Commerce Resources (TSXV:CCE) (OTCQX:CMRZF) Reports Robust Economics from Preliminary Economic Assessment for the Ashram Rare Earth Element Deposit in Canada - Video Posted on www.InvestmentPitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, May 25, 2012 - Commerce Resources, (TSXV:CCE)
(FSE:D7H) (OTCQX:CMRZF) reports robust economics from a NI 43-101 compliant
Preliminary Economic Assessment for the Ashram Rare Earth Element Deposit in
Canada. This deposit is located at the Eldor Property within the Labrador Trough
in northeastern Quebec.
InvestmentPitch.com has produced a "video news alert" based on this news. If
this link is not enabled, please visit www.InvestmentPitch.com and enter
"Commerce Resources" in the search box.
The independent report, prepared by consultants SGS Canada Inc. - Geostat of
Montreal, indicates that the deposit can be developed economically as an open-
pit mine and recommends future work applicable to the pre-feasibility and
feasibility phases of economic evaluation.
Key findings of the Preliminary Economic Report included:
* a strongly positive cash flow from a 4,000 tonne per day open-pit
operation, with a 25-year mine life
* a pre-tax and pre-finance Net Present Value of $2.32 billion at a 10%
discount rate.
* a pre-tax Internal Rate of Return of 44%
* a pre-tax payback period of 2.25 years
* an estimated capital cost of $763 million, including a 25% contingency
* an estimated operating cost of $95.20 per tonne treated, or approximately
$7.91 per kilogram of rare earth oxide produced
* a greater than 175 years worth of mineable mineralized material, including
both open-pit and underground, using a Cut-off Grade of 1.25% true rare
earth oxides
"The PEA displays robust economics for the Ashram Deposit, and recommends next
steps for the economic evaluation of this very large and highly strategic
resource. The high NPV derives partly from the value of the Ashram material in
that it is enriched with all five of the critical REE's namely neodymium,
europium, dysprosium, terbium and yttrium" states David Hodge, President and CEO
of Commerce Resources Corp. "Management believes that significant benefits will
be further realized during the next phase of metallurgy based on the testwork
completed to date, given the deposit's simple mineralogy and history of
successful commercial processing of Ashram's three host minerals. We look
forward to initiating the pre-feasibility study to demonstrate this."
The company plans to upgrade the mineralized material on site to a minimum 10%
total rare earth oxide mineral concentrate, using conventional flotation
techniques, resulting in a mass reduction of 87.3%. The material will be
subjected to sulphuric acid cracking on site to produce a mixed rare earth
carbonate product.
The resulting product will be trucked north 185 kilometres on an all-weather
road that Commerce will construct, to a storage and docking facility at Mackay's
Island at Ungava Bay. The product will be stored and shipped during the 3 or 4
months of the year that shipping lanes are operational.
The rare earth mineralized footprint at Ashram extends approximately 700 metres
along strike, over 500 metres across, and to depths exceeding 600 metres.
Mineralization remains open to the north, south, at depth, and is not fully
constrained to the west and east.
The shares currently trade at $0.27, and with 148 million shares outstanding,
the company is capitalized at $40 million.
For a more information on Commerce Resources, including a full copy of the
current news release, please visit their website at www.commerceresources.com,
phone 866-484-2700 or email info(at)commerceresources.com.
InvestmentPitch.com is a multimedia company that provides a combined solution
for creating and hosting financial video content, and distributing it across
multiple platforms to investors and financial professionals. InvestmentPitch.com
specializes in producing short three minute videos based on research reports and
significant news releases.
CONTACT:
InvestmentPitch.com
Barry Morgan, CFO
604-6584-5524
bmorgan(at)investmentpitch.com
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Source: InvestmentPitch via Thomson Reuters ONE
[HUG#1615180]
Unternehmensinformation / Kurzprofil:
Datum: 25.05.2012 - 17:21 Uhr
Sprache: Deutsch
News-ID 150296
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