Commerce Resources Corp. Announces Positive Preliminary Economic Assessment for            Upper Fir Tantalum and Niobium ...
-2-an underground mine with process facility. Included also is an estimate of the direct cash costs toproduce tantalum con...
-3-            Summary of Estimated Capital Costs                                                         Total (x $CAD1,0...
-4-Resource EstimateThe resource comprises a series of sill-like carbonatite bodies with up to 91.2m in estimated cumulate...
-5-     Table 2:       Blue River Project Sensitivity of Estimated Mineral Resources to Tantalum Price:                   ...
-6-End Products and Base Case Metal PricingThe processes proposed for the Blue River Project will produce 99.9% pure tanta...
-7-NI 43-101 DisclosureThe following Qualified Persons for the report are AMEC employees, based out of Vancouver: AlbertCh...
-8-may change with more detailed information; potential process methods and mineral recoveriesassumption based on limited ...
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News Release: Positive Preliminary Economic Assessment for Upper Fir Tantalum and Niobium Deposit

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Commerce Resources Corp. (TSXv: CCE) announced the completion of a positive Preliminary Economic Assessment for the Upper Fir Tantalum-Niobium Deposit at Blue River British Columbia. The PEA was prepared by AMEC Americas Limited and indicates that the deposit can be developed economically as an underground mine and recommends future studies to support a pre-feasibility level assessment of the project.

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News Release: Positive Preliminary Economic Assessment for Upper Fir Tantalum and Niobium Deposit

  1. 1. Commerce Resources Corp. Announces Positive Preliminary Economic Assessment for Upper Fir Tantalum and Niobium Deposit, Blue River, B.C.Highlights  AMEC’s PEA Technical Report on the Blue River Tantalum-Niobium Project dated 29- September-2011 will be filed shortly for public disclosure (www.SEDAR.com).  Study results show a positive cash flow for a potential 7500 tonnes per day underground operation at the Upper Fir, with cash costs of $C24.91 per kilogram of tantalum metal (net of niobium metal credits) in a technical grade oxide product.  AMEC’s economic evaluation was based on the September 29, 2011 mineral resource base of 36.4 million tonnes of Indicated mineral resource containing 195 ppm (gpt) Ta2O5 and 1,700 ppm (gpt) Nb2O5 plus 6.4 million tonnes of Inferred mineral resource containing 199 ppm (gpt) Ta2O5 and 1890 ppm (gpt) Nb2O5.  The PEA identified opportunities for optimization in the geology and mining areas with the key risks for project development lying in the sensitivity of the project to fluctuations in commodity prices and the United States dollar to Canadian dollar exchange rates.  With the milestone of the PEA completed, AMEC has commenced work on an updated mineral resource estimate that will include the results of drilling completed to the end of 2010 and assays received as of September 29, 2011. This will be followed by a technical report that will incorporate drilling, assaying, geological mapping and other work completed on the Upper Fir to the end of Commerce’s 2010 field program. A subsequent update to this technical report is also planned that will include results of the 2011 drilling and metallurgical test programs.  Results of the PEA represent forward-looking information. The preliminary economic assessment is preliminary in nature and it includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources are not mineral reserves as they do not have demonstrated economic viability.November 3, 2011 - Commerce Resources Corp. (TSXv: CCE; FSE: D7H; OTCQX: CMRZF) ispleased to announce completion of a positive National Instrument 43-101 compliant PreliminaryEconomic Assessment (“PEA”) for the Upper Fir Tantalum-Niobium Deposit at Blue River, B.C. The PEA,prepared by independent consultants, AMEC Americas Limited (“AMEC”), indicates that the deposit canbe developed economically as an underground mine and recommends future studies to support a pre-feasibility level assessment of the project. The Blue River Project is located near the village of Blue River,which is approximately 250 km north of the city of Kamloops and approximately 90 km south of the townof Valemount.The PEA was prepared to define an overall proof of concept for further development of the Blue Riverproject. It includes geological and mineral resource modelling, preliminary mine planning, a description ofmetallurgical test work and process design, a summary of environmental baseline work to date, andestimates for capital and operating costs. As well it determines the economics to develop the project as
  2. 2. -2-an underground mine with process facility. Included also is an estimate of the direct cash costs toproduce tantalum contained in a technical grade oxide product. Readers are encouraged to review theentire PEA Technical Report which is available for viewing at http://www.sedar.com. A link will also beprovided on the Company web site at http://www.commerceresources.com.Key Findings of the PEA The Indicated mineral resources totaled 36.35 million tonnes containing 195 ppm Ta2O5 and 1,700 ppm Nb2O5 and Inferred mineral resources totaled 6.40 million tonnes containing 199 ppm Ta2O5 and 1,890 ppm Nb2O5 (see news release dated 02-February-2011). Underground mining at 7500 tpd using bulk mining with a variation of sublevel open stoping. Production estimated at 2.7M t/a of mineralized material, over 10 years. Mineral processing using a standard grind-flotation procedure to produce a concentrate of ferrocolumbite-pyrochlore. Metallurgical testing indicates that a mineral concentrate assaying about 30% combined Nb-Ta pentoxide with a Ta-Nb recovery of 65-70% is possible. Final products will be technical grade oxides of tantalum and niobium totaling 2,400 metric tonnes and 18,610 metric tonnes of the respective metals over the life of the mine. Total estimated capital cost to design and build is CAD$379M. Operating costs over the life of mine are estimated at CAD$38.44/t milled. Before tax, the net present value (NPV) for the project at an 8% discount rate is CAD$18.5M, with an IRR of 9.1% and a 6.3 year payback period applying a discounted cash flow valuation method. Cash costs of tantalum metal of CAD$24.91/kg contained in a technical grade oxide product (after credit for the niobium contribution).SUMMARY OF BEFORE TAX ECONOMIC MODELLING (Exchange rate: $1US=$C1.05) METALS PRICING NPV @8% (000’s) Ta price/kg1 Nb price/kg1 BASE CASE $CAD18,500 $US317 $US46 +10% Ta price (Base Case Nb) $CAD65,800 $US349 $US46 +20% Ta price (Base Case Nb) $CAD113,000 $US380 $US46 +30% Ta price (Base Case Nb) $CAD160,300 $US412 $US46 +10% Nb price (Base Case Ta) $CAD71,600 $US317 $US50.60 +20% Nb price (Base Case Ta) $CAD124,700 $US317 $US55.20 +30% Nb price (Base Case Ta) $CAD177,900 $US317 $US59.80 1. of metal in technical grade oxide product 2
  3. 3. -3- Summary of Estimated Capital Costs Total (x $CAD1,000) Capital expenditure Initial Capital Infrastructure 29,500 Process Initial Capital 116,200 Mining Initial Capital 89,400 Material Handling 8,000 Contingency 43,600 Indirect/Owner Costs 92,300 Total 379,000 Summary of Average LOM Total Cost per Tonne Production Costs (x $CAD1,000) Milled ($CAD/t) Mining 528,900 21.16 Process 338,500 13.54 Material Handling 18,500 0.74 G&A 75,000 3.00 Sub-total 960,900 38.44 Life of Mine Cash Cost Summary1 LOM Total Cost per Tonne Cost per Kg Ta PayableSummary of Cash Costs (CAD$ X Milled (CAD$/Kg) $1000) (CAD$/t)Cash costsMining 528,900 21.16 220.13Process 338,500 13.54 140.87G&A 75,000 3.00 31.21Material Handling 18,500 0.74 7.71Sub-total 960,900 38.44 399.92CreditsNb (901,100) (36.04) (375.01)Sub-total (901,100) (36.04) (375.01)Adjusted cash costsTotal 59,800 2.40 24.911. The revenue gained from niobium is significant and even slightly exceeds the tantalum portion of revenue. Market analystsgenerally agree that based on the existing demand and supply structure of tantalum markets prices for tantalum are likely toincrease strongly in the near term. For this reason, although tantalum and niobium values in the mineral resource estimate areapproximately equal at present pricing assumptions, AMEC elected to provide cash costs for tantalum net of niobium credits.PropertyThe Blue River Project property covers 105,373 hectares (1,000 km2). Power transmission lines, rail, andpaved and gravel roads are all adjacent to, or within the property boundaries. Transalta Corp.’s 18 MWBone Creek run-of-river hydroelectricity project near the project was commissioned in June 2011. 3
  4. 4. -4-Resource EstimateThe resource comprises a series of sill-like carbonatite bodies with up to 91.2m in estimated cumulatedtrue thickness. The composite body extends more than 1,450m in a north-south direction and as much as800m in an east-west direction. Tantalum and niobium are contained in the minerals ferrocolumbite andpyrochlore.The PEA conducted was based on a mineral resource estimate announced in February 2011 (“Blue RiverTa-Nb Project NI 43-101 Technical Report, Blue River, British Columbia” by AMEC with effective date 31-January-2011). AMEC used the drill results up to the end of 2009, which includes 183 drill holescomprising 37,446 metres of HQ drill core and 8,218 sawn core samples to develop the mineral resourceestimate. Most drill holes were at a nominal spacing of 50m with dips typically between -60 to sub-vertical.Results from the 54 holes drilled in 2010 were compared to the existing resource model and were foundto be reasonably consistent with the geology predicted by the model. As well, the 2011 preliminary drillresults were inspected at site on vertical cross-sections and were also found to be consistent with thepredicted geological model.The new effective date of the mineral resource estimate, based on the review of recent drill results, is now29 September 2011 (Table 1). There has been no change to the closure date of the database used in theestimate, which is confined to all drilling that was completed up to the end of December 2009. Table 1: Blue River Project Estimated Mineral Resources. Effective Date September 29, 2011. Tomasz Postolski, P.Eng, Qualified Person Confidence Tonnes Ta2O5 Nb2O5 ContainedTa2O5 ContainedNb2O5 Category [ppm] [ppm] [1000s of kg] [1000s of kg] Indicated 36,350,000 195 1,700 7,090 61,650 Inferred 6,400,000 199 1,890 1,300 12,1001. Assumptions include US$317/kg Ta, US$46/kg Nb, 65.4% Ta2O5 recovery, 68.2% Nb2O5 recovery, US$32/tonne mining cost, US$17/tonne process and refining cost. Mining losses = 0% and dilution = 0%.2. Mineral resources are amenable to underground mining methods and have been constrained using a “Stope Analyzer”.3. An economic cut-off was based on the Ta and Nb values per block which is variable based on the location of blocks used in the mineral resource estimate. A block unit value cut-off ranged from $52 to $59.4. Discrepancies in contained metal values are due to rounding.5. In situ contained oxide reported.The mineral resource estimate, on which the PEA is based, uses base case price assumptions ofUS$317/kg Ta, and $US46/kg Nb which reflect current market prices. These are higher than historicaverage prices, but reflect the general views of market analysts that current market conditions support theprobability of sustained higher prices. There is no assurance the higher prices will be realized over the lifeof the project.Table 2 below shows the sensitivity of the Blue River mineral resources to tantalum metal price. 4
  5. 5. -5- Table 2: Blue River Project Sensitivity of Estimated Mineral Resources to Tantalum Price: Effective Date September 29, 2011, Tomasz Postolski, P.Eng, Qualified Person. Base case is bolded. Ta price Confidence Tonnes Ta2O5 Nb2O5 ContainedTa2O5 ContainedNb2O5 [US$/kg] Category [ppm] [ppm] [1000s of kg] [1000s of kg] 470 Indicated 51,130,000 188 1,410 9,610 72,300 Inferred 8,100,000 192 1,700 1,600 13,800 381 Indicated 44,430,000 192 1,530 8,530 68,020 Inferred 7,300,000 196 1,780 1,400 13,000 317 Indicated 36,350,000 195 1,700 7,090 61,650 Inferred 6,400,000 199 1,890 1,300 12,100 272 Indicated 29,990,000 197 1,850 5,910 55,480 Inferred 5,500,000 201 2,010 1,100 11,100 238 Indicated 25,130,000 197 2,000 4,950 50,240 Inferred 4,900,000 202 2,110 1,000 10,4001. Ta price was varied and all other assumptions remain the same as base case.2. Base case is in bold.3. Mineral resources are amenable to underground mining methods and have been constrained using a “Stope Analyser”.4. Discrepancies in contained metal values are due to rounding.5. In situ contained oxide reported.Mining and Mineral ProcessingAMEC believes the preferred concept for mining the Blue River Deposit is by underground methods usingvariations of sublevel stoping under a conceptual scenario that considers mining and processing at a rateof 7,500 tonnes per day. The deposit will be accessed via two main portals located in places where thedeposit outcrops on the hillside at a distance of about 4km from the proposed plant site. Material to bemined by bulk mining methods represents 84% of the mineral resource. An additional 2% of waste wasidentified as internal dilution. Geotechnical studies indicate that an extraction ratio of 67.5% can beachieved, providing an overall mining recovery of 58%. Considering waste inside stopes and externaldilution the overall resource grades were diluted to 185 ppm Ta2O5 and 1,591ppm of Nb2O5 for the run ofmine estimates.Mining and economic parameters were adjusted based on AMEC’s experience with analogous depositsand mining methods. A mineral processing method using a standard-grind flotation process to make aconcentrate of ferro-columbite-pyrochlore is assumed for the Upper Fir material. The proposed process issimilar to that being used commercially at Iamgold’s Niobec Mine in Quebec. The concentrate would befurther processed to produce marketable separate oxides of tantalum and niobium. The proposedprocess methods are mature and already in use industrially. 5
  6. 6. -6-End Products and Base Case Metal PricingThe processes proposed for the Blue River Project will produce 99.9% pure tantalum and niobium oxides,generally known as technical grade oxide products. These products are generally sold under contract andthe prices are typically kept confidential between buyer and seller to preserve competitive advantages.TantalumTantalum is commonly quoted as two separate products:  Ta2O5 in tantalite concentrate: a non-refined, tantalum-bearing concentrate of variable composition and trace element content; and  tantalum metal scrap (99.9% pure Ta): this form of tantalum product receives a premium price in the market relative to tantalite concentrateOver the last six years, tantalite concentrate prices have ranged from US$75/kg contained Ta2O5 toUS$100/kg contained Ta2O5 (US$34/lb to US$45/lb). In the same period tantalum metal scrap pricesranged from US$110/kg Ta to US$180/kg Ta metal (US$50/lb to US$82/lb).In 2010, prices rose dramatically in response to numerous conditions including reduced production,increased concerns about “conflict minerals” specifically tantalum production in Africa, and depletion ofknown strategic stockpiles. In October 2010 the price for Ta2O5 in tantalite concentrate was US$195/kg(US$89/lb) and for tantalum metal scrap was US$280/kg (US$127/lb).The higher price for tantalum metal scrap compared to the price for Ta2O5 in concentrate is considered aproxy to the added value Commerce should recognize by refining the Blue River concentrate to highpurity Ta2O5.NiobiumNiobium generally trades as Nb metal or ferroalloy and the price has remained relatively constant atUS$44.08/kg (US$20/lb) Nb over the last several years. A base case price of US$46/kg Nb (US$21/lb)metal was assumed.PEA Price AssumptionsThe metal price assumptions used in the mining cut-off and financial analyses in the PEA are US$317/kgTa metal and US$46/kg Nb metal contained in oxide product.Comments of Commerce President“We are extremely pleased with the results of this study which represents a major milestone in theprogress to develop the Upper Fir. The AMEC PEA reported today is further confirmation of Commerce’sbelief that we are in the process of building a very important long-term source of conflict free and ethicaltantalum which could potentially supply 10% of the current world’s market for a near-ten year period.” saidDave Hodge, Commerce’s President. “Results remain pending for additional drilling completed in 2011,and we are eagerly awaiting the results of AMEC’s next resource update which will be based on drilling tothe end of the 2010 field season. All indications are that we will be able to enhance even further thequality of the resource.“Of necessity, the resource estimate upon which the PEA was completed was based on an assumed longterm pricing which may prove to be conservative. Recent developments in global tantalum and niobiummarkets provide indication of substantially higher prices than those used to define the resource on whichthe PEA is based. For example, information available through Asian Metals provides 30-September-2011pricing (CAD=.961492 US) for average grade Nb205 (99.5%) of $US61-66/kg, and for average gradeTa205 (99.95% min) of $US378-403/kg. Such prices may provide an opportunity for the ongoing resourceupdate to the end of 2010 to be based on higher, though still conservative, pricing. We believe there willbe significant near-term upside for investors who believe that projected trends for increased prices willcontinue”. 6
  7. 7. -7-NI 43-101 DisclosureThe following Qualified Persons for the report are AMEC employees, based out of Vancouver: AlbertChong, Principal Geologist, P.Geo; Tomasz Postolski, Senior Geostatistician, P.Eng; Ramon MendozaReyes, Principal Mining Engineer, P.Eng.; Tony Lipiec, Principal Metallurgical Engineer, P.Eng.,; and Mr.Behrang Omidvar; Financial Analyst, P.Eng. All of the Qualified Persons have read and approved thecontents of this news release.Mr. Jody Dahrouge, B.Sc., P.Geol., Commerce Resources Corporation, is a Qualified Person as definedby National Instrument 43-101, read and approved the disclosure of the technical information in this newsrelease with respect to the exploration. A Technical Report compliant with National Instrument 43-101standards summarizing the Preliminary Economic Assessment will be filed on SEDAR (www.sedar.com)within 45 days.About Commerce Resources Corp.Commerce Resources Corp. is an exploration and development company with a particular focus ontantalum, niobium and rare metal deposits with potential for economic grades and large tonnages. TheCompany is specifically focused on the development of its Upper Fir Tantalum and Niobium Deposit inBritish Columbia and is also exploring its Eldor Rare Earth Element Project in northern Quebec.For more information please visit the corporate website at http://www.commerceresources.com or contactInvestor Relations at 1.866.484.2700 or info@commerceresources.com.On Behalf of the Board of DirectorsCOMMERCE RESOURCES CORP.David HodgePresident and DirectorTel: 604 484 2700TF: 866.484.2700Email: info@commerceresources.comWeb: http://www.commerceresources.comForward-Looking StatementsThis news release contains forward-looking information which are subject to a variety of risksand uncertainties and other factors that could cause actual events or results to differ from thoseprojected in the forward-looking statements. Forward looking statements in this press releaseinclude that we will have positive cash flow for a potential 7500 tonnes per day undergroundoperation at the Upper Fir property with cash costs of $C24.91 per kilogram of tantalum metal;that we will have opportunities for optimization in the geology and mining areas; that ourproperty has indicated mineral resources totaling 36.35 million tonnes containing 195 ppmTa2O5 and 1,700 ppm Nb2O5 and inferred mineral resources totaling 6.40 million tonnescontaining 199 ppm Ta2O5 and 1,890 ppm Nb2O5; that total estimated capital cost to design andbuild a mine is CAD$379M; that operating costs over the life of mine are estimated atCAD$38.44/t milled; and the projected method of mining and its results. These forward-lookingstatements are based on the opinions and estimates of management and its consultants at thedate the information is disseminated. It is subject to a variety of risks and uncertainties andother factors that could cause actual events or results to differ materially from those projected inthe forward-looking information. Risks that could change or prevent these statements fromcoming to fruition include changing costs for mining and processing and their impact on the cutoff grade established; increased capital costs; changing forecasts of mine production rates; thetiming and content of upcoming work programs; geological interpretations based on drilling that 7
  8. 8. -8-may change with more detailed information; potential process methods and mineral recoveriesassumption based on limited test work and by comparison to what are considered analogdeposits that with further test work may not be comparable; the availability of labour, equipmentand markets for the products produced; market pricing for the products produced; and despitethe current expected viability of the project, conditions changing such that the minerals on ourproperty cannot be economically mined, or that the required permits to build and operate theenvisaged mine can be obtained. The forward-looking information contained herein is given asof the date hereof and the Company assumes no responsibility to update or revise suchinformation to reflect new events or circumstances, except as required by law.For a description of the data verification procedures, analytical and testing procedures and adescription of the identification of any known legal, political, environmental, or otherrisks that could materially affect the potential development of the mineral resources, see BlueRiver Ta-Nb Project NI 43-101 Technical Report, Blue River, British Columbia” by AMEC witheffective date 31-January-2011 that is filed on SEDAR. 8

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