Commerce Resources Announces significant milestone for Upper Fir

Dr. Axel Hoppe inspecting carbonatite rock sample from the Upper Fir.

Highlights

Study results show Indicated Mineral Resources totalling 48.4 million tonnes at 197 ppm Ta2O5 and 1,610 ppm Nb2O5 and Inferred Mineral Resources totalling 5.4 million tonnes at 191 ppm Ta2O5 and 1,760 ppm Nb2O5.

Changes result from improved geological interpretation of the mineralized carbonatite host, the grade distribution found in 2011 infill diamond drilling and the increase in Ta metal price over time.

Approximately 90% of the tantalum and niobium reside in Indicated resource category.

AMEC's "Blue River Tantalum-Niobium Project, British Columbia, Canada, NI 43-101 Technical Report on Mineral Resource Update", with an effective date of June 21, 2013, will be filed for public disclosure (www.SEDAR.com) within 45 days following this news release.

With the significant milestone of this resource update successfully achieved, AMEC has recommended a $13.9M program to support a pre-feasibility level study on the Upper Fir deposit.

In preparing the 2013 Mineral Resource update AMEC reviewed the 2011 PEA. AMEC considers that the following work and outcomes of the 2011 PEA remain reasonable as any cost escalation is considered to be offset by increases in long term Ta price:

• Underground mining at 7,500 tpd using bulk mining with a variation of sublevel open stoping.
• Total estimated capital cost to design and build is CAD$379M.
• Operating costs over the life of mine are estimated at CAD$38.44/t milled.
• Cash costs of tantalum metal of CAD$24.91/kg contained in a technical grade chloride product (after credit for the niobium contribution).
• Production estimated at 2.7M t/a of mineral resources, over 9.3 years.
• Estimated Internal rate of return: 9.1% (before tax). If the project is developed it will be subject to taxes which will result in cash flows and an NPV less than reported.
• Estimated Net present value: CAD$18.5 million at 8% discount rate (before tax).
• Estimated Payback: 6.3 years.
• Average diluted grade in the conceptual mine plan to the mill: 185 ppm Ta2O5 and 1,591 ppm Nb2O5.
• Mineral processing using a standard grind-flotation procedure to produce a concentrate of ferrocolumbite-pyrochlore.
• Metallurgical testing indicates that a mineral concentrate assaying about 30% combined Nb-Ta pentoxide with a Ta-Nb recovery of 65-70% is possible.
• Proposed product: High purity Ta and Nb chloride products containing 2,400 metric tonnes and 18,610 metric tonnes of the respective metals over the life of the mine and that are suitable for several markets.
• Conceptual Mine Life: 9.3 years based upon the mineral resources (effective date 20 September 2011) defined for the PEA using information to the end of 2009 drilling.
• NPV Sensitivity: The Upper Fir deposit is most sensitive to changes in exchange rate, commodity prices, and mining costs.

Read whole report here.