October 27, 2021 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H0, OTCQX: CMRZF) (the “Company” or “Commerce”) is pleased to provide an update on the progress of the Prefeasibility Study (PFS) for the Ashram Rare Earth and Fluorspar Deposit.
A gap analysis of the entire Ashram Project, from deposit to marketable product, has recently been completed by BBA Inc. The purpose of this analysis is to identify any remaining elements of the Project that require further data collection, review, and study, to ensure they are captured as needed to satisfy the Project’s Qualified Persons and Prefeasibility Study requirements.
A site trade-off on the tailings management facility at the mine-site has also been completed. Several potential locations have been identified within 10 km of the process plant and include both dry-stack and conventional tailings options. Filtration test work on the tailing will be completed as part of the metallurgical program currently underway at Hazen Research, CO, USA, where the final design criteria of the mineral processing flowsheet is being captured (see news release dated September 28, 2021). This filtration data will allow for a final determination of the optimal location and design of the tailing management facility at the mine-site. The Company further notes that past test work on the mine-site process tailings have concluded that they are not acid generating and are not considered hazardous or radioactive (see news release dated May 14, 2020).
Additional studies underway include concentrate transport and mine-site power generation trade-offs. The power generation trade-off study will evaluate various co-generation scenarios including wind as an offset to baseload diesel power, as well as utilization of the heat generated during operation to heat local buildings. The study will also include a comparative analysis of the greenhouse gas (GHG) emissions. At Glencore’s Raglan Mine, located in Nunavik approximately 600 km north-northwest of the Ashram Deposit, energy production includes two operating 3MW wind turbines and associated energy storage technologies. The success of wind power at Raglan, as an offset to baseload diesel power, demonstrates the viability of operating wind turbines in a northern climate and significantly de-risks such power options to other mines in the region.
The power generation trade-off will be followed by a mine-fleet trade-off of electric vs diesel. This trade-off will evaluate capital and operating costs as well as fleet productivity, manpower, and GHG emissions.
A review of the potential sites for the hydromet plant, to be located along the St. Lawrence Seaway, is currently being completed by BBA Inc. and is building upon prior trade-off studies completed by Norda Stelo (formerly Roche). A strong focus is being placed on process residue management, including transport, handling, and storage, to position the Project’s operation for the long-term.
To date, the Prefeasibility work completed for the Ashram Project has led to significant advancements compared to the Preliminary Economic Assessment – shorter haul road, higher mineral concentrate grades (>40% rare earth oxide), fluorspar concentrate recovery, reduced tailings footprint, etc. As the Project continues to be de-risked and optimized, 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.
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 that filtration testing will be done and that filtration data will allow for a final determination of the optimal location and design of the tailing management facility at the mine-site; that a power generation trade-off study and mine fleet study will be completed and achieve their stated goals; and that 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. 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 our contracted engineering firms may not be able to provide engineering solutions which are effective or can be implemented economically; 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.