Commerce Resources Corp. .. gives positive preliminary economic
assessment for the Upper Fir tantalum and niobium deposit in Blue
River, British Columbia, known
DGAP-News: Commerce Resources Corp. .. / Key word (s): Between
Commerce Resources Corp.. report. gives positive preliminary economic
assessment for the Upper Fir tantalum and niobium deposit in Blue
River, British Columbia, known
The main points
- AMECs PEA technical report on the tantalum-niobium project in Blue
River, dated the 29th September 2011, will be published shortly
- The results of the study show a positive cash flow for a possible
underground operation (7,500 tons per day) to Upper Fir at Cash Costs
of 24.91 CAD per kg of tantalum metal (minus the Niobmetallguthaben)
in the form of an oxide product of technical quality.
- AMECs economic evaluation based on the mineral resource of 36.4
million tonnes of indicated mineral resources of 195 ppm (g / t) Ta2O5
and 1.700 ppm (g / t) Nb2O5 and 6.4 million tonnes of inferred
resources of 199 ppm (g / t) Ta2O5 and 1890 ppm (g / t) Nb2O5.
- The PEA (Preliminary Economic Assessment, preliminary economic
assessment) identified opportunities for the optimization of geology
and mining areas, where the key risks lie for project development in
the susceptibility of the project to fluctuations in commodity prices
and the exchange rate of U.S. dollar against the Canadian dollar.
- After completion of the PEA AMEC has now begun work on an updated
mineral resource estimate, the results of the drilled holes and the
end of 2010 to 29 September 2011 include assay results received will
be. This is followed by a technical report of the holes, analysis,
geological mapping and other work is included, Which were carried out
on Upper Fir to the end of Commerce's 2010 field program. A subsequent
update of this technical report is also planned. It will include the
results of drilling conducted in 2011 and metallurgical test programs.
- The results of the PEA are forward-looking information. The
preliminary economic assessment is only preliminary in its nature and
includes inferred mineral resources, one that will be considered on
the basis of geology as too speculative to be considered as
economically, Which would make it into the category of mineral
reserves. Furthermore, it is uncertain Whether the preliminary
economic assessment will be implemented. Mineral resources are not
mineral reserves, because they have not Demonstrated economic
viability.
Vancouver, British Columbia. Third November 2011. Commerce Resources
Corp. .. (TSX: A0J2Q3 TSX-V: CCE; OTCQX: CMRZF) announces the
completion of a positive, with National Instrument 43-101 compliant
Preliminary Economic Assessment (Preliminary Economic Assessment,
"PEA") for the Upper Fir tantalum and niobium deposit in Blue River
British Columbia announced. The PEA, Which was by the independent
consulting firm AMEC Americas Limited ('AMEC') were made, indicates
that the deposit can be economically developed as in underground mine
and Proposes to support a feasibility study for the project for
further studies. The Blue River Project is located near the town of
Blue River, about 250 km north of Kamloops and 90 km south of the town
of Valemount.
The project PEA was prepared to delineate the concept of fitness for a
further development of the Blue River. It includes geological models
and mineral resource models, the preliminary mine planning, a
description of the metallurgical test work and preparation of plans, a
summary of the basic work environment to date and estimates of capital
and operating costs. It also plans to deterministic mines the
profitability of a development project as in underground mine with
processing. An estimate of the direct cash costs for the preparation
of tantalum oxide product in the form of a technical grade is also
included. Readers are encouraged to read the entire PEA technical
report, Which is under. On the website of the company also find a
link.
The main findings of the PEA
- An indicated mineral resource of 36.35 million tonnes at 195 ppm and
1.700 ppm Nb2O5, Ta2O5 and 6.4 million tonnes of Inferred Mineral
Resources of 199 ppm and 1890 ppm Nb2O5, Ta2O5 (see press release
dated February 2, 2011). - Underground mining of 7.500 tons per day,
using different variants of the Chamber building piers. - Estimated
production of 2.7 million tonnes of ore over 10 years. - Mineral
processing using a floating process with standard grinding
('standard-grind flotation process') to produce a concentrate of
ferro-columbite and pyrochlore. - The end products of tantalum and
niobium oxides will be, a total of 2.400 metric tons and 18 610 metric
tons of these metals during the life of the mine. - The total
estimated capital cost for the design and construction are at 379
million CAD. - The operating costs over the life of the mine are
estimated at 38.44 CAD per tonne milled. - Before tax is the Net
Present Value (NPV, net present value) of the project with interest a
factor of 8% at 18.5 million CAD with an internal rate of return of
9.1%. The amortization period would amount to 6.3 years when using an
internal rate of return method. - Cash Costs kg for tantalum metal
oxide product in the form of a technical grade of 24.91 CAD per.
Summary of the economic model before tax (exchange rate: 1 USD = 1.05 CAD)
Metal price fixing NPV @ 8% (000's) Nb, Ta Preis/kg1 Preis/kg1 BASE
CASE U.S. $ CAD $ 18,500 $ 317 U.S. 46 +10% Ta price (base case Nb)
CAD $ 65,800 $ U.S. $ 349 U.S. 46 +20 Price% Ta (Nb base case) CAD $
113 000 380 U.S. $ U.S. $ 46 +30% Price Ta (Nb base case) CAD $
160,300 $ U.S. $ 412 U.S. 46 +10% Nb Price (Base Case Ta) CAD $ 71,600
U.S. $ 317 U.S. $ 50.60 +20% Nb Price (Base Case Ta) CAD $ price $ 124
700 U.S. $ 317 U.S. 55.20 +30% Nb (Ta base case) CAD $ product $ 177
900 U.S. $ 317 first U.S. 59.80 Metal oxide
Summary of the estimated total capital cost (x $ CAD1, 000) 29 500 116
200 Initial infrastructure investment expenses Initial Treatment
Initial Mining Reserves 43 600 8000 89 400 Material Handling Indirect
expenses / expenditures Total 379 000 92 300 owner
Summary of total costs per average LOM (x $ CAD1, 000) per tonne
milled production costs (CAD $ / tonne)
Degrading Treatment 528 900 338 500 18 500 21:16 13:54 0.74 Material
Handling G & A 3:00 75 000 960 900 Subtotal 38.44
The first income from the niobium and are even slightly exceed the
Considerable income from the tantalum. The market analysts are mostly
agreed that wants to grow rapidly based on the existing supply and
demand structure for tantalum, the tantalum market prices for the
foreseeable future. For this reason, decided to AMEC, the cash cost
for less Niobguthaben Indicate tantalum, tantalum and although the
Niobwerte roughly correspond to the resource estimate at the current
price assumptions.
Property
The Blue River Project covers on area of 105 373 hectares (1,000
km2) off high voltage power lines, railroads and paved roads and
unpaved run close to or within the property boundaries. The Bone Creek
18 MW hydroelectric power project is under construction near the
project and was put into operation in June 2011th
Resource Estimate
The resource comprises a series of seam shaped carbonatite bodies with
up to 91.2 m in estimated true thickness. This composite body covers
more than 1450 m in a north-south direction and up to 800 m on
east-west direction. Tantalum and niobium are present in the minerals
pyrochlore and columbite-Ferro.
The PEA was based on a mineral resource estimate, Which was published
in February 2011 ("Blue River Ta-Nb Project NI 43-101 Technical
Report, Blue River, British Columbia 'by AMEC, January 31, 2011). AMEC
used the drilling of boreholes drilled by the end of 2009. This
included 183 bores, Which provided for the creation of the resource
estimate of 37 446 m HQ core samples and drill core samples were sawn
from 8218th Most holes located at a nominal spacing of 50 m with
slopes that were typically between -60 degrees and subvertical
orientation. The results of the holes drilled in 2010 were compared
with the existing resource model and it was found that they to some
extent with the model predicted geology in agreement. Likewise, the
preliminary drilling results from the year 2011 were examined on site.
It also turned out that they also coincide with the geological model
predicted.
The new expiration date for the resource estimate, based on a review
of current drilling is now the 29th September 2011 (Table 1). There
was no amendment to the final date of data collection, Which was used
to estimate and includes all the holes that were drilled by the end of
December 2009.
Table 1: Blue River Project Estimated resources.
(More tables in the original press release available on the website of
the company -
The following Table 2 shows the coupling of the Blue River tantalum
resource with the price
Table 2: Blue River project linking the estimated resources with the
tantalum price:
AMEC is of the view that the preferred approach for reducing the Blue
River reservoir is an underground mining chamber with different
variants of the pillars of building a conceptual scenario assuming
that the extraction and processing of 7.500 tons per day included.
Access to the deposit is made by two mine shafts in places where the
deposit occurs at the slope edge-to-light. They will be about 4 km
from the proposed location of the treatment plant. The excavated
material by the above procedure Corresponds to 84% of the resource. A
further 2% were identified as internal ore overburden thinning.
Geotechnical Studies Indicate that a recovery rate of 67.5% can be
achieved. This results in at overall yield of 58%. Taking into account
the waste rock in the tunnel and external dilution, the resource
estimates of funding levels for the ore to a total of 185 ppm and 1591
ppm Nb2O5, Ta2O5 have been reduced.
Based on experience with relevant AMECs deposits and mining methods,
mining and economic parameters were adjusted. There is a processing
method that will use a standard-grind flotation process to produce a
concentrate of ferro-columbite and pyrochlore, provided for the Upper
Fir ore. The proposed processing method is similar to the one used in
the Niobec mine from Iamgold Commercially applied in Quebec. The
concentrate will be further processed to produce marketable separate
niobium and tantalum. The proposed processes are mature and already in
industrial use.
End products and base case metal price fixing
The proposed processes for the Blue River Project will produce 99.9%
pure tantalum and niobium oxides, commonly known as the oxide product
of technical quality. These products are usually sold under contract
and the prices are between the buyer and seller kept confidential to
maintain the competitive edge.
Tantalum
Tantalum is usually given in two separate forms:
* Ta2O5 in Tantalitkonzentrat: an uncoated, tantalum-containing
concentrate of variable composition and content of trace elements, and
* tantalum scrap (99.9% pure Ta), tantalum this product provides a
supplement to the market Relatively Tantalitkonzentrat
In the past six years, moved the Tantalitkonzentratpreise between 75
USD / kg contained Ta2O5 and 110 USD / kg contained Ta2O5 (34 USD / lb
- 45 USD / lb). In the same period, the tantalum scrap metal prices
ranged from 110 USD / kg Ta up to 180 USD / kg tantalum metal (50 USD
/ lb - 82USD/lb).
2010, the prices because of numerous conditions, including reduced
production, increasing concerns about production of tantalum conflict
in Africa, the depletion of known strategic stockpiles have risen
dramatically. In mid-October 2010, the price for Ta2O5 in tantalum
concentrate at 195 USD / kg (89 USD / lb) and tantalum scrap metal at
280 USD / kg (127 USD / lb).
The higher price for tantalum scrap metal compared to the price of
Ta2O5 in concentrate is to be regarded as a proxy for the additional
value that should be realized through the refinement of Commerce Blue
River concentrate to high purity Ta2O5.
Niobium
Niobium is usually as niobium metal and ferro-alloy. The price was
relatively stable in recent years at $ 44.08 / kg (20 USD / lb). It
was assumed a base case price of 46 USD / kg (21 USD / lb) for niobium
metal.
PEA price assumptions
The metal price assumptions that were used to Determine the cut-off
and reduce the financial analysis in the PEA are 317 USD / kg for
tantalum metal and 46 USD / kg for niobium metal oxide product.
Comments of the Commerce president
'We are with the results of this study, a major milestone Which is
progress in the development of Upper Fir, very satisfied. The AMEC PEA
is released today, is a further confirmation of Commerce's view that
we are currently developing a very important, long-term source of
conflict-free and morally justifiable tantalum, Which could cover
almost 10% of global demand over almost 10 years, "said Dave Hodge,
Commerce's president. 'The results of the additional wells that were
drilled in 2011 are closed pending and we are eagerly awaiting the
results of AMECs Ressourcenaktuaslisierung next, based on the end of
the 2010 field season will be holes drilled. Everything indicates that
we can improve the quality of the resource even further. '
'Of necessity, the resource estimate was based, the PEA was used as
the basis of an assumed long term price fixing, Which could prove
conservative. The recent developments in global tantalum and
Niobmärkten Provide an indication of much higher prices than those
that were used to define the resource on Which the PEA is based. For
example, enter information for the 30th Asian Metals September 2011
(CAD = 0.961429 USD) for Nb2O5 (99.5%) with average quality of a price
61-66 USD / kg, and Ta2O5 (99.95%) with average quality of a 378 price
-403 USD kg / in. Search prices could offer to opportunity for ongoing
resource upgrade, they aim at Achieving higher prices, but
conservative. We believe that there will be a positive development in
the foreseeable future for investors who believe that the projected
trends will continue for higher prices. '
NI 43-101 Notice
The following qualified persons who were involved in the report are
employees of AMEC, based in Vancouver: Albert Chong, Chief Geologist,
P. Geo, Tomasz Postolski, senior Geostatistics, P. Eng, Ramon Mendoza
Reyes, senior mining engineer, P. Eng , Tony. Lipiec, Chief
Metallurgist, P. Eng. Behrang and Mr. Omidvar, financial analyst, P.
Eng. All these qualified persons have read the contents of this press
release and released.
Mr. Jody Dahrouge, B.Sc., P. Geol., Commerce Resources Corp.., A
qualified person under NI 43-101, has read the notice of technical
information regarding exploration and released. A NI 43-101 compliant
technical reports that summarize the preliminary economic assessment
will be submitted within 45 days on SEDAR.
About Commerce Resources Corp. ..
Commerce Resources Corp. .. is an exploration and development company
with a Particular Focus on tantalum, niobium and rare metal deposits
with a potential for economic grades and large tonnage. The company is
specifically focused on the development of its Upper Fir tantalum and
niobium deposit in British Columbia. It also exploring the
rare-earth-Eldor project in northern Quebec.
For more information, please visit the corporate website at
Additional tables can be found in the original press release at:
AXINO AG, Investor Relations King Street 26 70173 Stuttgart Germany
Tel: +49 (711) 253592-30 Fax +49 (711) 253592-33