Commerce Resources' rare metal advantage – two projects underway
Commerce Resources' rare metal advantage two projects underway
Booth # 2817 commerceresources.com 604.484.2700
David Hodge
President
When one of the world's top producers of tantalum decides to restart production after almost two years of inactivity, you know something's brewing in the marketplace. Improving market conditions and the vital role that tantalum plays in the production of today's high-tech and "green" gadgets breed predictions that serious shortages of this rare metal are looming. This is good news for potential producers like Commerce Resources who have been very active on developing their Blue River tantalum and niobium project in BC. However, Commerce Resources (TSXV: CCE) is also active on their Eldor REE project in Quebec, which has been called "the most important new grassroots rare earth discovery." With both these projects underway at this time Commerce Resources is certainly in an advantageous position in the rare metal space.
Resource Intelligence: I see that Commerce Resources is focused on two major projects. Could you update investors on the latest developments for these?
David Hodge: The most advanced project we are developing is the Blue River Tantalum-Niobium Project in British Columbia. To date, we have identified a large indicated resource of the critical metals tantalum and niobium and are continuing our field and engineering work. Following the completion of our preliminary economic assessment, we plan to update our mineral resource estimate with the 52 holes drilled in 2010.
Our second project is the Eldor Rare Earth Project in northern Quebec. We are excited about the encouraging results received from extensive exploration in 2010. These results even led newsletter analyst John Kaiser to describe the Eldor as "the most important new grassroots rare earth discovery since market interest took off in 2009."
At Eldor, we have discovered significant intersections of mineralized zones of total rare earth oxides. Due to the consistency of the rare earth mineralization within long intervals, we commissioned SGS Geostat to prepare an initial mineral resource estimate for Eldor. The most important aspect of this deposit is that it is enriched with significant light and heavy REEs this is very rare.
Laura Rapp, Dahrouge Geological, and Leila Tate, Sage Environmental, exploring the Commerce Resources Upper Fir Tantalum/Niobium Project
RI: What are the next steps you need to do in order to take these projects to the next level?
DH: At Blue River, the preliminary economic assessment and the recently released updated mineral resource estimate will provide a solid base to make the next development decision. Our work in 2011 will follow the recommendations by our engineering team and also include additional exploration of the area.
At Eldor, we have an expedited exploration program with a focus to further define the extent and grade of the resource as well as increase our understanding of the heavy rare earth oxide zone within the mineralized intersection. To do so, we plan to conduct significant drilling at the property. We have contracted SGS Geostat to complete the first 43-101 resource calculation for this deposit and expect it to be delivered shortly.
RI: There have been a number of new entrants to the exploration for rare earth elements and rare metals. How long have you been exploring for these critical metals?
DH: Our team has been exploring for critical metals for over 10 years.
RI: Analysts forecast a shortage in tantalum supply. How is Commerce Resources positioned to meet this market need?
DH: In my opinion, this shortage they are talking about is currently underway. Tantalum continues to be essential for virtually all electronics, and there are new applications reaching the market utilizing tantalum a growing number of which are in the areas of clean and "green-tech." The demand continues to increase.
In addition, new legislation in the United States regarding the use of raw materials from conflict regions has limited the supply of available tantalum in the supply chain. This is another driver leading to an increase in price. The tantalum market includes only a small number of miners, and with a large defined resource at our Blue River project, I believe we are well positioned.
President David Hodge at the core shack in Blue River
RI: I see that the world's former largest miner of tantalum has announced that they are going back into production. What message do you think that sends to investors?
DH: I see this announcement as being very good news. Having additional conflict-free sources of tantalum supplying the market will bring additional confidence to end-users of tantalum that the current and future demands can be met. The supply of raw materials is a very important consideration for end-users who must decide on whether or not to engineer more tantalum into products. As well, even with the increase in production, there will continue to be a shortfall of tantalum produced globally in 2011.
RI: As an investor, give me two reasons why I should invest in Commerce Resources.
DH: First, Commerce Resources owns a 100% interest in two large rare earth and rare metal projects. Secondly, we expect to meet significant milestones on each of these projects in the short term. These are the preliminary economic assessments for our tantalum project, and a mineral resource estimate for our rare earth elements project.
View of the Blue River Tantalum/Niobium Property
RI: What do you think is the least known aspect of Commerce Resources?
DH: I would have to say that this is our company's interest in the Carbo Rare Earth Property in British Columbia. Commerce has a 25% interest in the Carbo project, which is adjacent to Spectrum Mining's Wicheeda Project that is host to significant rare earth mineralization. Our joint venture partner Canadian International Minerals drilled nine holes in our Carbo property and we are looking forward to the release of the
assay results.
Investor Highlights:
Stage:
Blue River Tantalum/Niobium Project Pre-feasibility stage
Eldor Rare Earth Project Exploration Stage
Market cap: $110 million as of February 4, 2011
Share price: $0.85as of February 4, 2011
Commodity: Tantalum, niobium, rare earth elements
Cash: $10 million as of February 4, 2011
Highlights:
3 Projects
- Blue River (Tantalum, Niobium)
- Eldor (Rare Earth Elements)
- Carbo (Rare Earth Elements)
Exposure to Rare Metals & Rare Earth Elements
Financially Strong
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