News Release: Commerce Resources Corp. (TSXv: CCE) Announces Indicated Resource at Upper Fir Tantalum-Niobium Deposit

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Commerce Resources Corp. announces a large indicated resource at the Upper Fir Tantalum and Niobium Deposit, Blue River, B.C.

Highlights include:

* AMEC has determined a base case Indicated mineral resource of 36.35 million tonnes containing 195 ppm (gpt) Ta2O5 and 1,700 ppm (gpt) Nb2O5. Base case Inferred mineral resources are 6.40 million tonnes containing 199 ppm (gpt) Ta2O5 and 1890 ppm (gpt) Nb2O5.

* AMEC concludes that the 2009 work program has markedly improved the interpretation of the geology of the Upper Fir tantalum- and niobium-bearing carbonatite, which in turn has resulted in an increase in confidence and size of the deposit.

* The selected base case resource model provides the foundation for the Preliminary Economic Assessment (“PEA”), which is ongoing under the direction of AMEC and which once completed, will provide the basis for a separate news release.

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News Release: Commerce Resources Corp. (TSXv: CCE) Announces Indicated Resource at Upper Fir Tantalum-Niobium Deposit

  1. 1. Commerce Resources Corp.’s Upper Fir Tantalum and Niobium Deposit Confirmed as a Large Indicated Resource, Blue River, B.C.Highlights • AMEC has determined a base case Indicated mineral resource of 36.35 million tonnes containing 195 ppm (gpt) Ta2O5 and 1,700 ppm (gpt) Nb2O5. Base case Inferred mineral resources are 6.40 million tonnes containing 199 ppm (gpt) Ta2O5 and 1890 ppm (gpt) Nb2O5. • AMEC concludes that the 2009 work program has markedly improved the interpretation of the geology of the Upper Fir tantalum- and niobium-bearing carbonatite, which in turn has resulted in an increase in confidence and size of the deposit. • The selected base case resource model provides the foundation for the Preliminary Economic Assessment (“PEA”), which is ongoing under the direction of AMEC and which once completed, will provide the basis for a separate news release.February 2, 2011 - Commerce Resources Corp. (TSXv: CCE; FSE: D7H; OTCQX: CMRZF) ispleased to announce that as part of the ongoing Preliminary Economic Assessment (“PEA”), AMEC hascompleted a new National Instrument 43-101 compliant resource estimate for the Upper Fir Tantalum-Niobium Deposit, at its Blue River Project in British Columbia. The Blue River Project is located near thevillage of Blue River, which is approximately 250 km north of the city of Kamloops and approximately90 km south of the town of Valemount.AMEC used a total of 183 drill holes comprising 37,446 metres of HQ drill core and 8,218 sawn coresamples to develop the mineral resource estimate. Most holes were at a nominal spacing of 50m with dipstypically between -60 to sub-vertical. Indicated mineral resources total 36.35 million tonnes containing195 ppm Ta2O5 and 1,700 ppm Nb2O5 and Inferred mineral resources total 6.40 million tonnes containing199 ppm Ta2O5 and 1,890 ppm Nb2O5. Table 1: Blue River Project Estimated Mineral Resources. Effective Date 30 June, 2010. 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 12,100 1. 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.
  2. 2. -2- 4. Discrepancies in contained oxide values are due to rounding. 5. In situ contained oxide reported.The mineral resource estimate is supported by a base case price assumption of US$317/kg Ta, which issignificantly higher than historic average prices. Market analysts are in general agreement that currentpolitical and market conditions support the probability of sustained higher prices, but this may not occur.Table 2 below shows the sensitivity of the Blue River mineral resources to tantalum metal price.Sensitivities are based on a fluctuating metal price but could also represent fluctuating mining orprocessing costs or metallurgical recoveries or a combination of all of these factors. Table 2: Blue River Project Sensitivity of Estimated Mineral Resources to Tantalum Price: Effective Date 30 June, 2010, Tomasz Postolski, P.Eng, Qualified Person Ta price Confidence Tonnes Ta2O5 Nb2O5 ContainedTa2O5 ContainedNb2O5 [US$/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 10,400 1. 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 oxide values are due to rounding. 5. In situ contained oxide reported.To assess reasonable prospects for economic extraction, AMEC considered the concept of mining theBlue River Deposit using variations of room and pillar methods under a conceptual scenario thatconsiders mining and processing at a rate of 7,500 tonnes per day. Mining and economic parameters wereadjusted based on AMEC’s experience with analogous deposits and mining methods. Economic viabilityof the mineral resource can only be demonstrated by Pre-Feasibility and Feasibility Studies, and there isno assurance that the stated resources can be upgraded in confidence and converted to mineral reserves.Further, since underground mining methods are envisioned (room and pillar or variants), the miningrecovery may vary from 65% to 85% depending on the success in which pillars can be mined on retreatand/or fill is utilized.
  3. 3. -3-AMEC has concluded that the 2009 work program resulted in a marked improvement in the interpretationof the geology of the Upper Fir tantalum- and niobium-bearing carbonatite, which in turn has resulted inan increase in confidence and size of the deposit.The 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.Preliminary results from 54 holes, totalling 12,949m of HQ drill core, drilled in 2010 were provided toAMEC for review after completion of the resource estimation. Only lithological information from theseholes was available. Assays for these holes are expected in the second quarter 2011. The results from2010 drilling will be used as a basis for an updated resource estimate once received. The Companys focusis on the Blue River PEA currently being completed under the direction of AMEC.The Upper Fir Deposit would be mined underground using room and pillar with backfill in most areas. Amineral processing method using a standard-grind flotation process to make a concentrate of ferro-columbite-pyrochlore is assumed for the Upper Fir material. The proposed process is similar to that beingused commercially at Iamgold’s Niobec Mine in Quebec. The concentrate would be further processed toproduce marketable separate oxides of tantalum and niobium. The proposed processes are mature andalready in use industrially.The Blue River Project covers 105,373 hectares (1,000 km2). Power transmission lines, rail, and pavedand gravel roads are all adjacent or within the property boundaries. Transalta Corp.’s 18 MW Bone Creekrun-of-river hydroelectricity project is under construction near the project and is expected to be inproduction in 2011.Resource Classification and MethodologyMineral resources were classified in accordance with the 2005 CIM Definition Standards for MineralResources and Mineral Reserves, incorporated by reference into NI 43-101. The resource model wasconstructed inside carbonatite using 183 diamond drill holes and an average specific gravity of 3.01assigned to all blocks in carbonatite. Based on a grade drill hole spacing study, AMEC established thefollowing criteria for classification of mineral resources at Blue River with eighty percent of thecarbonatite blocks classified as Indicated, and fourteen percent classified as Inferred.Indicated mineral resources are those where blocks contain at least two holes, where the average distancebetween the closest composites is less than 50m and the distance to the second closest composite is lessthan 70m. Inferred mineral resources are those where blocks contain at least one hole and the distance tothe closest composite is less than 110m.Assay data were statistically analyzed and as a result Ta2O5 was capped at 1,000 ppm and Nb2O5 wascapped at 10,000 ppm. Capped drill core assays were composited down the hole to a fixed length of 2.5mhonouring geological boundaries. The coefficients of grade variation are low and support the use of lineargrade interpolation methods such as kriging or inverse distance methods.Ta2O5 and Nb2O5 were estimated using ordinary kriging (OK) and inverse distance to power 3 (ID3)interpolation methods for the carbonatite domains. Additional Nb2O5 mineralization, which immediatelysurrounds the carbonatite domains, is not included as there is insufficient data for interpolation of the unit.Nearest Neighbour (NN) validation models for Ta2O5 and Nb2O5 were prepared with the same searchesused for the OK and the ID3 models. A comparison of global means of capped and uncapped OK and ID3models showed the amount of metal removed by capping is minor. Swath plot checks using onlyindicated blocks show there are no local biases for estimated Ta2O5 or Nb2O5 present in either OK or ID3
  4. 4. -4-models. The ID3 model was chosen for tabulating the Blue River mineral resources as the OK model isconsidered too smooth.Market StudyCommerce has prepared analyses of the markets which outline demands by producers and end users oftantalum and niobium. The tantalum analysis was prepared by a tantalum market expert, although he isnot independent of Commerce. His analysis reflects the general consensus of other analysts regarding thetantalum market expressed in publicly available information. The niobium analysis was prepared by anindependent niobium expert and also reflects the general consensus of analysts, in publicly-availableinformation, for the niobium market.As the project is still at an early evaluation stage, Commerce has not initiated requests from potentialbuyers for expression of interests in the proposed Blue River products and has not negotiated anypurchase or off-take agreements.End Products and Base Case Metal PricingThe processes proposed for the Blue River Project will produce 99.9% pure tantalum and niobium oxides.These products are generally sold under contract and the prices are carefully guarded to providecompetitive advantages.TantalumTantalum is commonly quoted in two separate forms: • Ta2O5 in tantalite concentrate: a non-refined, tantalum-bearing concentrate of variable composition and trace element content • 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 ranged from US$75/kg contained Ta2O5 to US$100/kgcontained Ta2O5 (US$34/lb to US$45/lb). In the same period tantalum metal scrap prices ranged fromUS$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-tantalum production in Africa, depletion of known strategic stockpilesand curtailed exports from China. In mid-October 2010 the price for Ta2O5 in tantalite concentrate wasUS$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.In AMEC’s opinion, the base case price for tantalum metal scrap is reasonable for constraining mineralresources based on recent market conditions, but notes it is significantly higher than historical prices.There is a risk that using current price assumptions at, or near the peak of the commodity cycle mayoverstate the long-term value of the Mineral Resources.
  5. 5. -5-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.AMEC’s Comment on Price AssumptionsThe cut-off grade assumptions at US$317/kg (US$144/lb) tantalum metal and US$46/kg (US$21/lb)niobium metal are slightly more optimistic than current price assumptions of US$280/kg (US$127/lb)tantalum metal price and US$44/kg (US$20/lb) Nb metal price. This allows for the capture of mineralresources that would likely be excluded in reserve estimation.2011 Work ProgramBased on project-related activities and cash on hand, Commerce is fully funded to complete all studiesrecommended in 2011. For this year, Commerce intends to further expand the knowledge of the depositwith additional closer-spaced diamond drilling. A program of advanced metallurgical testing and moredetailed engineering is also planned. Details will follow based on recommendations arising from AMEC’sPEA. “The AMEC Resource Estimate for the Upper Fir Tantalum-Niobium Deposit reported today is furtherconfirmation of Commerce’s belief that we are in the process of building a very important long-termsource of ethical tantalum,” said Dave Hodge, Commerce’s President. “Results remain pending foradditional drilling completed in 2010, and we are eagerly awaiting the results of AMEC’s PEA, which isbased on drilling to the end of the 2009 field season. All indications are that we will be able to enhanceeven further the quality of the resource. Of necessity, the impending PEA is based on conservativepricing. However, recent developments in global tantalum and niobium markets suggest significant nearterm upside”.NI 43-101 DisclosureAlbert Chong, Senior Geologist, P.Geo and Tomasz Postolski, Senior Geostatistician, P.Eng are theemployees of AMEC Americas Limited and are Qualified Persons responsible for the mineral resourceestimate above. Mr. Chong completed a site visit during the 11-16th of July 2010, and Mr. Chong and Mr.Postolski have read and approved the contents of this news release with respect to the resource estimate.Jody Dahrouge, B.Sc., P.Geol., a Qualified Person as defined by National Instrument 43-101, read andapproved the disclosure of the technical information in this news release with respect to the exploration.A Technical Report compliant with National Instrument 43-101 standards describing the resourceestimation and providing details of the 2009 drilling and sampling as well as the associated QAQC reviewwill 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 Project in northern Quebec and the Carbo Project innorthern British Columbia.
  6. 6. -6-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 may contain forward-looking information and 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 information is based on the opinions and estimates of management and its consultantsat the date the information is given. It is subject to a variety of risks and uncertainties and other factors that couldcause actual events or results to differ materially from those projected in the forward-looking information.Information is based on reasonable assumptions which include but are not limited to those regarding actual costs formining and processing and their impact on the cut off grade established, actual capital costs, forecasts of mineproduction rates, the timing and content of upcoming work programs, geological interpretations, potential processmethods and mineral recoveries, the availability of markets for the products produced, market pricing for theproducts produced, etc. Forward-looking statements address future events and conditions and therefore involveinherent risks and uncertainties. Actual results may differ materially from those currently anticipated in suchstatements. The forward-looking information contained herein is given as of the date hereof and the Companyassumes no responsibility to update or revise such information to reflect new events or circumstances, except asrequired by law.

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