Vancouver, British Columbia, June 29, 2011 - Commerce Resources Corp. (TSXV:CCE) (FSE:D7H) (OTCQX:CMRZF) reports results for the first four of seven drill holes completed during the recent winter drilling program at the Ashram Rare Earth Element Zone at its Eldor Project in Northern Quebec.
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The highlight of the news release was hole EC11-048 which intersected rare earth mineralized carbonatite over its entire length returning 2.1% total rare earth oxides over 586.92 metres including 36.99 metres of 3.00% oxides. The hole ended in mineralization as it reached the drills limitations. This was the best hole reported to date in terms of grade and thickness with 7 sample intervals returning greater than 4% total rare earth oxides.
During the winter program, 7 holes were drilled at the Ashram Zone, with the 8th drilled at a separate location approximately 1 kilometre to the north. Complete assay results are available at www.commerceresources.com.
Back in early March, Commerce filed an initial NI 43-101 compliant resource estimate of 117.34 million tonnes averaging 1.74% Total Rare Earth Oxide in the Inferred Category for the Ashram Deposit. That report is available on Sedar.com.
Based on that report, Vancouver based Fundamental Research raised their fair estimate valuation from $1.51 to $2.13 per share. Fundamental stated, "Based on this initial resource estimate, we believe, the Rare Earth Element resource at the Ashram zone is one of the world's largest NI 43-101 or JORC REE deposits outside of China."
John Kaiser, of Kaiser Research called this project, "The most important new grassroots rare earth discovery since market interest in rare earths took off in 2009."
These new step-out holes have expanded the mineralization at Ashram by 150 metres to the northeast and extended the depth of known mineralization by roughly 65%, from 365 metres to approximately 600 metres. The mineralization remains open to the north, south, east, at depth, and is not fully constrained to the west.
The deposit continues to display increased grade moving north as well as enrichment in the middle and heavy rare earth elements. As drilling has progressed northward, drill intersections of greater than 3% have increased in occurrence with 4% total rare earth oxide assays becoming more common.
Commerce is also developing its Upper Fir Tantalum and Niobium Deposit in British Columbia and the Carbo Rare Earth Project in Northern British Columbia.
The company is well financed, with $14 million in cash and investments, and has sufficient working capital available to complete all of the development and exploration plans. Commerce Resources currently trades at $0.68 per share, well below the $2.13 target given by Fundamental, prior to the recent drill results.
For more information please visit the corporate website at www.commerceresources.com (http://www.commerceresources.com/s/Home.asp) or contact Investor Relations at 1.866.484.2700 or info@commerceresources.com.
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Source: InvestmentPitch via Thomson Reuters ONE
