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Every
time a teenager listens to music
streaming into their earphones or
business managers use the latest
version of their favorite
communication device or IT
(information technology) supervisors
order the most recent upgrades to
their technology, you can be
virtually certain that the gadgets
involved use some form of a metals
that few outside of the mining world
have ever heard of, tantalum.
These two metals have unique
attributes that have made them ideal
for advancing technology and one
Canadian junior mining company,
Vancouver-based Commerce Resources
Corp., is aggressively advancing
their tantalum and niobium project
located in north-central British
Columbia.
Commerce's most important properties
lie in the Rocky Mountain Trench,
just west of the highest peaks of
the Canadian Rockies, between the
towns of Blue River and Valemount.
Infrastructure in the area is
excellent with first-class highways
adjacent to the project as well as
major rail service and abundant
power sources. Supplies and
personnel are available in both
towns as well as the larger
community of McBride, about one hour
distant.
While the company has several
prospective project areas, their
attention is focused primarily on
advancing the Upper Fir Carbonatite
toward production at the earliest
possible time. Commerce began
drilling at Upper Fir in 2005 and
completed 20 HQ diameter holes in
their 2005-2006 programs and drilled
an additional 18 HQ diameter holes
in 2007. These drill programs
outlined a series of sill-like
bodies with up to 100 meters total
thickness, extending for more than
1,000 meters in a north-south
direction and up to 600 meters
east-west. The carbonatite remains
open both to the east and south.
By August, 2008, Commerce was able
to release an updated resource
estimate prepared by John Gorham, P.
Geol., for the Upper Fir Carbonatite
which calculated an Indicated
resource of 14.68 million tonnes
with average grades of 190 grams per
tonne (g/t) Ta205 (tantalum) and
1,300 g/t Nb205 (niobium) within a
38 meter confidence limit. In
addition, Inferred resources were
estimated at 19.8 million tonnes
with average grades of 188 g/t Ta205
and 1,612 g/t Nb205.
During 2008, Commerce conducted its
most extensive drill program to date
with the objectives of infill
drilling to build upon and upgrade
known resources and expanding
identified ore zones. A total of 118
drill holes were completed on the
Upper Fir Carbonatite and, in
addition, three holes were completed
at the Switch Creek Carbonatite;
four holes were drilled at the
Hodgie "Rare Earth" Zone and six
holes were drilled at the Lower Gum
Creek Zone.
In addition to the drilling
activities, a bulk sample of
approximately 2,000 tonnes of
material from the Upper Fir was
collected and stockpiled on the
property.
In releasing the details of the
August 2008 estimate, company
President Dave Hodge also noted
that, "...The outlook for prices of
tantalum and niobium are positive as
inventories continue to deplete due
to the increase in consumer spending
on electronics as well as the steel
industry." He also said that much of
the world's present supply comes
from politically and socially
unstable areas such as the
Democratic Republic of Congo (DRC)
and, therefore, "...A premium is put
on material derived from
conflict-free sources."
While there is no active and open
commodity market for tantalum, such
as there is for other metals like
copper, gold and silver, industry
sources estimate the present price
for tantalum to be about US$60 per
pound for tantalum concentrate and
US$140 for tantalum oxide.
First discoveries of carbonatites in
the Blue River Project area occurred
in 1949 by geologist Orrin French,
his daughter Betty and son John.
Some periodic stripping and
trenching occurred over the next
three decades, but the first serious
efforts at development took place
during the 1980s by Anschutz Mining
Ltd. when a diamond drilling program
involving over 30,000 meters at Fir
as well as Verity and other ore
bodies was accomplished. However,
adverse market conditions prevented
further serious action until 2000,
when a new prospecting and sampling
program was initiated by Commerce's
present VP Exploration, geologist
Jody Dahrouge of Edmonton, Alberta.
Since that time the company has
conducted exploration stage
programs, identified drilling
targets, built a geologic model,
conducted its recent and present
drilling programs with infill
drilling and bulk sampling to
follow, plus metallurgical testing
and economic evaluation. The company
plans to move ahead toward the
completion of a scoping study,
pre-feasibility study and then a
full feasibility study, ultimately
leading toward a production
decision.
Part of that process is receiving
the various approval permits
required to proceed, such as
environmental permits, along with
others for road construction, mine
construction and, ultimately, a full
mining permit. In this regard, the
company may be ahead of the curve
significantly in that it engaged the
services of Gartner Lee Ltd. who
began the environmental baseline
data collection - for eventual
submission for the Environmental
Impact Assessment Certificate - in
July 2006. An important part of the
permitting process is keeping area
communities and First Nations people
informed on a regular basis. An
example of First Nations involvement
has been the undertaking of
archaeological field work in order
to insure that mining activities do
not infringe on important aboriginal
sites. To date, no conflict has been
discovered, no historic artifacts or
Cu8lturally Modified Trees.
The company plans to release an
updated resource estimate this year
and continues working toward
receiving a B.C. government mining
permit with the objective of
shipping a tantalum/niobium
concentrate by rail for
metallurgical processing off-site.
Tantalum has unique attributes that
make it ideal for several purposes.
These include an exceedingly high
melting point, high corrosion
resistance, ease of alloy with other
metals, high electricity
conductivity and, most particularly,
a high capacity to store and release
an electrical charge. It is this
last attribute that makes it ideal
for use in capacitors found in
computers, mobile phones, video
cameras and other modern
technological devices.
Tantalum also has important
applications where operation at high
temperatures is required, such as in
jet engines, and new technological
uses include hybrid vehicles, hybrid
batteries, corrosion resistance and
within the growing field of medical
device implantations.
Niobium has similarities to
tantalum, but also has unique
applications of its own, such as
rocket assemblies, heart pacemakers,
as an additive to glass making and
for various optical lenses. However,
the single most important
application for niobium is as an
alloy for the production of steel
where an application of two percent
niobium triples the strength of
steel, making for a stronger and
lighter steel product.
Tantalum is found in many locations
worldwide, including Australia,
Africa (DRC in particular), Brazil,
Asia and North America. Australia
and the DRC are of particular
importance as this is written.
The former Sons of Gwalia mine in
Wodgina, Australia had been the
leading producer of Tantalum, but in
November, 2008, the mine's operator,
Talison Minerals, announced they
were suspending production and gave
two reasons for their decision.
First, the deep economic trauma of
2008 had reduced consumer demand for
tantalum used in electronic
applications. Second, several end
users, in an attempt to control
expenses, had been buying cheaper
tantalum from the DRC, despite the
socially negative manner in which
that tantalum was produced.
This cessation of production by
Talison could work toward Commerce's
future advantage as some end users,
seeking to avoid the opprobrium
associated with DRC-produced
tantalum, would welcome a producer
located in Canada where high
ethical, safety and social standards
are maintained.
In addition to the focus on Blue
River, Commerce is also active in
northern Quebec at their "Eldor
Carbonatite Project", located near
Ungava Bay. The presence of tantalum
and niobium was first discovered in
the area in the early 1980's when
Eldor Resources was exploring for
uranium. With the collapse of that
market, activity at Eldor ceased
until 2007 when Geologist Dahrouge
conducted airborne surveys that
identified anomalies over a 10 km by
4 km oval-shaped body.
The company has conducted additional
exploration work including 26 drill
holes averaging 200 meters during
2008 and the company expects to
report fully on those drill results
in the near future. In addition,
mechanical trenching and lines of
soil sampling have also taken place.
Commerce Resources recently named
Dr. Axel Hoppe Chairman of the Board
of Directors. Dr. Hoppe is an
internationally acknowledged leader
in the tantalum/niobium field and
during his tenure as a Director of
H.C. Starck GmbH, the company grew
into a leading producer of tantalum
and niobium products. He has also
served as a member of the Executive
Committee of the Tantalum-Niobium
International Study Center.
Dave Hodge serves as company
President and Director and has
stewarded the Blue River project
from its acquisition in 2000. He has
an extensive background in both
public and private businesses and
has held senior leadership posts
with regional business associations.
Jody Dahrouge, B. Sci., P. Geo.
serves as both VP Exploration and
Director while Shaun Ledding, B.
Comm, also serves as a Director and
leads the Commerce management team
in critical areas of corporate
finance, regulatory compliance and
marketing.
Commerce was most fortunate to have
raised C$32.7 million in July, 2007
during a period in which their share
price had been bid up significantly.
As a result, they have sufficient
capital on hand to underwrite all
their activities for the rest of the
year at a minimum.
For further information, contact the
company website at
www.commerceresources.com or
direct your inquiries to Chris
Grove, Corporate Communications at
info@commerceresources.com
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