News Release: Commerce Resources Announces 2013 Summer Drill Program at the Ashram Rare Earth Element Deposit
Commerce Resources Corp. Announces 2013 Summer Drill Program at theAshram Rare Earth Element Deposit, Northern QuebecJune 19, 2013 - Commerce Resources Corp. (TSXv: CCE, FSE: D7H, OTCQX: CMRZF) (the“Company” or “Commerce”) is pleased to provide an overview of the pending 2013 fieldprogram at its 100% owned Ashram Rare Earth Element (REE) Deposit located in NorthernQuebec.A six to eight week field program is anticipated to commence July 15, 2013, which will include1,000 to 1,500 m of drilling targeted at the Ashram Rare Earth Deposit. Drilling will focus oninfill holes in order to increase the resource confidence from the current inferred category to theindicated and/or measured categories. The Deposit has currently a measured and indicatedresource of 29.3 million tonnes at 1.90% TREO and an inferred resource of 219.8 million tonnesat 1.88% TREO. (see news release dated May 24, 2012) An indicated or measured resourcecategory is required for all in-pit mineralized material in order to convert mineral resources toore reserves as required for the ongoing Pre-feasibility Study (PFS).Company President David Hodge states “We are fortunate to be in a position to move the projectforward at this stage with cash on hand given the current markets. There is solid room foroptimization in all facets of this project and we are very excited about the de-risking we havecompleted and continue to achieve during our Pre-feasibility work.”In Q3 2012 Roche Ltd. (Roche) was retained to complete the PFS for the Ashram Rare EarthDeposit. Since this time, Roche has made significant progress including the evaluation ofpotential docking facility locations, mine-site airstrip and facility locations, and road routeoptimization (mine-site to docking facility).Programmed work will include required environmental and geotechnical programs as well asreclamation of several historic trench sites. This work will complement the field programcompleted during February-March 2013 that included a small mammal survey as well asinstallation of a weather monitoring station.As part of the PFS, a total of nine potential airstrip sites are being evaluated, including fivelocated directly on the Eldor Property. The weather station installed in Q1 2013 will monitorseasonal local climate fluctuations and, together with other local and regional data, will supportthe selection of a preferred airstrip location. All prospective locations have been selected basedon an ability to incorporate changes to the principal orientation as the weather and other data willbe required for final site confirmation. The site selected will also be amenable to futureexpansion if required.
The road route from the mine-site to a northern docking facility has been significantly optimizedand improved from the initial route evaluated in the PEA. Although the length cannot befinalized until an exact docking facility location is confirmed, the length has been reducedconsiderably by 25 km (from 185 km to 160 km) when compared to the PEA. Further, the threecrossings noted in the PEA (40 m, 50 m, and 60 m) have also been significantly reduced in size(22 m, 28 m, and 42 m) due to the newly optimized route.Metallurgy continues to make significant advancements with mineral concentrate grades andrecoveries continuing to improve. Additional details of the physical upgrading andhydrometallurgical program will be presented shortly in a forthcoming news release.Darren L. Smith, M.Sc., P.Geol., Dahrouge Geological Consulting Ltd., a Qualified Person asdefined by National Instrument 43-101, supervised the preparation of the technical informationin this news release.About the Ashram Rare Earth Element DepositThe Ashram Rare Earth Element (REE) Deposit is a carbonatite within the Eldor Property,located in north-eastern Quebec. The Deposit has a measured and indicated resource of 29.3million tonnes at 1.90% TREO and an inferred resource of 219.8 million tonnes at 1.88% TREO.The deposit boasts a well-balanced distribution with enrichment in the light, middle and heavyrare earth elements including all five of the most critical elements (neodymium, europium,dysprosium, terbium, and yttrium).The REEs at Ashram occur in simple and well-understood mineralogy, being primarily in themineral monazite and to a lesser extent in bastnaesite and xenotime. These minerals dominate thecurrently known commercial extraction processes for rare earths.A Preliminary Economic Assessment, completed in May 2012 by SGS-Geostat of Montreal(Blainville) (see news release dated May 24, 2012), outlines robust economics for the AshramDeposit. The PEA is based on a 4,000 tonne per day open-pit operation with an initial 25-yearmine life (300 years at economic cut-off if open-pit + underground development), a pre-tax andpre-finance Net Present Value (NPV) of $2.32 billion at a 10% discount rate, a pre-tax/pre-finance Internal Rate of Return (IRR) of 44%, and a pre-tax/pre-finance payback period of 2.25years.The Company continues to advance the Ashram Deposit with the planned 2013 field programand with metallurgical programs at both UVR-FIA and Hazen Research.About Commerce Resources Corp.Commerce Resources Corp. is an exploration and development company with a particular focuson deposits of rare metals and rare earth elements. The Company is focused on the development
of its Upper Fir Tantalum and Niobium Deposit in British Columbia and the Ashram Rare EarthElement Deposit in Quebec.For more information please visit the corporate website at http://www.commerceresources.comor contact Investor Relations at 1.866.484.2700 or email@example.com.On Behalf of the Board of DirectorsCOMMERCE RESOURCES CORP.“David Hodge”David HodgePresident and DirectorTel: 604.484.2700Email: firstname.lastname@example.orgNeither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of theTSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Forward-Looking StatementsThis news release contains forward-looking information which is subject to a variety of risks and uncertainties andother factors that could cause actual events or results to differ from those projected in the forward-lookingstatements. Forward looking statements in this press release include that our results will be sufficient to support theinitiation of a pre-feasibility study; that we will be able to enhance even further the quality of the resource; and thatthe REEs at Ashram occur in simple and well-understood mineralogy. These forward-looking statements are basedon the opinions and estimates of management and its consultants at the date the information is disseminated. Theyare subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differmaterially from those projected in the forward-looking information. Risks that could change or prevent thesestatements from coming to fruition include changing costs for mining and processing and their impact on the cut offvalue established; increased capital costs; changing forecasts of mine production rates; the timing and content ofupcoming work programs; geological interpretations based on drilling that may change with more detailedinformation; potential process methods and mineral recoveries assumption based on limited test work and bycomparison to what are considered analogous deposits that with further test work may not be comparable; theavailability of labour, equipment and markets for the products produced; market pricing for the products produced;and despite the current expected viability of the project, conditions changing such that the minerals on our propertycannot 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 noresponsibility to update or revise such information to reflect new events or circumstances, except as required by law.