October 20, 2021 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H0, OTCQX: CMRZF) (the “Company” or “Commerce”) is pleased to announce that it has completed its 2021 field campaign, which has focused on the remaining field components required to support the ongoing Prefeasibility Study (PFS) on the Ashram Rare Earth and Fluorspar Deposit, located in northern Quebec.
In addition to the diamond drill program of 2,814 metres over 12 holes recently completed (see news release dated August 25, 2021), the Company has also successfully completed the anticipated remaining field data collection for the PFS as well the remaining Qualified Person (QP) site visits. Collectively, this field data and QP assessments will feed into the Project’s final desktop evaluation and design.
Highlights of the field work include:
- Download of various lake, drill hole, and on-site weather station data loggers
- Hydrology Study over the proposed mine-site infrastructure layout
- Expanded bathymetry survey over Centre Pond
- Site characterization of the short-listed tailings facility sites, ahead of final selection
- Site visits of Qualified Persons (QPs) for the Ashram Project’s PFS
- Drone and bathymetry survey over the proposed marine facility site
Company president Chris Grove commented: “The 2021 summer/fall field season for the Ashram REE/ Fluorspar Deposit has been very busy, with several key components of the PFS completed following the drill program. Our objective is to release a robust and comprehensive PFS, without shortcuts and without unnecessary assumptions, in order to position the Ashram for long-term success.”
During September-October, the Company completed various field surveys, by third party service providers, to evaluate potential tailings management facility sites and collect data to confirm construction design criteria for site infrastructure in support of mine development design for the PFS. This included site visits by the lead QPs for tailings management, geology-resource, and mineral processing, which were completed from Sept 19th to 21st, 2021. In addition, high-resolution drone surveying (photogrammetry), as well as bathymetric surveying, was completed at the proposed marine facility site. This data will allow for a design scenario to be drafted for the site, and feed into the overall base case for the Ashram Project’s PFS development scenario.
The core samples from the 2021 drill program have all arrived at Activation Laboratories’ facility in Ancaster, ON, for geochemical analysis. Current industry turn-around time for sample geochemistry is six to eight weeks. In addition, the Company continues to advance its flowsheet development at Hazen Research, CO, with a focus on confirming design criteria (see news release dated September 28, 2021), as well as other desktop components of the PFS being advanced by third party consultants (BBA Engineering, CIMA+, etc).
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 350 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 by 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 our plans to become a low cost long term supplier of mixed rare earth carbonate and/or NdPr oxide. 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 the methods proposed don’t work as well as expected, the drilling may not go as planned or start when expected, we may experience difficulties in drilling and carrying out environmental work; 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; 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 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.