August 12, 2022 – Commerce Resources Corp. (TSXv: CCE, FSE: D7H0, OTCQX: CMRZF) (the “Company” or “Commerce”) is pleased to provide an update on its ongoing 2022 drill program at the Company’s wholly owned Ashram Rare Earth and Fluorspar Deposit, located in Nunavik, Quebec.
The Company has recently completed its fourth drill hole at the Ashram Rare Earth and Fluorspar Deposit, with a total of approximately 1,003 m completed to date (Figure 1). The first two drill holes (EC22-194 and 195) were completed as step-outs at the southern end of the deposit in order to improve the confidence of the geological model in this area. The Company is pleased to report that both holes collared in rare earth mineralized fluorite dolomite carbonatite, as determined by geological core logging, and therefore, has extended the mineralized footprint at Ashram an additional ~100 m to the southeast. Based on the geological core logging of these two drill holes, the Ashram Deposit has a mineralized surface footprint that now extends at least 700 m along strike (remains open), 300 m in width, and 600 m to depth (remains open). This further solidifies the monazite dominant Ashram Deposit as one of the largest rare earth element deposit’s globally. Core samples are currently being collected and will be shipped shortly to Activation Laboratories in Ancaster, ON, for geochemical analysis.
Apart from one additional drill hole planned at the south end of the deposit to further improve confidence in the geological model, the remainder of the drill holes (~3-4 holes totalling ~1,100 m) will be focused on infill drilling with the objective of increasing resource confidence from the inferred/indicated categories to the indicated/measured categories in areas where the neodymium-praseodymium (“NdPr”) contents are highest. Depending on the location within the deposit, the NdPr distribution – i.e. % of Nd+Pr oxide of the total rare earth oxide (“REO”) – typically varies from 21-24+% with monazite being the dominant carrier of the rare earth elements (“REEs”).
The drill hole plan has been developed by the Company’s primary Prefeasibility Study consultant (BBA Inc.) and is targeting infill of a larger pit shell (~+50%) compared to what 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.
The program is being managed by Dahrouge Geological Consulting Ltd. of Edmonton, AB, (head office) with drilling operations being carried out by Forage Fusion Drilling Ltd. of Hawkesbury, ON. The Company notes that it will carry-out its field programs while adhering to all federal, provincial, and regional restrictions in place due to the COVID-19 pandemic. Mineral exploration has been recognized as an essential service in Canada and the Province of Quebec.
Figure 1: 2022 drill plan and holes completed to date at the Ashram Deposit
Photo 1: Drill hole EC22-195, the southernmost hole completed to date at the Ashram Deposit.
Figure 2: Cross-section (left) and oblique view (right) of the Ashram Rare Earth and Fluorspar Deposit’s principal mineralized zones. To be updated following completion of the 2022 drill program.
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 700 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 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 we plan to drill additional holes on the property with specific objectives; that we expect to complete a larger pit shell on the property upon completion of our prefeasibility study that is in progress; that Ashram has the potential to become one of the largest fluorspar deposit and 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 element 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 events, activities or developments 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 or samples derived from the Ashram Project may not yield positive results, and even if such tests are successful or initial sample results are positive, the economic and other outcomes may not be as expected; the availability of labour and equipment to undertake future exploration work and testing activities; geopolitical risks which may result in market and economic instability; 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 responsibility to update or revise such information to reflect new events or circumstances, except as required by law.