News Release: Drill Results from Eldor Rare Earth Project


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News Release: Drill Results from Eldor Rare Earth Project

  1. 1. Commerce Resources Corp. Intersects 325.31 m of 1.96% TREO, and 90.38 m of 2.21% TREO at the Ashram Deposit, Northern QuebecJanuary 27, 2012 - Commerce Resources Corp. (TSXv: CCE, FSE: D7H, OTCQX: CMRZF)(the “Company” or “Commerce”) is pleased to report the results for four drill holes completedduring the summer/fall exploration program at the Ashram Rare Earth Element (“REE”) Deposit,at the Eldor Project in northern Quebec.As drilling progresses north, significant REE mineralization continues to be intersected atsurface down to considerable depths.Highlights are as follows:  Drill Hole EC11-084: 325.31 m of 1.96% Total Rare Earth Oxides (TREO) o Including 52.25 m of 2.26% TREO  Drill Hole EC11-085: 144.52 m of 1.94% TREO o Including 90.38 m of 2.21% TREO  Drill Hole EC11-083: 88.68 m of 2.14% TREO  Drill Hole EC11-086: 80.56 m of 2.14% TREOMiddle and Heavy Rare Earth Element EnrichmentThe Middle and Heavy Rare Earth Oxide (“MHREO”) zone at Ashram has expandedsignificantly with the results from the 2011 summer/fall drill program and now has a surfacefootprint of approximately 175 m along strike, 200 m in width, and to a depth of 175 m, withconsiderable room for expansion remaining.Middle and heavy rare earth enrichment remains consistent throughout the deposit with the mainenriched zone still present in EC11-083, 084, and 085 as small zones averaging ~10% MHREOgrading in and out down hole. Peak values greater than 20% MHREO continue to be returnedincluding one sample with 410 ppm dysprosium and 201 ppm europium at a TREO of 1.86%.
  2. 2. Complete results are as follows: MHREO Neodymium Strike/Dip From To Interval TREO Drill Hole (% of Oxide (◦) (m) (m) (m) (%) TREO) (% of TREO) 230/45 EC11-083 2.12 154.93 152.81 1.80 7.1 16.7 incl. 2.12 90.80 88.68 2.14 7.1 15.6 24.59 30.89 6.30 1.82 11.7 16.6 45.88 50.81 4.93 1.88 10.5 18.2 MHREO 51.55 54.61 3.06 1.83 10.4 16.7 Zone 56.40 58.90 2.50 1.97 9.5 19.5 139.26 144.18 4.92 1.15 11.9 22.0             0/90 EC11-084 3.10 400.17 397.07 1.83 6.6 16.6 incl. 3.10 328.41 325.31 1.96 6.6 16.2 incl. 208.42 260.67 52.25 2.26 4.5 15.2 56.30 84.00 27.70 1.77 9.6 18.0 104.93 110.20 5.27 1.96 11.1 18.6 MHREO 124.61 130.37 5.76 1.40 11.7 17.5 Zone 147.75 157.12 9.37 1.33 10.4 22.4 171.60 181.59 9.99 1.66 10.7 18.9 359.05 364.85 5.80 1.07 10.8 22.9 230/45 EC11-085 3.66 148.18 144.52 1.94 7.2 16.2 incl. 28.53 118.91 90.38 2.21 7.1 15.4 13.43 16.87 3.44 1.54 11.5 16.9 MHREO 37.80 56.62 18.82 2.05 10.7 16.3 Zone 143.20 146.42 3.22 1.16 11.2 22.4             230/45 EC11-086 368.69 757.73 389.04 1.61 6.1 18.1 incl. 582.17 662.73 80.56 2.14 5.4 17.4* All samples were analyzed by Activation Laboratories of Ancaster, ON using its method eight -- major oxide, rare earths andtrace element package by fusion ICP and ICP/MS in addition to fluorine by method 4F-F. The four most abundant REEs thatmake up the TREO reported above are cerium, lanthanum / neodymium and praseodymium.* Drill holes EC11-083, 084, 085, and 086 are NQ in size. The true width of drill intersections is not confirmed. Strikes and dipsare idealized as spotted.Drill holes EC11-083 and 085 targeted the north-western contact of the deposit while EC11-084was collared vertically near its north end. All three holes focused on infilling for increasedconfidence in support of updating current inferred status resources to indicated status.
  3. 3. EC11-086 was collared off a small peninsula on the eastern side of Centre Pond, attempting tocross-cut the centre of the deposit. This hole intersected ~50 m of what is interpreted to be thenorth end of a poorly mineralized breccia unit diluting the grade of an otherwise wellmineralized 389 m intercept.Drill holes EC11-083, 084, and 085 all collared in mineralization while EC11-086 collared in aheterogeneous mix of calico carbonatite, dolomite carbonatite, and glimmerite, while ending inmineralization.A map showing the drill hole locations and detailed analytical results will be posted on theCompanys website at: Mineral Resource EstimateExploration in 2011 included 9,012 m of BTW and NQ diameter diamond drilling in 26 holes forthe purposes of expanding the mineralized area and infilling the geological and structuralinformation within the Ashram Deposit. To date, analytical results for 24 drill holes fromAshram have now been released. The remaining two holes are being held for advancedmetallurgical studies.An updated block model and resource estimate with accompanying technical report under thesupervision of SGS Geostat is currently underway using mapping and drill data from the 2011winter and summer/fall campaigns. The initial, and current, resource includes only 12 holes(3,313 m) completed in 2010, leaving 33 holes (12,379 m) yet to be incorporated into the model.Other Work Completed and Ongoing in 2012In addition to the drilling at the Ashram Deposit, the Company completed 7 holes (1,108 m) atregional targets. Analytical results from these holes remain pending.Data compilation of regional results is underway as well as, metallurgical, mineralogical, andenvironmental studies on the Ashram Deposit in preparation for a Preliminary EconomicAssessment by SGS Geostat.NI 43-101 DisclosureThe technical information in this news release has been reviewed and approved by Darren L.Smith, M.Sc., P.Geol., who is a Qualified Person in accordance with National Instrument 43-101Standards of Disclosure for Mineral Projects.Middle and Heavy Rare Earth Oxides ("MHREO") is defined as the sum of the middle rare earthoxides (Sm2O3, Eu2O3, Gd2O3) and the heavy rare earth oxides (Tb2O3, Dy2O3, Ho2O3, Er2O3,
  4. 4. Tm2O3, Yb2O3, Lu2O3) plus Y2O3 expressed as a percent out of the TREO content.Total Rare Earth Oxides ("TREO") include: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3,Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, and Y2O3.About Commerce Resources Corp.Commerce Resources Corp. is focused on building shareholder value through the discovery anddevelopment of Canadian rare metal and rare earth element deposits. Commerce’s principalassets are its Blue River Tantalum-Niobium Project in British Columbia and its Eldor Rare EarthProject in Quebec. The Company trades on the TSX Venture Exchange under the symbol“CCE”, the Frankfurt Stock Exchange under the symbol “D7H” and the U.S. OTCQX under thesymbol “CMRZF.”For more information on Commerce Resources Corp. visit the corporate website at or contact investor relations at 1.866.484.2700 Behalf of the Board of DirectorsCOMMERCE RESOURCES CORP.“David Hodge”David HodgePresident and DirectorTel: 604.484.2700Email: Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Statements in this document which are not purely historical are forward-looking statements, including anystatements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements inthis news release include that analytical results from the remaining holes from the summer/fall drill program atEldor will be reported in batches as they are received.It is important to note that actual outcomes and the Companys actual results could differ materially from those insuch forward-looking statements. Risks and uncertainties include economic, competitive, governmental,environmental and technological factors that may affect the Companys operations, markets, products and prices.Factors that could cause actual results to differ materially may include misinterpretation of data; that we may notbe able to get equipment or labour as we need it; that we may not be able to raise sufficient funds to complete ourintended exploration and development; that our applications to drill may be denied; that weather, logisticalproblems or hazards may prevent us from exploration; that equipment may not work as well as expected; that
  5. 5. analysis of data may not be possible accurately; that results which we or others have found in any particularlocation are not necessarily indicative of larger areas of our properties; that we may not complete environmentalprograms in a timely manner or at all; that market prices for rare earth elements may not justify commercialproduction costs; and that despite encouraging data there may be no commercially exploitable mineralization onour properties.Readers should refer to the risk disclosures outlined in the Companys Management Discussion & Analysis of itsaudited financial statements filed with the British Columbia Securities Commission.