Commerce Resources has closed a $5 million private placement to advance its Ashram rare earth deposit in Quebec. The company will use the funds for metallurgical testing and exploration at Ashram, which is at the pre-feasibility stage. Commerce is optimizing its flowsheet to produce a mixed rare earth carbonate concentrate from a pilot plant and demonstrate the viability of its product to end users. The company also owns the Upper Fir tantalum-niobium deposit in BC.
Secutor Capital Management Corporation Update on Commerce Resources Corp. (De...Rare Earths / Rare Metals
Secutor Capital Management Corporation provides an update on rare earth element explorer Commerce Resources Corp. The update was released December 22, 2014.
Secutor Capital Management Corporation Update on Commerce Resources Corp. (Fe...Rare Earths / Rare Metals
Secutor Capital Management Corporation update on Commerce Resources Corp. On February 11, Commerce announced the start-up of the mineral processing
mini pilot plant for Ashram. During 2014, Commerce completed bench scale testing of the deposit and confirmed a mineral processing flowsheet that included a grinding circuit, a flotation circuit, a weak hydrochloric acid (HCl) leach to remove carbonate, and Wet High Intensity Magnetic Separation (WHIMS) to remove fluorite. The resultant mineral concentrate assayed 43.6% total rare earth oxide (TREO) with recoveries of 70.7%. A mini pilot plant is the next step to substantiate the Company’s flowsheet and the viability of its rare earth concentrate products. Commerce estimates that $1.2 million will be
required to complete downstream metallurgical work at Ashram, including the operation of the hydrometallurgical pilot plant portion...
Commerce Resources Corp. (TSXv: CCE) is pleased to announce that a reduction in flowsheet processing steps has been confirmed at the pilot scale for the Company's 100% owned Ashram Rare Earth Deposit.
Commerce Resources Corp. (TSXv: CCE) announces the achievement of key metallurgical milestones with the successful completion of a leach mini-pilot plant and the subsequent production of the highest-grade mineral concentrate to date from the Company’s 100% owned Ashram Rare Earth Deposit.
Commerce Resources Corp. (TSXv: CCE) announces that the flotation mini-plany is underway using bulk sample material from the company's 100% owned Ashram Rare Earth Deposit in northern Quebec.
Secutor Capital Management Corporation Update on Commerce Resources Corp. (De...Rare Earths / Rare Metals
Secutor Capital Management Corporation provides an update on rare earth element explorer Commerce Resources Corp. The update was released December 22, 2014.
Secutor Capital Management Corporation Update on Commerce Resources Corp. (Fe...Rare Earths / Rare Metals
Secutor Capital Management Corporation update on Commerce Resources Corp. On February 11, Commerce announced the start-up of the mineral processing
mini pilot plant for Ashram. During 2014, Commerce completed bench scale testing of the deposit and confirmed a mineral processing flowsheet that included a grinding circuit, a flotation circuit, a weak hydrochloric acid (HCl) leach to remove carbonate, and Wet High Intensity Magnetic Separation (WHIMS) to remove fluorite. The resultant mineral concentrate assayed 43.6% total rare earth oxide (TREO) with recoveries of 70.7%. A mini pilot plant is the next step to substantiate the Company’s flowsheet and the viability of its rare earth concentrate products. Commerce estimates that $1.2 million will be
required to complete downstream metallurgical work at Ashram, including the operation of the hydrometallurgical pilot plant portion...
Commerce Resources Corp. (TSXv: CCE) is pleased to announce that a reduction in flowsheet processing steps has been confirmed at the pilot scale for the Company's 100% owned Ashram Rare Earth Deposit.
Commerce Resources Corp. (TSXv: CCE) announces the achievement of key metallurgical milestones with the successful completion of a leach mini-pilot plant and the subsequent production of the highest-grade mineral concentrate to date from the Company’s 100% owned Ashram Rare Earth Deposit.
Commerce Resources Corp. (TSXv: CCE) announces that the flotation mini-plany is underway using bulk sample material from the company's 100% owned Ashram Rare Earth Deposit in northern Quebec.
Commerce Resources Corp. announces that it has made significant metallurgical improvements to its mineral concentrate for the Ashram Rare Earth Deposit. Overall rare earth element recoveries have now increased from 71% to 76% while maintaining a grade of greater than 40% TREO. In addition, the recent testwork has simplified the leach process stage of the flowsheet through the elimination of the secondary leach.
The Advanced Reservoir Engineering Course course addresses modern practical aspects of Reservoir Engineering during 5-days packed with 7 hours of lectures, classroom exercises, discussions and literature reviews.
At the end of the Advanced Course participants will have a deeper knowledge of modern reservoir engineering principles and practices for reservoir development and production, including the estimation of oil and gas reserves. They will also have an awareness of the construction and use of reservoir models.
This course is intended for staff that have had prior exposure to exploration and production activities. Target categories of staff include Production and Reservoir Engineers, Petrophysicists, Geologists and Engineers involved with exploration and development of oil and gas reservoirs. The course is also useful for Petroleum Engineering team leaders, Production staff, IT staff and support staff working with Reservoir Engineering and development and production. Reservoir Engineers with a few years practical experience and Petroleum Engineers and Geoscientists that require more than general knowledge of reservoir engineering.
Participant’s understanding of fundamental concepts and modern practical reservoir engineering methods will be deepened and a wide range of topics is addressed.
Course topics include detailed treatment of PVT, oil and gas material balance methods, well modelling and well testing, SPE and SEC reserves estimation, displacement theory, reservoir and simulation modeling, fractured reservoirs, decline curve analysis, field development planning and production forecasting.
Major Step Forward: Commerce Resources succeeds in producing marketable mixed...Stephan Bogner
Rare Earth Elements (REE) prices are sky-rocketing, reaching levels last seen during the 2011-boom. Back then, it became obvious to the Western world that the Chinese dominance in the REE sector needs to be broken to ensure a reliable source for the future. Only now are governments in the US, EU and Australia starting to act and providing funding for REE projects to accelerate new sources coming online in the next years, when a dramatically widening supply shortfall is anticipated.
With its Ashram REE & Fluorspar Deposit in Quebec, Commerce Resources Corp. owns one of the world‘s largest REE resources with one of the highest distributions on the rare earths needed for the production of permanent magnets in electric vehicles (EVs) and wind turbines: NdPr (neodymium and praseodymium).
Commerce Resources Corp. announces that it has made significant metallurgical improvements to its mineral concentrate for the Ashram Rare Earth Deposit. Overall rare earth element recoveries have now increased from 71% to 76% while maintaining a grade of greater than 40% TREO. In addition, the recent testwork has simplified the leach process stage of the flowsheet through the elimination of the secondary leach.
The Advanced Reservoir Engineering Course course addresses modern practical aspects of Reservoir Engineering during 5-days packed with 7 hours of lectures, classroom exercises, discussions and literature reviews.
At the end of the Advanced Course participants will have a deeper knowledge of modern reservoir engineering principles and practices for reservoir development and production, including the estimation of oil and gas reserves. They will also have an awareness of the construction and use of reservoir models.
This course is intended for staff that have had prior exposure to exploration and production activities. Target categories of staff include Production and Reservoir Engineers, Petrophysicists, Geologists and Engineers involved with exploration and development of oil and gas reservoirs. The course is also useful for Petroleum Engineering team leaders, Production staff, IT staff and support staff working with Reservoir Engineering and development and production. Reservoir Engineers with a few years practical experience and Petroleum Engineers and Geoscientists that require more than general knowledge of reservoir engineering.
Participant’s understanding of fundamental concepts and modern practical reservoir engineering methods will be deepened and a wide range of topics is addressed.
Course topics include detailed treatment of PVT, oil and gas material balance methods, well modelling and well testing, SPE and SEC reserves estimation, displacement theory, reservoir and simulation modeling, fractured reservoirs, decline curve analysis, field development planning and production forecasting.
Major Step Forward: Commerce Resources succeeds in producing marketable mixed...Stephan Bogner
Rare Earth Elements (REE) prices are sky-rocketing, reaching levels last seen during the 2011-boom. Back then, it became obvious to the Western world that the Chinese dominance in the REE sector needs to be broken to ensure a reliable source for the future. Only now are governments in the US, EU and Australia starting to act and providing funding for REE projects to accelerate new sources coming online in the next years, when a dramatically widening supply shortfall is anticipated.
With its Ashram REE & Fluorspar Deposit in Quebec, Commerce Resources Corp. owns one of the world‘s largest REE resources with one of the highest distributions on the rare earths needed for the production of permanent magnets in electric vehicles (EVs) and wind turbines: NdPr (neodymium and praseodymium).
Rare earths are making a rabble-rousing comeback and Commerce Resources Corp....Stephan Bogner
Most recently, U.S. President Joe Biden and Canadian Prime Minister Justin Trudeau committed to building an EV (“Electric Vehicle“) supply chain between both countries. “The move comes as demand for electrified transportation is set to surge over the next decade“, Reuters noted and added that “Washington is increasingly viewing Canada as a kind of ´51st State´ for mineral supply purposes and plans to deepen financial and logistical partnerships with the country’s mining sector over time, according to a U.S. government source“. In light of China still dominating the rare earth elements (“REEs“) supply chains and a supply gap emerging over the next few years, new REE projects are needed to meet future demand.
Highest niobium mineralized sample to date at MirannaStephan Bogner
Last week, the company reported sampling assays from the Miranna Area, located only 1 km east of its Ashram REE Deposit in Québec. The best results include 5.9% and 4.2% niobium pentoxide (Nb2O5). The 9 selected samples reported by Commerce averaged 2.3% Nb2O5. Of all 64 samples, 40 assayed >0.5% Nb2O5, with 16 surpassing 1%. Sampling also found significant grades of tantalum, phosphate and rare earth oxides (2 samples each graded >1,000 ppm Ta2O5 and 1% Nb2O5, while several samples revealed >10% P2O5).
When comparing these niobium grades with the range of global average mining grades of about 0.5 to 1.5% Nb2O5, and the average grades of niobium exploration projects, Commerce Resources indeed has every reason for being enthusiastic.
Niobium focused juniors seem to be enjoying a recent lift in share prices and market valuations potentially due to positive demand growth for niobium for structural steel for infrastructure projects, as well as for the current lighter and stronger chassis for cars. MDN Inc. has recently seen its’ share price appreciate by almost 400% following the announcement of their acquisition of the James Bay Niobium Project, called the Argor Project, which has an historic indicated resource with a grade of 0.52% Nb2O5.
Last year, NioCorp Developments Ltd. (originally structured by Zimtu Capital Corp.) reported an average indicated resource grade of 0.71% Nb2O5 assuming a 0.3% cut-off grade at its Elk Creek Niobium Deposit in Nebraska, USA. Today, NioCorp enjoys a market valuation exceeding $150 million CAD.
Presentation by Dr Robert Wright, APEC and US Department of Energy at the 2015 CCUS Workshop on CO2 Storage, January 22 at the University of Sonora, Hermosillo
In this session - slides seminar will Pär Larshans CSO, Ragnsells share the Why we need to recover and recycle phosphorus, and how it will help with safer food production and cleaner oceans, please share.
See live presentation here, start Why to Act for the Climate and now, we have the technology! (Time in video 30.51 - 53.58 min)
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Commerce Resources Corp. (TSXv: CCE) announces that it has received the 2015 e3 Plus Award, presented annually by the Association de l'exploration minière du Québec (AEMQ), for its work in advancement of the Ashram Rare Earth Project in Northern Quebec.
Jourdan Resources is a Public Company listed on the TSX V trading under the symbol JOR.
Jourdan is active in exploration for phosphate in Quebec, developing on demand ammonia technology, and fertilizer testing with marijuana grow ops.
On December 4, 2013, Commerce Resources Corp. (TSXv: CCE) announced significant advancements in the metallurgical flowsheet for the Ashram Rare Earth Deposit.
Deep South Resources Presentation September 2017MomentumPR
TSX-V-DSM, 52 million shares issued; Teck Resources holds 35% of DSM; Board and Management hold 16% of DSM;
Haib Copper Project – world class resource potential:
An existing 2 billion lbs Cu Historical Estimate*, open near surface and at depth; Over 65,000 metres of diamond drilling by 5 mining companies in the last 50 years including 14,000 metres of drilling by Teck in the recent years; Excellent mining jurisdiction – Namibia: Best investment jurisdiction in Africa; politically and economically stable country and Solid infrastructure;
INALProject – Major gold and Lithium potential
Neighboring and along trend to the Kinross Tasiast 21 Moz gold mine; Pegmatites bodies with spodumen over a length of 40 km and 10km width; Strongly under-explored country – Mauritania;
Seasoned and renowned technical management team, experienced board of directors.
Similar to Secutor Capital Management: Commerce Resources Corp. (October 2014) (20)
A broad range of non-fuel metals and minerals are critical to the United States commercial manufacturing base, the US hopes for a transition to a green-energy economy, sustained innovations in the high-tech sector, and advanced weapons systems to allow our military to e!ectively fulfil its mission to protect the homeland and project American power around the globe.
As a result, access to critical and minerals and metals becomes a matter of national security. Given that, one would expect that formulating a coherent national mineral strategy to ensure such access would be a public policy imperative.
Rare Earth Elements in National Defense: Background, Oversight Issues, and Op...Rare Earths / Rare Metals
Members of Congress have expressed concern over U.S. acquisition of rare earth materials composed of rare earth elements used in various components of defense weapon systems. Congress may encourage DOD to develop a collaborative, long-term, well-thought-out strategy designed to identify any material weaknesses and vulnerabilities associated with rare earths and to protect long-term U.S. national security interests.
This bulletin looks at the ongoing changes in Chinese REE policies, and muses how this will affect western access to rare earths in the relatively short term. There is also a discussion of the developments in the world of niobium.
Rare Metals Report on Tantalum & Niobium by Jacob Securities (July 19, 2011)Rare Earths / Rare Metals
Luisa Moreno, Ph.D, Equity Research Analyst with Jacob Securities Inc. has released their premier research report on the rare metals tantalum and niobium. The report mentions the listed companies with clear exposure to tantalum and niobium. This includes Commerce Resources Corp. (TSXv: CCE), Noventa Ltd. (TSX: NTA) and Pacific Wildcat Resources Corp. (TSXv: PAW).
A new guide to niobium and tantalum has been published by the British Geological Survey (BGS) on its website. These little-known metals have some unique properties which make them essential ingredients in a wide range of products, from mobile phones to artificial hips. As commodity prices rise and access to some raw materials becomes more difficult, a small group of so-called ‘critical metals’ is causing particular concern. Niobium and tantalum are two of the most widely used metals on this critical list. Because of their unique properties and their essential role in the manufacture of steel and electronic capacitors, they are hard to substitute.
Supply concerns surrounding these metals have been heightened because illegal mining of niobium-tantalum ore (sometimes known as ‘coltan’) has been linked to conflict in some parts of Africa.
The newly-published Niobium-Tantalum Commodity Profile from the BGS provides a concise, authoritative and easy to understand guide to the origins, production and trade of these important metals. Andrew Bloodworth, Head of Minerals and Waste at the BGS said: “Our profile on niobium and tantalum is the latest in a much-respected series from the BGS on critical metals, including rare earths, platinum and tungsten. Its publication is timely as it follows the recent release of the report of the House of Commons Science and Technology Committee inquiry into Strategically Important Metals which calls for more understanding of the role of these metals in our economy”.
On Marhc 22, 2011, at the 2011 TREM (Technology & Rare Earth Metals Center) Conference, Diana Bauer from the US Department of Energy presented this Summary Brief on Critical Metals Strategy.
Secutor Capital Management: Commerce Resources Corp. (October 2014)
1. SECUTOR CAPITAL MANAGEMENT CORPORATION
17 October 2014
COMMERCE RESOURCES CORP
Commerce Resources Update
Cashed Up and Ready to Advance Ashram
COMPANY SUMMARY
Price:
Market Cap:
Common Shares:
Fully Diluted:
52 Wk Range:
30 Day Avg Vol:
Source: Stockhouse
$ 0.20
$ 40.2 MM
201 MM
229 MM
$ 0.05 - 0.34
292,200
Project:
LocaƟon:
Ownership:
Commodity:
Status:
Resource:
Catalysts:
Project:
LocaƟon:
Ownership:
Commodity:
Status:
Resource:
Catalysts:
Ashram Deposit (Eldor)
Nunavik Region, Northern QC
100 %
REE
Pre-Feasibility Stage
29.3 Mt 1.90 % TREO (M&I)
220 Mt at 1.88 % TREO (Inferred)
PFS, metallurgical results, joint
venture partnership
Upper Fir Deposit (Blue River)
250 km north of Kamloops, BC
100 %
Tantalum, Niobium
PEA complete
48.4 Mt at 197 ppm Ta₂O₅,
1610 ppm Nb₂O₅ (Indicated)
5.4 Mt at 191 ppm Ta₂O₅,
1760 ppm Nb₂O₅ (Inferred)
PFS, joint venture partnership
MARKET DATA
TOP HOLDERS
Marquest Asset Management Inc
Zimtu Capital Corp
UBS Global Asset Management
Zurcher Kantonalbank
5.36 %
2.25 %
1.16 %
0.40 %
Company Update
Arie Papernick
Equity Capital Markets
apapernick@secutor.ca
(416) 847-1220
Maria Kalbarczyk, CFA
Analyst
mkalbarczyk@secutor.ca
(416) 545-1015
V-CCE
On October 6th, Commerce Resources closed a private placement for gross
proceeds of $5 million. The Company will use the proceeds of the financing to
advance metallurgical test work and exploraƟon at its pre-feasibility-level
Ashram deposit in Quebec. The Company is conƟnuing to bench test and
opƟmize the flowsheet, and is targeƟng producƟon of a mixed rare earth
carbonate concentrate using feed from a mineral processing mini pilot plant
to demonstrate the viability of its product to end users. While the producƟon
of rare earth elements is anything but straighƞorward, Commerce Resources
is taking all the right measures to de-risk Ashram. In addiƟon, the Company
owns the Upper Fir tantalum-niobium deposit in BriƟsh Columbia, which
warrants addiƟonal aƩenƟon following the recent announcement of the sale
of the IAMGOLD Niobec mine to a consorƟum of companies led by Magris
Resources.
Ashram One of a Handful of Advanced Development Rare Earth Element
(REE) Projects in Canada. Commerce’s Eldor Property in northern Quebec is
fully-owned by the Company, and covers 19,336 hectares over 411 claims in
the central area of the Labrador Trough. Eldor hosts the Ashram rare earth
project. In addiƟon to Ashram, the property has numerous showings of other
types of mineralizaƟon, including niobium, tantalum, phosphate, fluorine,
copper and nickel.
Ashram is a carbonaƟte-hosted rare earth deposit rich in middle and heavy
rare earth oxides. The deposit also features a core zone enriched in middle
and heavy rare earth oxides, referred to as the Middle and Heavy Rare Earth
Oxide Zone (MHREO Zone). Further, the Ashram deposit hosts considerable
concentraƟons of the five criƟcal rare earth elements: neodymium, europium,
terbium, dysprosium, and yƩrium. These criƟcal REEs are anƟcipated to face
supply shortages beginning in 2015, when the demand for these criƟcal REEs
is projected to be 47,400 tonnes per year, versus supply of 41,900 tonnes.
In March 2012, the Company announced an updated resource esƟmate for
Ashram of 29.3 million tonnes of measured & indicated resources grading
1.89% and 219.8 million tonnes of inferred resources grading 1.88% total rare
earth oxides (TREO) at a cut-off grade of 1.25% TREO. The resource esƟmate
was based on 15,692 metres drilled in 45 holes. Since then, the Company has
drilled approximately 2,700 metres over 24 holes targeƟng the deposit.
Ashram has been traced over 700 metres along strike, over a width of 500
metres, to a depth of 600 metres, and remains open to the north, south, and
to depth.
Scrambling to Secure Canadian REE Supply. According to Natural Resources
Canada, there are 11 advanced exploraƟon REE projects in Canada, and 28 in
the world. Canada is aiming to develop its REE industry and to supply criƟcal
REEs to the world market.
In 2013, the Canadian Rare Earth Elements Network (CREEN) was launched
with the support of Natural Resources Canada to sƟmulate Canadian-based
rare earths producƟon and secure 20% of criƟcal REE global supply by 2018, to
promote funding of rare earth research and development, and to educate
2. Commerce Resources Corp 17 October 2014
stakeholders about taking acƟon to avoid REE price volaƟlity and supply shortages such as those witnessed in 2010
and 2011.
In 2013, global REE demand was esƟmated at 115,000 tonnes, and demand is projected to grow to 190,000 tonnes
by 2020. China, which accounts for over 90% of global producƟon and approximately 40% of global reserves, is
anƟcipated to contribute less to global supply as the ministry of Commerce of China imposes export quotas for
China’s REE producƟon and as a result of restricƟons to Chinese producƟon due to environmental concerns.
SECUTOR
CAPITAL MANAGEMENT CORP
CriƟcal REE Supply and Demand
Source: Natural Resources Canada
Advanced Rare Earth Elements ExploraƟon Projects in Canada
Source: Natural Resources Canada
3. Commerce Resources Corp 17 October 2014
Advanced Rare Earth Elements ExploraƟon Projects in Canada ConƟnued
Ashram Cross-SecƟon
Source: Natural Resources Canada
2012 Ashram PEA a Good StarƟng Point…Lots of Room for OpƟmizaƟon. In May 2012, Commerce released a preliminary
economic assessment (PEA) for Ashram, which outlined an open-pit operaƟon with a throughput of 4,000 tpd and a mine life
of 25 years. The PEA outlined annual producƟon of approximately 16,850 tonnes of rare earth oxide based on an average head
grade of 1.81% TREO, including 2,870 tonnes neodymium oxide, 96 tonnes europium oxide, 26 tonnes terbium oxide, 106
tonnes dysprosium oxide, and 440 tonnes yƩrium oxide. The Company esƟmated an operaƟng cost of $95.20 per tonne
treated, or $7.91 per kilogram of REO produced. The Company esƟmated a basket price of $38 per kilogram of REO for the
in-pit resources at the Ɵme the PEA was completed. Currently, the basket price is $32 to $33 per kilogram of REO for the in-pit
resources. Commerce’s PEA was based on the producƟon of a 10% TREO concentrate grade and a 12.7% mass pull. However,
with further test work, Commerce has shown that it can produce a concentrate grading 43.6% TREO, and achieve a mass pull
of 3.1%, which will likely result in a material reducƟon in operaƟng costs. The PEA’s economics were also based on only a
fracƟon of the deposit’s resources, and the global resource could supply the operaƟon with feed for 177 years.
SECUTOR
CAPITAL MANAGEMENT CORP
Rare Earth Oxide Price Deck for PEA
Oxide Original $/Kg *Discounted $/kg
Lanthanum $ 15.00 $ 11.25
Cerium $ 10.00 $ 7.50
Praseodymium $ 76.00 $ 57.00
Neodymium $ 77.00 $ 57.75
Samarium $ 12.00 $ 9.00
Europium $ 905.00 $ 678.75
Gadolinium $ 45.00 $ 33.75
Terbium $ 980.00 $ 735.00
Dysprosium $ 800.00 $ 600.00
Yttrium $ 28.00 $ 21.00
Ashram Basket Price
(Overall Resource) $ 35.03 $ 26.27
Source: Commerce Resources
Ashram Basket Price (In-pit
Resource) $ 38.43 $ 28.82
4. Commerce Resources Corp 17 October 2014
Commerce esƟmated capex for the operaƟon of $763 million, including a 25% conƟngency. The Company’s capex
esƟmate included significant infrastructure costs, including the construcƟon of 185 kilometres of road connecƟng
the property with shipping faciliƟes at on the Koksoak River, as well as $42 million for a docking facility. Development
of the regional infrastructure, including all-weather roads, with the government’s help under the Plan Nord Plus
program may aid in reducing the up-front cost of infrastructure development.
Straighƞorward Flowsheet by REE Standards…AddiƟonal Tweaking Should Result in an Improved End Product. The
REE mineralizaƟon of the Ashram deposit is hosted within monazite, bastnaesite, and xenoƟme, which have been
shown to be amenable to straighƞorward processing using industry standard techniques. There are mulƟple hard
rock mines already in operaƟon which recover REEs from these minerals. Molycorp’s Mountain Pass mine produces
a REO concentrate from bastnaesite, while Lynas CorporaƟon’s Mount Weld mine produces concentrate from mona-zite.
Earlier this year, Commerce completed bench scale tesƟng of the deposit and confirmed a mineral processing
flowsheet that includes a grinding circuit, a flotaƟon circuit, a weak hydrochloric acid (HCl) leach to remove carbon-ate,
and Wet High Intensity MagneƟc SeparaƟon (WHIMS) to remove fluorite. The Company has shown that with this
proposed flowsheet, it can achieve metallurgical recoveries of 70.7%, producing a 43.6% TREO mineral concentrate.
Commerce has also shown that the deposit will require minimal downstream hydromet processing, as a result of a
mass pull of 3.1%. Commerce is advancing the hydromet opƟmizaƟon work for the deposit, which may result in
increased recoveries. Commerce could also potenƟally improve the project’s economics through the producƟon of a
fluorite concentrate.
SECUTOR
Simplified Flowsheet for the ProducƟon of a Rare Earth Mineral Concentrate
CAPITAL MANAGEMENT CORP
Source: Commerce Resources
5. Commerce Resources Corp 17 October 2014
An advantage of the Ashram Deposit is its low acid consumpƟon during processing, which will result in lower operaƟng costs.
The Company is also looking at ways to regenerate the acid used in the process, which may ulƟmately result in further reduc-
Ɵons in acid consumpƟon. Bench tests have shown that Ashram consumes 25 to 90 kilograms acid (100% HCl basis) per tonne
of whole rock without opƟmizaƟon. The Company will look at opƟmizing temperature, pH levels and reagent dosage.
We note that Avalon Rare Minerals has been able to make significant strides at its Nechalacho REE deposit with opƟmizaƟon.
TesƟng of the hydrometallurgical process has improved overall heavy rare earth oxide recoveries to more than 93%. Avalon has
also shown that approximately 80% of the hydrochloric acid used during the processing of ore can be recycled.
In September 2014, Commerce iniƟated downstream hydrometallurgical processing tests at Ashram. The next steps for the
Company include the construcƟon of a mini pilot plant which will allow for the trial producƟon of a mixed rare earth carbonate
(REC) concentrate product which would fit the criteria of an REE processor. Successful trial producƟon of a mixed REC or oxide
end-product would also help the Company secure off-take agreements or end-user partnerships.
Commerce currently has a working capital balance of $6.5 million. During the remainder of the year, the Company plans to
spend $1.2 million on downstream metallurgical work at Ashram, including the operaƟon of a pilot plant, and producƟon of a
cerium- and lanthanum-depleted and thorium-free TREO carbonate concentrate as well as a +40% TREO chloride concentrate
which would fit the facility specificaƟons of an REE processor. In early 2015, the Company will iniƟate a drilling and ground
work program which will allow Commerce to complete a feasibility study for the Ashram deposit
Upper Fir Niobium Tantalum Deposit in the Back Pocket. In addiƟon to the Ashram Deposit on the Eldor Property, Commerce
is the 100% owner of the Upper Fir tantalum niobium deposit on the Blue River Property in BriƟsh Columbia. Upper Fir is a
deposit with indicated resources of 48.4 million tonnes at 197 ppm tantalum pentoxide (Ta2O5) and 1,610 ppm niobium
pentoxide (Nb2O5), as well as inferred resources of 5.4 million tonnes at 191 ppm Ta2O5 and 1,760 ppm Nb2O5 at a tantalum
price assumpƟon of US$381 per kilogram, a niobium price assumpƟon of US$46 per kilogram, as well as an economic cut-off
at operaƟng costs of $45 and $66 per tonne based on a bulk mining and selecƟve mining scenario respecƟvely. A November
2011 PEA outlined an underground operaƟon with a throughput of 7,500 tpd, annual producƟon of 0.57 million kilograms of
tantalum and 4.41 million kilograms of niobium, a mine life of 9.3 years, tantalum cash costs of $24.91/kg per tonne net of
niobium credits, and capex of $379 million. Commerce anƟcipates a flowsheet with standard grinding and flotaƟon to produce
a ferrocolumbite-pyrochlore concentrate. The Company anƟcipates that process would be similar to that used at the
IAMGOLD’s producing Niobec mine.
ConƟngent on the fundamentals of the tantalum market, Commerce will potenƟally begin metallurgical test work for Upper
Fir, as well as move forward with the construcƟon of a pilot plant to produce representaƟve oxide product samples. The
Company believes that the tantalum market may move into a deficit as demand for the mineral conƟnues to increase. Since
2012, approximately 2.6 million pounds of tantalum supply have come offline following the closures of the Wodgina, Tanco,
Noventa and KenƟcha mines.
On October 3rd, IAMGOLD announced the sale of the Niobec mine and the adjacent REE deposit to a consorƟum of companies
led by Magris Resources, Aaron Regent’s investment vehicle. Total consideraƟon for the transacƟon includes cash proceeds of
US$500 million on an aŌer-tax basis, a $30 million payment upon achievement of commercial producƟon at the neighboring
REE deposit, and a 2% gross proceeds royalty on REE producƟon. The mine is the third-largest producer of ferroniobium,
accounƟng for 8 to 9 percent of world consumpƟon, and highlights that niobium can be profitable even in a market dominated
by three large producers.
The transacƟon also brings aƩenƟon to REEs, especially if Magris chooses to develop the adjacent REE deposit as well. Michel
Robert, a mine developer and metallurgist with over 40 years of experience in the mining industry, helped Cambior turn
around the flowsheet at Niobec before its acquisiƟon by IAMGOLD in 2006. Michel believes that development of the REE
deposit could be straighƞorward, because a porƟon of the REE mineralizaƟon is hosted in bastnaesite. In addiƟon, Michel
believes that Magris and its partners could use the same infrastructure for the niobium and REE mine, including the same
underground primary access.
.
SECUTOR
CAPITAL MANAGEMENT CORP
6. Commerce Resources Corp 17 October 2014
During H1/14, Niobec sales and producƟon totalled 2.7 and 2.9 million kilograms of niobium respecƟvely. The plant processed
1.163 million tonnes grading 5,500 ppm Nb2O5, and generated margins of $19 per kilogram of niobium, based on average
realized niobium prices of ~$41 per kilogram and operaƟng costs of ~$22 per kilogram.
In 2011, the world’s largest producer of niobium, CBMM, sold a 15% stake in the company to a Japanese and Korean steel
consorƟum and another 15% stake to a Chinese consorƟum for consideraƟon of US$1.95 and US$1.98 billion respecƟvely. The
consideraƟon implied an enterprise value of ~US$90 per kilogram of 2010 niobium producƟon and ~US$65 per kilogram of
installed capacity.
Summary. The Ashram Project has the potenƟal to be one of the world’s largest REE producing mines. While China sƟll domi-nates
the world’s REE producƟon, commanding approximately 90% of the market, companies have successfully developed rare
earth mines outside of China in recent years. Ongoing concerns about the detrimental environmental impact of Chinese
mines, as well as concerns about China’s status as the prevailing REE supplier should increase the aƩracƟveness of projects like
Ashram.
Commerce’s May 2012 PEA outlined a project NPV of C$2.3 billion, an IRR of 44%, and a 25 year-mine life based on only 15%
of the total resource. Importantly, the project’s mineralogy is simple (relaƟve to other REE deposits) due to the presence of the
minerals monazite, bastnaesite, and xenoƟme which dominate commercial processing in the REE space, allowing Commerce
to use standard processing techniques. In addiƟon, Commerce will be able to produce a 43.6% total rare earth oxide TREO
mineral concentrate, allowing the Company to achieve much lower processing costs than many other projects.
SECUTOR
CAPITAL MANAGEMENT CORP
Source: IAMGOLD
CBMM TransacƟon Metrics
7. Commerce Resources Corp 17 October 2014
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Ticker Company 1 2 3 4 5 6
CCE-V Commerce Resources Corp. X X X
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