Ce diaporama a bien été signalé.
Nous utilisons votre profil LinkedIn et vos données d’activité pour vous proposer des publicités personnalisées et pertinentes. Vous pouvez changer vos préférences de publicités à tout moment.
SECUTORCAPITAL MANAGEMENT CORPORATION
22 December 2014
COMMERCE RESOURCES CORP
Commerce Resources Update
Positive Metallur...
SECUTOR
CAPITAL MANAGEMENT CORP
Commerce Resources Corp 22 December 2014
material liquor are expected to begin in February...
SECUTOR
CAPITAL MANAGEMENT CORP
Commerce Resources Corp 22 December 2014
1
The Analyst preparing this report (or member of...
Prochain SlideShare
Chargement dans…5
×

Secutor Capital Management Corporation Update on Commerce Resources Corp. (December 2014)

Secutor Capital Management Corporation provides an update on rare earth element explorer Commerce Resources Corp. The update was released December 22, 2014.

  • Identifiez-vous pour voir les commentaires

  • Soyez le premier à aimer ceci

Secutor Capital Management Corporation Update on Commerce Resources Corp. (December 2014)

  1. 1. SECUTORCAPITAL MANAGEMENT CORPORATION 22 December 2014 COMMERCE RESOURCES CORP Commerce Resources Update Positive Metallurgical Results at Ashram Price: Market Cap: Common Shares: Fully Diluted: 52 Wk Range: 30 Day Avg Vol: Source: Yahoo Finance $ 0.18 $ 42.5 MM 236 MM 241 MM $ 0.05 - 0.34 256,000 Project: Loca on: Ownership: Commodity: Status: Resource: Catalysts: Project: Loca on: Ownership: Commodity: Status: Resource: Catalysts: Ashram Deposit (Eldor) Nunavik Region, Northern QC 100 % REE Pre-Feasibility Stage 29.3 Mt 1.90 % TREO (M&I) 220 Mt at 1.88 % TREO (Inferred) PFS, metallurgical results, joint venture partnership Upper Fir Deposit (Blue River) 250 km north of Kamloops, BC 100 % Tantalum, Niobium PEA complete 48.4 Mt at 197 ppm Ta₂O₅, 1610 ppm Nb₂O₅ (Indicated) 5.4 Mt at 191 ppm Ta₂O₅, 1760 ppm Nb₂O₅ (Inferred) PFS, joint venture partnership COMPANY SUMMARY MARKET DATA TOP HOLDERS Marquest Asset Management Inc Zimtu Capital Corp UBS Global Asset Management Zurcher Kantonalbank 4.70 % 2.25 % 1.16 % 0.40 % Company Update Arie Papernick Equity Capital Markets apapernick@secutor.ca (416) 847-1220 Maria Kalbarczyk, CFA Analyst mkalbarczyk@secutor.ca (416) 545-1015 V-CCE On December 10th, Commerce Resources provided an update on its metallur- gical programs for the Ashram project in Quebec, where the Company has con nued to advance bench tes ng and op miza on of the flowsheet. Commerce is targe ng the produc on of several kilograms of mixed rare earth carbonate/chloride concentrate from a mini pilot plant during the summer of 2015. With trial produc on of mixed rare earth carbonate concentrates and a mixed rate earth chlorides on the near-term horizon, Commerce will be in a posi on to demonstrate the en re flowsheet for Ashram and to demonstrate the viability of its product to poten al customers. Improvements in Ashram Flota on Circuit Recoveries. Earlier this year, Commerce completed bench scale tes ng on the deposit and confirmed a mineral processing flowsheet which included a grinding circuit, a flota on circuit, a weak hydrochloric acid (HCl) leach to remove carbonate, and a Wet High Intensity Magne c Separa on (WHIMS) stage to remove fluorite. This mineral processing flowsheet achieved metallurgical recoveries of 70.7%, producing a 43.6% TREO mineral concentrate with a 3.1% mass pull. With a resultant mass pull of 3.1%, Commerce also showed that the deposit would require minimal downstream hydromet processing. As a part of its metallurgical test work op miza on, Commerce showed improved grades and recoveries in flota on test trials. Commerce’s baseline flowsheet produced a flota on concentrate with a 9% TREO grade, with recov- eries of 81% and a mass pull of 17%. Commerce’s most recent test work has shown improved concentrate grades and recoveries, with one trial producing a 9% TREO concentrate, corresponding with an 87% recovery and 18% mass pull, and another trial producing 13% TREO concentrate, based on a 78% recovery and a mass pull of 12%. These advances in the hydrometallurgical op miza on work for Ashram will result in increased recoveries in the overall circuit. In me, Commerce will be able to improve on the parameters of a 43.6% TREO grade, 70.7% recovery and 3.1% mass pull it a ained through the flota on + leach + WHIMS flowsheet. Hydrochloric Acid (HCl) Recycling to Reduce Opera ng Costs Materially. As part of its op miza on work, the Company also looked at ways to regenerate the acid used during processing, which may ul mately result in further reduc- ons in acid consump on and consequently opera ng costs. Commerce’s ini al bench tests showed that Ashram consumed 25 to 90 kilograms acid (100% HCl basis) per tonne of whole rock without op miza on. With subsequent hydrometallurgical tests, Commerce achieved HCl recoveries of up to 66% from the pre-leach circuit based on tes ng of a synthe c solu on. Commerce was able to produce an HCl solu on grading between 24% and 26%, which can be fed back into the circuit. Commerce forecasts that HCl recoveries from pre-leach material liquor will ul mately be higher than the levels achieved from the synthe c solu on tests. The Company has completed three tests on the HCl regenera on, and will run addi onal tests, which will poten ally result in improved HCl recoveries. Tests on pre-leach
  2. 2. SECUTOR CAPITAL MANAGEMENT CORP Commerce Resources Corp 22 December 2014 material liquor are expected to begin in February or March 2015, using concentrate material produced from the mini pilot plant. Trial Produc on of Rare Earth Chloride Concentrate Opens Up the Poten al Customer Base. Commerce announced plans to produce a mixed rare earth chloride concentrate from the Ashram deposit, in addi on to the produc on of a mixed rare earth carbonate concentrate (REC), previously outlined in the flowsheet. Commerce will use feed from a mineral processing mini pilot plant, an cipated to come online in late January 2015, to produce several kilograms of REC and 500 grams of a mixed rare earth chloride concentrate. These two products will be used to demonstrate the viability of Ashram’s products to third party processors and poten al end users, as well as its versa lity. We also note that mixed rare earth chloride is the feed most commonly supplied to separa on plants. Commerce an cipates first produc on of mixed rare earth chloride in summer 2015. The addi on of mixed rare earth chloride concentrate produc on to the produc on circuit should not have a mate- rial impact on the flowsheet. Commerce an cipates that the produc on process will be the same for REC and the mixed RE chloride up to the sulpha on roast or sulpha on pot diges on phase, where the material will be divided into two streams for final processing. Summary. The Ashram Project has the poten al to be one of the world’s largest REE producing mines. While China s ll dominates the world’s REE produc on, commanding approximately 90% of the market, companies have success- fully developed rare earth mines outside of China in recent years. Ongoing concerns about the detrimental environ- mental impact of Chinese mines, as well as concerns about China’s status as the prevailing REE supplier will con nue to increase the a rac veness of projects like Ashram. Commerce’s May 2012 PEA outlined a project NPV of C$2.3 billion, an IRR of 44%, and a 25 year-mine life based on only 15% of the total resource. Importantly, the project’s mineralogy is simple (rela ve to other REE deposits) due to the presence of the minerals monazite, bastnaesite, and xeno me, which dominate commercial processing in the REE space. Consequently, Commerce should be able to use standard processing techniques for Ashram. In the base- line flowsheet, Commerce showed that the deposit could produce a high-grade mineral concentrate, allowing the Company to achieve much lower processing costs than many other projects. Commerce will con nue to op mize pH levels, temperature, and the consump on of other reagents, mineral libera on and metallurgical recoveries of Ashram, con nuing to further improve the project’s economics. levels, tempe A Simplified Flowsheet for the Produc on of a Rare Earth Mineral Concentrate Source: Commerce Resources
  3. 3. SECUTOR CAPITAL MANAGEMENT CORP Commerce Resources Corp 22 December 2014 1 The Analyst preparing this report (or member of the Analysts' household) have a long or short posi on in the securi es of the company or serve as a director, officer or advisory board member 2 As at the end of the month immediately preceding this publica on either Secutor, one of its affiliated companies, its directors or officers beneficially own 1% or more of the company 3 Secutor or one of its affiliated companies has managed or co-managed or par cipated as selling group in a public offering of securi es for this company in the past 12 months 4 On officer or director of Secutor or the Analyst preparing this commentary has received compensa on from this company in the past 12 months 5 Secutor or one of its affiliated companies expects to receive compensa on or intends to seek compensa on for investment banking services from this company in the next 3 months 6 The Analyst or Secutor has been reimbursed by the issuer for travel costs incurred as a result of a site visit in the last 12 months Secutor Capital Management Corpora on Commentary Disclaimers The informa on and opinions contained in this commentary were obtained or arrived at from sources we believe to be reliable at the me and neither Secutor Capital Management Corpora on (Secutor) nor its employees, agents or informa on suppliers can guarantee that such informa on is accurate or complete and it should not be relied on as such. Inves ng in companies within the mining and resource sector typically carries a great deal of risk, including forecast, financial, valua on, exchange and poli cal risks. Past performance should not be seen as an indica on of future performance. Any securi es in this commentary can fluctuate in value and accordingly you are not certain to make a profit by purchasing or selling them: you could make a loss. Secutor analysts are salaried employees who may receive a bonus that may be derived, in part, from corporate finance income. Analyst Certification I, Maria Kalbarczyk cer fy that the views expressed in this commentary accurately reflect my personal views about the subject issuers. I also cer fy that I have not, am not, and will not receive, directly or indirectly, compensa on in exchange for expressing my views in this commentary. Secutor does and seeks to do business with companies covered in this commentary. As a result, investors should be aware that the firm may have a conflict of interest. Secutor and/or its employees from me to me may hold, buy and sell shares, op ons or warrants of any company included in this commentary. This commentary is intended for use only in provincial jurisdic ons where Secutor is registered and not to be construed as an offer or solicita on to buy or sell any security. The securi es men oned in this commentary may not be suitable for all investors and may not be eligible for sale in some jurisdic ons. Our commentary (an analyst comment about an issuer that does not include a ra ng or recommenda on) is only intended for professional investors. Secutor accepts no liability whatsoever for any loss arising from any use or reliance on this commentary or the informa on contained herein. Any reproduc on in whole or part of this commentary without permission is prohibited. Secutor is a member of the Investment Regulatory Organiza on of Canada and the Canadian Investor Protec on Fund. Ticker Company 1 2 3 4 5 6 CCE-V Commerce Resources Corp. X X X

×