Commerce Resources hits 586.92 meters grading 2.10% TREO
Commerce Resources Corp. (TSXv: CCE FSE: D7H OTCQX: CMRZF) has hit the jackpot at the Ashram Zone pulling one of the longest and highest grading intercepts ever for a rare earth company. The recent winter drill program has been a huge success as Commerce has released the long anticipated results from the first four holes from their winter drill program completed earlier this year. From the news today, the delay was well worth the wait with Commerce releasing some of the best holes to date. Commerce is hitting consistently higher grades as they trace the zone north with an intersection of 36.99 meters grading 3% TREO. Hole 48 hit several samples with grades of 4% TREO with a peak value of greater than 9% TREO.
In four holes they hit...
- 586.92 meters grading 2.10% TREO
- 554.46 meters grading 1.86% TREO
- 588.46 meters grading 1.42% TREO
- 316.03 meters grading 1.06% TREO
The average grade of the four holes.... 1.68%. Combine that with the fact they have drilled the mineralized envelope over 600m x 500m and up to 600 metres depth. Add your density (tonnage factor) of 3 equals 540,000,000 tonnes within the box. I am not saying the next resource calculation will come out with 540Mt, but the potential is there and much more as Commerce continues to define the deposit. So far the deposit geometry is pointing to an open pit where mining would be cost effective and Commerce could focus on higher grade and heavy rare earth enriched areas and stockpile the lower grades. The next resource calculation will dwarf the current report making Ashram just as big as Avalon, if not BIGGER!!! With a much better grade.
Commerce has another three holes to report from the Ashram and an exploratory hole 1km to the north. So there is another set of results after this as well as continued summer drilling further defining and developing the limits of Ashram, which so far seem limitless. Ashram is also unique in the fact that for a carbonatite light rare earth (LREE) deposit, it is host to a consistent 7% medium to heavy rare earth (M/HREE) content throughout the deposit. This is unique for most carbonatite deposits which are almost strictly LREE. Commerce also has elevated neodymium when combined with grade gives you more PPM's than some other recent high content neodymium discoveries. Within Ashram there are enriched zones of 10 - 20% M/HREE content. These zones so far make up two distinct types of mineralization in the deposit. The higher grade 1.2% - 1.45% TREO with 12%-20% M/HREE is associated with the center of the deposit and the lower grades of around 1% grading 10%-15% M/HREE forming a halo around the deposit. What is significant about the lower grading M/HREE enriched zone is that the mineralization is course grained which may be favorable to processing.
With the high grades and continued success in developing the M/HREE enriched zones and a consistent 7% throughout the deposit, it is apparent that Commerce has a very material rare earth discovery in the making that will rival some of the biggest projects set to go online over the next five years in size and grade. If Commerce can continue moving the Ashram forward with metallurgical work and processing and create a product that manufacturers want then Commerce can make a serious bid to be considered with the next tier of potential rare earth producers. It might even be an attractive acquisition. At the current prices Ashram is a potential bulk tonnage open pit mine with high grades set in favorable geology in an area soon to have the infrastructure needed to develop the project. The Ashram Zone cannot be overlooked as a serious contender in the race to supply rare earths.
Looking Forward To...
- Results pending for four holes.
- Metallurgy on core from the 2010 drill program.
- Infill and exploratory drilling
- New resource study
- Preliminary Economic Assessment PEA
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