7M Critical Minerals RD&D Program was funded through the Federal Budget 2021 to develop domestic critical raw materials value chains, and position Canada as a global supplier of choice for critical mineral products. R&D is focused on 3 key priority research areas: battery minerals, the Mining Value from Waste Program (MVfW), and rare earth elements and other critical minerals. This collaboration with Commerce under the REE and other critical minerals area seeks to advance the production of permanent magnet raw materials in Canada.
About the Ashram Deposit
The Ashram Deposit ranks as one of the largest REE (and fluorspar) deposits globally, consisting of a monazite dominated, single mineralized body outcropping at surface, and has a footprint approximately 600 m along strike, over 300 m across, and 600 m deep, remaining open in several directions. 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 5th, 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.
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 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 the overall objectives of the collaboration arrangement with CanmetMINING to advance the Ashram Project, the anticipated test work to be conducted on the Ashram Project pursuant to the arrangement and the Company is positioning to become one of the lowest cost rare earth producers globally and that the Ashram deposit has the potential to be a long-term supplier to the met-spar and acid-spar markets. 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 CanmetMINING’s conclusions after undertaking the test work may not prove to be correct; there may be delays in commencing plant operations; changing costs for mining and processing; increased capital costs; the timing and content of upcoming work programs to advance the project; 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 it tests are successful, the economic and other outcomes may not be as expected; 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 a 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.