The Ashram Deposit: One of the Largest Known Rare Earth Resources Outside of China to be Classified Under International Resource Reporting Standards

Commerce Resources Corp. has released the complete Preliminary Economic Assessment (“PEA”) for the Ashram Rare Earth Deposit at the Eldor Project. The economic evaluation was based on the March 6, 2012 resource estimate which used a base case geologic cut-off grade of 1.25% TREO and provided 29.3 million tonnes (Mt) of measured and indicated resource, as well as 219.8 Mt of inferred resource averaging 1.88% TREO. (SGS Geostat, 2012)

Highlights of the Project include:

  • Large tonnage rare earth element deposit with mineralization from surface
  • Deposit has a very favourable distribution containing significant amounts of critical REEs from surface to depth
  • Highly enriched Middle & Heavy Rare Earth Oxide (MHREO) zone near surface
  • Significant upside potential to expand Ashram and define new zones
  • Located in a top-ranked mining friendly jurisdiction

Key Findings of the PEA:

  • Pre-tax Net Present Value (NPV) of $2.32 billion dollars at a 10% discount rate
  • Pre-tax Internal Rate of Return (IRR) of 44%  and pre-tax payback period of 2.25 years
  • 4,000 t/d, open-pit operation with 0.19:1 (waste:ore) strip ratio over 25 year mine life
  • Estimated capital cost of $763 million (including 25% contingency)
  • Estimated operating cost of $95.20/tonne treated, or approximately $7.91/ kg of rare earth oxide (REO) produced
  • Greater than 175 years worth of mineable mineralized material (open pit + underground) using a Cut-off Grade of 1.25% TREO
  • Annual production averaging ~16,850 tonnes of rare earth oxide over life of mine, including 2,870 tonnes Nd oxide, 96 tonnes Eu oxide, 26 tonnes Tb oxide, 106 tonnes Dy oxide, and 440 tonnes Y oxide
  • Rare earth element host mineralogy (monazite, bastnaesite, and xenotime)  comprises phases amenable to recovery with processing using conventional and proven techniques

View the complete PEA: 

Ashram Rare Earth Deposit PEA

Further information on the Eldor Rare Earth Project can be found at

Warmest regards,

David Hodge

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