Commerce Resources Corp. (TSXv: CCE; FSE: D7H; OTCQX: CMRZF) reports that it is in receipt of analytical results for drill holes EC10-046 and EC10-047 at the Eldor Project, Quebec.
Drill holes EC10-046 and EC10-047, the northernmost drill holes completed to date at the Ashram Rare Earth Element ("REE") Zone, confirm the potential for a large, near surface deposit of REE mineralization and have identified a significant component of heavy rare earth element mineralization within the northern parts of the mineralized system. At Ashram, REE mineralization has now been confirmed within an area measuring in excess of 650 m east-west, by 350 m north-south, to depths of 364 metres. The mineralization remains open to the north, south, east, at depth, and is not fully constrained to the west.
EC10-046 and EC10-047 are located 250 m and 170 m, respectively, northwest of EC10-028 (1.95% Total Rare Earth Oxides ("TREO") over 243.84 m) and were collared in mineralization which continued over their entire lengths. Both were vertical drill holes and, given a cone-shaped model for the Ashram REE Zone, are near to true thickness. Further, both holes bottomed in mineralization as the drill approached its maximum depth capabilities.
All samples were analyzed by Activation Laboratories of Ancaster, Ont. using its method eight - major oxide, rare earths and trace element package by fusion ICP and ICP/MS. Fluorine analysis is still pending for all holes.
The four most abundant REEs that make up the TREO reported above are cerium, lanthanum/ neodymium and praseodymium. However, the REE distributions for the first 100+ metres of EC10-047 are significantly more weighted in the mid through heavy rare earth element oxides including Yttrium (MREO, HREO) compared to holes further to the south (EC10-027, EC10-028 and EC10-029). Starting near surface there is a ~61 m interval averaging ~20% MREO+HREO to a peak value >33% MREO+HREO with TREO grades between 1 and 2%. This is greater than double the average MREO+HREO component of previous holes. MREO are defined as Samarium through Gadolinium and HREO are defined as Terbium through to Lutetium plus Yttrium.
EC10-046 intersected mineralized A- and B-Zone type lithologies over its entire length (364.97 m) with only one sample assaying <1.0% TREO. This mineralized consistency continues to be present in all holes drilled in the Ashram Zone. Further, EC10-046 strongly demonstrates the potential for >3% TREO grades over significant widths by containing the largest 3% TREO interval returned to date in addition to seventeen samples assaying >3.0% TREO. Further, the hole's TREO grade increases with depth with the strongest mineralized core only a few metres off the bottom.
EC10-047 intersected A-, B-, and BD-Zone type lithologies over its entire length (358.70 m). In addition to containing a significant heavy rare earth component, this hole also contained the highest TREO assay to date returning 4.92% TREO over 0.75 m.
The Ashram Rare Earth Zone is located within an approximately 800 m by 1,000 m magnetic low, as defined by an airborne geophysical survey. A total of 12 holes have now been completed at the zone; of these, analyses for five are still pending (EC10-039, EC10-042, EC10-043, EC10-044 and EC10-045).
The Eldor Property covers a carbonatite complex located within the central Labrador Trough in northern Quebec; approximately 130 km south of the town of Kuujjuaq. The Property is 100%-owned by Commerce and encompasses 404 claims totaling approximately 19,006 hectares.
Carbonatite-related deposits are a major host for REEs worldwide and have been proven to produce saleable REE concentrates and oxides. Three of the most advanced REE projects currently in development: Molycorp's (NYSE: MCP) Mountain Pass Deposit, Lynas's (ASX:LYC) Mt. Weld Deposit and Rare Earth Element Resource's (TSXv:RES) (AMEX: REE) Bear Lodge Deposit, are all hosted by carbonatites.
Sufficient working capital is available to complete all of the Company's development and exploration plans. As of the latest financials, July 31, 2010, the Company had approximately $17 million in cash and investments.
NI 43-101 Disclosure
Darren L. Smith, M.Sc., P.Geol., a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
Source: Commerce Resources Corp.