Commerce Resources Corp.

Published : August 27th, 2015

Commerce Resources Corp. Clarifies and Corrects Disclosure

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Commerce Resources Corp. Clarifies and Corrects Disclosure

Commerce Resources Corp. Clarifies … | Commerce Resources
August 12, 2015 - Commerce Resources Corp. (TSXv: CCE, FSE: D7H) (the "Company" or "Commerce").

As a result of a review by the British Columbia Securities Commission, we are issuing the following news release to clarify our disclosure.

On the Company website the Company did not prominently display the standard cautionary language that the preliminary economic assessment (PEA) for the Ashram REE Deposit is preliminary in nature, includes inferred mineral resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The placement of the standard cautionary has been modified and the language is now found prominently and immediately following any reference to the Ashram REE Deposit PEA on the Company website.

In a corporate presentation titled "Metals for the Future, Tantalum, Niobium and Rare Earth Elements" dated April 2015, the Company did not include the above cautionary language with results of the Ashram PEA; nor did it specifically disclose that the Ashram REE Deposit PEA economic metrics were pre-tax. The current Ashram Technical Report dated January 7, 2015 explains why no after-tax case is included, and that a combined tax rate of around 32.5% may apply to production. All future presentations will contain standard cautionary language featured prominently following any reference to the Ashram REE Deposit PEA with the results disclosed as pre-tax. The presentation has been removed from the website.

In its corporate presentation, on its website, and in reporting the resource estimate and results of the revised PEA for the Ashram REE Deposit completed by SGS Geostat, Canada Inc. (effective date 7th January, 2015), the Company included a statement that is contrary to the definition of a PEA under NI 43-101: "all material above 0.51% TREO is considered to be economic". This is retracted because the base-case resource estimate used as input to the Ashram PEA has a cut-off grade of 1.25% TREO, and the part of these resources considered by the PEA have potential economic viability. In the current PEA, material below the 1.25% resource cut-off and excluded from the economic analysis cannot have "potential economic viability", so it is not "considered to be economic".

In Company news releases dated May 29, June 16, and July 24 of 2015, and in website disclosure, the Company reported resource estimates for the Ashram REE Deposit as "measured and indicated" combined, without also disclosing the individual quantities and grades for the measured and indicated classes. For clarity, the following table provides a compliant statement of the Ashram resource estimate.

The Ashram REE Deposit was the subject of an amended and restated PEA with an effective date 7th January, 2015.

SGS Geostat used a total of 43 drill holes comprising 15,604 metres of NQ-and BTW-sized drill core to develop the mineral resource estimate, with an effective date of March 6, 2012. When using cut-off grade of 1.25% REO, which is the base case for the PEA for the Ashram REE Deposit, resources are estimated as follows:

Category Tonnage Density TREO
Measured 1,590,000 3.07 1.77 1.60 0.089 0.085
Indicated 27,670,000 3.02 1.90 1.77 0.073 0.056
Measured & Indicated 29,270,000 3.02 1.90 1.77 0.073 0.057
Inferred 219,800,000 3.00 1.88 1.77 0.068 0.045
* LREO (light rare earth oxides) is lanthanum oxide plus cerium oxide plus praseodymium oxide plus neodymium oxide.
* MREO (middle rare earth oxides) is samarium oxide plus europium oxide plus gadolinium oxide.
* HREO (heavy rare earth oxides) is terbium oxide plus dysprosium oxide plus holmium oxide plus erbium oxide plus thulium oxide plus ytterbium oxide plus lutetium oxide plus yttrium oxide.

Mineral Resources that are not mineral reserves do not have demonstrated economic viability.

A summary of the PEA follows with appropriate cautionary language:

This economic assessment is by definition preliminary in nature and it includes inferred mineral resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the preliminary economic assessment will be realized.

The Ashram Deposit hosts a well-balanced rare earth distribution throughout in addition to significant enrichment over all five of the rare earths considered to be 'critical' (Nd, Eu, Tb, Dy, and Y). Within the overall resource, there exists a zone of more intense Middle and Heavy Rare Earth Oxide (MHREO) enrichment, termed the 'MHREO Zone'. This type of MHREO enrichment is unique to Ashram and extends from surface with significant tonnage and grade. Overall, the Ashram Deposit has a pervasive enrichment in the MHREOs, with the MHREO Zone itself an area of more intense enrichment occurring directly at surface that extends to depths in excess of 175 m.

Key Findings of the PEA
  • 4,000 t/d, open-pit operation with 0.19:1 (waste:ore) strip ratio over 25 year mine life
  • Pre-tax and pre-financing Net Present Value (NPV) of $2.32 billion dollars at a 10% discount rate
  • Pre-tax Internal Rate of Return (IRR) of 44% and pre-tax payback period of 2.25 years from start of production
  • Estimated capital cost of $763 million (including 25% contingency)
  • Estimated operating cost of $95.20/tonne treated, or approximately $7.91/ kg of rare earth oxide (REO) produced
  • Annual production averaging ~16,850 tonnes of rare earth oxide over life of mine, including 2,870 tonnes Nd oxide, 96 tonnes Eu oxide, 26 tonnes Tb oxide, 106 tonnes Dy oxide, and 440 tonnes Y oxide
  • Rare earth element host mineralogy (monazite, bastnaesite, and xenotime) comprises phases amenable to recovery with processing using conventional and proven techniques
On the "Corporate" page of the Company's website, a "prominent link to a corporate presentation dated September 2012 referenced a positive PEA for the Blue River Property. The Company filed subsequent technical reports for the Blue River Property with effective dates of June 21, 2013 and March 18, 2015, the latter of which is current, and does not support going forward disclosure of a positive Blue River PEA result. This outdated presentation and other media referencing the Blue River PEA have been removed from the website.

NI 43-101 Disclosure
Mr. Darren Smith, M.Sc., P.Geol., a Qualified Person as defined by National Instrument 43-101, read and approved the disclosure of the technical information in this news release.

About Commerce Resources Corp.
Commerce Resources Corp. is an exploration and development company with a particular focus on deposits of rare metals and rare earth elements. The Company is focused on the development of its Ashram Rare Earth Element Deposit in Quebec and the Upper Fir Tantalum and Niobium Deposit in British Columbia.

For more information please visit the corporate website at or contact Investor Relations at 604.484.2700 or [email protected].

On Behalf of the Board of Directors

"Chris Grove"
Chris Grove
Tel: 604.484.2700
Email: [email protected]

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Commerce Resources Corp.

ISIN : CA2006971006
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Commerce Resources is a silver and gold development stage company based in Canada.

Commerce Resources holds various exploration projects in Canada.

Its main exploration properties are ELDOR, BLUE RIVER - FIR, CARBOT, AU-WEN CLAIMS and CABLE CREEK in Canada.

Commerce Resources is listed in Canada and in Germany. Its market capitalisation is CA$ 29.4 millions as of today (US$ 23.5 millions, € 20.6 millions).

Its stock quote reached its highest recent level on May 11, 2007 at CA$ 1.80, and its lowest recent point on August 16, 2019 at CA$ 0.04.

Commerce Resources has 293 860 000 shares outstanding.

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Financings of Commerce Resources Corp.
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4/23/2008Announces New Board Appointment
Project news of Commerce Resources Corp.
9/20/2016update on the 2016 field program currently underway at its 1...
12/4/2013from the Ashram Rare Earth Element Project
11/5/2013Invitation to the Edelmetall- & Rohstoff-Messe 2013
9/13/2013on 2013 Summer Field Program at Ashram Rare Earth Element De...
8/13/2013s Metallurgical Advancements on the Ashram Rare Earth Elemen...
6/19/2013Announces Summer Drill Program at Ashram Rare Earth Element ...
3/27/2013s Programs for Upper Fir Deposit
2/20/2013Produces 40% TREO Mineral Concentrate from Ashram Rare Earth...
11/6/2012Interview with Resource Stock Digest
9/21/2012Engages Roche Ltd. for the Ashram Rare Earth Element Deposit...
6/5/2012Financial Post Features Zimtu Investee Commerce Resources
5/24/2012Reports Robust PEA for Ashram Rare Earth Element Deposit
3/6/2012(Eldor)Reports Significant Increase in Resources and Grade at Eldor
1/27/2012Intersects 325.31m of 1.96% TREO
12/31/2011Exclusive Audio Interview: Resource Stock Digest
12/15/2011Intersects Significant Middle and Heavy Rare Earth Enrichmen...
11/29/2011Comments on Commerce Resources Corp. in Critical Metals Repo...
9/24/2011Amends Option Agreement for Carbo Rare Earth Property
8/26/2011(Eldor)on Rare Earth Element Exploration at Eldor Property, Quebec
5/3/2011(Eldor)Update on Drilling at Eldor Rare Earth Project
3/3/2011Ashram Rare Earth Element Deposit Confirmed as a Large Infer...
3/3/2011(Eldor)Resumes Work at Ashram Rare Earth Zone, Eldor Property, Queb...
1/27/2011(Eldor)Intersects 2.30% TREO over 172.89 m at the Eldor Property, Q...
6/5/2008(Eldor)Drilling Begins at Niobium, Tantalum, Phosphate and Uranium ...
11/6/2007(Au-wen Claims) Doubles Claims for Blue River Tantalum-Niobium Project and ...
10/1/2007Announces 17 Drill Holes on Upper Fir Extend Strike to Over ...
3/5/2007(Blue River - Fir)Announces Upper Fir Resource Estimate
Corporate news of Commerce Resources Corp.
6/21/2016Commerce Resources Corp. Announces Filing of Amended and Res...
6/16/2016Commerce Resources Corp. Receives Grant for Environmental St...
4/7/2016Commerce Resources Corp. Announces Binding Memorandum of Und...
1/5/2016Commerce Resources Corp. Closes Tranche Two Non-Brokered Flo...
10/19/2015Commerce Resources Corp. Reports Significant Improvement in ...
10/8/2015Commerce Resources Corp. Receives the 2015 e3 Plus Award fro...
10/5/2015Commerce Resources Corp. Achieves Key Milestones for the Ash...
9/16/2015Commerce Resources Corp. Intersects 19.71% TREO over 0.82 me...
9/14/2015Commerce Resources Corp. Updates Phase II of the 2015 Drill ...
9/2/2015Commerce Resources Corp. Announces Filing of Preliminary Sho...
9/1/2015Commerce Resources Corp. Intersects 2.44% TREO over 45 metre...
8/27/2015Commerce Resources Corp. Clarifies and Corrects Disclosure
8/27/2015Commerce Resources Corp. Updates Community Dialogue and Info...
8/21/2015Commerce Resources Corp. Updates Community Dialogue and Info...
7/24/2015Commerce Resources Corp. Intersects 18.5% MH-T over 32 m at ...
7/20/2015Commerce Resources Corp. Initiates 2nd Phase of Pilot Plant ...
7/2/2015OTC Markets Group Welcomes Commerce Resources to OTCQX
4/20/2015Commerce Resources Corp. Completes Flotation Pilot Plant for...
4/15/2015Commerce Resources Corp. Completes 22 Drill Holes at the Ash...
3/23/2015Commerce Resources Corp. Announces Filing of an Updated Tech...
3/17/2015Commerce Resources Corp. Announces Annual Filings for its Fi...
3/13/2015/C O R R E C T I O N from Source -- Commerce Resources Corp....
3/11/2015The REE Basket Price Deception and the Clarity of OPEX
2/11/2015Commerce Resources Corp. Initiates Pilot Plant for the Ashra...
2/2/2015Commerce Resources Corp. Initiates Drill Program at the Ashr...
1/13/2015Commerce Resources Corp. Clarifies and Corrects Disclosure
12/22/2014Commerce Resources Corp. Closes $3.5 Million Private Placeme...
12/17/2014Commerce Resources Corp. Announces Private Placement
12/10/2014Commerce Resources Corp. Updates Metallurgical Programs for ...
11/3/2014Commerce Resources Corp. Engages Deloitte Global Metals & Mi...
10/6/2014Commerce Resources Corp. Closes $5 Million Private Placement
9/29/2014Commerce Resources Corp. Announces $4.5 Million Private Plac...
9/23/2014Commerce Resources Corp. Initiates Downstream Hydrometallurg...
9/15/2014Commerce Resources Corp. Appoints New President
8/19/2014Commerce Resources Corp. Updates Metallurgical Flowsheet and...
7/2/2014Commerce Resources Corp. Intersects 2.32% TREO Over 96.66m a...
2/3/2014Interview with Secutor Capital Management Corporation
1/29/2014News Release
1/10/2014News Release
12/23/2013News Release
9/17/2013Blog: Summer 2013 Ashram Drill Program Photo Gallery
7/12/2013Announces Resource Update for Upper Fir Tantalum-Niobium Dep...
1/11/2013Invitation to the 2013 Vancouver Resource Investment Confere...
7/6/2012Announces Updated Mineral Resource for Upper Fir Tantalum-Ni...
7/6/2012Files PEA for Ashram Rare Earth Element Deposit on SEDAR
12/8/2011(Eldor)Drills Significant Heavy Rare Earths at Eldor
9/19/2011Fundamental Research Corp. Issues Rating for Commerce Resour...
9/1/2011Strategy Metals Bulletin: Tantalum Fundamentals
8/4/2011Confirms Middle and Heavy Rare Earth Enrichment at Ashram
6/29/2011(Eldor)Drills 2.10% TREO Over 586 metres at Eldor
6/6/2011Closes $7.5 Million Private Placement
4/19/2011(Eldor)Files NI 43-101 Report for Eldor Rare Earth Mineral Resource
4/18/2011Files NI 43-101 Technical Report for Initial Resource Es...
3/30/2011Fundamental Research Corp. Issues Rating for Commerce Resour...
9/23/2008Welcomes Honourable Gordon Hogg Minister Responsible for Min...
8/11/2008Exploration Update for Blue River Tantalum and Niobium Proje...
7/14/200880% Price Increase for Tantalum Raw Materials
2/15/2008 Announces Graduation to TSX Venture Tier 1
12/19/2007Announces Significant Niobium-Tantalum-Uranium-Gold Minerali...
12/3/2007Featured in The Vancouver Province
11/21/2007President Interview
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