Commerce drills 2.07% REO over 129.5 metres at Ashram
Commerce Resources Corp. [CCE-TSXV, OTCQX-CMRZF, D7HO-FSE] on Tuesday released some impressive assay results from 2021 drilling at its Ashram rare earth and fluorspar deposit in Quebec.
The latest results are from the final two holes completed as part of a program which was designed to support the Ashram Project’s feasibility study and determine the initial mineral reserve estimate. The entire program consisted of 12 holes, covering 2,814 metres with the focus on resource infill within the planned open-pit shell.
Drilling highlights include 1.82% rare earth oxide (REO) over 225.4 metres, including 2.07% REO over 129.5 metres and 1.71% REO over 147.8 metres, including 2.14% REO over 60.5 metres.
Based on drilling to date, the company said it anticipates that a large portion of Ashram’s current inferred and indicated resources will be converted to indicated and measured resources.
Due to its simple gangue and well-understood rare earth mineralogy, the Ashram deposit is thought to be capable of producing high-grade mineral concentrates at high recovery (over 40% REO at over 75% recovery), in line with active global producers.
A preliminary economic assessment (PEA) indicates that the project can deliver positive cash flow from a 4,000 tonne-per-day open pit operation with a 25-year initial mine-life. The PEA is based on a March 2012 mineral resource estimate consisting of 1.6 million tonnes at 1.77% rare earth oxide (REO) and 3.8 Fluorspar (F) in the measured category, an indicated resource of 27.2 million tonnes at 1.90% REO and 2.9% F, and an inferred resource of 219.8 million tonnes at 1.88% REO and 2.2% F, at a cut-off grade of 1.25% REO.
Rare earth elements are a group of 15 elements with tongue-twisting names like Neodymium (Nd), Terbium (Tb), Praseodymium (Pr) and Dysprosium (Dy), and which are vital to green technology and high-tech applications.
Rare earths used in magnets (Nd, Pr, Dy Tb) make up the lion’s share of global value.
The U.S. relies on China, the dominant global supplier, for about 80% of its rare earth imports, security of supply has been an issue, underlining the need to develop new sources of rare earths in North America.
“We are excited to finally have all of these drill results returned to us, as they are excellent and are indicative of the huge and well mineralized deposit that the Ashram is,” said Commerce President Chris Grove. “With the REE industry being more focused on monazite dominant mineralogy, as the Ashram is, we look forward to releasing more results from the other programs that are currently underway.”
Assays released Tuesday were collared in the south-central portions of the deposit and intersected grades consistent with previous drilling. Both holes remained mineralized over their entire length.
The company is planning to complete an approximate 2,500-metre drill program this summer at Ashram and will focus on continued infill to improve the confidence of the mineral resource, as well as on the southern portion of the deposit where limited drilling has been completed by comparison and the deposit remains open.
On February 28, 2022, eased 2.4% or $0.005 to 20.5 cents in light trading. The shares currently trade in a 52-week range of 47 cents and 19 cents.