Technical Report: Commerce Resources Corp. (January 2011)

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AMEC Americas Limited (AMEC) was commissioned by Commerce Resources Corp., to provide a Preliminary Assessment (PA) of Commerce’s wholly-owned Blue River tantalum and niobium Project (the Project) located in the Province of British Columbia. As part of the on-going PA, AMEC completed an
independent Qualified Person’s review and prepared an updated mineral resource estimate. This report documents the updated mineral resource estimate for the
Upper Fir and Bone Creek areas, collectively herein called the Blue River deposit.

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Technical Report: Commerce Resources Corp. (January 2011)

  1. 1. Blue River Ta-Nb ProjectNI 43-101 Technical ReportBlue River, British ColumbiaPrepared for:Commerce Resources CorporationPrepared by:Albert Chong, P.GeoTomasz Postolski, P.EngEffective Date: 31 January 2011Project No. 162230
  2. 2. CERTIFICATE OF QUALIFIED PERSON Albert Chong, P.Geo. AMEC Americas Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Phone: (604) 664-4116 E-mail: albert.chong@amec.comI, Albert Chong, P.Geo., am employed as a Senior Geologist with AMEC Americas Limited.This certificate applies to the Technical Report titled “Blue River Ta-Nb Project, Blue River, B.C., NI43-101 Technical Report” and dated 31 January 2011 (the “Technical Report”)I am a Professional Geoscientist in the Province of British Columbia (P.Geo. #23773). I graduatedfrom McMaster University, Canada with a B.Sc. degree in Geology, and from the University ofTasmania, Australia with a M.Sc. degree in Exploration Geoscience.I have practiced my profession for 25 years since graduation. I have been directly involved in greenfields and brown fields exploration, mining operations, consulting, and resource estimation of basemetal, precious metal and rare metal deposits.As a result of my experience and qualifications, I am a Qualified Person as defined in NationalInstrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101).I visited the Blue River property from July 11 to 16, 2010.I am responsible for Sections 2 to 16, Sections 18, 19, 22, 23, and those portions of the Summary,Interpretation and Conclusions, and Recommendations (Sections 1, 20, and 21) that pertain to thesesections of the Technical Report.I am independent of Commerce Resources Corporation as independence is described by Section1.4 of NI 43–101.I have been involved with the Blue River Ta-Nb Project since January 2010 as part of dataverification, geology and preparation of the Technical Report.I have read NI 43–101 and this report has been prepared in compliance with that Instrument.As of the date of this certificate, to the best of my knowledge, information and belief, the TechnicalReport contains all scientific and technical information that is required to be disclosed to make theTechnical Report not misleading.“Signed and sealed”Albert Chong, P.Geo.Dated: 02 February 2011AMEC Americas Limited111 Dunsmuir Street, Suite 400Vancouver, B.C. V6B 5W3Tel (604) 664-4315Fax (604) 669-9516 www.amec.com
  3. 3. CERTIFICATE OF QUALIFIED PERSON Tomasz Postolski, P.Eng. AMEC Americas Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Phone: (604) 664-6096 E-mail: tomasz.postolski@amec.comI, Tomasz Postolski, P.Eng., am employed as a Senior Geostatistician with AMEC Americas Limited.This certificate applies to the Technical Report titled “Blue River Ta-Nb Project, Blue River, B.C., NI43-101 Technical Report” dated 31 January 2011 (the “Technical Report”)I am a Professional Engineer in the Province of British Columbia (P.Eng. #34784). I have graduatedfrom The University of Mining and Metallurgy, Krakow, Poland with a Magister Inzynier degree inGeological Engineering, and from the University of British Columbia with a Master of AppliedScience degree also in Geological Engineering. I have completed the Citation Program in AppliedGeostatistics at the Centre for Computational Geostatistics at the University of Alberta.I have 17 years of consulting, mine operations, and academic experience specializing ingeostatistical ore resource estimation and geological evaluation of gold, copper, rare earth metalsand other mineral deposits in Canada and abroad.As a result of my experience and qualifications, I am a Qualified Person as defined in NationalInstrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101).I did not visit the Blue River property.I am responsible for Section 17 and those portions of the Summary, Interpretation and Conclusions,and Recommendations (Sections 1, 20, and 21) that pertain to this section of the Technical Report.I am independent of Commerce Resources Corporation as independence is described by Section1.4 of NI 43–101.I have been involved with the Blue River Ta-Nb Project in February 2010 conducting geostatisticaldrill hole spacing study and again since July 2010 preparing the Mineral Resource estimate and theTechnical Report.I have read NI 43–101 and this report has been prepared in compliance with that Instrument.As of the date of this certificate, to the best of my knowledge, information and belief, the TechnicalReport contains all scientific and technical information that is required to be disclosed to make theTechnical Report not misleading.“Signed and sealed”Tomasz Postolski, P.Eng.Dated: 02 February 2011AMEC Americas Limited111 Dunsmuir Street, Suite 400Vancouver, B.C. V6B 5W3Tel (604) 664-4315Fax (604) 669-9516 www.amec.com
  4. 4. IMPORTANT NOTICE This report was prepared as a National Instrument 43-101 Technical Report by AMEC Americas Limited (AMEC). The quality of information, conclusions, and estimates contained herein is consistent with the level of effort involved in AMEC’s services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended to be used by Commerce Resources Corporation (Commerce), subject to the terms and conditions of its contract with AMEC. That contract permits Commerce to file this Technical Report with Canadian Securities Regulatory Authorities pursuant to provincial securities legislation. Except for the purposes legislated under provincial securities law, any use of this report by any third party is at that party’s sole risk.Prepared by: “Signed and Stamped” Albert Chong, P.Geo “Signed and Stamped” Tomasz Postolski, P.EngReviewed by: “Signed and Stamped” Greg Gosson, Ph.D, P.GeoApproved by: “Signed” Arndt Brettschneider, Manager Geology & Mining
  5. 5. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORTCONTENTS1.0 SUMMARY ................................................................................................................................... 1-1 1.1 Principal Findings ............................................................................................................ 1-1 1.2 Project Location and Access ........................................................................................... 1-1 1.3 Mineral Tenure, Surface Rights, and Permits ................................................................. 1-1 1.4 Geology, Deposit Type, and Mineralization..................................................................... 1-2 1.5 History, Exploration, and Drilling ..................................................................................... 1-2 1.6 Sample Preparation and Analysis ................................................................................... 1-2 1.7 Data Verification .............................................................................................................. 1-3 1.8 Processing and Metallurgical Testwork ........................................................................... 1-3 1.9 Market Study ................................................................................................................... 1-3 1.10 Commodity Price ............................................................................................................. 1-4 1.11 Mineral Resource Estimation........................................................................................... 1-4 1.12 Mineral Resource Statement ........................................................................................... 1-4 1.13 Exploration Potential ........................................................................................................ 1-5 1.14 Conclusions ..................................................................................................................... 1-6 1.15 Recommendations ........................................................................................................... 1-72.0 INTRODUCTION .......................................................................................................................... 2-1 2.1 Qualified Persons ............................................................................................................ 2-1 2.2 Site Visit ........................................................................................................................... 2-1 2.3 Effective Dates ................................................................................................................ 2-1 2.4 Sources of Information and Data ..................................................................................... 2-2 2.5 Technical Report Sections and Required Items under NI 43-101 ................................... 2-23.0 RELIANCE ON OTHER EXPERTS .............................................................................................. 3-1 3.1 Mineral Tenure ................................................................................................................ 3-1 3.2 Permitting and Environment ............................................................................................ 3-1 3.3 Market Analysis ............................................................................................................... 3-14.0 PROPERTY DESCRIPTION AND LOCATION ............................................................................ 4-1 4.1 Property Area and Location ............................................................................................. 4-1 4.2 Mineral Tenure ................................................................................................................ 4-1 4.3 Surface Rights ................................................................................................................. 4-1 4.4 Permitting and Environmental Liabilities ......................................................................... 4-4 4.5 Royalties, Payments, and Agreements ........................................................................... 4-4 4.6 Location of Known Mineralization .................................................................................... 4-4 4.7 Comment on Section 4 .................................................................................................... 4-55.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ......................................................................................................................... 5-1 5.1 Accessibility ..................................................................................................................... 5-1 5.2 Climate............................................................................................................................. 5-1 5.3 Local Resources .............................................................................................................. 5-1 5.4 Infrastructure ................................................................................................................... 5-1 5.5 Physiography ................................................................................................................... 5-2 5.6 Comment on Section 5 .................................................................................................... 5-26.0 HISTORY ...................................................................................................................................... 6-1Project No.: 162230 TOC i31 January 2011
  6. 6. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT 6.1 Previous Work ................................................................................................................. 6-1 6.2 Commerce Exploration .................................................................................................... 6-2 6.3 Commerce Mineral Resource Estimates ......................................................................... 6-27.0 GEOLOGICAL SETTING ............................................................................................................. 7-1 7.1 Regional Geology ............................................................................................................ 7-1 7.2 Local Geology .................................................................................................................. 7-3 7.3 Blue River Project Geology ............................................................................................. 7-3 7.3.1 Metasedimentary Rocks ..................................................................................... 7-3 7.3.2 Intrusive Rocks ................................................................................................... 7-4 7.3.3 Structural Geology and Metamorphism ............................................................ 7-14 7.3.4 Geochronology ................................................................................................. 7-15 7.4 Fir and Verity Geology ................................................................................................... 7-16 7.4.1 Fir Carbonatite Geology ................................................................................... 7-16 7.4.2 Verity Carbonatite ............................................................................................. 7-16 7.5 Comment on Section 7 .................................................................................................. 7-178.0 DEPOSIT TYPES ......................................................................................................................... 8-1 8.1 Comment on Section 8 .................................................................................................... 8-39.0 MINERALIZATION ....................................................................................................................... 9-1 9.1 Blue River Mineralization ................................................................................................. 9-1 9.1.1 Carbonatite Mineralization .................................................................................. 9-1 9.1.2 Fenite Mineralization .......................................................................................... 9-3 9.2 Fir and Verity Mineralization ............................................................................................ 9-3 9.2.1 Fir Mineralization ................................................................................................ 9-3 9.2.2 Verity Mineralization ........................................................................................... 9-3 9.3 Comment on Section 9 .................................................................................................... 9-410.0 EXPLORATION .......................................................................................................................... 10-1 10.1 Data Compilation ........................................................................................................... 10-1 10.1.1 Historical Data Compilation .............................................................................. 10-1 10.1.2 Current Data Compilation ................................................................................. 10-1 10.2 Grids and Surveys ......................................................................................................... 10-2 10.3 Mapping ......................................................................................................................... 10-2 10.4 Geochemistry (stream sediment, soil, and rock) ........................................................... 10-2 10.4.1 Stream-Sediment Sampling ............................................................................. 10-3 10.4.2 Soil Sampling .................................................................................................... 10-3 10.4.3 Rock Sampling ................................................................................................. 10-5 10.5 Geophysical Surveys ..................................................................................................... 10-5 10.6 Drilling ............................................................................................................................ 10-6 10.7 Bulk Density ................................................................................................................... 10-6 10.8 Exploration Potential ...................................................................................................... 10-6 10.8.1 Blue River Exploration Targets ......................................................................... 10-6 10.8.2 Other Targets ................................................................................................... 10-6 10.9 Other Studies ................................................................................................................. 10-7 10.9.1 Bulk Samples .................................................................................................... 10-7 10.9.2 Academic Research ......................................................................................... 10-7 10.9.3 Environmental Geochemistry ........................................................................... 10-7 10.9.4 Geotechnical ..................................................................................................... 10-8 10.9.5 Tailings Location ............................................................................................... 10-8 10.9.6 Timber Assessment .......................................................................................... 10-9Project No.: 162230 TOC ii31 January 2011
  7. 7. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT 10.10 Comment on Section 10 ................................................................................................ 10-911.0 DRILLING ................................................................................................................................... 11-1 11.1 Drill Campaigns ............................................................................................................. 11-1 11.2 Drilling Equipment ......................................................................................................... 11-2 11.3 Core Drilling ................................................................................................................... 11-2 11.3.1 Core Drilling Strategy ....................................................................................... 11-2 11.3.2 Core Sizes ........................................................................................................ 11-3 11.3.3 Collar Surveys .................................................................................................. 11-3 11.3.4 Downhole Surveys ............................................................................................ 11-3 11.3.5 Oriented Drill Core ............................................................................................ 11-3 11.3.6 Core Handling ................................................................................................... 11-3 11.3.7 Core Recovery.................................................................................................. 11-4 11.4 Planned Drill Programs.................................................................................................. 11-4 11.5 Comment on Section 11 ................................................................................................ 11-412.0 SAMPLING METHOD AND APPROACH .................................................................................. 12-1 12.1 Comment on Section 12 ................................................................................................ 12-313.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY ........................................................ 13-1 13.1 Sample Preparation ....................................................................................................... 13-1 13.2 Sample Analysis ............................................................................................................ 13-1 13.3 Quality Control ............................................................................................................... 13-2 13.3.1 Assessment of Accuracy with SRM Control Samples ...................................... 13-2 13.3.2 Assessment of Accuracy with Secondary Lab Pulp Checks ............................ 13-5 13.3.3 Assessment of Precision with Duplicates ......................................................... 13-8 13.3.4 Assessment of Contamination Using Blanks.................................................. 13-15 13.4 Density ......................................................................................................................... 13-16 13.5 Security ........................................................................................................................ 13-18 13.6 Comment on Section 13 .............................................................................................. 13-1814.0 DATA VERIFICATION ................................................................................................................ 14-1 14.1 Database Data Entry Check .......................................................................................... 14-1 14.2 Site Visit ......................................................................................................................... 14-2 14.2.1 Drill Collar Location Check ............................................................................... 14-2 14.2.2 Logging and Sampling Facilities ....................................................................... 14-2 14.2.3 Core Storage .................................................................................................... 14-3 14.2.4 Inspection of Drill Core and Verification of Mineralization ................................ 14-3 14.3 Comment on Section 14 ................................................................................................ 14-415.0 ADJACENT PROPERTIES ........................................................................................................ 15-116.0 MINERAL PROCESSING AND METALLURGICAL TESTING .................................................. 16-1 16.1 Head Samples for Initial Testing ................................................................................... 16-2 16.2 Phase I Testing .............................................................................................................. 16-2 16.3 Phase II Testing ............................................................................................................. 16-5 16.4 Review of Concentrate Treatment Options ................................................................... 16-7 16.5 Accuracy of Assaying .................................................................................................... 16-7 16.6 Comment on Section 16 ................................................................................................ 16-817.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES............................................. 17-1 17.1 Introduction .................................................................................................................... 17-1 17.2 Assay Data and Capping ............................................................................................... 17-1Project No.: 162230 TOC iii31 January 2011
  8. 8. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT 17.3 Composites .................................................................................................................... 17-1 17.4 Exploratory Data Analysis ............................................................................................. 17-2 17.5 Contact Analysis ............................................................................................................ 17-4 17.6 Variography ................................................................................................................... 17-4 17.7 Carbonatite Solid Modeling ........................................................................................... 17-5 17.8 Block Model Dimensions ............................................................................................... 17-5 17.9 Assignment of Lithology and Specific Gravity to Blocks ............................................... 17-6 17.10 Block Model Grade Estimate ......................................................................................... 17-6 17.11 Block Model Validation .................................................................................................. 17-7 17.11.1 Visual Validation ............................................................................................... 17-7 17.11.2 Global Grade Bias Check ................................................................................. 17-9 17.11.3 Local Grade Bias Check (Swath Plots) .......................................................... 17-10 17.11.4 Selectivity Check ............................................................................................ 17-11 17.12 Preliminary Results from 2010 Drilling ........................................................................ 17-13 17.13 Mineral Resource Classification .................................................................................. 17-14 17.14 Reasonable Prospects for Economic Extraction ......................................................... 17-16 17.14.1 Market Study .................................................................................................. 17-16 17.14.2 Commodity Price ............................................................................................ 17-17 17.14.3 Physical Assumptions..................................................................................... 17-18 17.14.4 Operational Considerations ............................................................................ 17-18 17.14.5 Economic Assumptions .................................................................................. 17-18 17.14.6 Economic Cut-off ............................................................................................ 17-19 17.15 Mineral Resource Statement ....................................................................................... 17-1918.0 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES .................................................................. 18-119.0 OTHER RELEVANT INFORMATION ......................................................................................... 19-120.0 INTERPRETATION AND CONCLUSIONS ................................................................................ 20-121.0 RECOMMENDATIONS .............................................................................................................. 21-1 21.1 Comment on Section 20 ................................................................................................ 21-222.0 DATE AND SIGNATURE PAGE ................................................................................................ 22-123.0 REFERENCES ........................................................................................................................... 23-1T ABLE STable 1-1: Blue River Project Estimated Mineral Resources; Effective Date 30 June, 2010, Tomasz Postolski, P. Eng., Qualified Person ..................................................................... 1-5Table 2-1: Site Visit and Sections of Responsibility ............................................................................. 2-1Table 2-2: Form 43-101F1 Prescribed Items in Relation to Report Contents ..................................... 2-3Table 6-1: Blue River Exploration History Summary ........................................................................... 6-1Table 11-1: Drill Campaign Summary .................................................................................................. 11-1Table 11-2: Upper Fir Deposit Trench and Bulk Samples ................................................................... 11-2Table 12-1: Selected Ta and Nb Composite Values in Carbonatite .................................................... 12-2Table 13-1: Primary Analysis Lower Detection Limits ......................................................................... 13-2Table 13-2: Control Samples and Insertion Rates by Year ................................................................. 13-2Table 13-3: “Robert” Standard Reference Material “Best Values” ....................................................... 13-3Project No.: 162230 TOC iv31 January 2011
  9. 9. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORTTable 13-4: Pulp Check Bias in Percent .............................................................................................. 13-8Table 13-5 Field Duplicate Precision by Year ................................................................................... 13-10Table 13-6: Specific Gravity Measurements for Blue River Rock Types ........................................... 13-17Table 14-1: AMEC Site Visit Confirmation of Mineralization ................................................................ 14-4Table 15-1: List of Adjacent Property Claims....................................................................................... 15-1Table 16-1: Results from F81............................................................................................................... 16-6Table 16-2: Results of a Sequential Hydrochloric Acid Leach of Flotation “Middling” ......................... 16-7Table 17-1: Capped Assays vs. 2.5m Composites Statistics Inside Carbonatites .............................. 17-1Table 17-2: Composite Statistics in Carbonatite .................................................................................. 17-2Table 17-3: Ta2O5 and Nb2O5 Correlogram Parameter in Carbonatite ................................................ 17-5Table 17-4: Block Model Dimensions .................................................................................................. 17-5Table 17-5: Estimation Parameters for Ta2O5 and Nb2O5 ................................................................... 17-6Table 17-6: Mean Grades for NN, OK and ID3 Models ....................................................................... 17-9Table 17-7: Blue River Project Estimated Mineral Resources; Effective Date 30 June, 2010, Tomasz Postolski, P.Eng, Qualified Person ................................................................... 17-20Table 17-8: Blue River Project Sensitivity of Estimated Mineral Resources to Tantalum Price; Effective Date 30 June, 2010, Tomasz Postolski, P.Eng, Qualified Person .................. 17-21Table 21-1: Recommendations Summary ........................................................................................... 21-1FIGURESFigure 4-1: Location Map ...................................................................................................................... 4-2Figure 4-2: Blue River Mineral Tenure Map .......................................................................................... 4-3Figure 7-1: Tectonic Belts of British Columbia and Carbonatite Occurrences ...................................... 7-2Figure 7-2: Local Geology Map ............................................................................................................. 7-5Figure 7-3: Deposit Area Surface Geology Map ................................................................................... 7-6Figure 7-4: Drill Collar and Vertical Section Locations .......................................................................... 7-9Figure 7-5: Lower Road Longitudinal Section 352800 E .................................................................... 7-10Figure 7-6: Geology Section 5796737 N ............................................................................................. 7-11Figure 7-7: Geology Section 5796425 N ............................................................................................. 7-12Figure 7-8: Folding Indicators (Hole F08-150 121.8 m to 129.8 m) .................................................... 7-13Figure 7-9: Folding Indicators (Hole F08-150: 143.5 m and 147.0 m) ................................................ 7-13Figure 7-10: Folding Indicators (Hole F08-151: 204.0 m to 204.5 m) ................................................... 7-14Figure 9-1: Tantalum and Niobium Rich Mineralogy within Carbonatite ............................................... 9-3Figure 10-1: Soil Geochemistry Map ..................................................................................................... 10-4Figure 13-1: SRM BR-01 Control Chart ................................................................................................ 13-3Figure 13-2: 2008 “Robert” SRM Ta Performance ................................................................................ 13-4Figure 13-3: 2008 “Robert” SRM Nb Performance ............................................................................... 13-4Figure 13-4: 2009 “Robert” SRM Ta Performance ................................................................................ 13-5Figure 13-5: 2005 Pulp Check Sample Ta RMA Plots .......................................................................... 13-6Figure 13-6: 2005 Pulp Check Sample Nb RMA Plots ......................................................................... 13-6Figure 13-7: 2008 Acme Pulp Check Sample Ta RMA Plots ................................................................ 13-7Figure 13-8: 2008 Acme Pulp Check Sample Nb RMA Plots ............................................................... 13-7Figure 13-9: Min-Max Plot – Ta Precision for Field Duplicates Between 2006 and 2009 .................... 13-9Figure 13-10: Min-Max Plot – Nb Precision for Field Duplicates Between 2006 and 2009 .................... 13-9Project No.: 162230 TOC v31 January 2011
  10. 10. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORTFigure 13-11: 2008 Pulp Duplicate Failure Min Max Ta Chart .............................................................. 13-11Figure 13-12: 2008 Pulp Duplicate ARD vs. Grade Ta Chart ............................................................... 13-11Figure 13-13: 2008 Pulp Duplicate Failure Min Max Nb Chart ............................................................. 13-12Figure 13-14: 2008 Pulp Duplicate ARD vs. Grade Nb Chart ............................................................... 13-12Figure 13-15: 2008 Pulp Duplicate RMA Ta Chart................................................................................ 13-13Figure 13-16: 2008 Pulp Duplicate RMA Nb Chart ............................................................................... 13-13Figure 13-17: 2009 Pulp Duplicate RMA Ta Chart................................................................................ 13-14Figure 13-18: 2009 Pulp Duplicate ARD vs. Grade Ta Chart ............................................................... 13-14Figure 13-19: 2009 Pulp Duplicate RMA Nb Chart ............................................................................... 13-15Figure 13-20: 2009 Pulp Duplicate ARD vs. Grade Nb Chart ............................................................... 13-15Figure 13-21: Blank Control Chart for Tantalum Analyses ................................................................... 13-16Figure 13-22: Blank Control Chart for Niobium Analyses ..................................................................... 13-16Figure 14-1: Drill Hole Collar Identification ............................................................................................ 14-3Figure 16-1: Sample BS-2F – Gravity Separation (Different Grinds) .................................................... 16-3Figure 16-2: Sample BS-2G – Gravity Separation (Different Grinds) ................................................... 16-3Figure 16-3: Rougher and Cleaners by Centrifugal Gravity Concentration .......................................... 16-4Figure 16-4: Upgrading by Wilfley & Mozley Units ................................................................................ 16-5Figure 17-1: Ta2O5 Histograms and Probability Plot Within Carbonatite .............................................. 17-3Figure 17-2: Nb2O5 Histograms and Probability Plot Within Carbonatite .............................................. 17-4Figure 17-3: Ta2O5 ID3 Model Within Carbonatite – plan 1146.25 ....................................................... 17-7Figure 17-4: Ta2O5 ID3 Model Within Carbonatite – section N5796932.5 ............................................ 17-8Figure 17-5: Nb2O5 ID3 Model Within Carbonatite – plan 1146.25 ....................................................... 17-8Figure 17-6: Nb2O5 ID3 Model Within Carbonatite – section N5796932.5 ........................................... 17-9Figure 17-7: Swath Plot for Ta2O5 ID3 Model ...................................................................................... 17-10Figure 17-8: Swath Plot for Nb2O5 ID3 Model ..................................................................................... 17-11Figure 17-9: Herco Grade – Tonnage Curves for Ta2O5 ID3 Model ................................................... 17-12Figure 17-10: Herco Grade – Tonnage Curves for Nb2O5 ID3 Model ................................................... 17-13Figure 17-11: Lithology in 2010 Drill Holes vs. Current Solids – Section N5796902.5 ......................... 17-14Figure 17-12: Resource Classification - Plan 1,161.25 ......................................................................... 17-15Figure 17-13: Resource Classification – Section N 5,796,882.5 .......................................................... 17-16APPENDICESAppendix A: List of ClaimsProject No.: 162230 TOC vi31 January 2011
  11. 11. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORTU NI TS OF M E AS URECentimetre ...................................................................................................... cm 3Cubic centimetre ............................................................................................. cm 3Cubic metre .................................................................................................... m 3Cubic yard ....................................................................................................... ydDegree ............................................................................................................ °Degrees Celsius ............................................................................................. °CDry metric ton ................................................................................................. dmtGram ............................................................................................................... gGrams per litre ................................................................................................ g/LGrams per tonne ............................................................................................. g/tGreater than.................................................................................................... > 2Hectare (10,000 m ) ....................................................................................... haKilo (thousand)................................................................................................ kKilogram .......................................................................................................... kgKilometre......................................................................................................... kmLess than ........................................................................................................ <Litre ................................................................................................................. LMetre ............................................................................................................... mMetres per second .......................................................................................... m/sMetric ton (tonne)............................................................................................ tMicrometre (micron)........................................................................................ µmMilligram ......................................................................................................... mgMilligrams per litre........................................................................................... mg/LMillilitre ............................................................................................................ mLMillimetre ........................................................................................................ mmMillion .............................................................................................................. MMillion tonnes .................................................................................................. MtMinute (plane angle) ....................................................................................... Minute (time) ................................................................................................... minMonth .............................................................................................................. moNiobium ........................................................................................................... NbOunce ............................................................................................................. ozParts per billion ............................................................................................... ppbParts per million .............................................................................................. ppmPercent ........................................................................................................... %Pound(s) ......................................................................................................... lbSecond (plane angle) ..................................................................................... "Second (time) ................................................................................................. sShort ton (2,000 lb) ......................................................................................... stShort ton (US) ................................................................................................. tShort tons per day (US) .................................................................................. tpdShort tons per hour (US) ................................................................................ tphShort tons per year (US) ................................................................................. tpySpecific gravity................................................................................................ SG 2Square centimetre .......................................................................................... cm 2Square foot ..................................................................................................... ft 2Square inch..................................................................................................... inProject No.: 162230 TOC vii31 January 2011
  12. 12. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT 2Square kilometre............................................................................................. km 2Square metre .................................................................................................. mTantalum ......................................................................................................... TaThousand tonnes ............................................................................................ ktTonne (1,000 kg) ............................................................................................ tTonnes per day ............................................................................................... t/dTonnes per hour ............................................................................................. t/hTonnes per year.............................................................................................. t/aWeek ............................................................................................................... wkYard ................................................................................................................ ydYear (annum) .................................................................................................. aYear (US) ........................................................................................................ yrC ONV E RSI ON F AC TOR S1 ppm Ta = 1.2211 ppm Ta2O51 ppm Nb = 1.4305 ppm Nb2O5One tonne is the equivalent of 2,204.6 lbs.Dollars are expressed in United States currency (USD).Universal Transverse Mercator (UTM) coordinates are provided in the NAD83 datum of Canada, Zone 11.Project No.: 162230 TOC viii31 January 2011
  13. 13. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT1.0 SUMMARY AMEC Americas Limited (AMEC) was commissioned by Commerce Resources Corporation (Commerce), to provide a Preliminary Assessment (PA) of Commerce’s wholly-owned Blue River tantalum and niobium Project (the Project) located in the Province of British Columbia. As part of the on-going PA, AMEC completed an independent Qualified Person’s review and prepared an updated mineral resource estimate. This report (Report) documents the updated mineral resource estimate for the Upper Fir and Bone Creek areas, collectively herein called the Blue River deposit.1.1 Principal Findings Total Indicated Mineral Resources are 36.35 million tonnes grading 195 ppm Ta2O5 and 1,700 ppm Nb2O5 Total Inferred Mineral Resources are 6.40 million tonnes grading 199 ppm Ta2O5 and 1,890 ppm Nb2O5 For the purpose of assessing reasonable prospects for economic extraction the following assumptions were made: ○ Underground room and pillar mining methods would be used ○ Metallurgical recovery of 65.4% and 68.2% for Ta2O5 and Nb2O5 respectively ○ $32.00/tonne mining and backfilling cost ○ $17.00/tonne processing and refining cost ○ $2.70/tonne General and Administration ○ $317/kg price of tantalum ○ $46/kg price of niobium1.2 Project Location and Access The Project is located near the community of Blue River, British Columbia, approximately 250 km north of the city of Kamloops and approximately 90 km south of the town of Valemount on Highway 5. Services for mining operations are available at Prince George, Kamloops, and Vancouver, British Columbia, or Edmonton, Alberta.1.3 Mineral Tenure, Surface Rights, and Permits The Project comprises 2-post, 4-post, and mineral cell claims encompassing just over 1,000 km2 of mineral rights within the Kamloops Mining Division. Surface rights are currently defined by the Mineral Tenure Act of British Columbia and allow claim holders to enter and occupy the surface of a claim or lease for the purposes of mineral exploration,Project No.: 162230 Page 1-131 January 2011
  14. 14. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT development, or production. All work is controlled through an established permitting process. Commerce holds appropriate exploration permits and reclamation bonds.1.4 Geology, Deposit Type, and Mineralization Carbonatites represent a diverse carbonate-rich, igneous rock type commonly designated as magmatic segregation deposits. They result from the intrusion, cooling, and crystallization of a primary (magmatic) Ca-Fe-Mg rich carbonate melt, often with some late stage hydrothermal activity that can alter their host rocks. Almost all the known carbonatite occurrences are either intrusive or subvolcanic intrusive rocks. They are comprised of significant and variable amounts of calcite, dolomite, or siderite of igneous origin. Carbonatites can contain economic or anomalous concentrations of incompatible elements such as rare earth elements, niobium-tantalum, zirconium-hafnium, iron-titanium- vanadium, uranium-thorium and industrial minerals such as apatite, vermiculite, magnetite, and barite. The Blue River deposit is hosted within a carbonatite sill swarm with an average thickness of 30 m and a strike length of 1,000 m. The carbonatite is part of Late Proterozoic supracrustal rocks which lie on the north-eastern margin of the Shuswap Metamorphic Complex within the Omineca terrane. Mineralization comprises niobium and tantalum bearing minerals that have crystallized in carbonatite by primary magmatic concentration and in fenite formed by metasomatic alteration of the host metasedimentary rocks. Primary economic minerals are ferrocolumbite and pyrochlore.1.5 History, Exploration, and Drilling The Blue River area has been the subject of intermittent exploration since the discovery of vermiculite bearing carbonatite rock in 1949. Commerce acquired the property in 2000 and initiated exploration for new carbonatite deposits which culminated in the discovery and delineation of the Upper Fir and Bone Creek carbonatites. Diamond drilling is the most extensively used exploration tool at Blue River. There are a total of 215 drill holes within the Upper Fir, Bone Creek and Fir (Lower) carbonatites comprising 41,115 m of HQ and NQ diameter drill holes.1.6 Sample Preparation and Analysis Sampling was on average 1 m length half core, logged and sawn at a facility in the community of Blue River. Samples were shipped to Acme Analytical Laboratories or PRA/Inspectorate Laboratories for preparation. Analyses were completed at Acme Analytical Laboratories. Between 2005 and 2008, Ta and Nb were analysed by ICP-MS following a lithium metaborate / tetraborate fusion and nitric acid digestion. Analysis in 2009 was by X-Ray fluorescence methods following a lithium metaborate fusion.Project No.: 162230 Page 1-231 January 2011
  15. 15. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT1.7 Data Verification Commerce implemented an industry-acceptable quality control program to manage logging, sampling, and analysis. Check samples for initial sample batches identified discrepancies. In 2008 Commerce prepared matrix-matched standard reference material control samples to monitor accuracy and initiated insertion of intra-lab pulp duplicates in addition to secondary pulp check control samples. Primary lab precision and accuracy has been poor but no significant biases are apparent for the bulk of results. AMEC completed a database verification check and concludes the collar coordinates, down-hole surveys, lithologies, and assay databases are sufficiently free of error and that the data are suitable to support mineral resource estimation.1.8 Processing and Metallurgical Testwork A mineral processing method using a standard grind-flotation procedure to make a concentrate of ferrocolumbite-pyrochlore is assumed for Blue River material. Metallurgical testing indicates a mineral concentrate assaying about 30% combined Nb-Ta pentoxide within the recovery range of 65% to 70% is possible. The proposed process is similar to that being used commercially at Iamgold’s Niobec Mine in Quebec. This concentrate would be further processed to produce marketable separate Ta and Nb products. The proposed processes are mature, are already used industrially, and consist of reducing the concentrate to metals as either carbide or ferroalloys in a standard aluminothermic, or carbothermic, or silicothermic furnace followed by chlorinating the alloys and distilling the product to separate high purity metal chlorides, TaCl5 and NbCl5. Recoveries from concentrate to pure chlorides are expected to be 97%. Both Ta and Nb chloride products are then readily converted and marketed as high purity oxides Ta2O5 and Nb2O5 respectively. These results are suitable to support the mineral resource classification of the deposit.1.9 Market Study Commerce has prepared assessments of the tantalum and niobium markets which outline their supply and demand. The tantalum assessment was prepared by a tantalum market expert. Although not independent of Commerce, his analysis reflects the general consensus of other analysts regarding the tantalum market expressed in publicly available information. The niobium market assessment was prepared by an independent niobium expert and reflects the publicly available general consensus of analysts for the niobium market. As the Project is still at an early evaluation stage, Commerce has not initiated requests for expression of interests in the proposed Blue River products and has not negotiated any purchase or off-take agreements.Project No.: 162230 Page 1-331 January 2011
  16. 16. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT1.10 Commodity Price The proposed mineral process route by Commerce refines the Blue River concentrate to high purity oxides Ta2O5 and Nb2O5. For tantalum price, tantalum metal scrap was used as a reasonable proxy for price of high purity Ta2O5. For niobium, high purity Nb2O5 is marketed as such and also traded as Nb metal, or ferroalloy. Cut-off grade assumptions of US$317/kg tantalum and US$46/kg niobium, sold as high purity Ta2O5 and Nb2O5 are used to constrain the Mineral Resources. These prices are slightly higher than market information (beginning of Q4 2010) of US$280/kg of tantalum metal and US$44/kg of Nb metal. AMEC considers the slightly higher price assumption is appropriate and is consistent with industry practices of using more optimistic assumptions regarding inputs for resource estimation than what would be used for estimating mineral reserves. The base case price for tantalum metal scrap is reasonable for constraining Mineral Resources based on recent market conditions, but it should be noted it is significantly higher than historical prices. There is a risk that using current price assumptions may not reflect the long term price of Ta and Nb, particularly in the present volatile market conditions.1.11 Mineral Resource Estimation Ta2O5 and Nb2O5 were estimated using an inverse distance to the power of 3 method for the carbonatite domains. Capped drill core assays were composited down the hole to a fixed length of 2.5 m honouring geology boundaries. A four pass interpolation approach was used with each successive pass having greater search distances. A hard boundary was used, meaning that composites from outside the carbonatite were ignored in the interpolation process. The model was validated by comparing composites to block grades on screen, declustered global statistics checks, local bias checks using swath plots, and finally model selectivity checks. Eighty per cent of the carbonatite blocks are classified as Indicated. Fourteen per cent of the carbonatite blocks are classified as Inferred, and six per cent of the block model in carbonatite is unclassified.1.12 Mineral Resource Statement The Mineral Resources were classified in accordance with the 2005 Canadian Institute of Mining, Metallurgy, and Petroleum (CIM) Definition Standards for Mineral Resources andProject No.: 162230 Page 1-431 January 2011
  17. 17. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT Mineral Reserves, incorporated by reference into NI 43-101. Table 1-1 shows the estimated Mineral Resources for the Project. Table 1-1: Blue River Project Estimated Mineral Resources; Effective Date 30 June, 2010, Tomasz Postolski, P. Eng., Qualified Person Ta Price Confidence Mass Ta2O5 Nb2O5 Ta2O5 Nb2O5 [US$/kg] Category [tonnes] [ppm] [ppm] [1000s of kg] [1000s of kg] 317 Indicated 36,350,000 195 1,700 7,090 61,650 Inferred 6,400,000 199 1,890 1,300 12,100 Notes: 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. 4. Discrepancies in contained oxide values are due to rounding. 5. In situ contained oxide reported. The Mineral Resource estimate is supported by base case price assumptions for Ta and Nb which are significantly higher than historic average prices. A review of publicly available market analysts’ opinions shows a general agreement that current political and market conditions support the probability of sustained higher prices. Underground mining methods are envisioned (room and pillar or variants), and the mining recovery may vary from 65 to 85% depending on the success in which pillars can be mined on retreat and/or fill is utilized.1.13 Exploration Potential The Upper Fir carbonatite has exploration potential northward of known deposit extents based on soil sample results. Additional resource definition drilling is warranted. The Bone Creek and Fir carbonatite has exploration potential along, and across strike based on soil sample anomalies. Additional in-fill soil sampling is warranted prior to diamond drilling. The soil sample geochemistry program highlights the need for additional soil sampling at the Mt. Cheadle area. Soil sampling and prospecting at the RD occurrence near Mud Lake, and the Roadside occurrence near Paradise, support follow-up work in the form of soil sampling, geological reconnaissance mapping and prospecting.Project No.: 162230 Page 1-531 January 2011
  18. 18. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT1.14 Conclusions Commerce and its contractor Dahrouge have executed a professional work program that has resulted in the delineation of a tantalum and niobium resource. The Blue River Mineral Resources have the following characteristics: The mineralization is hosted by a poly-folded carbonatite sill swarm averaging 30 m thick and 1,100 m long Close-spaced drilling has confirmed local continuity of the carbonatite Tantalum and niobium occur in ferrocolumbite and pyrochlore minerals and are amenable to conventional flotation and refining processes with estimated recoveries of 65% to 70% The mineral resource estimate is based on information of reasonable quality Flat to moderate dips of the deposit allow large-scale room-and pillar mining. The risk factors are: The base case mineral resource estimate is supported by current Ta and Nb prices which are significantly higher than historic average prices and may not reflect long term prices. Market analysts are in general agreement that current political and market conditions support the probability of sustained higher prices, but this may not occur. The proposed refining methods have been used in commercial applications but have not been demonstrated in test work of Blue River material. Mining recovery is assumed at 70% but could be lower and dilution increased in areas with moderate dips greater than 10°. An extensional faulting event has potential for displacements of greater than 10 m in the carbonatite. Such offsets would likely impact deposit geometry and future mine designs. Uranium and thorium are present in the resource and waste rocks. Any radon produced in the mine and process plant is likely manageable with ventilation, dust control, and monitoring. Expected capex and opex costs will not be significantly increased as a result of these safety measures. Exploration programs completed on the Blue River Project have met their objective of identifying tantalum and niobium mineralization that has reasonable prospects of economic extraction.Project No.: 162230 Page 1-631 January 2011
  19. 19. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT1.15 Recommendations AMEC recommends a work program for an estimated total cost of $4.35 M in Canadian currency. The recommendations are based on the stated Mineral Resource estimate and the assumed commodity price assumptions. The program involves completing the on-going Preliminary Assessment and updating the mineral resource block model with 2010 drilling data and interpretations. Looking forward, a program is recommended based on field work and supporting studies to prepare for more advanced studies. The field based component of the recommendations includes 8,250 m of HQ diameter diamond drilling, a staged re-assay program, metallurgical testwork, soil geochemistry surveys, analyses, geo-metallurgy studies, structural geology studies, marketing studies, core farm security improvements, manpower and field support costs. A Mineral Resource update is recommended upon completion of the recommended field program.Project No.: 162230 Page 1-731 January 2011
  20. 20. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT2.0 INTRODUCTION Commerce Resources Corporation (Commerce) commissioned AMEC Americas Limited (AMEC) to provide an independent Qualified Person’s review and NI 43-101 Technical Report (Report) for the Blue River tantalum-niobium Project (the Project). The Report was prepared to support a Mineral Resource estimate on the Upper Fir and Bone Creek deposits of the Project.2.1 Qualified Persons The following professionals served as the Qualified Persons (QPs) responsible for the preparation of the Report as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects, and in compliance with Form 43-101F1: Mr. Albert Chong, P.Geo., Senior Geologist (AMEC, Vancouver) Mr. Tomasz Postolski, P.Eng, Senior Geostatistician (AMEC, Vancouver) The QPs have been assisted in the preparation of this report by Mr. Greg Kulla, P.Geo. (data verification), Mr. Tony Lipiec, P.Eng. (process and metallurgy), Mr. Ramon Mendoza, P.Eng., (reasonable prospects for economic extraction), and Mr. Graham Wood, M.Sc., M.B.A. (commodity pricing).2.2 Site Visit Mr. Chong completed a data verification site visit to the Project during July 11 to 16, 2010. Outcrops, surface geology, drill hole collars, diamond drilling, logging, and sampling protocols were inspected. Independent quarter-core samples were collected to verify presence of the tantalum and niobium mineralization. Mr. Ramon Mendoza, P.Eng. assisted Mr. Chong during the site visit regarding sites amenable for locating potential infrastructure. Sections of responsibility are summarized in Table 2-1. Table 2-1: Site Visit and Sections of Responsibility Qualified Person Site Visit Sections of Responsibility Albert Chong, P.Geo. July 11 to 16, 2010 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19, 20, 21, 22, 23 Tomasz Postolski, P.Eng. No visit 1, 17, 20, 212.3 Effective Dates The effective date of the Report is 31 January 2011, which represents the date of the most recent scientific or technical information included in the Report.Project No.: 162230 Page 2-131 January 2011
  21. 21. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT The effective date of the Mineral Resource estimate is 30 June 2010, which represents the date at which the drill hole database was closed. Commerce initiated a drill program 1 July 2010. These holes were not used in preparing the Mineral Resource estimate. AMEC inspected the lithology logged for these holes but complete assay data for these holes was not available as of the effective date of this report. There were no material changes to the scientific and technical information of the Project between the effective date of the Report and the signature date of the Report.2.4 Sources of Information and Data AMEC sourced information from reference documents as cited in the text and summarized in Section 22 of this Report. Two technical reports were previously filed on the Project by Commerce: Gorham. J. (2007). Technical Report on the Upper Fir Ta-Nb Bearing Carbonatite 20-June- 2007, 48 p. plus appendices. Stone, M., and Selway, J., 2010. Independent Technical Report, Blue River Property, Blue River, British Columbia, Canada. 116 p. A portion of the background information and technical data for this Report was obtained from the above reports. Additional information was requested from, and provided by Commerce.2.5 Technical Report Sections and Required Items under NI 43-101 Table 2-2 relates the sections as shown in the contents page of this Report to the Prescribed Items in Form 43-101F1.Project No.: 162230 Page 2-231 January 2011
  22. 22. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT Table 2-2: Form 43-101F1 Prescribed Items in Relation to Report Contents NI 43-101 Report Item Section Number NI 43-101 Heading Number Report Section Heading Item 1 Title Page Cover page of Report Item 2 Table of Contents Table of contents Item 3 Summary Section 1 Summary Item 4 Introduction Section 2 Introduction Item 5 Reliance on Other Experts Section 3 Reliance on Other Experts Item 6 Property Description and Location Section 4 Property Description and Location Item 7 Accessibility, Climate, Local Section 5 Accessibility, Climate, Local Resources, Resources, Infrastructure and Infrastructure and Physiography Physiography Item 8 History Section 6 History Item 9 Geological Setting Section 7 Geological Setting Item 10 Deposit Types Section 8 Deposit Types Item 11 Mineralization Section 9 Mineralization Item 12 Exploration Section 10 Exploration Item 13 Drilling Section 11 Drilling Item 14 Sampling Method and Approach Section 12 Sampling Method and Approach Item 15 Sample Preparation, Analyses and Section 13 Sample Preparation, Analyses and Security Security Item 16 Data Verification Section 14 Data Verification Item 17 Adjacent Properties Section 15 Adjacent Properties Item 18 Mineral Processing and Metallurgical Section 16 Mineral Processing and Metallurgical Testing Testing Item 19 Mineral Resource and Mineral Section 17 Mineral Resource and Mineral Reserve Reserve Estimates Estimates Item 20 Other Relevant Data and Information Section 19 Other Relevant Data and Information Item 21 Interpretation and Conclusions Section 20 Interpretation and Conclusions Item 22 Recommendations Section 21 Recommendations Item 23 References Section 23 References Item 24 Date and Signature Page Section 22 Date and Signature Page Item 25 Additional Requirements for Section 18 Additional Requirements for Technical Technical Reports on Development Reports on Development Properties and Properties and Production Properties Production Properties Item 26 Illustrations Illustrations are incorporated in Report under appropriate section number,Project No.: 162230 Page 2-331 January 2011
  23. 23. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT3.0 RELIANCE ON OTHER EXPERTS3.1 Mineral Tenure The AMEC QPs have not reviewed the mineral tenure, nor independently verified the legal status, ownership of the Project area or underlying property agreements. AMEC has fully relied upon, and disclaims responsibility for, information derived from legal experts for this information through the following document: Letter from Clark Wilson LLP titled Commerce Resources Corp. – Mineral Claim Title Opinion to Mr. Greg Kulla, dated October 29, 2010 Information from this letter and memos has been used in Section 4 of this Report.3.2 Permitting and Environment The AMEC QPs have not reviewed the permitting requirements, nor independently verified the permitting status of the Project area. AMEC has fully relied upon, and disclaims responsibility for information derived from experts for this information through the following document: Letter from Sage Resource Consultants Ltd. titled Commerce Resources Corp. Upper Fir Deposit Preliminary Economic Assessment – Independent Professional Opinion on Environmental Permitting and Liability Issues to Mr. Greg Kulla and dated September 29, 2010. Information from this letter and memos has been used in Section 4 of this Report.3.3 Market Analysis The AMEC QPs have relied on tantalum and niobium market analyses derived from experts for this information through the following documents: Confidential memo from Dr. Axel Hoppe titled “Ap#6 Introduction to Tantalum Markets_Finalpdf_2June09.pdf” received 18 October 2010 Confidential memo from Michel Robert titled “Niobium_v3jh.doc” received 18 October 2010 Confidential memo from Michel Robert titled “Niobium_v3jh.doc” received 19 October 2010 Dr. Hoppe is an internationally acknowledged leader in the tantalum field and is Chairman of the Board of Directors for Commerce Resources.Project No.: 162230 Page 3-131 January 2011
  24. 24. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT Mr. Robert has extensive experience in niobium markets and is independent of the company. Information from these memos has been used in Section 17 of this Report.Project No.: 162230 Page 3-231 January 2011
  25. 25. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT4.0 PROPERTY DESCRIPTION AND LOCATION4.1 Property Area and Location The Project is located within the North Thompson River valley of east-central British Columbia 25 to 60 km north and northeast of the community Blue River, British Columbia (Figure 4-1). The NTS sheets which cover the Project are: 83D.004-.006; 83D.014-.016; 83D.024-.027; 83D.034-.037; 83D.045-.047. The Project is centered at approximately 52° 19 N latitude and 119° 10 W longitude.4.2 Mineral Tenure The Project comprises 249 2-post claim, 4-post claim, and mineral cell title submission (MCX) mineral claims in good standing that encompass just over 1,000 km2 (105,373.23 ha) within the Kamloops Mining Division. These claims are wholly owned by Commerce. The claim boundaries are shown in Figure 4-2 and a table listing claim details is included in Appendix A. The Project’s 2011 annual work assessment cost is $ 834,607. An additional $ 42,149 is required for filing fees. Property boundaries are established in accordance with the Mineral Tenure Act of British Columbia. Commerce has staked the claims by a combination of ground and on-line staking. McElhanney Associates Land Surveying Limited of Vancouver B.C. has installed differential GPS control points. Two-post and 4-post claims were established through a legacy system of ground staking which involved physically establishing claim posts on the ground. MCX claims are established using the Government of British Columbia’s Mineral Titles Online (MTO) staking system. MTO is an Internet-based mineral titles administration system that allows mineral exploration industry to acquire and maintain mineral titles by selecting the area on a seamless digital GIS map of British Columbia. The electronic Internet map allows selection of single or multiple adjoining grid cells. Cells range in size from approximately 21 hectares (457 m x 463 m) in the south to approximately 16 hectares at the north of the province. All boundaries are oriented north-south and east-west4.3 Surface Rights The Mineral Tenure Act of British Columbia provides for a recorded claim holder to use, enter and occupy the surface of a claim or lease for the exploration and development or production of minerals or placer minerals, including the treatment of ore and concentrates, and all operations related to the exploration and development or production of minerals or placer minerals and the business of mining. Access to surface rights held by third parties typically requires compensation. No mining activity may be initiated until the recorded claim holder receives the permit under section 10 of the Mines Act.Project No.: 162230 Page 4-131 January 2011
  26. 26. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT Two of Commerce’s mineral claims (530510 and 530511) along the North Thompson River overlap surface rights owned by other parties. The overlapped area may require negotiations in the future for land use purposes. AMEC is not aware of any known material issues regarding access and land use for the claims. Figure 4-1: Location Map Note: Figure courtesy of Dahrouge Consulting Ltd (Dahrouge). Grid is in metres for UTM NAD83 Zone 11.Project No.: 162230 Page 4-231 January 2011
  27. 27. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT Figure 4-2: Blue River Mineral Tenure Map Note: Figure courtesy of Dahrouge. Grid is in metres for UTM NAD83 Zone 11.Project No.: 162230 Page 4-331 January 2011
  28. 28. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT4.4 Permitting and Environmental Liabilities There are no known environmental or permitting issues particular or unique to the Upper Fir and Bone Creek deposits. Commerce currently holds a multi-year Mineral and Coal Exploration Activities and Reclamation Permit, permit number MX-15-138, which was issued by the British Columbia Ministry of Energy Mines and Petroleum Resources under the Mines Act in September 2001 and most recently amended in June 2010. This permit grants permission for Commerce to continue carrying out exploration activities that will support the ongoing economic evaluation of the Upper Fir and Bone Creek deposit. The permit is valid until 31 December 2012 after which time an application to amend the permit will need to be prepared and submitted, if required. There are no foreseeable reasons that additional permit amendments would not be approved by the British Columbia Ministry of Energy Mines and Petroleum Resources for continued exploration activities. Associated with permit MX-15-138 is a reclamation security bond in the amount of $83,000. This bond is currently posted as Safekeeping Agreements held by both BMO and the B.C. Ministry of Finance. Commerce’s current reclamation practice is to reclaim areas disturbed during mineral exploration on an ongoing basis as they become available, thereby limiting their environmental liability.4.5 Royalties, Payments, and Agreements There are no known royalties, back-in rights, agreements, or encumbrances attributed to the claims.4.6 Location of Known Mineralization Locations of known tantalum-niobium enriched carbonatite mineralization are noted in Figure 4-1. Two main clusters of carbonatite occurrences are known at the Project. The first cluster hosts the Fir, Upper Fir and Bone Creek deposits and is located between Bone and Gum Creeks. The second cluster hosts the Verity, Mill, Serpentine, plus Roadside deposits and is located approximately 7 km further north and occurs between Serpentine and Mill Creeks.Project No.: 162230 Page 4-431 January 2011
  29. 29. COMMERCE RESOURCES CORPORATION BLUE RIVER TA-NB PROJECT BLUE RIVER, BRITISH COLUMBIA NI 43-101 TECHNICAL REPORT4.7 Comment on Section 4 AMEC concludes: Commerce owns 100% of the property mineral rights. Commerce has paid annual claim-holding fees for the property. Commerce holds a valid mineral exploration permit for the property. The property is not subject to any known environmental liabilities. The property is not subject to any royalties, back-in rights, agreements, or encumbrances.Project No.: 162230 Page 4-531 January 2011

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