VANCOUVER, May 25, 2015 /CNW/ - Commerce Resources
Corp. (TSXv: CCE, FSE: D7H) (the "Company" or "Commerce") is
pleased to provide an update on its Infrastructure Development
Plan, as part of the ongoing Pre-feasibility Study (PFS) underway
for the Ashram Rare Earth Deposit located in northern
Quebec.
The Preliminary Economic Assessment (PEA) (effective date of
July 5, 2012; revised January 7, 2015) assumed the mineral processing,
as well as all downstream hydrometallurgical processing through to
a mixed rare earth concentrate (REO or REC), would occur at the
mine-site. However, trade-off analyses completed as part of the
ongoing PFS have concluded that the hydrometallurgical processing
would be more cost-effective if located closer to existing
infrastructure, with the St Lawrence Seaway and Maritime regions
targeted. Therefore, for the purposes of the PFS analysis, the
Ashram Project is now divided into "North" and "South" project
areas. The major project infrastructure components considered in
each include:
North Project Area
- Open-pit mine and ancillary infrastructure
- Mine-site mill and beneficiation plant, accommodations, and
ancillary structures
- Mine-site tailings management facility and ancillary
infrastructure
- Mine-site airstrip
- Haul road to transport mineral concentrate from the mine north
to the coast, or south to existing infrastructure
- Docking/Barge facility (if required)
South Project Area
- Hydrometallurgical facility and ancillary infrastructure
- Hydrometallurgical tailings management facility and ancillary
infrastructure
All the remaining on-site data collection (geochemical,
geotechnical, geomechanical, hydrogeological, and hydrological) for
the open-pit mine and immediate area, as required to support the
PFS, are anticipated to be completed by the end of the summer, with
final engineering to PFS level to be completed shortly
thereafter.
Favourable options for the location of either "dry stack" or
"conventional" tailings management facilities have been identified
within close proximity to the deposit and haul road. The option to
select either dry stacking or conventional tailings management
lends the project enhanced versatility through cost-benefit
evaluation and contrasting of the technical merits of each
design.
The details of the mine-site airstrip and haul road route
north to the coast were first discussed in the news release dated
June 19, 2013. Subsequently, a
significant amount of data has now been collected from an on-site
weather station, allowing for a final evaluation of the nine
potential airstrip sites previously identified. An economic
trade-off study is currently underway to evaluate the haul road
route options (i.e. north to coast, or south to existing
infrastructure).
Hydrometallurgical Facility
As noted above, a
preliminary trade-off study compared a hydromet facility operating
at the mine-site or coast (North Project Area), to a
hydrometallurgical facility operating off-site (South Project Area)
at 14 different locations, the majority situated throughout the St.
Lawrence Seaway and Maritime regions. It was concluded that a South
Project Area location would be more favourable than a North Project
Area location through the lower overall costs as well as providing
for year round operating cash flow.
Of the sites evaluated in the South Project Area, four have been
identified as priority candidates for final selection. Community
consultation and further evaluation, both from technical and
economic as well as environmental and social standpoints, are
underway.
Cautionary Statement
The Ashram Project's Preliminary
Economic Assessment (PEA) (effective date of July 5, 2015; revised January 7, 2015) is preliminary in nature, and
includes inferred mineral resources that are considered too
speculative geologically 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 PEA will be realized.
With respect to the ongoing Pre-feasibility Study (PFS), the
results of the studies described in this news release, which
support the Infrastructure Development Plan to be developed as part
of the PFS, will be incorporated along with other necessary
technical data, including geological and engineering studies, into
the PFS with costs and benefits to be described in more detail
therein.
NI 43-101 Disclosure
Darren L.
Smith, M.Sc., P.Geol., Dahrouge Geological Consulting Ltd.,
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 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.
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
"Chris Grove"
Chris
Grove
President
Tel: 604.484.2700
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.
Forward-Looking Statements
This news release contains
forward-looking information which is subject to a variety of risks
and uncertainties and other factors that could cause actual events
or results to differ from those projected in the forward-looking
statements. Forward looking statements in this press release
include but are not limited to that the South Project Area location
would be more favourable than a North Project Area location through
the lower overall costs, that the South Project Area location could
provide for year round operating cash flow and any references
to the PEA as they are preliminary in nature. These
forward-looking statements are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking information. Risks that could change
or prevent these statements from coming to fruition include
changing costs for mining and processing; increased capital costs;
the timing and content of upcoming work programs; geological
interpretations based on current data that may change with more
detailed information; potential process methods and mineral
recoveries assumption based on limited test work and by comparison
to what are considered analogous deposits that with further test
work may not be comparable; the availability of labour, equipment
and markets for the products produced; and despite the current
expected viability of the project, conditions changing such that
the minerals on our property cannot be economically mined, or that
the required permits to build and operate the envisaged mine can be
obtained. The forward-looking information contained herein is given
as of the date hereof and the Company assumes no responsibility to
update or revise such information to reflect new events or
circumstances, except as required by law.
SOURCE Commerce Resources Corp.