Commerce finishes drill program at Blue River

2008-12-04 13:09 ET - News Release

Mr. David Hodge reports

DEVELOPMENT AND EXPLORATION UPDATE FOR BLUE RIVER TANTALUM AND NIOBIUM PROJECT IN BRITISH COLUMBIA

Commerce Resources Corp. has successfully completed its 2008 summer exploration and development program at the company's Blue River tantalum and niobium project in east-central British Columbia.

During 2008, a total of 131 HQ diameter drill holes, totalling 26,281 metres, were completed at the following locations:

• Upper Fir carbonatite -- 118 drill holes;
• Switch Creek carbonatite -- three drill holes;
• Hodgie and rare earth zone -- four drill holes;
• Lower Gum Creek zone -- six drill holes.

In addition, a bulk sample of approximately 2,000 tonnes of material from the Upper Fir carbonatite was collected and stockpiled on the property. Regional exploration conducted during 2008, identified several new tantalum-niobium, rare earth (REE), and/or carbonatite occurrences on the property.

Upper Fir carbonatite

The 2008 drilling of the Upper Fir carbonatite, was completed on Nov. 3, 2008. The intent of this program was to both infill and expand upon the existing tantalum and niobium resource base. Prior to 2008, 40 holes totalling 8,558 metres were completed at the Upper Fir deposit. During 2008, an additional 118 HQ diameter drill holes totalling 23,724 metres were completed. Approximately 4,663 metres of carbonatite was intersected by this drill program. All carbonatite was cut, with one-half of the core sampled and sent for analysis to ACME Analytical Laboratories Ltd. in Vancouver, B.C.

The company anticipates that it will receive complete analytical results for the 2008 drill program during the next few months. Some highlights from the program are as follows:

• 139.86 m of carbonatite was intersected in hole F-08-88 (thickness is apparent);
• 96.77 m, of continuous carbonatite, was intersected in hole F-08-111 (thickness is apparent);
• 70.08 m true thickness of carbonatite was intersected in hole F-08-153;
• The southernmost hole completed to date.

Drilling to date has shown the Upper Fir carbonatite to extend over 1,300 metres in a north-south direction, and approximately 600 metres in an east-west direction. The final hole of the 2008 summer exploration program, F-08-153, was completed at a location approximately 100 metres farther south than the nearest hole in an attempt to constrain the southerly extent of the carbonatite. This vertical hole intersected greater than 70 metres of carbonatite (true thickness) representing a potentially new and significant zone south of the main deposit. A map of the drill plan is available on the company's website.

Upper Fir bulk sample

The bulk sampling program was completed in early November. Approximately 2,000 tonnes of carbonatite was extracted from 17 benches at three different sample pits. The material has been stockpiled in preparation for transport and processing by Process Research Associates Ltd. of Richmond, B.C. Samples have been shipped to ACME Analytical Laboratories Ltd. of Vancouver, B.C., for analysis.

The work will extend the characterization program previously completed as well as provide information which will support the development of a preliminary flow sheet for a pilot plant program to be conducted at PRA's facility.

Switch Creek carbonatite

Three holes were completed at the Switch Creek carbonatite to follow-up drilling completed during 2007. A total of 486.33 metres was drilled, with approximately 55.52 metres of carbonatite intersected. As a result of the strongly fractured and faulted bedrock encountered, the recovery of core was poor.

Hodgie rare earth zone

Exploration conducted during 2008 confirmed the significance of a rare-earth element (REE) occurrence identified during the later part of 2007 and named the Hodgie zone. It is located approximately two kilometres southeast and upslope of the Upper Fir carbonatite.

Prospecting within the Hodgie area suggests that rare-earth mineralization may be comprised of several zones extending at least 2,000 metres along strike. A total of 84 grab samples was collected from float and outcrops within the area. Seven samples returned total REEs + Y(yttrium) greater than 2.0 per cent to a high of 11.1 per cent. Results of several samples are still outstanding. A total of 812.9 metres was drilled in four holes completed along approximately 350 metres strike length at the Hodgie zone.

Lower Gum Creek zone

The Lower Gum Creek zone is located directly north of the Hodgie zone and was identified by a series of niobium-in-soil anomalies discovered during the 2007 regional exploration program. A total of six holes totalling 1,257 metres targeted a subsurface carbonatite body, interpreted to lie upslope of the anomalies. No significant intervals of carbonatite were intersected. The source of the niobium mineralization may lay farther upslope and to the east of the area drill tested.

Regional exploration

The company's regional exploration program has led to the discovery of several new carbonatites, as well as the extension of two carbonatites previously discovered within the existing property boundaries. Thirteen new claims have been staked along the southeast margin of the existing claim block to ensure full coverage of the newly discovered Felix carbonatite. Sampling and mapping have been completed to allow further evaluation of all the carbonatite bodies.

Approximately 4,085 soil, 527 stream sediment (pan concentrate), and 127 rock samples were collected throughout the property during 2008. In addition to the carbonatite discoveries, several areas have been identified as having elevated levels of REEs. Preliminary results reveal an area northeast of Mud Lake, approximately 15 kilometres south of the Hodgie zone, as an anomalous area indicative of ultramafic geology. The data are currently being compiled and analysis is ongoing.

Environmental and regulatory

In addition, the company is advancing environmental and regulatory programs designed to ensure that the Blue River tantalum and niobium project is well positioned to enter the environmental assessment process once a development decision is made. Field programs, which were completed on time and on budget, include surface and groundwater sampling, hydrology, wildlife, and fisheries work.

Jody Dahrouge, PGeo and vice-president of exploration, a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

We seek Safe Harbor.