Commerce
Resources Corp. Updates Rare Earth Element Exploration at Eldor
Project, Quebec
Commerce Resources Corp. (TSXv:
CCE, FSE: D7H, OTCQX: CMRZF) (the "Company" or "Commerce")
is pleased to provide an update on the summer exploration activities at the
Company's Eldor Project in northern Quebec.
Commerce's 2011 summer drilling program is well
underway with two drill rigs currently operating on site. The Company plans to
complete a minimum of 7,500 metres of drilling as
part of the program. The objective of the program is threefold: (i) to upgrade a
portion of the current resource at the Ashram Zone from the
"inferred" to the "indicated" category; (ii) to continue to
expand the size of the Ashram Zone and to test for areas of higher grades and
middle and heavy rare earth element ("REE") enrichment; and (iii) to
test additional REE targets within the Eldor Carbonatite Complex.
The bulk of the drilling (~6,000 metres) will be conducted at Ashram. The remaining drilling
will test additional exploration targets along the ring structure of the Eldor Carbonatite Complex. The
drill core will be sent in batches to Activation Laboratories in Ancaster, Ontario for assaying. Results are expected
continuously throughout the fall.
Commerce is also working with Hazen Research Inc.
of Golden, Colorado to complete preliminary metallurgical studies for Ashram.
Additionally, the Company has retained Roger Mitchell of Lakehead
University, Ontario to complete advanced mineralogical studies and Environnement Illimite Inc. of
Montreal, Quebec to complete a baseline environmental study. The data from
these studies and the summer drilling program will be used to undertake a
resource update and Preliminary Economic Assessment for Ashram which will be
completed by SGS Canada Inc. -- Geostat.
"Over the past twelve months we have had many
significant achievements and milestones at Eldor
including the discovery of the Ashram Zone, an initial resource estimate and a
successful winter drill program which expanded the deposit significantly,"
said Dave Hodge, Commerce's President. "Now we are rapidly moving through
the next stage of development, with additional drilling, as well as
metallurgical, mineralogical and environmental studies which will lay the
foundation for a resource update and Preliminary Economic Assessment."
The Ashram Zone is a large tonnage rare earth
discovery and is ranked as one of the largest REE deposits outside of China. In
early 2011, Commerce reported an initial NI 43-101 resource estimate for Ashram
of 117.34 million tonnes averaging 1.74% TREO in the
Inferred Category using a base case cutoff of 1.25% TREO (SGS Canada Inc. -- Geostat, April 2011). The resource estimate was based on
twelve holes totalling 3,313 metres
drilled in 2010. Following the resource calculation, Commerce completed a
follow-up winter drill program consisting of seven holes totalling
3,367 metres. The program significantly expanded the
footprint and depth extent of the Ashram Zone beyond that of the current
Inferred Resource. Mineralization at Ashram has now been confirmed over an
approximate area of 600 metres east-west, by 650 metres north-south, to depths of greater than 600 metres. The deposit remains open to the north, east, south,
at depth, and is not fully constrained to the west. Altogether since its
discovery in 2010, a total of 6,680 metres of
drilling has been completed at Ashram. The 7,500 metre
summer drilling program at Eldor will be the most
extensive program completed to date.
The Eldor Property is
located in northern Quebec approximately 130 kilometres
south of the town of Kuujjuaq and 100 kilometres north of Adriana Resources Inc.'s Lac Otelnuk Iron Deposit. The property is 100%-owned by
Commerce and encompasses 404 claims totalling
approximately 19,006 hectares. The Company is well financed and has sufficient
working capital available to complete all of its development and exploration
plans. The Company currently has approximately $12 million in cash and
investments.
NI 43-101 Disclosure
Darren L. Smith, M.Sc., P.Geol., a qualified person
as defined by National Instrument 43-101, supervised the preparation of the
technical information in this news release.
About Commerce Resources Corp.
Commerce Resources Corp. is focused on building
shareholder value through the discovery and development of rare metal and rare
earth element deposits with a 100% focus on Canadian assets. Commerce's
principal assets are its Blue River Tantalum-Niobium Project in British
Columbia and its Eldor Rare Earth Project in Quebec.
At Blue River, Commerce is advancing its Upper Fir
Tantalum and Niobium Deposit through development with a Preliminary Economic
Assessment in the advanced stages of completion. At the Eldor
Project, Commerce's 2010 exploration program led to the discovery of a
significant new rare earth deposit known as Ashram. Commerce reported an
initial NI 43-101 Inferred Resource Estimate for Ashram and is continuing
exploration and drilling in combination with metallurgical, mineralogical and
environmental work. The data from these studies will be used to undertake a
resource update and Preliminary Economic Assessment for the deposit. The Ashram
Deposit is a large tonnage rare earth discovery and is ranked as one of the
largest rare earth deposits outside of China.
Commerce Resources Corp. trades on the TSX Venture
Exchange under the symbol "CCE", the Frankfurt Stock Exchange under
the symbol "D7H" and the U.S. OTCQX under the symbol
"CMRZF."