Commerce Resources
Commerce Resources Corp. is focused on the development of its Upper Fir tantalum and niobium deposit in British Columbia, Canada. The company is well positioned with sufficient capital to advance the commercialization of a prospectively lucrative low-cost mining operation for tantalum and niobium.
The importance of new sources of tantalum and niobium cannot be overstated. Tantalum is so sought after that any meaningful new potential producers are welcomed with open arms by tantalum-dependent end-users, namely the global hi-tech industry.
Commerce Resources is also focused on the exploration of its new deposit the Eldor carbonatite in Quebec, which is highly prospective for niobium, tantalum and uranium.
Commerce Resources Corp. reports a 70% increase in indicated resources
Based upon 20 HQ diameter diamond drill holes completed during 2005-2006, and an additional 18 HQ diameter diamond drill holes completed during 2007, Commerce Resources has announced its new resource estimate for the Upper Fir Carbonatite, British Columbia. The holes outlined a series of sill-like bodies with up to 100 m total thickness that extends for more than 1,100 m in a north-south direction and up to 600 m in an east-west direction. The carbonatite remains open both to the east and to the south.
The Upper Fir Carbonatite is now estimated to contain an indicated resource of 14.68 Mt with average grades of 190 g/t Ta2O5 (Tantalum) and 1,300 g/t Nb2O5 (Niobium), within a 38 m confidence limit. In addition, the mineralized body is estimated to contain an inferred resource of 19.8 Mt with average grades of 188 g/t Ta2O5 and 1,612 g/t Nb2O5, within a 100 m confidence limit. When using higher grade cut-offs of 200 g/t Ta2O5, the average tantalum grades increase to 231 g/t for the indicated portion and 225 g/t for the inferred portion. New resource estimates mark a staggering 70% and 250% increase in indicated and inferred resource categories respectively.
In addition to the updated resource estimate, Commerce Resources also confirmed that would soon commence a 10,000 tonne bulk sample at Upper Fir and that a regional exploration program has led to the discovery of a several new carbonatites, as well as the extension of two carbonatites previously discovered within the existing property boundaries.
Encouraging tantalum fundamentals together with the significantly increased resource estimate further underpin the investment case of Commerce Resources. Commerce Resources has its assets in British Columbia, Canada and is one of the most active tantalum explorers in North America. Brisk exploration and development activity is currently underway at its Upper Fir, Fir and Verity deposits.
While fortunes for many other metals including gold ebbs and flows, tantalum fundamentals remain robust as ever. Tantalum is used in the production of electronics capacitors which are used in cell phones, DVD players, personal computers, digital cameras, gaming platforms, LCD monitors and wireless devices. Niobium meanwhile is a vital material used to make steel. Niobium’s unique value to industry is its strength as an alloy. Standard steel has a PSI (pounds per square inch) capacity of 40,000. With the addition of niobium, PSI is raised to 150,000, turning standard steel into super steel. No wonder niobium is in demand for bridge and building construction. There are many other applications as well, from pipelines to pacemakers.
Deposits of tantalum and niobium are rare. Most of the world’s tantalum supply currently comes from a single mine in Australia, with a few sources in Africa, Asia and South America. Secondary sources include recycled materials, processor inventories, tin slags, and the United States Defence Logistics Agency stockpile, which is now severely depleted. As for niobium, the DLA stockpile of niobium mineral concentrate inventory was exhausted in 2007, its niobium carbide inventory was exhausted in 2002, and its ferroniobium inventory was exhausted in 2001. With only 20% coming from secondary sources such as recycling, niobium also enjoy strong fundamentals. Rising demand has depleted inventories of both tantalum and niobium, thus spiralling prices.
Potential alternative suppliers such as CCE are gaining more attention due to market instabilities driven by the world's largest producer, Talison Minerals Pty Ltd. The majority of tantalum is sold under long-term contract. A premium is put on material derived from 'conflict-free' sources such as Canada. Though marketing investigations particular to potential products from the Upper Fir carbonatite have not yet been completed, based on producer reports, tantalum concentrate reportedly sells for between $35 to $70+ USD/lb, while ferro-niobium sells for between $7.50 and $13.50USD/lb.
Earlier this year, Commerce Resources announced the appointment of Dr. Axel Hoppe as Chairman.
Dr. Hoppe has held numerous positions with H.C. Starck GmbH, an international electronics company, and one of the world’s largest consumers of tantalum raw materials. Dr. Hoppe also worked in the fields of other refractory metals, including tungsten, molybdenum, and rhenium, and was a member of the Executive Committee of the Tantalum-Niobium International Study Center, which promotes tantalum and niobium metals.
Other Commerce Resources articles
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23/12/08 Talison Minerals closes Wodgina Mine. So what?
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05/12/08 Commerce Resources - Marks a successful 2008 drill campaign
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27/11/08 Wodgina – A surprise closure by Talison Minerals
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09/05/08 International Metals Expert Sees Canadian Tantalum-Niobium Company becoming “World-Class Producer”
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09/04/08 Commerce Resources Corp – An emerging tantalum player next to the largest end-user, the US
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21/03/08 Tantalum: what you should know
Other Commerce Resources news
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05/01/09 Commerce Resources Interview
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08/08/08 Commerce Resources Corp. Receives Updated Resource Estimate for Upper Fir Tantalum and Niobium Project
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12/06/08 Two Drills in Operation at Blue River Tantalum and Niobium Project in British Columbia
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05/06/08 Drilling Begins at Niobium, Tantalum, Phosphate and Uranium Property in Quebec
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23/04/08 Commerce Resources appoints rare earth metals specialist as Chairman
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