Prepared for:
Commerce Resources Corp.
Prepared by:
Albert Chong, P.Geo.
Tomasz Postolski, P.Eng.
Ramon Reyes Mendoza, P.Eng.
Tony Lipiec, P.Eng.
Behrang Omidvar, P.Eng.
Effective Date: 22 June 2012
Project No. 168967
Commerce Resources Corp. Blue River Tantalum-Niobium Project British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
IMPORTANT NOTICE
This report was prepared as a National Instrument 43-101 Technical
Report for Commerce Resources Corporation (Commerce) by AMEC
Americas Limited (AMEC). The quality of information, conclusions,
and estimates contained herein is consistent with the level of effort
involved in AMEC’s services, based on: i) information available at the
time of preparation, ii) data supplied by outside sources, and iii) the
assumptions, conditions, and qualifications set forth in this report. This
report is intended for use by Commerce subject to the terms and
conditions of its contract with AMEC. Except for the purposes
legislated under Canadian provincial securities law, any other uses of
this report by any third party is at that party’s sole risk.
AMEC Americas Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Tel (604) 664-4315 Fax (604) 669-9516 www.amec.com
CERTIFICATE OF QUALIFIED PERSON
Albert Chong, P.Geo. AMEC Americas Limited
111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3
Phone: (604) 664-4116 E-mail: [email protected]
I, Albert Chong, P.Geo., am employed as a Principal Geologist with AMEC Americas Limited.
This certificate applies to the Technical Report titled “Blue River Tantalum–Niobium Project, British
Columbia, Canada, NI 43-101 Technical Report on Mineral Resource Update” with an effective date
of 22 June 2012 (the “Technical Report”).
I am a Professional Geoscientist in the Province of British Columbia (P.Geo. #23773). I graduated
from McMaster University, Hamilton, Ontario with a B.Sc. degree in Geology, and from the University
of Tasmania with a M.Sc. degree in Exploration Geoscience.
I have practiced my profession for 27 years since graduation. I have been directly involved in green
fields and brown fields exploration, mining operations, consulting, and resource estimation of base
metal, precious metal and rare metal deposits.
As a result of my experience and qualifications, I am a Qualified Person as defined in National
Instrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101). I am the Qualified
Person responsible for Sections 1 to 12, 20, and 23 to 27 of the Technical Report.
I visited the Blue River property from 11 to 16 July 2010, 27 to 30 June 2011, and 6 to 14 September
2011.
I am independent of Commerce Resources Corporation as independence is described by Section
1.5 of NI 43–101.
I have been involved as an independent consultant on the Blue River Ta-Nb Project since 2010.
I have read NI 43–101 and this report has been prepared in compliance with that Instrument.
As of the date of this certificate, to the best of my knowledge, information and belief, the Technical
Report contains all scientific and technical information that is required to be disclosed to make the
Technical Report not misleading.
“signed and stamped”
Albert Chong, P.Geo.
Dated: 4 July 2012
AMEC Americas Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Tel (604) 664-4315 Fax (604) 669-9516 www.amec.com
CERTIFICATE OF QUALIFIED PERSON
Tomasz Postolski, P.Eng. AMEC Americas Limited
111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3
Phone: (604) 664-6096 E-mail: [email protected]
I, Tomasz Postolski, P.Eng., am employed as a Senior Geostatistician with AMEC Americas Limited.
This certificate applies to the Technical Report titled “Blue River Tantalum–Niobium Project, British
Columbia, Canada, NI 43-101 Technical Report on Mineral Resource Update” with an effective date
of 22 June 2012 (the “Technical Report”).
I am a Professional Engineer in the Province of British Columbia (P.Eng. #34784). I have graduated
from The University of Mining and Metallurgy, Krakow, Poland with a Magister Inzynier degree in
Geological Engineering, and from the University of British Columbia with a Master of Applied
Science degree also in Geological Engineering. I have completed the Citation Program in Applied
Geostatistics at the Centre for Computational Geostatistics at the University of Alberta.
I have 18 years of consulting, mine operations, and academic experience specializing in
geostatistical mineral resource estimation and geological evaluation of gold, copper, rare earth
metals and other mineral deposits in Canada and abroad.
As a result of my experience and qualifications, I am a Qualified Person as defined in National
Instrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101). I am the Qualified
Person responsible for Section 14 and those portions of the Summary, Interpretation and
Conclusions, and Recommendations that pertain to this Section of the Technical Report.
I visited the Blue River property 27 to 30 June 2011.
I am independent of Commerce Resources Corporation as independence is described by Section
1.5 of NI 43–101.
I have been involved with mineral resource estimation on the Blue River Ta-Nb Project since 2010.
I have read NI 43–101 and this report has been prepared in compliance with that Instrument.
As of the date of this certificate, to the best of my knowledge, information and belief, the Technical
Report contains all scientific and technical information that is required to be disclosed to make the
Technical Report not misleading.
“signed and stamped”
Tomasz Postolski, P.Eng.
Dated: 4 July 2012
AMEC Americas Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Tel (604) 664-4315 Fax (604) 669-9516 www.amec.com
CERTIFICATE OF QUALIFIED PERSON
Ramon Mendoza Reyes (P.Eng.) AMEC Americas Limited
111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3
Phone: (604) 664-3075 E-mail: [email protected]
I, Ramon Mendoza Reyes (P.Eng.) am employed as a Principal Mining Engineer with AMEC Americas Limited. This certificate applies to the Technical Report titled “Blue River Tantalum–Niobium Project, British
Columbia, Canada, NI 43-101 Technical Report on Mineral Resource Update” with an effective date
of 22 June 2012 (the “Technical Report”).
I am a Professional Engineer in the province of British Columbia. I graduated in 1989 from the
National Autonomous University of Mexico with a bachelor’s degree in Mining Engineering, and in
2003 completed a M.Sc. Degree in Mining & Earth Systems Engineering from the Colorado School
of Mines in Golden, Colorado, USA. I have practiced my profession for 22 years, and have
previously been involved with mine designs, mine planning and mine operations for base metal,
disseminated sulphide and industrial mineral projects in North America and South America.
As a result of my experience and qualifications, I am a Qualified Person as defined in National
Instrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101). I am the Qualified
Person responsible for Sections 15, 16, and 18 and those portions of the Summary, Cost Estimates
Interpretation and Conclusions, and Recommendations that pertain to the mining sections of the
Technical Report.
I visited the Blue River property in British Columbia from 12 to 14 July 2010.
I am independent of Commerce Resources Corporation as independence is described by Section
1.5 of NI 43–101.
I have been involved with the mining aspects of the Blue River Tantalum–Niobium Project since
January 2010.
I have read NI 43–101 and this report has been prepared in compliance with that Instrument.
As of the date of this certificate, to the best of my knowledge, information and belief, the Technical
Report contains all scientific and technical information that is required to be disclosed to make the
Technical Report not misleading.
“signed and stamped”
Ramon Mendoza Reyes, P.Eng.
Dated: 4 July 2012
AMEC Americas Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Tel (604) 664-4315 Fax (604) 669-9516 www.amec.com
CERTIFICATE OF QUALIFIED PERSON
Ignacy (Tony) Lipiec (P.Eng.) AMEC Americas Limited
111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3
Tel: 604-664-3130 E-mail: [email protected]
I, Ignacy (Tony) Lipiec (P.Eng.) am employed as a Principal Metallurgical Engineer with AMEC Americas Limited. This certificate applies to the Technical Report titled “Blue River Tantalum–Niobium Project, British
Columbia, Canada, NI 43-101 Technical Report on Mineral Resource Update” with an effective date
of 22 June 2012 (the “Technical Report”).
I am a Professional Engineer in the province of British Columbia. I graduated from the University of
British Columbia with a B.A.Sc. degree in Mining & Mineral Process Engineering, in 1985. I have
practiced my profession for 27 years, and have previously been involved with metallurgical design
and process engineering for precious metal, base metal and specialty product projects in North
America and South America.
As a result of my experience and qualifications, I am a Qualified Person as defined in National
Instrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101). I am the Qualified
Person responsible for Sections 13, 17, 18, 21 and those portions of the Summary, Interpretation
and Conclusions and Recommendations that pertain to those sections of the Technical Report.
I did not visit the Blue River property.
I am independent of Commerce Resources Corporation as independence is described by Section
1.5 of NI 43–101.
I have been involved as an independent consultant with the Blue River Ta-Nb Project since 2010.
I have read NI 43–101 and this report has been prepared in compliance with that Instrument.
As of the date of this certificate, to the best of my knowledge, information and belief, the Technical
Report contains all scientific and technical information that is required to be disclosed to make the
Technical Report not misleading.
“signed and stamped”
Tony Lipiec, P.Eng.
Dated: 4 July 2012
AMEC Americas Limited 111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3 Tel (604) 664-4315 Fax (604) 669-9516 www.amec.com
CERTIFICATE OF QUALIFIED PERSON
Behrang Omidvar, P.Eng. AMEC Americas Limited
111 Dunsmuir Street, Suite 400 Vancouver, B.C. V6B 5W3
Phone: (604) 664-4522 E-mail: [email protected]
I, Behrang Omidvar, P.Eng., am employed as a Financial Analyst with AMEC Americas Limited.
This certificate applies to the Technical Report titled “Blue River Tantalum–Niobium Project, British
Columbia, Canada, NI 43-101 Technical Report on Mineral Resource Update” with an effective date
22 June 2012 (the “Technical Report”).
I am a Professional Engineer in the Province of British Columbia (P.Eng. #35500). I have graduated
from The University of British Columbia with a Mechanical Engineering degree.
I have eight years of experience in engineering, project management and financial analysis for
mining and other projects. I have prepared cash-flow models and conducted financial and
throughput analyses of numerous mines and development properties in Canada and internationally.
As a result of my experience and qualifications, I am a Qualified Person as defined in National
Instrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101). I am the Qualified
Person responsible for Sections 19, 21, 22 and those portions of the Summary, Interpretation and
Conclusions and Recommendations that pertain to those Sections of the Technical Report.
I have not visited the Blue River property.
I am independent of Commerce Resources Corporation as independence is described by Section
1.5 of NI 43–101.
I have been involved as an independent consultant with the Blue River Ta-Nb Project since 2010.
I have read NI 43–101 and this report has been prepared in compliance with that Instrument.
As of the date of this certificate, to the best of my knowledge, information and belief, the Technical
Report contains all scientific and technical information that is required to be disclosed to make the
Technical Report not misleading.
“signed and stamped”
Behrang Omidvar, P.Eng.
Dated: 4 July 2012
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 TOC i 22 June 2012
C O N T E N T S
1.0 SUMMARY ................................................................................................................................... 1-1 1.1 Terms of Reference ......................................................................................................... 1-1 1.2 Key Outcomes ................................................................................................................. 1-1
1.2.1 Mineral Resource Update ............................................................................... 1-1 1.2.2 2011 PEA Outcomes ...................................................................................... 1-2
1.3 Project Setting ................................................................................................................. 1-2 1.4 Tenure, Surface Rights, Royalties, and Agreements ...................................................... 1-2 1.5 Environment, Permitting, and Socio-Economics ............................................................. 1-3 1.6 Geology and Mineralization ............................................................................................. 1-3 1.7 Exploration ....................................................................................................................... 1-4 1.8 Exploration Potential ........................................................................................................ 1-4 1.9 Drilling .............................................................................................................................. 1-4 1.10 Sample Preparation, Analysis, and Security ................................................................... 1-5 1.11 Data Verification .............................................................................................................. 1-6 1.12 Metallurgical Testwork ..................................................................................................... 1-7 1.13 Mineral Resource Estimation........................................................................................... 1-8 1.14 Mineral Resource Statement ........................................................................................... 1-9 1.15 Preliminary Economic Assessment ............................................................................... 1-10
1.15.1 2011 PEA ...................................................................................................... 1-10 1.15.2 Proposed Mining Method .............................................................................. 1-10 1.15.3 Geotechnical Considerations ........................................................................ 1-10 1.15.4 Dilution Considerations ................................................................................. 1-11 1.15.5 Drilling and Blasting ...................................................................................... 1-11 1.15.6 Mine Development ........................................................................................ 1-11 1.15.7 Mineralized Material and Waste Haulage ..................................................... 1-12 1.15.8 Mine Services ............................................................................................... 1-12 1.15.9 Mine Production Forecasts ........................................................................... 1-13 1.15.10 Process Design ............................................................................................ 1-13 1.15.11 Tailings and Waste Management ................................................................. 1-14 1.15.12 Planned Project Infrastructure ...................................................................... 1-14 1.15.13 Markets ......................................................................................................... 1-15 1.15.14 Capital Costs ................................................................................................ 1-16 1.15.15 Operating Costs ............................................................................................ 1-17 1.15.16 Financial Analysis ......................................................................................... 1-18 1.15.17 Sensitivity Analysis ....................................................................................... 1-20
1.16 Interpretation and Conclusions ...................................................................................... 1-21 1.16.1 2012 Mineral Resource Estimate Update ..................................................... 1-21 1.16.2 2011 PEA ...................................................................................................... 1-22 1.16.3 Project Opportunities .................................................................................... 1-23 1.16.4 Project Risks ................................................................................................. 1-23
1.17 Recommendations ......................................................................................................... 1-24
2.0 INTRODUCTION .......................................................................................................................... 2-1 2.1 Terms of Reference ......................................................................................................... 2-1 2.2 Qualified Persons ............................................................................................................ 2-1 2.3 Site Visits and Scope of Personal Inspection .................................................................. 2-1 2.4 Effective Dates ................................................................................................................ 2-2 2.5 Information Sources and References .............................................................................. 2-3
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 TOC ii 22 June 2012
2.6 Previous Technical Reports............................................................................................. 2-4
3.0 RELIANCE ON OTHER EXPERTS .............................................................................................. 3-1 3.1 Mineral Tenure ................................................................................................................ 3-1 3.2 Surface Rights ................................................................................................................. 3-1 3.3 Royalties and Agreements .............................................................................................. 3-1 3.4 Environmental, Permitting, and Liability Issues ............................................................... 3-2 3.5 Markets ............................................................................................................................ 3-2
4.0 PROPERTY DESCRIPTION AND LOCATION ............................................................................ 4-1 4.1 Project Ownership ........................................................................................................... 4-1 4.2 Mineral Tenure ................................................................................................................ 4-1 4.3 Surface Rights ................................................................................................................. 4-4 4.4 Royalties and Agreements .............................................................................................. 4-4 4.5 Permits ............................................................................................................................. 4-4 4.6 Environment .................................................................................................................... 4-4 4.7 Social and Community Impact ......................................................................................... 4-4 4.8 Comment on Section 4 .................................................................................................... 4-5
5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ......................................................................................................................... 5-1 5.1 Accessibility ..................................................................................................................... 5-1 5.2 Climate ............................................................................................................................. 5-1 5.3 Local Resources and Infrastructure ................................................................................ 5-2 5.4 Physiography ................................................................................................................... 5-2 5.5 Comment on Section 5 .................................................................................................... 5-3
6.0 HISTORY ...................................................................................................................................... 6-1 6.1 Pre-Commerce Exploration ............................................................................................. 6-1 6.2 Commerce Exploration .................................................................................................... 6-1 6.3 Commerce Mineral Resource Estimates ......................................................................... 6-2
7.0 GEOLOGICAL SETTING AND MINERALIZATION ..................................................................... 7-1 7.1 Regional Geology ............................................................................................................ 7-1 7.2 Project Geology ............................................................................................................... 7-3
7.2.1 Metasedimentary Rocks ................................................................................. 7-3 7.2.2 Gneisses and Schists ..................................................................................... 7-5 7.2.3 Amphibolites ................................................................................................... 7-6 7.2.4 Intrusive Rocks ............................................................................................... 7-6 7.2.5 Pegmatite Dykes .......................................................................................... 7-14
7.3 Structural Geology and Metamorphism ......................................................................... 7-14 7.4 Geochronology .............................................................................................................. 7-16 7.5 Carbonatites .................................................................................................................. 7-16
7.5.1 Fir Carbonatite .............................................................................................. 7-16 7.5.2 Verity Carbonatite ......................................................................................... 7-17 7.5.3 Exploration Targets ...................................................................................... 7-18
7.6 Mineralogy ..................................................................................................................... 7-20 7.6.1 Ferrocolumbite .............................................................................................. 7-20 7.6.2 Pyrochlore ..................................................................................................... 7-21 7.6.3 Fersmite ........................................................................................................ 7-21 7.6.4 Fenite Mineralization .................................................................................... 7-21 7.6.5 Mineral Zoning .............................................................................................. 7-21
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 TOC iii 22 June 2012
7.7 Comment on Section 7 .................................................................................................. 7-22
8.0 DEPOSIT TYPES ......................................................................................................................... 8-1 8.1 Comment on Section 8 .................................................................................................... 8-3
9.0 EXPLORATION ............................................................................................................................ 9-1 9.1 Grids and Surveys ........................................................................................................... 9-1 9.2 Geological Mapping ......................................................................................................... 9-1 9.3 Geochemical Sampling .................................................................................................... 9-1
9.3.1 Stream Sediment Sampling ............................................................................ 9-1 9.3.2 Soil Sampling .................................................................................................. 9-2 9.3.3 Rock Chip, Grab, and Channel Sampling ...................................................... 9-3
9.4 Bulk Sampling .................................................................................................................. 9-4 9.5 Research Programs ......................................................................................................... 9-4 9.6 Comment on Section 9 .................................................................................................... 9-5
10.0 DRILLING ................................................................................................................................... 10-1 10.1 Core Drilling Strategy .................................................................................................... 10-4
10.1.1 Core Sizes .................................................................................................... 10-4 10.1.2 Collar Surveys .............................................................................................. 10-4 10.1.3 Down-Hole Surveys ...................................................................................... 10-5 10.1.4 Oriented Drill Core ........................................................................................ 10-5 10.1.5 Core Handling ............................................................................................... 10-5 10.1.6 Core Recovery .............................................................................................. 10-5
10.2 Drill Intercepts ................................................................................................................ 10-6 10.3 Comment on Section 10 ................................................................................................ 10-6
11.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY ........................................................ 11-1 11.1 Sampling Methods ......................................................................................................... 11-1 11.2 Metallurgical Sampling .................................................................................................. 11-2 11.3 Density Determinations ................................................................................................. 11-2
11.3.1 Density Check Program ................................................................................ 11-4 11.4 Analytical Laboratories .................................................................................................. 11-4 11.5 Sample Preparation and Analysis ................................................................................. 11-5 11.6 Quality Assurance and Quality Control ......................................................................... 11-5
11.6.1 Assessment of Precision .............................................................................. 11-6 11.6.2 Assessment of Accuracy ............................................................................ 11-12 11.6.3 Assessment of Laboratory Bias .................................................................. 11-16 11.6.4 Assessment of Contamination .................................................................... 11-18 11.6.5 Assay QA/QC Conclusions ......................................................................... 11-24
11.7 Databases ................................................................................................................... 11-25 11.8 Security ........................................................................................................................ 11-25 11.9 Comment on Section 11 .............................................................................................. 11-26
12.0 DATA VERIFICATION ................................................................................................................ 12-1 12.1 Database Verification .................................................................................................... 12-1 12.2 Site Visits ....................................................................................................................... 12-1
12.2.1 Drill Collar Location Check ........................................................................... 12-2 12.2.2 Inspection of Drill Core and Verification of Mineralization ............................ 12-2
12.3 Comment on Section 12 ................................................................................................ 12-4
13.0 MINERAL PROCESSING AND METALLURGICAL TESTING .................................................. 13-1 13.1 Head Samples for Initial Testing ................................................................................... 13-2
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 TOC iv 22 June 2012
13.2 Phase I Testing .............................................................................................................. 13-3 13.2.1 Grinding Size ................................................................................................ 13-3 13.2.2 Roughing and Cleaning Gravity Concentration ............................................ 13-3
13.3 Phase II Testing ............................................................................................................. 13-6 13.3.1 Flotation Tests .............................................................................................. 13-6
13.4 Phase III Testing ............................................................................................................ 13-8 13.4.1 2011 and 2012 Work .................................................................................... 13-8 13.4.2 Review of Concentrate Treatment Options .................................................. 13-8
13.5 Accuracy of Assaying .................................................................................................... 13-9 13.6 Comment on Section 13 ................................................................................................ 13-9
14.0 MINERAL RESOURCE ESTIMATES ......................................................................................... 14-1 14.1 Introduction .................................................................................................................... 14-1 14.2 Assay Data and Capping ............................................................................................... 14-1 14.3 Composites .................................................................................................................... 14-1 14.4 Exploratory Data Analysis ............................................................................................. 14-2 14.5 Contact Analysis ............................................................................................................ 14-4 14.6 Variography ................................................................................................................... 14-7 14.7 Carbonatite Solid Modeling ........................................................................................... 14-7 14.8 Block Model Dimensions ............................................................................................... 14-7 14.9 Assignment of Lithology and Specific Gravity to Blocks ............................................... 14-8 14.10 Block Model Grade Estimate ......................................................................................... 14-8 14.11 Block Model Validation .................................................................................................. 14-9
14.11.1 Visual Validation ........................................................................................... 14-9 14.11.2 Global Grade Bias Check ........................................................................... 14-12 14.11.3 Local Grade Bias Check (Swath Plots) ...................................................... 14-12 14.11.4 Selectivity Check ........................................................................................ 14-14
14.12 In Situ Block Model Carbonatite Reconciliation........................................................... 14-16 14.13 Mineral Resource Classification .................................................................................. 14-16 14.14 Reasonable Prospects for Economic Extraction ......................................................... 14-19
14.14.1 Market Study............................................................................................... 14-19 14.14.2 Commodity Price ........................................................................................ 14-19 14.14.3 Physical Assumptions ................................................................................. 14-19 14.14.4 Operational Considerations ........................................................................ 14-19 14.14.5 Economic Assumptions .............................................................................. 14-20 14.14.6 Economic Cut-Off ....................................................................................... 14-20
14.15 Mineral Resource Statement ....................................................................................... 14-21 14.16 Comparison of Mineral Resources .............................................................................. 14-23 14.17 Comment on Section 14 .............................................................................................. 14-24
15.0 MINERAL RESERVE ESTIMATE .............................................................................................. 15-1
16.0 MINING METHODS .................................................................................................................... 16-1 16.1 Introduction .................................................................................................................... 16-1 16.2 Optimization ................................................................................................................... 16-1
16.2.1 Assumptions ................................................................................................. 16-1 16.2.2 Mining Method .............................................................................................. 16-2 16.2.3 Mineral Resources considered for the 2011 PEA ........................................ 16-3 16.2.4 Production Rate ............................................................................................ 16-4
16.3 Geotechnical Conditions ................................................................................................ 16-4 16.4 Conceptual Mining Method ............................................................................................ 16-5
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 TOC v 22 June 2012
16.4.1 Backfill Considerations ................................................................................. 16-5 16.5 Stoping Design .............................................................................................................. 16-6
16.5.1 Stability Analysis and Ground Support ......................................................... 16-6 16.5.2 Stope Geometry ........................................................................................... 16-7 16.5.3 Mining Sequence .......................................................................................... 16-7 16.5.4 Conceptual Mine Design .............................................................................. 16-7 16.5.5 Mining Dilution and Recovery ....................................................................... 16-7
16.6 Drilling and Blasting ....................................................................................................... 16-7 16.7 Mine Development ......................................................................................................... 16-8 16.8 Mineralized Material and Waste Rock Haulage ............................................................ 16-9 16.9 Mine Services .............................................................................................................. 16-12 16.10 Mine Development and Production Forecasts ............................................................ 16-12 16.11 Mine Equipment Requirements ................................................................................... 16-14 16.12 Mine Infrastructure ....................................................................................................... 16-14 16.13 Mining Personnel ......................................................................................................... 16-14 16.14 Comment on Section 16 .............................................................................................. 16-14
17.0 RECOVERY METHODS ............................................................................................................ 17-1 17.1 Introduction .................................................................................................................... 17-1 17.2 Plant Design .................................................................................................................. 17-1 17.3 Comminution (Crushing, Storage, and Grinding) .......................................................... 17-2 17.4 De-Sliming and Flotation ............................................................................................... 17-3 17.5 Filtration ......................................................................................................................... 17-3 17.6 Concentrate Pre-Treatment ........................................................................................... 17-3 17.7 Chlorination and Distillation ........................................................................................... 17-4 17.8 Product / Materials Handling ......................................................................................... 17-4 17.9 Energy, Water, and Process Materials Requirements .................................................. 17-4 17.10 Comment on Section 17 ................................................................................................ 17-4
18.0 PROJECT INFRASTRUCTURE ................................................................................................. 18-1 18.1 Introduction .................................................................................................................... 18-1 18.2 Site Layout ..................................................................................................................... 18-1 18.3 Buildings ........................................................................................................................ 18-1
18.3.1 Mine Service Building ................................................................................... 18-1 18.3.2 Truck Shop ................................................................................................... 18-3 18.3.3 Warehouse ................................................................................................... 18-3 18.3.4 Process Building ........................................................................................... 18-3 18.3.5 Crushing and Screening Circuit .................................................................... 18-3 18.3.6 Portal Infrastructure ...................................................................................... 18-4 18.3.7 Explosives Storage ....................................................................................... 18-4 18.3.8 Aggregate Crushing and Concrete Batch Plants .......................................... 18-4
18.4 Roads and Logistics ...................................................................................................... 18-4 18.4.1 Access Road................................................................................................. 18-4 18.4.2 Haul Road ..................................................................................................... 18-5
18.5 Co-Disposal Storage Facilities ...................................................................................... 18-5 18.5.1 Drystack Considerations ............................................................................... 18-5 18.5.2 Evaluation of Potential Sites ......................................................................... 18-6 18.5.3 Site Selection ................................................................................................ 18-7 18.5.4 Facility Design .............................................................................................. 18-8 18.5.5 Co-Disposal Facility Geohazards Considerations ........................................ 18-9 18.5.6 Co-Disposal Facility Stability Considerations ............................................... 18-9
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 TOC vi 22 June 2012
18.5.7 Co-Disposal Facility Surface Water Run-Off Considerations ..................... 18-10 18.5.8 Co-Disposal Facility Closure Considerations ............................................. 18-11
18.6 Avalanche Hazard ....................................................................................................... 18-11 18.7 Water Supply, Distribution, and Treatment Systems .................................................. 18-11 18.8 Waste Considerations ................................................................................................. 18-12 18.9 Accommodation ........................................................................................................... 18-12 18.10 Power and Electrical .................................................................................................... 18-12 18.11 Fuel .............................................................................................................................. 18-13 18.12 Comment on Section 18 .............................................................................................. 18-13
19.0 MARKET STUDIES AND CONTRACTS .................................................................................... 19-1 19.1 Introduction .................................................................................................................... 19-1 19.2 2011 PEA Market Studies ............................................................................................. 19-1 19.3 2011 PEA Commodity Price .......................................................................................... 19-1
19.3.1 Tantalum ....................................................................................................... 19-1 19.3.2 Niobium ......................................................................................................... 19-2
19.4 Price Assumption Discussion ........................................................................................ 19-2 19.5 Comment on Section 19 ................................................................................................ 19-4
20.0 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT ....... 20-1 20.1 Environmental Assessment for Mining Projects ............................................................ 20-1 20.2 Project Studies .............................................................................................................. 20-2 20.3 Environmental Setting and Review of Environmental Baseline .................................... 20-3 20.4 Closure Considerations ................................................................................................. 20-9 20.5 Current Environmental Liabilities ................................................................................. 20-10 20.6 2011 PEA Closure Plan ............................................................................................... 20-10 20.7 Permitting..................................................................................................................... 20-10 20.8 Considerations of Social and Community Impacts ...................................................... 20-12
20.8.1 First Nations ................................................................................................ 20-13 20.8.2 Local Communities ..................................................................................... 20-14
20.9 Comment on Section 20 .............................................................................................. 20-14
21.0 2011 PEA CAPITAL AND OPERATING COSTS ....................................................................... 21-1 21.1 2011 PEA Basis of Estimate ......................................................................................... 21-1 21.2 2011 PEA Capital Costs ................................................................................................ 21-1
21.2.1 Infrastructure................................................................................................. 21-1 21.2.2 Material Handling .......................................................................................... 21-2 21.2.3 Process Plant................................................................................................ 21-2 21.2.4 Mining ........................................................................................................... 21-2 21.2.5 Contingency Costs ....................................................................................... 21-3 21.2.6 Indirect Costs ................................................................................................ 21-3 21.2.7 Sustaining Capital ......................................................................................... 21-4 21.2.8 Mine Closure................................................................................................. 21-4 21.2.9 Capital Cost Estimate Summary ................................................................... 21-4 21.2.10 2011 PEA Operating Costs .......................................................................... 21-5 21.2.11 Capital and Operating Cost Discussion ........................................................ 21-6
21.3 Comment on Section 21 ................................................................................................ 21-6
22.0 2011 PEA ECONOMIC ANALYSIS ............................................................................................ 22-1 22.1 2011 PEA Valuation Method ......................................................................................... 22-1 22.2 2011 PEA Financial Model Parameters ........................................................................ 22-2
22.2.1 Mineral Resources and Mine Life ................................................................. 22-2
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
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22.2.2 Metallurgical Process ................................................................................... 22-2 22.2.3 Commodity Prices and Foreign Exchange ................................................... 22-2 22.2.4 Taxes ............................................................................................................ 22-2 22.2.5 PEA Financial Results .................................................................................. 22-4 22.2.6 2011 PEA Cash Costs .................................................................................. 22-4 22.2.7 2011 PEA Sensitivity Analysis ...................................................................... 22-6 22.2.8 Financial Analysis Discussion ...................................................................... 22-7
22.3 Comment on Section 22 ................................................................................................ 22-7
23.0 ADJACENT PROPERTIES ........................................................................................................ 23-1
24.0 OTHER RELEVANT DATA AND INFORMATION ..................................................................... 24-1
25.0 INTERPRETATION AND CONCLUSIONS ................................................................................ 25-1 25.1 Mineral Resource Update (Effective Date 22 June 2012) ............................................. 25-1 25.2 2011 PEA ...................................................................................................................... 25-2
25.2.1 Opportunities ................................................................................................ 25-3 25.2.2 Risks ............................................................................................................. 25-4
26.0 RECOMMENDATIONS .............................................................................................................. 26-1
27.0 REFERENCES ........................................................................................................................... 27-1
T A B L E S
Table 1-1: Blue River Project Estimated Mineral Resources; Effective Date 22 June 2012,
Tomasz Postolski, P.Eng, Qualified Person ...................................................................... 1-9 Table 1-2: Summary of Estimated Capital Costs .............................................................................. 1-17 Table 1-4: Summary Financial Analysis at Various Discount Rates (base case is highlighted) ....... 1-19 Table 2-1: Site Visit and Areas of Report Responsibilities .................................................................. 2-2 Table 6-1: Blue River Exploration History Summary ........................................................................... 6-1 Table 9-1: Soil Sample Campaigns ..................................................................................................... 9-2 Table 9-2: Rock Sample Campaigns ................................................................................................... 9-3 Table 10-1: Drill Campaign Summary ................................................................................................. 10-2 Table 10-2: Upper Fir Deposit Trench and Bulk Samples ................................................................... 10-2 Table 10-3: Example Drill Hole Intercept Summary Table .................................................................. 10-7 Table 11-1: 2005 – 2010 Specific Gravity Determinations by Campaign ........................................... 11-3 Table 11-2: 2005 – 2010 Specific Gravity Constants .......................................................................... 11-3 Table 11-3 Control Sample Insertion Rate Summary ........................................................................ 11-7 Table 11-4: Cumulative Frequency ARD Summary for Tantalum ....................................................... 11-8 Table 11-5: Cumulative Frequency ARD Summary for Niobium ........................................................ 11-9 Table 11-6: Cumulative Frequency ARD Summary for Tantalum (Mean > than 50 ppm Ta) ............. 11-9 Table 11-7: 2010 Nb XRF(F) Blue River SRM Control Chart Summary ........................................... 11-16 Table 11-8: 2010 Ta XRF(F) Blue River SRM Control Chart Summary ........................................... 11-16 Table 11-9: Pulp Check Between-Laboratory Bias ........................................................................... 11-17 Table 12-1: AMEC Site Visit Confirmation of Mineralization ............................................................... 12-3 Table 13-1: Head Assay Grades, Bulk Samples BS-2F and BS-2G ................................................... 13-3 Table 13-2: Results from F81 .............................................................................................................. 13-7 Table 13-3: Results of a Sequential Hydrochloric Acid Leach of Flotation “Middling” ........................ 13-8
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Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 TOC viii 22 June 2012
Table 14-1: Capped Assays vs. 2.5 m Composites Statistics inside Carbonatites ............................. 14-1 Table 14-2: Composite Statistics in Carbonatite ................................................................................. 14-2 Table 14-3: Ta2O5 and Nb2O5 Correlogram Parameters in Carbonatite ............................................. 14-7 Table 14-4: Block Model Dimensions .................................................................................................. 14-8 Table 14-5: Estimation Parameters for Ta2O5 and Nb2O5 ................................................................... 14-9 Table 14-6: Mean Grades for NN and ID3 Models ............................................................................ 14-12 Table 14-7: Blue River Project Estimated Mineral Resources; Effective Date 22 June, 2012,
Tomasz Postolski, P.Eng, Qualified Person .................................................................. 14-22 Table 14-8: Blue River Project Sensitivity of Estimated Mineral Resources to Tantalum Price;
Effective Date 22 June 2012, Tomasz Postolski, P.Eng, Qualified Person ................... 14-23 Table 16-1: Minimum Stope Dimensions for Constraining the Subset of Mineral Resources within
Designed Stopes .............................................................................................................. 16-2 Table 16-2: Blue River Project Estimated Mineral Resources Supporting 2011 PEA; Effective Date
29 September 2011, Tomasz Postolski, P.Eng., Qualified Person .................................. 16-3 Table 16-3: Rock Mass Characteristics by Rock Group ..................................................................... 16-4 Table 16-4: Major Joint Sets ............................................................................................................... 16-5 Table 16-5: Stope Faces and Hydraulic Radius .................................................................................. 16-6 Table 16-6: Mine Development and Production Forecasts ............................................................... 16-13 Table 16-7: Mining and Tailings Facility Equipment Requirements .................................................. 16-15 Table 16-8: Mining Personnel Requirements .................................................................................... 16-16 Table 20-1: Provincial Permits, Approvals, Licences, and Authorizations ........................................ 20-11 Table 20-2: Federal Permits, Approval, Licences, and Authorizations ............................................. 20-11 Table 21-1: Summary of Estimated Capital Costs (CAD, 2011 constant dollars) ............................... 21-5 Table 21-2: Average Life-of-Mine Operating Cost Summary (CAD, 2011 constant dollars) .............. 21-5 Table 22-1: Summary Financial Analysis at Various Discount Rates ................................................. 22-4 Table 22-3: Sensitivity Summary in CAD, 8% Discount Rate ............................................................. 22-6 Table 26-1: Recommendations Summary ........................................................................................... 26-1
F I G U R E S
Figure 1-1: Sensitivity Summary, 8% Discount Rate .......................................................................... 1-21 Figure 4-1: Project Location Map ......................................................................................................... 4-2 Figure 4-2: Blue River Mineral Tenure Map ......................................................................................... 4-3 Figure 7-1: Tectonic Belts of British Columbia and Carbonatite Occurrences ..................................... 7-2 Figure 7-2: Blue River Project Local Geology Map .............................................................................. 7-4 Figure 7-3: Blue River Local Geology Legend (for Figure 7-2) ............................................................ 7-5 Figure 7-4: Deposit Area Surface Geology Map .................................................................................. 7-7 Figure 7-5: Drill Collar and Vertical Section Locations ......................................................................... 7-8 Figure 7-6: Longitudinal Section A – A’ (view SE) ................................................................................ 7-9 Figure 7-7: Geology Section 5796740 N ............................................................................................ 7-10 Figure 7-8: Geology Section 5796425 N ............................................................................................ 7-11 Figure 7-9: Fold Indicators (Hole F08-150: 121.8 m to 129.8 m) ....................................................... 7-13 Figure 7-10: Fold Indicators (Hole F08-150: 143.5 m and 147.0 m) .................................................... 7-13 Figure 7-11: Fold Indicators (Hole F08-151: 204.0 m to 204.5 m) ....................................................... 7-14 Figure 7-12: Exploration Target Location Surface Map ........................................................................ 7-19
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Figure 10-1: Drill Collar Plan ................................................................................................................ 10-3 Figure 11-1: 2005 to 2008 Quarter-Core Duplicate Pair Cumulative Frequency ARD Chart ............... 11-8 Figure 11-2: 2010 Drill Core Assay Program Cumulative Frequency ARD Chart .............................. 11-10 Figure 11-3: 2009 Re-assay Program Ta XRF(F) Cumulative Frequency ARD Chart ...................... 11-11 Figure 11-4: 2009 Re-assay Program Nb XRF(F) Cumulative Frequency ARD Chart ...................... 11-11 Figure 11-5: 2005 to 2008 Ta ICP-MS BR-01 SRM Control Chart .................................................... 11-13 Figure 11-6: 2005 to 2008 Nb ICP-MS BR-01 SRM Control Chart .................................................... 11-13 Figure 11-7: 2009 Ta XRF(F) Blue River SRMs Control Chart\ ......................................................... 11-14 Figure 11-8: 2009 Nb XRF(F) Blue River SRMs Control Chart .......................................................... 11-15 Figure 11-9: 2010 Acme versus Stark Nb XRF(F) Check Pair RMA Chart ........................................ 11-18 Figure 11-10: 2005 – 2008 Blank Ta ICP-MS Performance Chart ...................................................... 11-19 Figure 11-11: 2005 - 2008 Blank Nb ICP-MS Performance Chart .................................................... 11-20 Figure 11-12: 2009 Ta XRF(F) Blank Performance Chart .................................................................... 11-21 Figure 11-13: 2009 Nb XRF(F) Blank Performance Chart ................................................................... 11-22 Figure 11-14: 2010 Ta XRF(F) Blank Performance Chart .................................................................... 11-23 Figure 11-15: 2010 Nb XRF(F) Blank Performance Chart ................................................................... 11-24 Figure 13-1: Sample BS-2F – Gravity Separation (Different Grinds) ................................................... 13-4 Figure 13-2: Sample BS-2G – Gravity Separation (Different Grinds) .................................................. 13-5 Figure 13-3: Overall Rougher and Cleaner Recovery vs Grade by Centrifugal Gravity Concentration 13-5 Figure 13-4: Upgrading by Wilfley and Mozley Units ........................................................................... 13-6 Figure 14-1: Ta2O5 Histograms and Probability Plot within Carbonatite .............................................. 14-3 Figure 14-2: Nb2O5 Histograms and Probability Plot within Carbonatite .............................................. 14-4 Figure 14-3: Ta2O5 Contact Plots between Carbonatite and Fenite ..................................................... 14-5 Figure 14-4: Nb2O5 Contact Plots between Carbonatite and Fenite .................................................... 14-6 Figure 14-5: Ta2O5 ID3 Model within Carbonatite – Plan 1,146.25 .................................................... 14-10 Figure 14-6: Ta2O5 ID3 Model within Carbonatite – Section N 5,796,932.5 ...................................... 14-10 Figure 14-7: Nb2O5 ID3 Model within Carbonatite – Plan 1,146.25 ................................................... 14-11 Figure 14-8: Nb2O5 ID3 Model within Carbonatite – Section N 5,796,932.5 ...................................... 14-11 Figure 14-9: Swath Plot for Ta2O5 ID3 Model ..................................................................................... 14-13 Figure 14-10: Swath Plot for Nb2O5 ID3 Model ..................................................................................... 14-13 Figure 14-11: Herco Grade – Tonnage Curves for Ta2O5 ID3 Model ................................................... 14-15 Figure 14-12: Herco Grade – Tonnage Curves for Nb2O5 ID3 Model .................................................. 14-15 Figure 14-13: Resource Classification – Plan 1,161.25 ....................................................................... 14-18 Figure 14-14: Resource Classification – Section N 5,796,882.5 .......................................................... 14-18 Figure 16-1: Conceptual Mine Layout Plan (plan view projection) ..................................................... 16-10 Figure 16-2: Aerial View of the Mining Area from Upper Portal ......................................................... 16-11 Figure 17-1: Concentration and Refining of Blue River Mineralization ................................................ 17-2 Figure 18-1: Proposed Site Layout Plan ............................................................................................... 18-2 Figure 19-1: Ta Price Trend ................................................................................................................. 19-3 Figure 19-2: Nb Price Trend ................................................................................................................. 19-4 Figure 22-1: Sensitivity Summary in CAD, 8% Discount Rate ............................................................. 22-7
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 TOC x 22 June 2012
A P P E N D I C E S
A p p e n d i x A : List of Claims
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-1 22 June 2012
1.0 SUMMARY
1.1 Terms of Reference
AMEC Americas Limited (AMEC) was commissioned by Commerce Resources
Corporation (Commerce) to prepare a NI 43-101 compliant Mineral Resource update
and technical report (the Report) on the wholly-owned Blue River tantalum–niobium
Project (the Project), located within the North Thompson River valley of east–central
British Columbia (B.C.), Canada.
This technical report supports the findings of the Mineral Resource update and also
includes summaries from a Preliminary Economic Assessment study completed on the
Blue River Project with an effective date 29 September 2011 (2011 PEA). Results
from the 2011 PEA mining studies have not changed in terms of their outcomes as
their underlying assumptions remain reasonable.
1.2 Key Outcomes
1.2.1 Mineral Resource Update
The key findings of the Mineral Resource update (effective date 22 June 2012) are
summarized as follows:
Indicated Category: 51.8 million tonnes @ 192 ppm Ta2O5 and 1,490 ppm Nb2O5
Inferred Category: 8.8 million tonnes @ 186 ppm Ta2O5 and 1,660 ppm Nb2O5
The Mineral Resource update uses the same assumptions from the 2011 PEA for the
following items:
Ta and Nb metal prices
Mining method and mining extraction factor
Processing method and recovery factor
CAPEX and OPEX costs
Block Unit Value cut-off values of US$40/t for the bulk mining method and US$58/t
for the selective mining method.
The Mineral Resources have significantly increased in tonnage mostly due to a
reduction in the block unit value cut-off by eliminating back-fill costs and, to a lesser
extent, additional infill diamond drilling.
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1.2.2 2011 PEA Outcomes
From the 2011 PEA, the following work and outcomes are considered to remain
reasonable as their underlying assumptions have not changed.
Estimated Internal rate of return: 9.1% (before tax)
Estimated Net present value: CAD$18.5 million at 8% discount rate (before tax)
Estimated Payback: 6.3 years
Average diluted grade in the conceptual mine plan to the mill:
185 ppm Ta2O5 and 1,591 ppm Nb2O5
Conceptual Operating cost: CAD$38.44/t milled (mining ~ 55% of operating cost)
Conceptual Capital cost: CAD$379 million (process ~ 31% of initial capital cost)
Proposed product: High purity Ta and Nb chloride product that is suitable for
several markets
Conceptual Mine Life: 10 years based upon the mineral resources (effective date
29 September 2011) defined using information to the end of 2009 drilling
NPV Sensitivity: The Upper Fir deposit is most sensitive to changes in exchange
rate, commodity prices, and mining costs
The above key outcomes contain forward looking information. The assumptions and
risks regarding those assumptions are summarized and explained in more detail in
Sections 1.15, and 1.16 of the Report.
1.3 Project Setting
The Blue River Project is situated 250 km north of the city of Kamloops, approximately
90 km south of the town of Valemount and 23 km north of the community of Blue
River, in the North Thompson River valley of east–central British Columbia. The
property is accessed from BC Highway 5 (Yellowhead Highway) via a 4 km
well-groomed gravel road. Within the Project area, access is by forestry service and
logging roads or by helicopter.
1.4 Tenure, Surface Rights, Royalties, and Agreements
The Project comprises 249 two-post claim, four-post claim, and mineral cell title
submission (MCX) claims in good standing that encompass just over 1,000 km2
(105,195 ha) within the Kamloops Mining Division. These claims are wholly-owned by
Commerce. Currently, all of the mineral claims are valid until 31 March 2021. All but
two of the mineral claims are on Crown land.
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British Columbia, Canada
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There are surveyed parcels along the western edge of the property with surface rights
held by other parties which overlap the property mineral tenure claims. Commerce is
not aware of any material issues that would prevent negotiation for access or surface
rights of these surveyed parcels should they be required in the future. The overlapped
claims do not host mineral resources, and currently no carbonatites are known within
these claims.
There are no known royalties, back-in rights, agreements, or encumbrances attributed
to the claims.
1.5 Environment, Permitting, and Socio-Economics
Commerce has been pro-active with regard to environmental and socioeconomic
issues. Environmental monitoring, baseline studies and site investigations have been
ongoing at the Blue River Project site since the summer season of 2006. Kinetic test
work for acid rock drainage and metals leaching was initiated in 2010. Additional
environmental baseline programs are expected to continue, as required through 2012.
First Nations engagement, with respect to exploration activities, began in 2007, and
will continue for the duration of the Project. The Blue River Project lies on lands which
comprise part of the traditional territory of the Simpcw First Nation. First Nations
engagement, with respect to exploration activities, began in 2007. Public engagement
to date has included meetings with local councils and informal discussions with local
land-owners.
1.6 Geology and Mineralization
The Blue River deposit is hosted within polyfolded carbonatite rocks. The carbonatites
intrude Late Proterozoic supracrustal rocks which lie on the north-eastern margin of
the Shuswap Metamorphic Complex within the Omineca terrane. The Blue River
carbonatites are hosted in the Mica Creek assemblage of the Horsethief Creek Group.
Two units of the Mica Creek assemblage underlie much of the Project area.
Carbonatites were emplaced as dikes or sills into the metasedimentary host rocks prior
to regional deformation and metamorphism. Regional deformation has folded the
carbonatite and its host rocks. Contacts between carbonatite and the host
metasediments are typically sharp and mantled by zones of metasomatized host rock,
known as fenite. The carbonatite has average thicknesses of 30 m, ranging between
5 m to about 90 m thick, and with strike lengths ranging between 50 m to 1,100 m.
Both dolomitic carbonatites and calcitic carbonatite occur at Blue River.
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British Columbia, Canada
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Mineralization comprises niobium- and tantalum-bearing minerals that have
crystallized in carbonatite by primary magmatic concentration and in fenite. Primary
economic minerals, with their generic end-member formulae, are ferrocolumbite
((Fe,Mn,Mg)(Nb,Ta)2O6,) and pyrochlore ((Ca,Na,U)2(Nb,Ti,Ta)2O6(OH,F)).
In the opinion of the QPs, knowledge of the deposit setting, lithologies, structural and
alteration controls on mineralization, and mineralization style are sufficient to support
mineral resource estimation.
1.7 Exploration
The Blue River area has been the subject of intermittent exploration since the
discovery of vermiculite-bearing carbonatite rock in 1949. Since Project acquisition in
2000, Commerce has completed surface mapping, trenching, soil, rock chip, grab and
channel sampling, core drilling, metallurgical testing, bulk sampling, environmental
baseline studies, mineral resource estimation, and a PEA on the Project.
In the opinion of the QPs, the exploration programs completed to date are appropriate
to the style of the deposits and prospects within the Project. The exploration and
research work supports the genetic and affinity interpretations.
1.8 Exploration Potential
The Upper Fir carbonatite has exploration potential directly northward of known
deposit extents based on soil sample results. Additional resource definition drilling is
warranted.
The Bone Creek and Fir carbonatites have additional exploration potential along and
across strike, based on soil sample anomalies. Additional in-fill soil sampling is
warranted prior to diamond drilling to assess for potential connections with the Upper
Fir carbonatite. In addition, Commerce has identified numerous tantalum-in-soil
anomalies from geochemical programs that require follow up.
In the opinion of the QPs, the Project retains significant exploration potential for
additional carbonatite-hosted tantalum–niobium mineralization.
1.9 Drilling
AMEC received a drilling database from Commerce that had a database closure date
of 29 September 2011. The database comprises a total of 269 core drill holes within
Commerce Resources Corp.
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British Columbia, Canada
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the Upper Fir, Bone Creek and Fir (Lower) carbonatites consisting of 54,065 m of HQ
(63.5 mm) diameter core.
Of the 269 core drill holes, 237 drill holes totalling 50,395 m of HQ diameter core, and
12,736 samples are used to support the Mineral Resource update.
Six geotechnical drill holes comprising 1,271 m of HQ diameter oriented core were
completed during 2010. In addition, optical and acoustic televiewer oriented core
surveys were completed for two 2010 holes, four pre-2010 holes, and eighteen 2011
campaign holes during 2010 and 2011.
Core recovery is very good within the waste and carbonatite rocks (typically >95%).
The only area that may have core recovery issues would be within the fenite rocks
located in the immediate hanging wall to the carbonatite.
Core sampling methods and approaches have been consistent through the 2005 to
2011 drill programs and the protocols are consistent with industry standard. In the
opinion of the QPs, the quantity and quality of the collar, down-hole survey, lithology,
and geotechnical data collected in the exploration and infill drill programs completed by
Commerce are sufficient to support mineral resource estimation.
1.10 Sample Preparation, Analysis, and Security
Drill hole samples were collected from an area approximately 1,600 m north–south by
1,000 m east-west. Average spacing between drill-hole intercepts in the Mineral
Resource area varies from 40 to 50 m.
Commerce regularly collected specific gravity measurements at 3 m core intervals
using a water immersion method. Check sampling from field-collected core samples
was completed by Met Solve Laboratories of Burnaby, B.C. for the 2005 – 2009
campaigns with good correlation to the field measurements recorded in the exploration
database. Check specific gravity determinations for the 2010 campaign have yet to be
completed.
The entire carbonatite intersection and shoulder samples on each side of the
intersection are sampled; samples are typically 1 m in length and geological contacts
are generally respected. Half core is sent for analysis.
Acme Analytical Laboratories (Acme) in Vancouver was the primary laboratory for
sample preparation of the 2005 to 2008 drill core samples. Acme is an independent
mineral testing laboratory registered under ISO 9001.
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British Columbia, Canada
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PRA / Inspectorate Laboratories (Inspectorate) in Richmond, B.C., is the primary
sample preparation laboratory for the 2009 to 2011 drill core samples. Inspectorate is
also an independent mineral testing laboratory that reportedly works to internationally-
recognized standards such as ISO and ASTM. The Inspectorate-Vancouver
laboratory received ISO9001:2000 accreditation in 2006 and 2009.
Acme has been the primary analytical laboratory since 2005 up to and including 2011
drill core samples. In October 2011 the Acme-Vancouver laboratory received formal
approval of its ISO/IEC 17025:2005 accreditation.
Sample preparation for samples that support the Mineral Resource estimate has
followed a similar procedure for all of Commerce’s drill programs. The preparation
procedure is consistent with industry-standard methods for sampling within carbonatite
deposits.
Analyses were completed at Acme Analytical Laboratories. Between 2005 and 2008,
Ta and Nb were analysed by ICP-MS following a lithium metaborate / tetraborate
fusion and nitric acid digestion. Analysis in 2009 and 2010 was by X-Ray fluorescence
methods following a lithium metaborate fusion XRF(F) and ICP methods.
Overall, the drill programs included insertion of blank, duplicate and standard
reference material samples at a rate that meets industry-accepted standards of
insertion rates. AMEC concludes the Blue River sample results show imprecision but
no consistent bias and that the ICP-MS results from 2005 to 2008, and the XRF(F)
results supporting the 2009 and 2010 drilling are suitable for use in mineral resource
estimation. Caution should be applied in assigning a high level of confidence to the
pre-2010 tantalum and niobium analytical results until precision and accuracy issues
are resolved.
Independent data audits have been conducted, and indicate that the sample collection
and database entry procedures are acceptable. Sample security, storage facilities,
and chain of custody procedures are consistent with industry standards.
The QPs are of the opinion that the quality of the specific gravity, tantalum and
niobium analytical data are sufficiently reliable to support mineral resource estimation
and that sample preparation, analysis, and security are generally performed in
accordance with exploration best practices and industry standards.
1.11 Data Verification
Based on site visit inspections, data quality checks, and a minimum 5% database
verification completed by AMEC, the QPs are of the opinion that the collar coordinates,
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British Columbia, Canada
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down-hole surveys, lithologies, and assay data are considered sufficiently free of error
and that the data quality are suitable to support mineral resource estimation.
1.12 Metallurgical Testwork
Testwork began in 2009 and continued into 2010 to develop a process flowsheet for
the Blue River Project. The testwork was based on material produced from two bulk
samples, BS-2F and BS–2G. Mineralogical analysis was performed to obtain
knowledge regarding the occurrence of the tantalum and niobium within the material.
The testwork to date has primarily taken place in three phases:
Phase I – focused on the recovery of the tantalum–niobium minerals by gravity
although grinding and mineralogy investigations were also performed.
Phase II – focused on the recovery and upgrading of the tantalum–niobium
minerals by flotation.
Phase III – continued optimization of the process flowsheet for the production of a
tantalum-niobium mineral concentrate.
Phase I that showed gravity could concentrate the material to a low-grade product, but
that upgrading increasingly gave lower levels of metallurgical recovery as grade was
sought.
Work in Phase II saw the use of flotation concentration technology similar to that being
used for niobium-bearing carbonatites at Iamgold’s Niobec Mine in Quebec, Canada.
There was immediate success in the first phases of the work. Although there are
several stages to the concentration, the overall level of equipment, risk, and complexity
to produce a saleable or treatable concentrate is lower than the gravity route.
In the opinion of the QPs, the following conclusions are applicable:
Tantalum and niobium occur as ferrocolumbite and pyrochlore, which are
amenable to conventional flotation and proven refining processes with estimated
recoveries of 65% to 70%. For the purposes of the financial analysis in Section 22
of this Report, it was assumed that the process plant will have a 65% recovery for
Ta and 69% recovery for Nb in the flotation stage.
The metallurgical testwork has shown that it is possible to collect the tantalum and
niobium minerals into a concentrate suitable for extraction of the metals into
saleable products. The first step of the process uses typical grinding followed by
flotation. There is confidence that the secondary treatment or metal extraction of
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British Columbia, Canada
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the material is possible by an existing method such as aluminothermic reduction
followed by chlorine refining. These results are suitable to support estimation of
mineral resources for the deposits.
1.13 Mineral Resource Estimation
The resource model was constructed inside carbonatite using 237 diamond drill holes
totalling 50,395 m of HQ diameter core and 12,736 samples. Geological
interpretations were provided by Commerce to AMEC in the form of electronic 3D solid
wireframes.
Capped drill core assays were composited down the hole to a fixed length of 2.5 m
respecting lithological boundaries. Exploratory data analysis (EDA) was performed on
the composites. The coefficients of variation are low and support the use of linear
grade interpolation methods such as inverse distance methods.
Blocks within in the model were coded by lithology solids. Specific gravity values were
assigned by lithological unit. Ta2O5 and Nb2O5 grades were estimated in the
carbonatite using an inverse distance to the power of 3 (ID3) interpolation method. A
four-pass interpolation approach was used with each successive pass having greater
search distances.
The block model grades were validated by visual inspection comparing composites to
block grades on-screen, declustered global statistics checks, local biases checks using
swath plots, and finally model selectivity checks. No issues were identified that would
materially affect the Mineral Resource update.
The current mineral resource classification at Blue River is restricted to Indicated or
Inferred based on the following:
Confidence limits drill hole spacing studies
Concerns over analytical precision and provisional accuracy for the sample dataset
from 2005 to 2009
Required metallurgical testwork on the final stage of the proposed metallurgical
process is still ongoing to support proof-of–concept.
To assess reasonable prospects for economic extraction, the updated Mineral
Resources have been constrained using a “Stope Analyzer”. AMEC assumed that the
Blue River deposit would be mined utilizing self-supported, underground bulk mining
methods under a conceptual scenario that considers mining and processing at a rate
of 7,500 tonnes per day. Mining and economic parameters applied were based on the
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British Columbia, Canada
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2011 PEA assumptions which are still considered reasonable by the AMEC QPs.
Since the block unit value is estimated using commodity prices expressed in US
dollars, the costs and assumptions are also in US dollars.
1.14 Mineral Resource Statement
The Mineral Resource update is classified in accordance with the 2010 CIM Definition
Standards for Mineral Resources and Mineral Reserves, whose definitions are
incorporated by reference into NI 43-101. The Mineral Resource update with effective
date 22 June 2012 is summarized in Table 1-1.
Table 1-1: Blue River Project Estimated Mineral Resources; Effective Date 22 June 2012,
Tomasz Postolski, P.Eng, Qualified Person
Ta price
[US$/kg]
Confidence
Category Tonnes
Ta2O5
[ppm]
Nb2O5
[ppm]
Contained
Ta2O5
[1000s of kg]
Contained
Nb2O5
[1000s of kg]
317 Indicated 51,780,000 192 1,490 9,930 76,900
Inferred 8,800,000 186 1,660 1,600 14,600
Notes:
1. Assumptions include commodity prices of US$317/kg Ta, US$46/kg Nb, process recoveries of 65.4%
for Ta2O5 and 68.2% for Nb2O5, US$24/tonne mining cost, US$13/tonne process and refining cost,
US$3/tonne G&A cost.
2. Mineral resources are amenable to underground mining methods and have been constrained using a
“Stope Analyzer”
3. An economic cut-off was based on the estimated operating costs assuming either the bulk or selective
mining method from the PEA mine plan. The block unit value cut-off ranged from US$40/t (bulk) to
US$58/t (selective)
4. Mining losses = 0%, external dilution = 0%; planned internal dilution within the minimum stope size is
included
5. In situ contained oxide reported. Discrepancies in contained oxide values are due to rounding.
The Mineral Resources used for 2011 PEA were those with an effective date of
29 September 2011 as follows:
Indicated: 36.35 million tonnes at 195 ppm Ta2O5 and 1,700 ppm Nb2O5
Inferred: 6.4 million tonnes at 199 ppm Ta2O5 and 1,890 ppm Nb2O5.
There is a considerable increase in resource tonnes for the current Mineral Resource
update relative to the 29 September 2011 tonnage estimate where the Indicated
category has increased by 42% and the Inferred category by 37%. This increase in
tonnes is mostly due to (1) lowering the bulk mining method block unit value cut-off
from US$52/t to US$40/t by eliminating backfill costs and, to a lesser extent,
(2) additional infill diamond drilling.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-10 22 June 2012
1.15 Preliminary Economic Assessment
1.15.1 2011 PEA
This section incorporates assumptions, analysis and findings of the Preliminary
Economic Assessment that has an effective date of 29 September 2011.
The preliminary mine plan presented in this section is partly based on Inferred Mineral
Resources that are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized as Mineral
Reserves, and there is no certainty that the Preliminary Economic Assessment based
on these Mineral Resources will be realized.
The information relevant to the preliminary mine plan, prepared during the 2011 PEA,
is included in this section and has not been updated because AMEC considers that the
assumptions supporting the outcomes remain reasonable.
In a similar manner, AMEC’s opinion is that the assumptions made with respect to
infrastructure, recovery methods, estimation of capital and operating costs, marketing
studies and metal price assumptions and the resulting financial analysis remain
reasonable.
The effective date of the 2011 PEA results therefore remains 29 September 2011.
1.15.2 Proposed Mining Method
The 2011 PEA was developed assuming a sub-level open stoping mining method with
no backfill and no pillar recovery. In agreement with Commerce, a processing rate of
7,500 t/d was assumed for Mineral Resource estimation and for the conceptual design
of an underground mine for the Blue River Project. Price assumptions used in mine
planning were US$317/kg tantalum metal and US$46/kg niobium metal contained in
oxide product.
1.15.3 Geotechnical Considerations
Rock types of the Blue River Project have been grouped into two main geotechnical
domains: Intrusive and Layered Rocks. The Intrusive group encompass carbonatite
and fenite rocks, while the Layered Rocks group encompass gneiss and amphibolite
rocks. Generally, the rock mass ratings (RMR) indicated rock that can be considered
to be “good” in RMR terms.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-11 22 June 2012
1.15.4 Dilution Considerations
Material deemed to be mined by bulk mining methods represents 84% of the
resources. Within the mineable shapes there was internal dilution of 2% waste rock. It
was assumed that during mining 2% of waste material would be added as external
dilution and 2% of the broken material would not be recovered from the stopes due to
operational conditions.
The geotechnical investigation indicates that an extraction ratio of 67.5% is
reasonable. Applying this to the subset of the Mineral Resources considered in the
mine plan results in an overall mining extraction of 58% and provides 25.0 Mt of
material as run-of-mine (ROM) production to be processed. Applying internal and
external mining dilution, the overall subset Mineral Resource grades were diluted to
185 ppm of Ta2O5 and 1,591 ppm of Nb2O5 for mine planning purposes.
1.15.5 Drilling and Blasting
AMEC considered the implementation of conventional drilling methods. Due to the
high precipitation in the region and water continuity along fractures and rock layers,
wet conditions were assumed for development and stoping areas. The use of bulk-
blasting systems based on emulsion type explosives was assumed.
1.15.6 Mine Development
The deposit will be accessed through two main portals, the Upper and Lower Portals;
these portals are located in places where the deposit crops out on the hillside. The
Upper Portal will be located at Elevation 1,150 m. It will be used as the main entry and
will have most of the mine services; the Lower Portal will be located at Elevation
1,030 m and will be used for haulage trucks access. Access to the portals will be by a
road upgraded from existing exploration roads.
The mine will be accessed by adits driven in pairs from the portals. For this study, all
entries, ramps, drifts and crosscuts are considered to be 5 m wide by 5 m high with
semi-arched backs. Ramps will be driven at grades to a maximum of 15% to provide
access to the production areas. Two ramps or adits will be driven to each area to
provide single-way traffic of haulage trucks and to facilitate the implementation of
ventilation circuits.
Top access crosscuts are driven from the main ramps to each level on vertical
intervals between 20 to 30 m. Stope access crosscuts are driven at level from west to
east. Bottom access crosscuts are driven to function as mucking drifts. Underground
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-12 22 June 2012
mine services such as ventilation and air heating, compressed air, water for drilling
and power supply will be provided to the mine via the adits. The total underground
development was estimated at 92,500 m for the life-of-mine.
1.15.7 Mineralized Material and Waste Haulage
Radio remote-controlled load-haul-dump units (LHDs) will be used to extract the
mineralized material out of the stope beyond the safety of the brow. The mineralized
material from stopes will be loaded directly to the haulage trucks that will be spotted at
the end of the crosscut. Underground trucks will haul the mined material through the
access drifts and ramps, unloading into the primary crusher surface stockpile near the
Lower Portal.
The PEA plan envisages that tailings material will be dry-stacked, and waste material
will be stored in the same general area. For convenience, the combined tails and
waste rock storage area is referred to as the “co-disposal facility”.
Waste from development will be initially utilized for construction of a structural shell for
the co-disposal site on surface, which will be located between Elevations 1,400 m and
1,600 m in an area east of the processing plant site.
A conveyor will be used to transport this material from the mine to a stockpile by the
plant site. A surface road developed at +10% grade will connect the plant with the
co-disposal site.
Trucks will haul waste from the plant to the co-disposal site when required.
1.15.8 Mine Services
Underground mine services such as ventilation and air heating, compressed air, water
for drilling and power supply will be provided to the mine via adits from the portals.
The sub-station for the main power distribution system and the air compressors will be
installed in facilities located adjacent to the Upper Portal.
Other mine services will include all the systems and supplies needed for the mining
operations, including: explosives storage, communications, monitoring and control
systems, road maintenance and mine equipment maintenance.
Portable self-contained refuge stations will be provided for the mine and will be located
at convenient locations.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-13 22 June 2012
1.15.9 Mine Production Forecasts
Production was estimated at 2.7 Mt/a of mill feed on average for 10 years. The first
year was considered as preproduction, leaving nine years of full-scale production.
At this preliminary level of study the stope mining sequence was not defined and
therefore average grades were used for each year in the mine plan.
There is opportunity to increase the net present value (NPV) of the project by mining
higher-grade zones early in the mine life providing that the sequence and overall
recovery of the stopes is not negatively affected.
Mine equipment and personnel requirements were defined and are appropriate to the
proposed production plan.
1.15.10 Process Design
The design for the process facilities considered a nominal processing capacity of
7,500 t/d. Where data were not available at the time of flowsheet development, AMEC
developed criteria for sizing and selection of equipment based on comparable industry
applications, benchmarking, and the use of modern modelling and simulation
techniques.
The mineral processing and the refining are based on conventional technology and
industry-proven equipment. A mineral processing method using a standard grind-
flotation procedure to make a concentrate of ferrocolumbite-pyrochlore is assumed for
Blue River material.
Metallurgical testing indicates a mineral concentrate assaying about 30% combined
Nb–Ta pentoxide within the recovery range of 65% to 70% is possible.
Run of mine mineralized material will be crushed to minus 5/8" and fed into a
comminution circuit comprised of a rod and ball mill using cycloning for classification.
After grinding, the flotation feed will be first de-slimed using high frequency fine
screens and cyclones. The coarse product resulting from de-sliming will be sent to
four concentration steps that will include pyrrhotite flotation, carbonate flotation, and
magnetite separation with all three concentrates from these processes reporting to
tailings. The fourth step, pyrochlore flotation, will recover a concentrate which is
reground and cleaned in five stages of cleaning. The mass of material will be reduced
substantially, to less than 1% of the feed into the plant.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-14 22 June 2012
This concentrate would be further processed to produce marketable separate Ta and
Nb products. The proposed processes are mature, are already used industrially, and
consist of reducing the concentrate to metals as ferroalloys in a standard
aluminothermic furnace followed by chlorinating the alloys and distilling the product to
separate high purity metal chlorides, TaCl5 and NbCl5. Recoveries from concentrate to
pure chlorides are expected to be 97%. Both Ta and Nb chloride products are then
readily converted and marketed as high purity oxides Ta2O5 and Nb2O5 respectively.
1.15.11 Tailings and Waste Management
The PEA design for tailings and waste management is to construct a co-disposal
drystack facility.
A series of tailings storage location screening assessments were carried out during
2008, 2009, and 2010 focusing mainly on conventional tailings storage. Some
evaluation of potential waste rock storage sites and a tailings drystack facility was
undertaken during studies completed in 2009.
Site WSF 3, about 8 km from the proposed plant site, and identified in 2009, was
selected as the preferred location for a tailings drystack. WSF 3 has flatter slopes than
other site alternatives and therefore has less stability concerns. It is also located in
closer proximity to the proposed plant site, although uphill haulage will be required,
and will not require crossing any major creeks. The facility was designed to hold a
total storage volume of approximately 20.9 Mm3.
Surface water management systems will likely be required for the tailings drystack to
divert non-contact (clean) water around the facility, and to collect run-off water which
had been in contact with the tailings drystack area.
1.15.12 Planned Project Infrastructure
The planned Upper and Lower Portals will be located about 4 km from the plant site.
At the front of the Upper Portal (service portal) sufficient space will be provided to
accommodate the required facilities for operation.
The plant service building will be a multi-purpose complex in a two-story building to be
located east of the process building. A 24 m by 36 m truck shop on the southwest end
of the site will be operated by a qualified contractor. The warehouse will be a 24 m by
50 m Coverall-type fabric building.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-15 22 June 2012
The potable water system and layout is designed to service buildings and a
process/administration workforce of 120 persons. Potable water for the mining area
will be constructed as part of the portal/underground works.
A modular sewage treatment system will be installed as part of the initial construction
infrastructure. Waste-water treatment sludge will be trucked away to a nearby
municipal facility or approved landfill. Waste lubrication and hydraulic oils from vehicle
maintenance will be stored in dedicated tanks and sent to a recycling facility offsite.
Contractors and employees will commute from nearby towns such as Blue River and
Valemount during construction. No on-site permanent accommodation will be
provided for personnel. It is assumed that the workforce, including management staff,
will reside in the nearby communities and will commute, via buses on a daily basis.
The road access design includes a short new road with a 7.2 m wide gravel surface
from the existing road to plant site about 80 m in length and a 1.5 km new service road
from the existing road to the Upper Portal and upgrades to the current access road.
There are two main haul roads, one from the mine portal to site of about 4 km length,
and the other from the site to the co-disposal facility, with a length of about 8 km.
An existing 80 m-long bridge crossing over the Thompson River has a limited load
capacity and might not qualify for crossing heavy loads during construction or long-
term use during the life of the mine. Therefore a new bridge has been included in
capital cost estimate. Using the existing railway for shipment should be investigated in
the next phase of study.
Ammonium nitrate, blended emulsion, and explosives will be delivered to site on
demand by contractors. Fuel will be delivered to the mine site using tanker trucks. A
crushing and stockpiling facility will be required during construction to provide crushed
product for roads and surfacing. AMEC considers that there is no need to establish a
concrete batch plant, and that concrete supply from nearby towns will be more
economic.
1.15.13 Markets
Commerce has prepared assessments of the tantalum and niobium markets which
outline the supply and demand for tantalum and niobium. The tantalum assessment
was prepared by a tantalum market expert, although he is not independent of
Commerce. His analysis reflects the general consensus of other analysts regarding
the tantalum market expressed in publicly available information.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-16 22 June 2012
The niobium assessment was prepared by an independent niobium expert and also
reflects the general consensus of analysts in publicly-available information for the
niobium market.
As the Project is still at an early evaluation stage, Commerce has not initiated requests
from potential buyers for expression of interests from potential buyers of the proposed
Blue River products and has not negotiated any purchase or off-take agreements.
The tantalum price assumption used in the 2011 PEA is based on 4th quarter 2010
information. The tantalum price moved significantly higher through 2011. AMEC has
checked publicly available tantalum and niobium metal prices as at May 2012 and
found the Ta and Nb prices used for both the current Mineral Resource estimate and
the 2011 PEA remain as reasonable assumptions, which are US$317/kg tantalum
metal and US$46/kg niobium metal.
1.15.14 Capital Costs
All costs are expressed in constant first quarter (Q1) 2011 Canadian (CAD) dollars.
No allowance has been included for escalation, interest or financing fees, taxes or
duties, or working capital during construction. The level of accuracy for the estimate is
+40/-20% of estimated final costs, as per the Association of Advanced Cost Estimators
(AACE) Class 5 (scoping level) definition.
Contractor-mining is not envisaged for pre-production development. The estimate
covers the direct field costs of executing the project, plus the Owner’s indirect costs
associated with design, construction, and commissioning. The preproduction costs are
capitalized and include all the expenditures before Year 1 of production.
The total estimated capital cost to design and build the Blue River tantalum project at
7,500 t/d capacity is CAD$379 million. The estimate is summarized in Table 1-2.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-17 22 June 2012
Table 1-2: Summary of Estimated Capital Costs
Item
Total
(CAD$000’s)
2011
(CAD$000’s)
2012
(CAD$000’s)
Project year
1 2
Production year
-2 -1
Capital expenditure
Initial Capital Infrastructure 29,491 10,322 19,169
Process Initial Capital 116,240 40,684 75,556
Mining Initial Capital 89,420
89,420
Material Handling 8,000
8,000
Contingency 43,613 12,751 30,862
Indirect/Owner Costs 92,268 29,627 62,641
Total 379,032 93,385 285,647
1.15.15 Operating Costs
All operating costs are expressed in Canadian (CAD) dollars. The operating costs for
the Blue River project are based on an Owner-operated mining fleet and process
facility and have been prepared in first quarter 2011 Canadian dollars. Operating
costs over the life-of-mine are estimated at CAD$38.44/t milled.
Operating costs include the three key areas of mining, process, and overall general
and administrative costs (G&A). The estimates are based on the staffing level,
consumables, and expenditures detailed as part of the underground mine plan and
process design. Average operating costs are listed in Table 1-3.
Table 1-3: Average Life-of-Mine Operating Cost Summary
Summary of Average Production Costs
LOM Total
(CAD$000’s)
Cost per
Tonne
Milled
(CAD$/t)
Mining 528,937 21.16
Process 338,500 13.54
Material Handling 18,516 0.74
G&A 74,998 3.00
Sub-total 960,951 38.44
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-18 22 June 2012
1.15.16 Financial Analysis
The financial analysis is partly based on Inferred Mineral Resources that are
considered too speculative geologically to have the economic considerations applied
to them that would enable them to be categorized as Mineral Reserves, and there is
no certainty that the Preliminary Assessment based on these Mineral Resources will
be realized. Approximately 15% of the Mineral Resources that were included in the
financial model are classified as Inferred Mineral Resources.
The results of the economic analyses discussed in this section represent
forward-looking information as defined under Canadian securities law. The results
depend on inputs that are subject to a number of known and unknown risks,
uncertainties and other factors that may cause actual results to differ materially from
those presented here.
Information that is forward-looking includes:
Mineral Resource estimates
Assumed commodity prices and exchange rates
Estimated capital and operating costs
The proposed mine production plan
Projected recovery rates
Infrastructure construction costs and schedules
Assumptions that an EA will be approved by Provincial and Federal authorities.
The Project has been evaluated using a discounted cash flow (DCF) analysis. Cash
inflows consist of annual revenue projections for the mine and two years of
preproduction. Cash outflows such as capital and operating costs are subtracted from
the inflows to arrive at the annual cash flow projections.
The resulting net annual cash flows are discounted back to the date of valuation end-
of-year 2010 dollars and totalled to determine NPVs at the selected discount rates.
The IRR is calculated as the discount rate that yields a zero NPV. The payback period
is calculated as the time needed to recover the initial capital spent.
The Project Base Case (8% discount rate) returns an NPV of CAD$18.5 million before
tax. Table 1-4 summarizes the NPV for the Project at a range of discount rates, with
the Base Case highlighted.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-19 22 June 2012
Table 1-4: Summary Financial Analysis at Various Discount Rates
(base case is highlighted)
Summary of Cash Flow Pre-tax
Cumulative net cash flow
Undiscounted CAD$000 236,631
Net present value
Discounted at 5% CAD$000 80,349
Discounted at 6% CAD$000 57,612
Discounted at 7% CAD$000 37,064
Discounted at 8% (Project Base Case) CAD$000 18,487
Discounted at 9% CAD$000 1,685
Discounted at 10% CAD$000 (13,514)
Internal rate of return % 9.1
Payback period Years 6.3
Note: An exchange rate of US$0.95 to CAD$1.00 is used for all years of the financial model.
The cash cost value represents the cost incurred to produce 1 kg of primary product
after deducting the revenue from sales of secondary products. Since the price
analysis for the report was performed around Ta price variation, Ta is chosen as the
main product and Nb is treated as the secondary product for the assessment of cash
cost.
Using the Brook Hunt convention for reporting C1 cash costs1, the C1 cash cost of
tantalum is CAD$24.91/kg contained in oxide product (after credit for niobium
contribution) as shown in Table 1-5.
The cash cost for production of tantalum during the earlier years of the proposed
mining operation is CAD$57/kg and decreases over the life of the mine. The major
driver behind the changing costs is the decrease in the mining costs over the life-of-
mine. In the last three years of operation, the revenue generated from niobium
exceeds the total operating costs (mining, processing and G&A). The mining cost for
the entire Project (i.e. mining cost of both tantalum and niobium) drops from an
average of CAD$24/t in the first few years to CAD$18/t in the last year of full
production.
It is reasonable to expect that there has been cost escalation since the base of first
quarter 2011 but there has been no adjustment for this in the Report other than in the
sensitivity analysis.
1 Brook Hunt, established in 1975, is a global group that specializes in in-depth market analysis across the mining and metals
industries. Brook Hunt has established a method of comparison of costs between projects, countries and commodities that is considered an industry standard. C1 cash costs are defined by Brook Hunt as: the costs of mining, milling and concentrating, on-site administration and general expenses, property and production royalties not related to revenues or profits, metal concentrate treatment charges, and freight and marketing costs less the net value of by-product credits.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-20 22 June 2012
Table 1-5: Life of Mine Cash Cost Summary
Section
LOM Total
(CAD$000’s)
Cost per Tonne
Milled
(CAD$/t)
Cost per Kilogram Ta Payable
(CAD$/kg)
Cash costs
Mining 528,937 21.16 220.13
Process 338,500 13.54 140.87
G&A 74,998 3.00 31.21
Material Handling 18,516 0.74 7.71
Sub-total 960,951 38.44 399.22
Credits
Nb 901,094 36.04 375.01
Sub-total 901,094 36.04 375.01
Adjusted cash costs
Total 59,857 2.40 24.91
Note: The figures in this table do not include considerations of working capital or royalty payments
1.15.17 Sensitivity Analysis
The Upper Fir deposit is most sensitive to changes in exchange rate, mining costs,
and commodity prices. Since the sales currency is US dollars and operational costs
are in Canadian dollars, a rising US dollar value versus Canadian dollar value
improves the mine profitability. The Project is more sensitive to changes in operating
expenditures than capital expenditures.
The Project IRR increases to 14.4% at a Ta price of US$380/kg and the Project NPV
increases to CAD$125 million at an 8% discount rate. Sensitivities are illustrated in
Figure 1-1 for the 8% discount Base Case rate.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-21 22 June 2012
Figure 1-1:Sensitivity Summary, 8% Discount Rate
1.16 Interpretation and Conclusions
1.16.1 2012 Mineral Resource Estimate Update
The key findings of the Mineral Resource update (effective date 22 June 2012) are
summarized as follows:
Indicated Category: 51.8 million tonnes @ 192 ppm Ta2O5 and 1,490 ppm Nb2O5
Inferred Category: 8.8 million tonnes @ 186 ppm Ta2O5 and 1,660 ppm Nb2O5
The Mineral Resource update is based on information of reasonable quantity and
quality. The lithological, geotechnical, and collar location, down-hole survey, and drill
core sample data collected by Commerce in the exploration and delineation drill
programs meet and exceed industry standard practice.
The deposit is amenable to conventional underground mining methods with estimated
mining recovery that may vary from 65 to 85% depending on the mine and stope
layout and the success in which pillars can be mined on retreat.
Tantalum and niobium occur within the minerals pyrochlore and ferrocolumbite and are
amenable to conventional flotation and proven refining processes with estimated
recoveries of 65% to 70%.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-22 22 June 2012
High-quality technical grade tantalum and niobium products proposed for production
at-site are suitable for several markets. As the Project is still at an early evaluation
stage, Commerce has not initiated requests from potential buyers for expression of
interests from potential buyers of the proposed Blue River products and has not
negotiated any purchase or off-take agreements.
The Mineral Resources have significantly increased in tonnage mostly due to a
reduction in the block unit value cut-off by eliminating back-fill costs and, to a lesser
extent, additional infill diamond drilling.
The Mineral Resource update uses the same assumptions from the 2011 PEA for the
following items:
Ta and Nb metal prices (US$317/kg tantalum metal and US$46/kg niobium metal)
Mining method and mining extraction factor
Processing method and recovery factor
CAPEX and OPEX costs
Block Unit Value cut-off values of US$40/t for the bulk mining method and US$58/t
for the selective mining method.
1.16.2 2011 PEA
From the 2011 PEA, the following work and outcomes are considered to remain
reasonable as their underlying assumptions have not changed.
Estimated internal rate of return: 9.1% (before tax)
Estimated net present value: CAD$18.5 million at 8% discount rate (before tax)
Estimated payback: 6.3 years
Average diluted grade in the conceptual mine plan to the mill:
185 ppm Ta2O5 and 1,591 ppm Nb2O5
Conceptual operating cost: CAD$38.44/t milled (mining ~ 55% of cost)
Conceptual capital cost: CAD$379 million (process ~ 31% of initial cost)
Proposed product: High purity Ta and Nb chloride product that is suitable for
several markets
Conceptual mine life: 10 years based upon the mineral resources (effective date
29 September 2011)
NPV sensitivity: The Upper Fir deposit is most sensitive to changes in exchange
rate, mining costs, and commodity prices.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 1-23 22 June 2012
The above key outcomes for the 2011 PEA contain forward looking information. The
assumptions and risks regarding those assumptions are explained in the body of the
Report.
AMEC has checked the publicly available tantalum and niobium metal prices as at May
2012 and found the Ta and Nb price assumptions used for both the current Mineral
Resource estimate and the 2011 PEA to remain reasonable. A higher tantalum price
would improve profitability and also increase the mine life. Additional exploration
potential could also provide additional mine life. A two or more times capital payback
is possible.
1.16.3 Project Opportunities
As a result of engineering work during the 2011 PEA, a lower block unit value cut-off
can be achieved by revising the mine design to eliminate back-fill costs. This
approach was used to support the current 22 June 2012 Mineral Resource update,
which in turn has increased the Mineral Resource tonnage at the Project. The
increase in Mineral Resources provides more flexibility for future mining studies and
hence opportunities to improve the Project NPV are as follows:
Optimization of the mine plan by mining higher-grade zones earlier in the mine life
providing that a practical mining sequence can be implemented and the overall
recovery of the Mineral Resources is not negatively affected
Optimization of the mine layout to minimize development costs
Advanced geotechnical studies to identify and understand ground conditions which
could allow an increase in the size of stopes and production drifts
Optimization of the supply and pricing of reagents for the refining.
1.16.4 Project Risks
In the opinion of the QPs, the top five risk factors identified for the Project are:
The current Mineral Resource estimate is supported by current tantalum and
niobium prices which are higher than historic average prices and may not reflect
long term prices.
Commerce has not initiated requests from potential buyers for expression of
interests from potential buyers of the proposed Blue River products and has not
negotiated any purchase or off-take agreements.
The proposed refining methods have been used in commercial applications but
have not been demonstrated in test work of Blue River material.
Commerce Resources Corp.
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British Columbia, Canada
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Testwork to date has not considered factors such as water recycling. A water
treatment plant may be required and may result in increased capital costs.
The 2011 PEA financial analysis is partly based on Inferred Mineral Resources
(effective date 29 September 2011) that are considered too speculative
geologically to have the economic considerations applied to them that would
enable them to be categorized as Mineral Reserves, and there is no certainty that
the Preliminary Economic Assessment based on these Mineral Resources will be
realized.
A more comprehensive risk factor list can be found in Section 25 of the Report.
1.17 Recommendations
AMEC recommends the following work programs:
Project management, field work, and desk top studies total about $2.0 million and
include the following: (1) project management and administration costs; (2) field costs
comprising a re-sampling program for campaigns with poor precision and accuracy to
improve confidence in their analyses, structural geology studies, and manpower and
field support costs; (3) core farm security improvements; (4) on-going marketing work;
(5) mining trade-off studies to optimize mine and stope design; (6) resource modeling
trade-off studies to optimize grade distribution; and (7) a mineral resource estimate
update.
The re-sampling program should focus on re-assaying samples within an area where
the first five years of mining is likely to occur.
An additional mineral resource update is recommended after all the 2011 drilling data
has been analysed, verified, updated into the drilling database, and interpreted. This
mineral resource update would include all drilling information up to and including the
2011 campaign plus outcomes from any mining, resource modeling, or metallurgical
optimization studies.
Additional diamond drilling is recommended totalling about $3.2 million for drilling,
sampling, assaying, and logging costs. The recommended drilling is to focus on the
volume within the first 5 years of the conceptual mine plan. The recommended
program has about 40 diamond drill holes comprising about 10,000 m of HQ diameter
coring for resource infill and step-out drilling and about 8 diamond drill holes
comprising around 2,000 m of PQ diameter coring for metallurgical testwork purposes.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
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Project No.: 168967 Page 2-1 22 June 2012
2.0 INTRODUCTION
2.1 Terms of Reference
AMEC Americas Limited (AMEC) was commissioned by Commerce Resources
Corporation (Commerce) to prepare a NI 43-101 compliant Mineral Resource update
and technical report on the wholly-owned Blue River tantalum–niobium Project (the
Project), located within the North Thompson River valley of east–central British
Columbia (B.C.), Canada.
This technical report (the Report) supports the findings of the Mineral Resource update
and also includes a summary of the Preliminary Economic Assessment study
completed on the Blue River Project with an effective date 29 September 2011 (2011
PEA) . Results from the 2011 PEA mining studies have not changed in terms of their
outcomes as their underlying assumptions remain reasonable.
Commodity prices are quoted in US dollars. All other costs are in Canadian dollars
unless otherwise indicated. Volumes, weights, and distances are metric unless
otherwise indicated.
2.2 Qualified Persons
The Qualified Persons (QPs) for the Report are AMEC employees, based out of
AMEC’s Vancouver office, as follows:
Mr. Albert Chong, P.Geo., Principal Geologist
Mr. Tomasz Postolski, P.Eng., Senior Geostatistician
Mr. Ramon Mendoza Reyes, P.Eng., Principal Engineer
Mr. Tony Lipiec, P.Eng., Principal Metallurgical Engineer
Mr. Behrang Omidvar, P.Eng., Financial Analyst
2.3 Site Visits and Scope of Personal Inspection
Mr. Chong visited the property on a number of occasions, between 11 to 16 July 2010,
27 to 30 June 2011, and 6 to 14 September 2011. During the site visits Mr. Chong
inspected outcrops, drill hole collar locations, and reviewed the geologic interpretation.
Mr. Chong reviewed procedures for diamond drilling, logging, sampling, core storage,
and sample shipment. The drilling used for the current Mineral Resource update was
reviewed during the site visits by Mr. Chong. In 2011 Mr. Chong also completed an
aerial inspection of proposed future infrastructure locations.
Commerce Resources Corp.
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British Columbia, Canada
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Mr. Mendoza Reyes conducted a site visit from 12 to 16 July 2010. During the site
visit Mr. Mendoza inspected sites amenable for locating potential infrastructure.
Mr. Postolski conducted a site visit from 27 to 30 June 2011. During the site visit
Mr. Postolski was unable to access the property due to a road wash-out but was able
to complete an aerial inspection of proposed future infrastructure locations. During this
visit Mr. Postolski was able to visit the core logging facilities, observe core logging
procedures, and review progress on the mineral resource geology interpretation.
A summary of QP site visits is shown in Table 2-1.
Table 2-1: Site Visit and Areas of Report Responsibilities
Qualified Person Site Visit Sections of Report Responsibility
Albert Chong, P.Geo. 11 to 16 July 2010
27 to 30 June 2011
6 to 14 September 2011
Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11,
12, 20, 23, 24, 25, 26, and 27
Tomasz Postolski, P.Eng. 27 to 30 June 2011
Section 14 and those portions of the
Summary, Interpretation and Conclusions,
and Recommendations that pertain to that
Section
Ramon Mendoza Reyes, P.Eng 12 to 14 July 2010 Sections 15, 16, 18, and those portions of
the Summary, Capital and Operating
Costs, Interpretation and Conclusions,
and Recommendations that pertain to
those Sections
Tony Lipiec, P.Eng No site visit Sections 13 17, 18, 21, and those portions
of the Summary, Interpretation and
Conclusions, and Recommendations that
pertain to those Sections
Behrang Omidvar, P.Eng No site visit Sections 19, 21, 22, and those portions of
the Summary, Interpretation and
Conclusions, and Recommendations that
pertain to those Sections
2.4 Effective Dates
Information in this Report has a number of cut-off dates, as follows:
Effective date of the 2012 Mineral Resource update, the subject of this Report, is
22 June 2012
o The database closure date is 29 September 2011 and includes all drill
information up to the end of 2010.
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o Results from 34 holes completed in 2011 were compared by AMEC to the
existing resource model and the results were found to be reasonably
consistent.
o The 2011 preliminary drill results were inspected by AMEC at the Project site
on vertical cross-sections by AMEC during September 2011, and the results
were found to be consistent with the geological interpretation.
Effective date of the 2011 PEA technical report work and the mineral resources upon
which the PEA is based is 29 September 2011. In the opinion of AMEC:
The 2011 PEA was completed within the last 12 months which is a reasonable
timeframe.
The 2011 PEA basis and underlying assumptions for the mining study remain
reasonable and hence the outcomes also remain reasonable.
The overall effective date of the Report is based on the completion date of the Mineral
Resource update and review of the latest available drilling information and is 22 June
2012. There has been no material change to the Project scientific and technical
information between the effective date of the Report, and the signature date.
2.5 Information Sources and References
Information for the Report was obtained from work completed by AMEC, and materials
provided by, and discussions with, Commerce personnel and third-party contractors
retained by Commerce.
Additional information was provided by Commerce and third party personnel in the
areas of environmental studies and permitting. This information was based on reports
prepared by third-party consultants retained by Commerce.
Marketing studies were provided to AMEC by Commerce. AMEC has reviewed the
information provided and considers that the studies support the commodity prices used
in the mineral resource estimates and financial evaluation.
Except where noted, Report figures were generated by AMEC.
Reports and documents listed in the Section 3, Reliance on Other Experts and Section
27, References sections of this Report were also used to support preparation of the
Report. Additional information was sought from Commerce personnel where required
to support preparation of this Report.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
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Project No.: 168967 Page 2-4 22 June 2012
2.6 Previous Technical Reports
Commerce has previously filed the following technical reports on the Project:
Chong, A., Postolski, T., Mendoza, R., Lipiec, T., and Omidvar, B. 2011: Commerce
Resources Corporation, Blue River Tantalum–Niobium Project, Blue River, British
Columbia, Preliminary Economic Assessment: unpublished technical report prepared
by AMEC Americas Ltd. for Commerce Resources Corporation, effective date
September 29, 2011.
Chong, A., and Postolski, T., 2011: Commerce Resources Corporation, Blue River Ta-
Nb Project, Blue River, British Columbia, NI 43-101 Technical Report: unpublished
technical report prepared by AMEC Americas Ltd. for Commerce Resources
Corporation, effective date 31 January 2011.
Stone, M., and Selway, J., 2010: Independent Technical Report, Blue River Property,
Blue River, British Columbia, Canada: unpublished technical report prepared by
Caracle Creek International Consulting Inc. for Commerce Resources Corporation,
effective date 24 August, 2009.
Gorham, J., 2007: Technical Report on the Upper Fir Ta-Nb Bearing Carbonatite:
unpublished technical report prepared for Commerce Resources Corporation, effective
date 20 June 2007.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
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Project No.: 168967 Page 3-1 22 June 2012
3.0 RELIANCE ON OTHER EXPERTS
The QPs state that they are qualified persons for those areas as identified in the
appropriate QP “Certificate of Qualified Person” attached to this Report. The authors
have relied upon and disclaim responsibility for information derived from the following
reports pertaining to mineral tenure, surface rights, royalties, environment and
permitting, and marketing.
3.1 Mineral Tenure
The AMEC QPs have not reviewed the mineral tenure, nor independently verified the
legal status, ownership of the Project area or underlying property agreements. AMEC
has fully relied upon, and disclaims responsibility for, information derived from legal
experts for this information through the following document:
Letter from Clark Wilson LLP titled Commerce Resources Corp. – Mineral Claim
Title Opinion to Mr. Albert Chong, dated 25 April 2012.
Information from this letter has been used in Section 4.2 of this Report.
3.2 Surface Rights
The AMEC QPs have not reviewed the status of the Project surface rights, nor
independently verified the surface rights status of the Project area. AMEC has fully
relied upon, and disclaims responsibility for information derived from experts for this
information through the following document:
Letter from David Hodge, President Commerce Resources Corp. to Mr Albert
Chong, entitled “Commerce Resources Corp – Blue River Property Encumbrances
and Surface Rights”, dated 08 May 2012.
This information has been used in Section 4.3 of this Report.
3.3 Royalties and Agreements
The AMEC QPs have not reviewed the royalties and agreements for the Project, nor
independently verified the royalties and agreements status of the Project area. AMEC
has fully relied upon, and disclaims responsibility for information derived from experts
for this information through the following document:
Commerce Resources Corp.
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British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 3-2 22 June 2012
Letter from Clark Wilson LLP titled Commerce Resources Corp. – Mineral Claim
Title Opinion to Mr. Albert Chong, dated 25 April 2012, including Schedule A:
Claims List, and Schedule B: Officer’s Certificate from Mr. David Hodge, President
and Chief Executive Officer of Commerce Resources Corp.
This information has been used in Section 4.4 of this Report.
3.4 Environmental, Permitting, and Liability Issues
The AMEC QPs have not reviewed the permitting requirements, nor independently
verified the permitting status of the Project area. AMEC has fully relied upon, and
disclaims responsibility for information derived from experts for this information through
the following document:
Letter from Sage Resource Consultants Ltd. titled Commerce Resources Corp.
Upper Fir Deposit Mineral Resource Update – Independent Professional Opinion
on Environmental Permitting and Liability to Mr. Albert Chong and dated 30 April
2012.
This information has been used in Section 20 of this Report.
3.5 Markets
The AMEC QPs have relied on tantalum and niobium market analyses derived from
experts for this information through the following documents:
Confidential e-mail: from Dr. Axel Hoppe titled “Ta-Pricing 2011” dated
01 February 2012 to Jenna Hardy, Technical Services Manager, Commerce
Resource Corporation. Received 02 February 2012.
Memo from Dr. Axel Hoppe titled “Ap#6 Introduction to Tantalum
Markets_Finalpdf_2June09.pdf” received 18 October 2010
Memo from Michel Robert titled “Niobium_v3jh.doc” received 18 October 2010
Memo from Michel Robert titled “Niobium_v3jh.doc” received 19 October 2010
Dr. Hoppe is an internationally acknowledged leader in the tantalum field and is
Chairman of the Board of Directors for Commerce Resources.
Mr. Robert has extensive experience in niobium markets and is independent of the
company.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 3-3 22 June 2012
This information has been used in Section 19 of this Report, and to assess reasonable
prospects of economic extraction in Section 14.10.
Commerce Resources Corp.
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British Columbia, Canada
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4.0 PROPERTY DESCRIPTION AND LOCATION
The Project is located within the North Thompson River valley of east-central British
Columbia 25 km to 60 km north and northeast of the community of Blue River, British
Columbia (Figure 4-1).
The NTS sheets which cover the Project are: 83D.004-.006; 83D.014-.016;
83D.024-.027; 83D.034-.037; 83D.045-.047.
The Project is centered at approximately 52° 19' N latitude and 119° 10' W longitude.
4.1 Project Ownership
The Project is wholly-owned by Commerce and held in the name of Commerce
Resources Corp.
4.2 Mineral Tenure
The Project comprises 249 two-post claim, four-post claim, and mineral cell title
submission (MCX) claims in good standing that encompass just over 1,000 km2
(105,373 ha) within the Kamloops Mining Division. The claim boundaries are shown in
Figure 4-2.
A table listing claim details is included in Appendix A.
Currently, all of the mineral claims are valid until 31 March 2021. Commerce filed a
2010 work program by the end of day on 24 June 2011 thus grouping two blocks of
claims (Wasted and Joined) with the larger claims area. About $969,000 worth of
eligible 2010 work was filed for assessment credit at a filing cost of approximately
$48,700. This work has been approved by the British Columbia Ministry of Energy,
Mines and Petroleum Resources, bringing all Blue River claims to a common expiry
date of 31 March 2021.
Property boundaries are established in accordance with the Mineral Tenure Act of
British Columbia. Commerce has staked the claims by a combination of ground and
on-line staking.
Two-post and four-post claims were established through a legacy system of ground
staking which involved physically establishing claim posts on the ground.
MCX claims are established using the Government of British Columbia’s Mineral Titles
Online (MTO) staking system. MTO is an Internet-based mineral titles administration
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British Columbia, Canada
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system that allows the mineral exploration industry to acquire and maintain mineral
titles by selecting the area on a seamless digital GIS map of British Columbia. The
electronic Internet map allows selection of single or multiple adjoining grid cells. Cells
range in size from approximately 21 ha (457 m x 463 m) in the south to approximately
16 ha at the north of the province. All boundaries are oriented north–south and east–
west.
Figure 4-1: Project Location Map
Figure courtesy Commerce Resources Corp., 2011.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 4-3 22 June 2012
Figure 4-2: Blue River Mineral Tenure Map
Note: Grid is in metres for UTM NAD83 Zone 11. The British Columbia Yellowhead Highway 5 is
adjacent to the property claim boundary. Figure courtesy Dahrouge Geological Consulting Ltd., 2012.
Commerce Resources Corp.
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British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 4-4 22 June 2012
4.3 Surface Rights
Commerce holds no surface rights on the property. Legal access to the property is
provided through the British Columbia Mineral Tenure Act. The Act provides for a
recorded claim holder to use, enter and occupy the surface of a claim or lease for the
exploration and development or production of minerals or placer minerals, including
the treatment of ore and concentrates, and all operations related to the exploration and
development or production of minerals or placer minerals and the business of mining.
Access to surface rights held by third parties typically requires compensation to be
paid.
There are surveyed parcels with surface rights held by other parties which overlap the
property mineral tenure claims. These parcels occur along the western edge of the
property and most are tree farm licences. Commerce is not aware of any material
issues that would prevent negotiation for access or surface rights of these surveyed
parcels should they be required in the future. The claims do not host mineral
resources, and currently no carbonatites are known within the claims.
4.4 Royalties and Agreements
There are no royalties, back-in rights, payments, or other agreements or
encumbrances to which the Blue River property is subject to other than the annual
claim maintenance fees due to the government as set out by the British Columbia
Mineral Tenure Act and Regulations.
4.5 Permits
Permits required to support Project development are discussed in Section 20.
4.6 Environment
Environmental studies are discussed in Section 20.
4.7 Social and Community Impact
The social and community impact assessments of the Project are discussed in
Section 20.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
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Project No.: 168967 Page 4-5 22 June 2012
4.8 Comment on Section 4
The AMEC QPs conclude the following conclusions are appropriate:
Legal opinion supplied supports Commerce’s ownership of the mineral tenure on
the Project.
Work filed in 2011 with relevant regulatory authority updates all Blue River claims
to a common expiry date of 31 March 2021.
There are no known royalties, back-in rights, agreements, or encumbrances
attributed to the claims.
There are no known material issues at the Report effective date that would prevent
negotiation for surface rights to access the Project should they be required in the
future.
Exploration activities have been conducted within the regulatory framework
required by the B.C. Government.
Additional permits will be required for Project development.
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British Columbia, Canada
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5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,
INFRASTRUCTURE, AND PHYSIOGRAPHY
5.1 Accessibility
The Project is located 23 km north of the community of Blue River, British Columbia,
approximately 250 km north of the city Kamloops and approximately 90 km south of
the town of Valemount. The property is accessed from B.C. Highway 5 (Yellowhead
Highway) via a 4 km well-groomed gravel road.
The Upper Fir and Bone Creek deposits can be reached from the Bone and Gum
Creek forestry service roads which branch east from Highway 5 approximately 23 km
north of Blue River. The east side of the property can be reached by forest service
roads along the west side of Kinbasket Lake and up Howard Creek. Logging roads on
Serpentine, Bone, Hellroar and Mud Creeks allow four-wheel drive and quad bike
access to most of the property. Access to remaining portions of the property is by
helicopter.
5.2 Climate
The local climate is typical of the interior of British Columbia. The area is part of a “wet
belt” that occupies part of eastern British Columbia. Heavy snow falls almost every
winter, in which temperatures stay close to the freezing point when maritime air
dominates. Rain is frequent in other seasons. Summer days are typically warm or
occasionally hot, with thunderstorms often spawning over the nearby mountains.
In July, the average daily temperature is 16.4°C and the average rainfall accumulation
is 97.5 mm for Blue River (Environment Canada Climate Normals 1971–2000 web site:
http://climate.weatheroffice.gc.ca/climate_normals/index_e.html. In January, the
average daily temperature is -9°C and the average snowfall accumulation is 109 cm
for Blue River. The average snow depth is 83 cm in February. Local rainfall and
snowfall accumulations on parts of the property may be much higher due to elevation
and orographic effects.
Drilling is feasible from mid-May through early to mid-October. Snowfall can exceed
10 m on the property making winter drilling very expensive and difficult, but not
impracticable. It is expected that any future mining activity could be conducted year-
round.
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British Columbia, Canada
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5.3 Local Resources and Infrastructure
There is no existing Project infrastructure. Exploration activities are currently supplied
from Kamloops, Clearwater and Valemount.
The city of Kamloops currently supports mining operations at the New Afton and
Highland Valley mines, and mineral exploration for the surrounding area. Services for
mining operations are reasonably available at Prince George, Vancouver, or
Edmonton.
Power transmission lines, rail, paved, and gravel roads are all adjacent to the Project
near the Yellowhead Highway. The Yellowhead Highway runs sub-parallel to the
North Thompson River. The community of Blue River has a municipal airport for light
aircraft and helicopter support.
The main line of the Canadian National Railway passes through the western part of the
property. Sidings currently exist at Lempriere and Blue River, located 16.5 km north
and 23.7 km south of the Upper Fir deposit respectively. The flat area immediately
north of Bone Creek may be suitable for a siding and is 4.9 km from the Upper Fir
deposit.
The BC Hydro 136,000 volt supply line for the North Thompson valley passes through
the west side of the property adjacent to the rail line. The 20 megawatt Bone Creek
run-of-river hydroelectricity project owned by Transalta Corp was commissioned in
June 2011, and is adjacent to the Project area.
Infrastructure requirements as detailed within the PEA for Project development are
discussed in Section 18 of this Report.
5.4 Physiography
The Project topography ranges from 700 m to 3,100 m elevation above sea level and
is located largely along the steep, west-facing slopes of the Monashee Mountains, to
the east of the North Thompson River.
The highest peak, Mt. Lempriere, is 3,183 m. Ice fields and glaciers dominate the
higher elevations on the property. Significant major tributaries feeding into the North
Thompson River in the area include Serpentine, Pyramid, Gum, Bone, Hellroar and
Mud Creeks.
Mountain slopes are typically covered by thick undergrowth consisting of grasses,
buck brush, devil’s club, and shrubs of willow, alder, rhododendron, huckleberry,
Commerce Resources Corp.
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currants, gooseberry, thimbleberry, and raspberry. White spruce is common in
replanted logging areas. Former trails and flat wet areas are typically overgrown by
dense alder and willow. Areas not subjected to recent logging are covered by dense
stands of hemlock, cedar, fir and white pine. Within the area, the tree line is at
approximately 2,000 m elevation. Except for the Paradise Lake, Felix, Howard Creek
and Gum Creek localities, all other carbonatites are below the tree line, and outcrop
exposure is generally poor.
5.5 Comment on Section 5
The existing and planned access, infrastructure, availability of staff, the existing power,
water, and communications facilities, the methods whereby goods could be
transported to any proposed mine, and any planned modifications or supporting
studies are reasonably well-established. There is sufficient area in the Project tenure
and in the vicinity of the Upper Fir deposit to support construction of plant, mining and
disposal infrastructure. The requirements to establish such infrastructure are
reasonably well understood by Commerce.
In the opinion of the QPs, the access, physiography, local services, plus existing and
planned infrastructure can support the declaration of mineral resources for the Upper
Fir deposit.
It is expected that any future mining operations will be able to be conducted year-
round.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
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Project No.: 168967 Page 6-1 22 June 2012
6.0 HISTORY
6.1 Pre-Commerce Exploration
The Blue River area has been the subject of intermittent exploration since the
discovery of vermiculite-bearing carbonatite rock in 1949. A summary of exploration
activities on the Project is described below and summarized in Table 6-1.
Table 6-1: Blue River Exploration History Summary
Year Company Exploration
1949–1951 Oliver E. French Staking and prospecting; discovered vermiculite-bearing
carbonatite near Blue River, discovered uranpyrochlore in
dolomitic carbonatite
1952–1955 St. Eugene Optioned property, geological mapping, prospecting, stripping,
trenching, and sampling
1967-1968 Vestor Staking, reconnaissance surface mapping in the area south of
Paradise Lake
1976 J. Kruszewski Re-staked the area as the Verity and AR claims
1977–1978 J. Kruszewski /
E. Meyers
Magnetometer and scintillometer surveys, trenching and sampling
1980 AMC Optioned property, discovery of Fir and Bone Creek carbonatites
1980–1982 AMC 3,954.2 m of NQ diamond drilling at Verity, Mill, Fir and Bone
Creek
1989 Diegel et al. Government survey discovered two new carbonatite localities
near Serpentine Creek and Gum Creek
2000–Present Commerce Surface mapping, trenching, soil sampling, geophysics, diamond
drilling, metallurgical testing, bulk sampling
Abbreviations: St. Eugene = St. Eugene Mining Corporation Ltd.; Vestor = Vestor Exploration Ltd; AMC =
Anschutz (Canada) Mining Ltd.; Commerce = Commerce Resources Corp.
6.2 Commerce Exploration
In 2000, Commerce acquired the Property, confirmed known tantalum mineralization at
the Fir and Verity carbonatites, and explored for new carbonatite deposits. During the
summer of 2002, the Upper Fir Carbonatite showing was discovered and defined by
core drilling between 2005 and 2011.
Additional work undertaken by Commerce included surface mapping, trenching, soil,
rock chip, grab and channel sampling, geophysics, metallurgical testing, bulk
sampling, and mineral resource estimation.
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British Columbia, Canada
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6.3 Commerce Mineral Resource Estimates
During 2009–2010, Commerce commissioned Caracle Creek International Consulting
Inc. (CCIC) to prepare a mineral resource estimate for the Upper Fir. This estimate
was based on the interpretation of 168 Upper Fir drill holes completed during 2005 to
2008. An initial NI 43-101 compliant mineral resource estimate for the Upper Fir
tantalum and niobium bearing carbonatite was completed in early 2010 by CCIC
(Stone and Selway, 2010).
During 2011, Commerce commissioned AMEC to prepare a mineral resource estimate
for the Upper Fir deposit (Chong and Postolski, 2011) and a preliminary economic
assessment (PEA) (Chong et al., 2011). The current 2012 mineral resource estimate
discussed in Section 14 is an update of the estimate that supports the 2011 PEA.
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British Columbia, Canada
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7.0 GEOLOGICAL SETTING AND MINERALIZATION
7.1 Regional Geology
The regional geology is taken largely from Currie (1976), Pell (1987 and 1994),
Gorham (2007), Stone and Selway (2010), and Chong and Postolski (2011a).
British Columbia is divided into three discrete areas hosting carbonatites and alkaline
rocks (Figure 7-1):
Eastern Area: the Foreland Belt, east of the Rocky Mountain Trench
Central Area: the eastern edge of the Omineca Belt
Western Area: the core of the Omineca Belt
The age of emplacement for carbonatites and alkaline rocks of the Eastern and
Central Areas typically range between Devonian–Mississippian (ca. 330–380 Ma).
Some occurrences from the core, or Western Area of the Omineca Belt might be older
(ca. 570 to 770 Ma).
The Eastern Area hosts northwest to southeast trending carbonatite occurrences.
They are often associated with syenite intrusions. Most of the Eastern Area
carbonatites have relatively high niobium and rare earth element (REE) levels, and
little or no tantalum. Some known Eastern Area carbonatite or carbonatite-associated
properties are: Aley, Prince, Ice River and Rock Canyon Creek.
The Central Area carbonatite intrusions occur along the eastern edge of the Omineca
Belt. The carbonatites of the Omineca Belt commonly have high concentrations of
niobium but low rare earth element (REE) values. Known carbonatite complexes
include the Blue River (Upper Fir, Fir, and Verity systems) and Mud Lake areas.
The Western Area includes both intrusive and extrusive carbonatites and syenitic
gneisses in the core of the Omineca Belt. Examples are Mount Copeland, Mount
Grace, and Three Valley Gap.
All of the alkaline and carbonatite complexes and their host rocks within the Omineca
Belt rocks were deformed and metamorphosed during the Jurassic-Cretaceous
Columbian Orogeny and have been subjected to upper amphibolite facies
metamorphism.
Commerce Resources Corp.
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British Columbia, Canada
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Figure 7-1: Tectonic Belts of British Columbia and Carbonatite Occurrences
Note: Adapted after Pell (1994). Figure courtesy of Dahrouge Geological Consulting Ltd., 2011.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
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7.2 Project Geology
The Project is located in the Central Area within the north-eastern margin of the
Shuswap Metamorphic Complex. The area comprises polyfolded, metamorphosed
Late Proterozoic (ca. 700–550 Ma) supracrustal rocks and is bounded on the east and
west by steep, Eocene age, west-side down normal faults in the southern Rocky
Mountain Trench to the east and the North Thompson valley to the west. The Malton
gneissic complex lies to the north.
The supracrustal rocks are part of a belt dominated by the Late Proterozoic Horsethief
Creek Group and the overlying Kaza Group. The belt is continuous from the northern
Selkirk Mountains in the southeast, through the Monashee Mountains, and into the
Caribou Mountains in the northwest.
The carbonatites within the Blue River Project area are hosted in the Mica Creek
assemblage of the Horsethief Creek Group (Figure 7-2 and Figure 7-3).
7.2.1 Metasedimentary Rocks
Two units of the Mica Creek assemblage underlie much of the study area. The units
are at least 1,000 m thick and comprise the lower pelite unit, and the stratigraphically
overlying semipelite–amphibolite unit (refer to Figure 7-2 and Figure 7-3).
The Mica Creek metasedimentary rock types include biotite gneiss, muscovite–biotite
schist and gneiss, garnet–muscovite–biotite schist and gneiss, calc-silicate–biotite
gneiss, amphibolite, garnet amphibolite, and calc-amphibolite.
The high intensity of deformation precludes determination of tops in metasedimentary
rocks, thus relative ages of individual units are not clear. Layering in the gneiss has
been previously interpreted as relict bedding, but likely is dominantly compositional
segregation due to the metamorphic grade.
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Figure 7-2: Blue River Project Local Geology Map
Note: The Upper Fir deposit is located approximately 25 km north of the town Blue River near the western
claim boundary and Yellowhead Highway. See Figure 7-3 for the local geology legend. Figure is courtesy
Dahrouge Geological Consulting Ltd., 2012.
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Figure 7-3: Blue River Local Geology Legend (for Figure 7-2)
Note: Figure courtesy Dahrouge Geological Consulting Ltd., 2012.
7.2.2 Gneisses and Schists
Metamorphosed quartzo-feldspathic biotite gneiss is the most abundant lithology that
crops out at surface. Biotite gneiss is ubiquitous and is inter-layered with all other
lithologies on the property.
Outcrops are moderately weathered with characteristic 0.2 to >1 m thick layers of
uniform, massive, medium grained quartz–feldspar–-biotite ± muscovite divided by
recessive schistose bands or fine partings. Fresh surfaces have a uniform,
equigranular, salt and pepper texture of quartz, feldspar and biotite. Muscovite occurs
as thin schistose partings ranging from trace to abundant amounts. Sub-one
millimeter to several centimeter diameter red garnet porphyroblasts occur in varying
amounts. These units are interpreted to represent deformed and moderately
re-crystallized turbidite. Calc-silicate-bearing biotite gneiss has pale green bands a
few centimetres thick that may be related to microscopic traces of actinolite ± diopside.
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7.2.3 Amphibolites
The amphibolite units occur as lenses within all gneiss and schist units. They are
typically medium-grained, massive to moderately foliated amphibolites and can contain
red garnets (almandine) typically <1 cm in diameter. Plagioclase and hornblende
occur in varying proportions forming rocks ranging from tonalite to hornblendite
composition (<10% hornblende to >90% hornblende respectively). Weak mineral
lineations are present as observed by the alignment of hornblende. Rare banding is
observed at centimetre scale.
Locally, calc-amphibolite units are distinguished by an increase in mineral grain size, a
strong contrasting black and white colour, local presence of garnets, and effervescent
reaction with dilute hydrochloric acid. The amphibolite units are interpreted as
metamorphosed mafic sills, dikes, and possibly subaqueous flows.
7.2.4 Intrusive Rocks
Ultramafic Rocks
Ultramafic rocks associated with the carbonatites include fine- to medium-grained
pyroxenites and cumulate pyroxene–hornblendites. The ultramafic units likely
represent a metamorphosed ultramafic intrusion associated with mafic volcanism
(amphibolite) roughly the same age as the intruded metasediments (Figure 7-4).
Carbonatite
Both dolomitic carbonatite and calcitic carbonatite occur at Blue River. Dolomitic
carbonatite is often referred to as magnesio-carbonatite, rauhaugite, or beforsite.
Coarse-grained, calcitic carbonatite is also often referred to as calcio-carbonatite or
sövite.
The Blue River Fir carbonatite is approximately 330 million years old (and possibly
older) based on U–Pb geochronology data. The carbonatites were emplaced as dikes
or sills into the metasedimentary rocks prior to the regional deformation and
metamorphism that occurred c.a. 170 Ma.
The carbonatites forms sill-like bodies with average thicknesses of 30 m, ranging
between 5 m to about 90 m thick, and with strike lengths ranging between 50 m to
1,100 m (Figures 7-4 to 7-8). Bedding-parallel foliation in metasedimentary gneisses
and the contacts of carbonatite intrusions generally strike 335° and 155° with shallow
to moderate northeast and southeast dips.
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Figure 7-4: Deposit Area Surface Geology Map
Note: The interpreted Upper Fir deposit surface expression is shown in blue. Inset shows the deposit
location at the Project. Figure courtesy Dahrouge Geological Consulting Ltd., 2012.
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Figure 7-5: Drill Collar and Vertical Section Locations
Note: See Figure 7-6 for the longitudinal section A – A’; Figure 7-7 for section 5796740 N; Figure 7-8 for
section 5796425 N. Carbonatite surface expressions are coloured blue. Bulk sample locations are noted
at BS1 and BS2. Figure courtesy Dahrouge Geological Consulting Ltd., 2012.
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Figure 7-6: Longitudinal Section A – A’ (view SE)
Note: The figure illustrates the carbonatite geometry and its NE – SW geological continuity approximately perpendicular to the local SE trending fold
hinge orientations. Upper Fir Carbonatite = blue coloured domain. View is to the south-east. Section influence is +/- 25 m. Figure by AMEC, 2012.
Overburden
Magnesiocarbonatite
Calciocarbonatite
Silicocarbonatite
Fenite
Skarn
Amphibolite
Garnet amphibolite
Pegmatite
Garnet gneiss
Diopside gneiss
Gneiss
Mylonite
Ultramafic
LITHOPLT: Lithology Colours
Viewport1
Bone Carbonatite
Upper Fir
Carbonatite
Legend
A (NE) A’ (SW)
50 m
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Figure 7-7: Geology Section 5796740 N
Note: Illustrates the carbonatite geometry, its east-west geological continuity, and relationship between drilled thickness versus true thickness.
Additional 2010 drilling (F10 prefixed holes) has reasonably improved the local geological interpretation. Upper Fir Carbonatite = blue coloured
domain. View is to the north. Section influence is +/- 25 m. Figure by AMEC, 2012.
Overburden
Magnesiocarbonatite
Calciocarbonatite
Silicocarbonatite
Fenite
Skarn
Amphibolite
Garnet amphibolite
Pegmatite
Garnet gneiss
Diopside gneiss
Gneiss
Mylonite
Ultramafic
LITHOPLT: Lithology Colours
Viewport1
Bone Carbonatite
Upper Fir
Carbonatite
Fenite
Legend
West East
50 m
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Figure 7-8: Geology Section 5796425 N
Note: Illustrates the carbonatite geometry, east-west geological continuity, folding, and relationship between drilled. Additional 2010 drilling (F10
prefixed holes) has improved the local geological interpretation. Upper Fir Carbonatite = blue coloured domain. View is to the north. Section influence
is +/- 25 m. Figure by AMEC, 2012.
Overburden
Magnesiocarbonatite
Calciocarbonatite
Silicocarbonatite
Fenite
Skarn
Amphibolite
Garnet amphibolite
Pegmatite
Garnet gneiss
Diopside gneiss
Gneiss
Mylonite
Ultramafic
LITHOPLT: Lithology Colours
Viewport1
Bone Carbonatite
Upper Fir
Carbonatite
Fenite
Legend
West East
(A)
(B)
(C)
50 m
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Dolomitic and calcitic carbonatite usually form separate bodies but can occur together
within single intrusions. At Blue River, dolomitic carbonatite typically makes up the
cores of the carbonatite bodies. Crosscutting or gradational relationships can be
observed from one variety of carbonatite into another.
Dolomitic and calcitic carbonatites are medium to coarse-grained and have secondary
tectonically-imposed textures. A cataclastic (porphyroclastic) texture is common in all
the carbonatites. Most exposures display layering defined by varying quantities of
accessory minerals. Accessory minerals include amphibole, pyroxene, phlogopite,
olivine, magnetite, apatite, pyrite/pyrrhotite, ilmenite, zircon, and the tantalum and
niobium bearing minerals pyrochlore and ferrocolumbite.
Contacts between carbonatite and the host metasediments are typically sharp and
mantled by zones of metasomatized host rock, known as fenite.
At Blue River, the fenite rocks commonly, but not always, envelope the carbonatite
rocks and can extend up to 50 m from the carbonatite intrusions. The
metasedimentary host rocks are characterized by foliated calcite-richterite-biotite
(± apatite, ± vermiculite) rock. Of lesser importance are contact metasomatic veins
commonly less than 1 m thick that comprise amphibole-pyroxene (± vermiculite
± carbonate).
Fold indicators in core intersections observed in holes F08-150 and F08-151 (Figure
7-8: locations A, B, and C) are shown in Figure 7-9 to Figure 7-11 respectively.
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Figure 7-9: Fold Indicators (Hole F08-150: 121.8 m to 129.8 m)
Notes: Left: Hole F08-150: 121.8m to 129.8m. HQ diameter diamond drill core. Hole was drilled vertical.
Compositional layering (L) of biotite-quartz gneiss is typically at a high angle to the core axis indicating a
sub-horizontal attitude when related to the sub-vertical dip of the drill hole. A ptygmatic fold is also
observed (T). Top of hole is towards the top left of photo. Right: Hole F08-150: 125 m. Indications of
folding include asymmetric parasitic folds with short and long limbs (P) bracketed by sub-horizontal
compositional layering. Centimetre scale ptygmatic folds (T) are noted. Photos from Chong (2010).
Figure 7-10: Fold Indicators (Hole F08-150: 143.5 m and 147.0 m)
Note: Left: F08-150: 143.5 m. Right: F08-150: 147.0 m. Indications of folding include high and low
angle layering indicating possible fold closures. Top of hole is towards the top left of photos. Photos from
Chong (2010).
P
T
L, T
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Figure 7-11: Fold Indicators (Hole F08-151: 204.0 m to 204.5 m)
Note: F08-151: 204.0 m to 204.5 m (top to bottom). Fold indicators include repetition of carbonatite to
biotite-quartz gneiss and back into carbonatite. Upper carbonatite in figure has a contact at a high angle
to core axis indicating that it is a flat lying contact (upper right dashed line). Middle gneiss has a trend of
compositional layering with high - to low - to high angles relative to core axis (middle curved dashed line
and lower middle dashed line). Black box highlights a possible fold closure which gives a characteristic
bulls-eye appearance to the layering. Top of hole is towards the top left of photo. Photos from Chong
(2010).
7.2.5 Pegmatite Dykes
Pegmatite dykes and pods up to 500 m long and 15 m thick crosscut all lithologies
throughout the property. At least some of the pegmatites are folded. Among the
pegmatites, two mineralogically-distinct types exist:
Two-mica (± garnet, ± tourmaline) granitic pegmatites
Syenitic pegmatites with minor biotite (± amphibole, ± pyroxene).
Where pegmatites cross-cut carbonatite, a coarse-grained skarn assemblage of
calcite, amphibole and/or diopside is developed at the contact.
7.3 Structural Geology and Metamorphism
The structural geology is summarized largely from Kraft (2010), Ghent et al. (1977),
Simony et al. (1980), and Raeside and Simony (1983).
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The style of structural deformation at the Project directly impacts the carbonatite
geometry. A deformation model was developed on behalf of Commerce by J. Kraft
during 2009 and early 2010. The structural deformation model was confirmed and
enhanced by field work completed by J. Kraft during July and September of 2010 and
by structural interpretation of sub-surface information by Gervais (2011). The following
descriptions include the 2010 supporting observations and interpretations. Reviews by
SRK (Couture and Nash, 2011a, 2011b) and Touchstone Geoscience Inc.
(Touchstone) (Lee, 2012) generally support the deformation model.
Three phases of compressional deformation have been mapped throughout most of
the region, from the northern Selkirk Mountains into the Cariboo Mountains. At the
Project, at least two additional deformation events are observed.
The first deformation event (D1) produced large recumbent folds (F1) with limbs
approximately 50 km long and an associated early foliation (S1). Features from F1 are
not observed within the immediate deposit area.
The second deformation event (D2) is associated with peak, mid-amphibolite facies
metamorphism with an associated foliation (S2). In general the S1 and S2 foliations
can rarely be distinguished from one another in the field and are mapped as S1+S2.
D2 has created boudinage, or pinch and swell features attributed to competency
contrasts between rock type layers.
The third deformation event (D3) is characterized by centimetre to decametre scale
recumbent folds (F3) that deform the S2 foliation. Axial planar schistosity that deforms
S1+S2, within micaceous lithologies such as fenite, is known as S3. The style and
attitude of F3 folds are variable, but axial planes are generally southeast-dipping.
Touchstone (Lee, 2012) suggests that transpositional folding associated with D2 may
play a larger part in carbonatite geometry than previously considered.
The fourth deformation event (D4) is characterized by inclined, southwest trending
folds that re-fold larger F3 folds in the deposit area. Open to tight upright folds with
east to southeast hinges occur sporadically. D4 is suggested to include thrust faulting
with top to the southwest vergence.
The fifth deformation event (D5) is described as a brittle extensional event
characterized by normal faults with slickensides, weak quartz-pyrite alteration of wall
rocks, and cross-cutting relationships with D4 structures.
A distinctive augen gneiss unit intersected below the carbonatite in many holes may
represent a high strain zone defining a lower boundary for the carbonatites.
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Folding is observed in wall rocks adjacent to the carbonatite in outcrop and in drill
core, and is interpreted for carbonatite intercepts on large scale geological sections.
Within carbonatite, compressional deformation with weak southeast elongation is
suggested by zones with cataclastic to mylonitic foliation (Chudy and Ulry, 2012) and
weakly to moderately developed mineral lineations defined by amphiboles.
Carbonatite bodies are folded at metres to deposit scale, however their thickness and
massive (non-layered) nature makes observation of folding indicators within the
carbonatite comparatively difficult to observe in outcrop or drill core.
7.4 Geochronology
The geochronology is summarized largely from Pell (1994), Simonetti (2008), and
Gervais (2009).
An uranium–lead date of about 325 Ma was obtained from zircons from the Verity
carbonatite. A lead–lead date of 332.5 ± 5.7 Ma age was obtained from zircons for the
Upper Fir carbonatite. A preliminary uranium–lead date of 328 ± 30 Ma was obtained
from zircons from the Mud Lake area carbonatite. Zircons separated from syenite at
Paradise Lake yielded a uranium–lead age of about 340 Ma and lead-lead ages of
about 351 and 363 Ma.
Ongoing research on U/Th/Pb dating of zircons and monazites from the property
shows a complex thermal history, indicating that the age of emplacement of the Blue
River area carbonatites may be older than initial results have shown (pers. comm.
L. Millonig to J. Gorham).
7.5 Carbonatites
The Upper Fir and Bone Creek carbonatites are assessed in the mining plan
discussed in Section 16 of this report. However, for Report completeness purposes,
all of the significant carbonatite deposits are described in this subsection.
7.5.1 Fir Carbonatite
Information summarized in this subsection on the Fir deposit is from the British
Columbia Geological Survey website.
The Fir showing is located 1.25 km north of the Bone Creek carbonatite. Carbonatite
consisting of dolomitic and lesser calcitic carbonatite occurs as sills within the quartz-
hornblende-mica schist of the Semipelite Amphibolite division of the Horsethief Creek
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Group. Other lithologies include amphibole-biotite schist, biotite-muscovite gneiss and
amphibole-biotite-garnet gneiss.
The Fir carbonatite has a likely strike extent of at least 400 m in a northerly direction
based on outcrop exposures. A 2 m exposure of dolomitic carbonatite was located
400 m north of the discovery outcrops. Additional exploration potential occurs south of
the Fir discovery outcrops based upon tantalum and niobium soil anomalies. Dolomitic
outcrops are coarsely crystalline and typically weather white. Accessory minerals in
the carbonatites include apatite, amphibole, olivine, magnetite, pyrite, pyrrhotite,
pyrochlore, and columbite. The dolomitic carbonatite is almost devoid of biotite and
magnetite. Three distinct textures were observed: breccias composed of tightly-
packed dolomite fragments within a finely crystalline dolomite groundmass; a
porphyritic texture with ghost dolomitic crystals in a fine-grained matrix; and a massive
texture with local banding of accessory minerals.
Tantalum and niobium mineralization in the Fir carbonatite occurs as the minerals
pyrochlore and columbite. The Fir carbonatite has the highest background niobium
and tantalum values of all carbonatites in the area. Tantalum averages greater than
0.015 per cent. Sampling of the discovery outcrops returned assays of 1.02% Nb2O5,
0.06% Ta2O5, and 6.31% P2O5. A sample from drill hole BC19 returned values of
0.18% tantalum and 8.51% phosphate from 119.0–119.6 m. The anomalous value
may be the result of a pyrochlore–apatite band in the sample.
7.5.2 Verity Carbonatite
The Verity carbonatite is located about 40 km north of the community of Blue River.
The Verity carbonatite has the most varied stratigraphy of all the carbonatites in the
area.
The Verity carbonatite consists of banded dolomitic and calcitic carbonatite that locally
intrude each other. It occurs as a 15 m to 30 m thick sill within quartz-hornblende-mica
schist of the Horsethief Creek Group. It can be traced up the hillside for 800 m to the
east–northeast.
A tectonic breccia showing hairline fractures is common in the dolomitic carbonatite. A
banded texture caused by layering of the accessory minerals apatite, amphibole,
olivine, magnetite, vermiculite, biotite, pyrite, pyrrhotite, pyrochlore, columbite, and
zircon is common in calcitic carbonatite and less developed in the dolomitic
carbonatite. Coarse olivine and apatite in calcitic dolomite form bands 1 cm to 5 cm
thick. Magnetite occurs as discontinuous lenses in calcitic carbonatite layers; the
lenses can be much as 20 cm in diameter.
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Tantalum and niobium mineralization in the Verity carbonatite occurs in the minerals
pyrochlore and columbite. The pyrochlore and columbite crystals occur as
octahedrons that can reach 4 cm diameter. Calcitic carbonatite at the Verity
occurrence also contains greater than 10.8% phosphate and has abundant apatite
relative to other nearby carbonatites at the Project. Rare earth elements are
interpreted to be hosted in fluorine-rich carbonate.
7.5.3 Exploration Targets
Geochemical sampling has outlined a number of potential exploration targets,
including:
Upper Fir Extension target: strong tantalum anomalies on four adjacent soil lines
north–northwest of Bulk Sample Pit #2 indicate that the carbonatite subcrop likely
extends to the north, past the current drill coverage
Bone Creek Extension target: strong tantalum-in-soil anomalies on two widely-
spaced lines centered at UTM 5,797,000 N indicate a near surface carbonatite
body that is on strike with the Bone Creek carbonatite
Fir Exploration target: strong tantalum-in-soil anomalies on widely-spaced lines
located north, south and above the known Fir showing indicate possible extensions
of the Fir carbonatite
Mt. Cheadle Exploration target: a large diffuse tantalum-in-soil anomaly, with
several spikes, stretching over 2 km, is located north of Gum Creek and along
strike from the Upper Fir carbonatite
3050 Road target: Strong tantalum anomalies on soil lines to the north and east of
current drilling on the Upper Fir deposit near 3050 Road indicate another
carbonatite body may be located above the known extents of the deposit.
Target locations are indicated on Figure 7-12.
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Figure 7-12: Exploration Target Location Surface Map
Note: Figure courtesy Dahrouge Geological Consulting Ltd., 2012.
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Soil sample results indicate the Upper Fir carbonatite has exploration potential directly
northward of known deposit extents. Additional resource definition drilling is
warranted.
Soil sample results indicate the Bone Creek and Fir carbonatites have additional
exploration potential along, and across, strike. Additional in-fill soil sampling is
warranted prior to diamond drilling to assess for potential connections with the Upper
Fir carbonatite.
7.6 Mineralogy
The discussion in this section is summarized largely from observations during AMEC’s
site visits, Chudy (2008 and 2010), Chudy and Ulry (2012), Woolley and Kempe
(1989), Aaquist (1982a), and Mariano (2000).
There are two principal and one minor niobium- or tantalum-bearing minerals known at
the Project.
The minerals, using generic end-member compositions, are:
Ferrocolumbite ............ (Fe,Mn,Mg)(Nb,Ta)2O6
Pyrochlore ..... (Ca,Na,U)2(Nb,Ti,Ta)2O6(OH,F)
Fersmite ..... (Ca,Ce,Na)(Nb,Ta,Ti)2(O,OH,F)6.
7.6.1 Ferrocolumbite
Ferrocolumbite occurs predominantly in medium to coarse-grained, granoblastic
dolomitic carbonatites which typically form relatively thin intervals (<6 m) or occur at
margins of thicker intervals of carbonatite. These carbonatites contain the amphibole
minerals winchite and barroisite. Ferrocolumbite forms subhedral to anhedral,
sometimes strongly poikilitic, individual grains or agglomerates of grains.
Mineral liberation analyses show that the majority (~80%) of liberated grains are less
than 110 μm in diameter. Locally, individual grains and agglomerates of
ferrocolumbite may exceed 2 cm in diameter.
Ferrocolumbite grains from marginal zones may contain large amounts of tiny
inclusions such as thorite (Th-silicate), monazite (La, Ce-phosphate) and pyrochlore.
Ferrocolumbite may also occur sporadically as inclusions in apatite and amphibole. It
is often associated with layers and micro-veins of apatite that fill the interstices
between anhedral ferroan-dolomite grains.
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7.6.2 Pyrochlore
Pyrochlore occurs predominantly in the fine-grained and porphyroblastic dolomitic
carbonatite containing the amphibole richterite, which is commonly developed in the
central portions of carbonatite intervals greater than 10 m thick. Such zones are less
abundant or absent in thinner carbonatite intersections. Pyrochlore is the only
tantalum mineral in the calcitic carbonatites that occurs in accessory amounts. Black
and brownish-yellow coloured varieties of pyrochlore are present.
The majority of the pyrochlore occurs as liberated grains in the dolomitic matrix. The
vast majority (~ 85%) of pyrochlore forms subhedral to anhedral, rounded grains less
than 200 μm in diameter. There are local larger grains and agglomerates, as well as
accumulations or veins less than a few tens of centimetres in width with high
pyrochlore abundance. This style of mineralization can result in locally high tantalum
values (> 450 ppm Ta).
Pyrochlore also occurs as inclusions in amphiboles (richterite), fluorapatite, and in
ferrocolumbite. In some rare cases the pyrochlore grains can be coated with a thin
film of pyrrhotite or pyrite.
7.6.3 Fersmite
Fersmite occurs as anhedral inclusions in apatite, primarily at the Verity carbonatite
and is considered a minor economic mineral at the Project.
7.6.4 Fenite Mineralization
Mineralization in the fenite is dominantly ferrocolumbite, concentrated in apatite-rich
layers. Ilmenite, with ferrocolumbite inclusions, appears to be a subdominant source
of both niobium and tantalum. Niobium and tantalum grades within fenite at Blue River
are considered to be sub-economic, but locally fenite may provide grade-bearing
mining-dilution material.
7.6.5 Mineral Zoning
Mineral zoning, or distribution, of ferrocolumbite and pyrochlore within the carbonatites
is not clear due to the variable thicknesses and polyfolded geometry of the carbonatite.
On-going research (Chudy and Ulry, 2012) supports the association of dominantly
pyrochlore mineralization with richterite-bearing, fine-grained, foliated carbonatite
defining zones of retrograde deformation. Ferrocolumbite mineralization is dominant in
winchite–barroisite-bearing, coarse-grained gneissic carbonatite. Carbonatite of
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Project No.: 168967 Page 7-22 22 June 2012
intermediate porphyroclastic textures may contain both minerals. Further work is
required to improve the understanding of the mineral zoning and to locate potential
material types required to support metallurgical testwork.
7.7 Comment on Section 7
In the opinion of the QPs, knowledge of the deposit settings, lithologies, and structural
and alteration controls on mineralization are sufficient to support mineral resource
estimation.
The mineralization style of the Project deposit is sufficiently well understood to support
mineral resource estimation.
Prospects and targets are at an earlier stage of exploration, and their lithologies,
structural, and alteration controls on mineralization are at present not well understood
and hence more work is required to support estimation of mineral resources.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
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Project No.: 168967 Page 8-1 22 June 2012
8.0 DEPOSIT TYPES
The mineralization identified to date at the Project is consistent with magmatic,
carbonatite-associated deposits. Carbonatite-associated deposits are classified as
either magmatic, replacement, or residual. Global examples of magmatic carbonatite
complexes or deposits include: Oka, Niobec (St. Honore) (Quebec); Kovdor (Russia);
Iron Hill (Colorado); and Gardiner (Greenland) (Mitchell, 2010). Examples of
replacement carbonatite deposits are Rock Canyon (B.C.), Bayan Obo (China), and
Palabora (South Africa). Araxa and Catalao (Brazil) are classified as residual
carbonatite deposits due to the degree of lateritic weathering. Carbonatites are the
main source of niobium +/- tantalum, and important sources of rare earth elements.
Magmatic carbonatite deposits have the following common features (Birkett and
Simandl, 1999).
Commodities: Niobium, tantalum, rare earth elements, phosphate, vermiculite,
copper, titanium, strontium, fluorine, thorium, uranium, magnetite.
Geological Setting: Carbonatites intrude all types of rocks and are emplaced at a
variety of depths. Carbonatites occur mainly in a continental environment, rarely in
oceanic environments (Canary Islands) and are generally related to large-scale,
intra-plate fractures, grabens or rifts that correlate with periods of extension and
may be associated with broad zones of uplift.
Age of Mineralization: Carbonatite intrusions are early Precambrian to Recent in
age; they appear to be increasingly abundant with decreasing age. In British
Columbia, carbonatites are mostly upper Devonian, Mississippian or Eocambrian
in age.
Host Rocks: Host rocks are varied, including calcite carbonatite (sövite), dolomite
carbonatite (beforsite), ferroan or ankeritic calcite-rich carbonatite
(ferrocarbonatite), magnetite-olivine-apatite ± phlogopite rock, nephelinite, syenite,
pyroxenite, peridotite and phonolite. Carbonatite lava flows and pyroclastic rocks
are not known to contain economic mineralization. Country rocks are of various
types and metamorphic grades.
Deposit Form: Carbonatites commonly occur as small, pipe-like bodies, dikes,
sills, small plugs or irregular masses. The typical pipe-like bodies have sub-
circular or elliptical cross sections and are up to 3-4 km in diameter. Magmatic
mineralization within pipe-like carbonatites is commonly found in crescent-shaped
and steeply-dipping zones. Metasomatic mineralization occurs as irregular forms
or veins. Residual and other weathering-related deposits are controlled by
topography, depth of weathering and drainage development.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 8-2 22 June 2012
Deposit Mineralogy:
o Magmatic: bastnaesite, pyrochlore, columbite, apatite, anatase, zircon,
baddeleyite, magnetite, monazite, parisite, fersmite.
o Replacement/Veins: fluorite, vermiculite, bornite, chalcopyrite and other
sulphides, hematite.
o Residual: anatase, pyrochlore and apatite, locally crandallite-group minerals
containing rare earth elements.
Gangue Mineralogy: Calcite, dolomite, siderite, ferroan calcite, ankerite, hematite,
biotite, titanite, olivine, quartz.
Alteration: A fenite halo (alkali metasomatized country rocks) commonly surrounds
carbonatite intrusions; alteration mineralogy depends largely on the composition of
the host rock. Most fenites are zones of desilicification with addition of Fe3+, Na
and K.
Mineralization Controls: Intrusive form and cooling history control primary igneous
deposits (fractional crystallization). Tectonic and local structural controls influence
the forms of metasomatic mineralization. The depth of weathering and drainage
patterns control residual pyrochlore and apatite deposits, and vermiculite deposits.
Many features of the mineralization identified within the Project to date are analogous
to magmatic carbonatite deposits, in particular the Oka (Husereau Hill) and Niobec (St.
Honoré) deposits in Quebec.
Key features of the Blue River deposits supporting a magmatic carbonatite model are:
Commodities: niobium and tantalum
Geological Setting: occurs along the eastern portion of the Omineca Crystalline
Belt and hence its tectonic setting is along a large scale zone with associated uplift
Age of Mineralization: data yields results of about 330 Ma which is consistent with
other British Columbia carbonatite deposits
Host Rocks: dolomite and calcite-rich carbonatite intrusion rocks
Deposit Form: the Blue River carbonatites occur as sills and dykes
Deposit Mineralogy: ferrocolumbite and pyrochlore
Gangue Mineralogy: dolomite, calcite, amphibole (richterite), quartz, pyroxene,
phlogopite, olivine, magnetite, apatite, pyrite/pyrrhotite, ilmenite, and zircon
Geochemistry: high strontium levels (>5,000 ppm)
Alteration: Fenite halos occur around most carbonatites at Blue River
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 8-3 22 June 2012
Mineralization Controls: Carbonatites are the main host rocks to the Ta and Nb
rich minerals pyrochlore and ferrocolumbite. The Blue River carbonatites have
been deformed by multiple episodes of folding and faulting. The internal cooling
history of the deposit is not clear. The spatial distribution of the Ta and Nb rich
minerals varies throughout the carbonatite .
8.1 Comment on Section 8
In the opinion of the QPs,
A polyfolded sill-like carbonatite model suitably describes the Blue River deposits
The deposit concepts being applied as the basis for exploration planning at the
Project are reasonable.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 9-1 22 June 2012
9.0 EXPLORATION
The Blue River area has been the subject of intermittent exploration since the
discovery of vermiculite-bearing carbonatite rock in 1949.
Commerce acquired parts of the current property in 2000 and initiated exploration for
new carbonatite deposits which culminated in the drilling of the Upper Fir carbonatite
and delineation of the Fir and Upper Fir–Bone Creek carbonatite system.
9.1 Grids and Surveys
All surveys to date are in UTM NAD83 Zone 11 coordinates.
In 2007, orthophotography and Lidar surveys were flown to create a 1:2,000 base map
of the Upper Fir area. A topography map with 2 m contour intervals was created by
Eagle Mapping Ltd.
9.2 Geological Mapping
Geological and structural mapping has been completed at 1:2,500 scale on a
continuous basis since 2006. The mapping area coverage is between Bone and Gum
Creeks; and from the North Thompson River to the ridge top located about 3 km east
on the slope that is known locally as either Fir or Cedar Mountain. The mapping area
includes the Fir, Upper Fir, Bone Creek (considered a single system) and Gum
carbonatites plus the nearby Hodgie Zone.
Mapping was used to determine the outcrop of carbonatite and provide geological and
structural data.
9.3 Geochemical Sampling
9.3.1 Stream Sediment Sampling
Reconnaissance stream sediment sampling was completed during 2001 to 2003, and
2006 to 2007. During 2008, 531 stream sediment samples were collected and
analysed for the streams throughout the entire property. The key exploration
pathfinder elements at Blue River are tantalum, niobium, and rare earth elements.
Detailed sample analysis using microscopic mineral characterization was utilized,
focusing on identifying pyrochlore, apatite, richterite, and monazite as pathfinder
minerals.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 9-2 22 June 2012
During the 2009 field season, a total of 20 stream pan concentrate samples were
taken in the Fir and Mud Creek areas to follow up on creek-mouth areas inaccessible
during the 2008 field season. Samples were analyzed at Acme Laboratories in
Vancouver B.C. (Acme) primarily for tantalum, niobium, rare earth elements,
phosphate, and carbonate using Acme’s 4B trace element package (lithium
metaborate fusion-ICP-MS technique).
Several samples anomalous in tantalum and niobium indicate that the Fir carbonatite
likely extends further south.
9.3.2 Soil Sampling
Soil sampling (B-horizon) has proven the best way to follow up on stream pan
concentrate sampling in the Blue River area as the niobium–tantalum-bearing
ferrocolumbite and pyrochlore are residual in soils. The key exploration pathfinder
elements from soil sampling are tantalum and niobium. During 2002, follow-up on an
anomalous stream sediment sample led to the discovery of the Upper Fir carbonatite.
Reconnaissance soil sampling was completed during 2001 to 2003 and 2006 to 2010
(Table 9-1). During the 2009 season, 1,694 soil samples were collected from several
area grids. Sample grids typically have 200 m spaced lines and samples are taken at
25 m intervals. Soil sampling in 2010 followed up on 2009 soil sampling anomalies on
the west slope of Mount Cheadle and extended the grid south towards Gum Creek.
A total of 477 samples were taken by Dahrouge and analyzed by Acme using Acme’s
4Bpackage (lithium metaborate fusion-ICP-MS technique). A broad area of tantalum
and niobium anomalies stretching north of Gum Creek indicates a possible extension
of the Fir/Upper Fir carbonatite system.
Table 9-1: Soil Sample Campaigns
Year
Number of
Samples Grids
2001 144 Verity, Fir
2002 128 Verity, Fir
2003 117 Verity, Fir
2006 308 Fir, Bone Cr, Switch Cr
2007 1,996 Fir, Bone Cr, South Fir, Switch Cr, Hellroar, Tailings area, Mt. Cheadle,
Pyramid Creek
2008 4,081 Bone Creek, Hellroar Creek, Mount Cheadle, Mud Lake, and Upper Fir
2009 1,694 Fir, Upper Fir, Hellroar, Switch Creek
2010 477 Mt. Cheadle
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 9-3 22 June 2012
9.3.3 Rock Chip, Grab, and Channel Sampling
Rock samples have been taken as part of prospecting and mapping activities on the
Property since 2000 (Table 9-2). Rock samples from various new and known
localities, primarily on the Wasted claims located west of the North Thompson River,
were taken during 2010 prospecting to test for or verify the presence and abundance
of tantalum–niobium and rare earth mineralization. A total of 25 in situ bedrock grab
and chip samples were taken at Miledge Creek, the Hodgie Zone, the Felix, and the
Mona carbonatites.
The Mona carbonatite, south of the Fir carbonatite, is interpreted to be a late stage
remobilization of carbonatite from the Fir system. One continuous chip sample of
fenite at the Mona carbonatite averaged 1,474 ppm Nb and 0.66% total rare earth
elements (TREE) over 28 cm. Two grab samples of carbonatite from the Mona
averaged 1,743 ppm Nb and 1.36% TREE and 6 ppm Nb and 3.66% TREE
respectively.
Table 9-2: Rock Sample Campaigns
Year
Number of
Samples Type Area
2000 15 Chip, grab Verity, Roadside
2001 17 Chip, grab, float Fir, Bone Creek, Roadside
2002 20 Grab, float Fir, Bone Cr, Serpentine, Gum Cr
2003 3 Grab Upper Fir
2006 131 Chip, grab, float Upper Fir, Bone Cr, Mt Cheadle, Gum Cr,
Paradise L, Verity, Switch Cr, Serpentine
2007 110 Chip, grab, float Upper Fir, Bone Cr, Serpentine, Paradise L, Mt
Cheadle, Windfall Cr, Howard Cr, Gum Cr,
Pancake Cr
2008 117 Chip, grab, float, channel Upper Fir, Bone Cr ultramafic, Felix, Gum Cr,
Hodgie, Little Chicago, Mud Cr, Serpentine
2009 113 Chip, grab, float, channel Fir, Gum, Mud Cr, Howard Cr, Paradise,
Switch Cr-Roadside,
2010 25 Chip, grab, regolith Wasted Claims, Felix, Mona, Hodgie
Three samples of the Felix carbonatite confirmed that it is not a tantalum-bearing unit,
with Ta values below 1 ppm and TREE values below 0.01%. One sample of
clinopyroxene-amphibole schist from the Hodgie Zone returned only 0.02% TREE.
Sampling on the Wasted claims along Miledge Creek on the west side of the North
Thompson River was undertaken to aid in condemnation of potential waste rock or
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 9-4 22 June 2012
tailings storage sites. The highest value found was a pyrite-muscovite schist yielding
49.5 ppm Nb, 3.3 ppm Ta, and 0.05% TREE.
9.4 Bulk Sampling
A bulk sample program was undertaken in the fall of 2008 by Dahrouge as part of on-
going evaluation of the Upper Fir carbonatite. Approximately 2,000 t from a 10,000 t
permitted volume were extracted from three bulk sample pits (BS-1, BS-2, and BS-3;
refer to locations shown in Figure 7-5) and placed into 75 t to 150 t stockpiles that
were comprised largely of -50 cm carbonatite material. The stockpiles were stored on
a lined, well-drained pad at the Project site for later metallurgical testing.
For each pit area, geological mapping was completed along with sampling of blast-
hole material and channel samples of the bench walls. Both gneissic and
porphyroclastic metamorphic textures and structures were exposed in the sample pits.
Microscopic examination of oxide phases in the bulk sample material indicated that
pyrochlore was the dominant mineral in pit BS-1 with the exception of benches at the
upper and lower contacts. Ferrocolumbite with subordinate amounts of pyrochlore
forms the mineralization in pits BS-2 and BS-3.
Pit BS-1 was excavated in dominantly fine- to medium-grained, granular, foliated,
apatite-bearing, dolomitic carbonatite. Pits BS-2 and BS-3 were excavated in
dominantly light-grey, coarse-grained, porphyroclastic, apatite-bearing, dolomitic
carbonatite. Crosscutting veins of dark green actinolite–calcite–diopside that are as
much as 20 cm wide are common. Contacts in each pit are marked by approximately
1 m of fenite, with contorted layers of dolomitic carbonatite up to 10 cm thick.
Material from the 2008 bulk sampling program appears to provide a sufficient range of
tantalum and niobium grades to represent the Upper Fir carbonatite mineralization for
initial metallurgical testing.
Both pits, BS-1 and BS-2, were stabilized and grass seeded, while pit BS-3 was
backfilled and reclaimed during 2009 and 2010. The bulk sampling permit expired on
31 December 2009 and has not been renewed, although bulk sample material remains
stockpiled on the site for future testwork.
9.5 Research Programs
Doctoral (Thomas Chudy 2009 to present) and post-doctoral (Leo Millonig 2010 to
present) studies on the geology, petrology and microscopy of the carbonatite
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 9-5 22 June 2012
mineralization at Blue River are underway at the University of British Columbia.
Publication of these studies is expected in late 2012.
9.6 Comment on Section 9
In the opinion of the QPs, the exploration programs completed to date are appropriate
to the style of the deposits and prospects within the Project. The exploration and
research work supports the genetic and affinity interpretations.
The project retains significant exploration potential for carbonatite-hosted tantalum–
niobium mineralization.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 10-1 22 June 2012
10.0 DRILLING
Core (diamond) drilling is the most extensively used exploration tool at Blue River.
AMEC received a drilling database from Commerce named CCE_Upper_Fir that had a
database closure date of 29 September 2011. The database comprises a total of 269
core drill holes within the Upper Fir, Bone Creek and Fir (Lower) carbonatites
consisting of 54,065 m of HQ (63.5 mm) and NQ (47.6 mm) diameter coring.
Table 10-1 lists the core drilling campaigns at the Upper Fir and Bone Creek deposits.
Core drilling by Commerce commenced in 2005 and continues to the present. Drill
locations are included in Figure 10-1.
Of the 269 core drill holes, 237 drill holes totalling 50,395 m of HQ diameter core
(12,736 samples) are used to support the Mineral Resource estimate. Of the 269 core
holes, Commerce drilled 11 holes in the Fir carbonatite area which are not part of this
Mineral Resource update. Of the 269 core holes, 21 legacy holes were drilled by
operators prior to Commerce’s involvement in the project. No sample intervals are
present in the database for the 21 legacy holes as the assay data could not be verified.
Therefore, these holes have not been used to estimate grades in this Mineral
Resource update, but they were used to interpret geology.
An additional 34 core holes, totalling 8,715 m of HQ drill core were drilled in 2011. The
2011 holes were not used in the preparation of this 2012 Mineral Resource update
presented in this report.
Preliminary results from 34 holes drilled in 2011 were reviewed by AMEC after
completion of the current Mineral Resource estimate update. Drill log lithology
information from these holes was reviewed on screen against the 3D carbonatite
model used in the resource estimation. The new 2011 drilling information generally
supports the geological interpretation. Some discrepancies were observed which
warrant local re-interpretation for future updates. Laboratory analyses of the 2011 drill
core samples are now complete and the quality control results are being reviewed by
Commerce. The locations of the 2011 drill collars are shown in Figure 10-1 together
with the 2005-2010 drill holes.
Table 10-2 lists the three bulk sample pits (BS-1, BS-2, and BS-3) and four trenches
(TR0, 0A, 1, and 1A) which have been sampled. These were only used for geology
interpretation and domain modeling, not for grade interpolation.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 10-2 22 June 2012
Table 10-1: Drill Campaign Summary
Category Deposit Operator Year # Holes Series Type # Metres # Samples % Samples
Resource Bone Creek Commerce 2005 4 CF05-01 to CF05-04 HQ 300 14 <1%
Resource Upper Fir Commerce 2005 4 CF0505 to CF0508 HQ 505 44 <1%
Resource Upper Fir Commerce 2006 17 CF0601 to CF0617 HQ 3,021 1,139 9%
Resource Upper Fir Commerce 2007 18 F0718 to F0735 HQ 4,310 1,053 8%
Resource Upper Fir Commerce 2008 118 F08-36 to F08-153 HQ 23,723 5,126 40%
Resource Upper Fir Commerce 2009 22 F09-154 to F09-176 HQ 5,587 842 7%
Resource Upper Fir Commerce 2010 54 F10-177 to F10-230 HQ 12,949 4518 36%
Resource Subtotal 237 50,395 12,736 100%
Historical Bone Creek AMC 1980-1981 17 BC-1 to BC-17 NQ 697 na-
Historical Fir AMC 1981 4 BC1-18 to BC-21 NQ 829 na-
Target Fir
(twins)
Commerce 2001-2002 11 F-01 to F-11 HQ 2,144 na-
Target Subtotal 32 3,670
Total Drilling 269 54,065
Notes:
Abbreviations: AMC = Anschutz Mining Corp.
The Commerce 2011 campaign comprises 34 HQ diameter drill holes totalling 8,715 m. These holes were not completed during the database audit or block
modeling for this 2012 Mineral Resource update. Preliminary analyses for the 2011 sampling are complete but pending QA/QC assessment.
Table 10-2: Upper Fir Deposit Trench and Bulk Samples
Category Deposit Operator Year
Number Series Type
#
(m)
Metallurgy Upper Fir Commerce 2008 3 BS01 to BS03 Bulk Sample 138
Exploration Upper Fir Commerce 2006 4 TR0, 0A, 1, 1A Trench-Chip 73
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 10-3 22 June 2012
Figure 10-1: Drill Collar Plan
Note: Figure courtesy of Dahrouge Geological Ltd., 2012.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 10-4 22 June 2012
10.1 Core Drilling Strategy
The holes are collared on three primary drill roads (Upper, Middle, Lower roads and
several intermediate trails) that are oriented sub-parallel to the Upper Fir carbonatite
along the hillside. Drill pad set-ups are spaced about 50 m apart along drill roads.
The majority of the known portions of the Upper Fir deposit are defined on 50 m
centres. The at-depth Bone Creek carbonatite has only been intersected by a limited
number of drill holes.
The drill hole orientations appear to be approximately sub-perpendicular to the
carbonatites. The relationship between sample length and true thickness varies with
the dip of holes. True thicknesses are slightly less than drilled intercepts.
10.1.1 Core Sizes
Core holes are typically HQ diameter (96 mm) producing core with a diameter of
63.5 mm. Hole-diameter reductions due to poor ground conditions generally are not
an issue at the Project. Approximately 45% of the holes are vertical. The remaining
inclined holes typically have azimuths of 090° or 270° and dips that range from -60° to
-80°. Drill hole depths range from a minimum of 32 m and a maximum of 388 m,
averaging about 200 m.
10.1.2 Collar Surveys
The drill hole collars are spotted in the field with a hand-held global positioning system
(GPS) instrument and oriented with a Brunton compass. In 2011, an azimuth
positioning survey system (APS) was introduced to aid in lining up the drill and to
obtain a more accurate preliminary collar location and orientation.
During 2008 and 2009, collars were surveyed using a laser theodolite system by Steve
Mosdell of Align Surveys of Louis Creek, B.C.
In 2010, McElhanney Associates of Vancouver (McElhanney) undertook a differential
GPS survey of all 2010 drill collars, as well as all historic collars still visible, including
all Steve Mosdell’s work that could be verified, and all roads. McElhanney also
established six reference markers on the property to support future surveys.
Commerce advised AMEC that some earlier drill collar monuments have been
destroyed due to subsequent construction activities.
McElhanney conducted a follow-up differential GPS survey during September 2011.
The survey included 2011 campaign drill collars, the three bulk sample pits, new road
and trail construction, plus many culvert locations.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 10-5 22 June 2012
10.1.3 Down-Hole Surveys
In 2010, a Flexit Multishot down hole orientation tool was introduced for down-hole
surveys. A Flexit Single Shot tool was used for ten holes when the multishot tool was
not available or not working. The dip and azimuth of vertical and inclined drill holes
were typically tested at five (vertical) to ten (inclined) points in each hole using the
Flexit Single Shot tool. The Multishot tool recorded a reading every 3 m down-hole,
yielding a much more reliable dataset. The instrumentation records magnetic
inclination, azimuth, temperature and magnetic susceptibility at each survey depth.
The Flexit instruments were calibrated at the start of each field season from 2007 to
2010. In 2011, a Reflex gyroscopic down-hole orientation tool was introduced, with a
backup survey using a Flexit Multishot tool. Acid test was the main down-hole survey
method for the 2005-2006 drill campaigns.
10.1.4 Oriented Drill Core
Six geotechnical drill holes comprising 1,271 m of HQ diameter oriented core were
completed during 2010. In addition, an orientation survey was conducted by DGI
Geoscience Inc., Mississauga, Ontario, using optical and acoustic televiewers capable
of providing oriented drillhole information on two 2010 holes and four pre-2010 holes.
The optical and acoustic televiewer surveys were expanded to 18 drillholes during the
2011 campaign.
10.1.5 Core Handling
Core was obtained using wire-line methods and placed in wooden core trays. Core
trays were placed near the core barrel so that the core was placed in the tray in the
same orientation as it came out of the barrel. Rubble, which was rarely encountered,
was piled to about the length of the whole core that its volume would represent. Trays
were marked with drill hole name and box number. The end of every run is marked by
a wooden block depth marker.
The core trays are transported by pick-up truck down to the core logging facility at the
community of Blue River, B.C.
10.1.6 Core Recovery
Core recovery was determined prior to sampling. Typically, recovery measurements
were completed before detailed logging was initiated. Standard core recovery forms
were usually completed for each hole by the field assistant or geologist.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
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Project No.: 168967 Page 10-6 22 June 2012
Core recovery is very good within the waste and carbonatite rocks (typically >95%).
The only area that may have core recovery issues would be within the fenite rocks
located in the immediate hanging wall to the carbonatite.
10.2 Drill Intercepts
Table 10-3 contains examples of the types of drill intercepts that have been returned
for the Blue River deposit areas. Typical drill hole orientations are indicated on the
cross-sections included in Section 7 of this Report. Due to the dip of the carbonatite,
drilled thicknesses reported in the table are slightly longer than true thicknesses.
10.3 Comment on Section 10
In the opinion of the QPs, the quantity and quality of the lithological, geotechnical,
collar location and down-hole survey data collected in the exploration and infill drill
programs completed by Commerce are sufficient to support mineral resource
estimation.
Core logging meets industry standards for tantalum and niobium exploration within
a carbonatite setting
Collar surveys have been performed using industry-standard instrumentation
Down-hole surveys were performed using industry-standard instrumentation
Recovery data from core drill programs are acceptable
Drill hole orientations are generally appropriate for the mineralization style, and
have been drilled at orientations that are optimal to the orientation of mineralization
for the bulk of the deposit area
Drill hole spacing is sufficient to show geometry of the deposit and an
understanding of the variability of the grade and thicknesses
No material factors were identified with the data collection from the drill programs
that could affect mineral resource estimation.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 10-7 22 June 2012
Table 10-3: Example Drill Hole Intercept Summary Table
Drill Hole Easting Northing Elevation Azimuth Dip From (m) To (m)
Length**
(m)
Ta
(ppm)
Nb
(ppm)
F0720 352816.7 5796722.0 1207.2 272.8 -60 38.4 86.4 48.0 120 2,032
F0720
146.7 158.5 11.8 129 1,456
F0720
244.1 248.8 4.7 150 1,240
F0728 352811.4 5796442.0 1214.3 91.8 -60 27.3 30.0 2.7 13 745
F0728
93.0 150.4 57.4 188 1,417
F08-064 352782.3 5796404.0 1211.6 0 -90 95.7 130.4 34.7 172 1,754
F08-084 353094.7 5796738.0 1317.0 0 -90 110.0 162.0 52.0 180 1,494
F08-084
185.0 202.3 17.3 143 990
F08-084
214.3 223.4 9.1 144 1,504
F08-084
230.2 233.7 3.5 155 929
F08-084
249.6 253.8 4.2 157 878
F08-084
262.3 268.1 5.8 180 1,003
F08-113 352904.7 5796762.0 1240.3 271.8 -60 99.5 130.0 30.5 196 622
F08-113
130.0 132.1 2.1 111 258
F08-113
132.1 138.0 5.9 190 1,258
F08-113
175.0 202.8 27.8 169 616
F08-150 353006.3 5796416.5 1301.8 0 -90 129.0 136.8 7.8 143 2,258
F08-150
150.8 165.8 15.0 109 2,264
F08-150
190.0 202.1 12.1 169 969
F09-169 353033.3 5796716.0 1291.4 0 -90 78.4 126.9 48.5 185 1,658
F09-169
156.1 165.0 8.9 129 396
F09-169
165.0 167.0 2.0 224 395
F09-169
167.0 198.6 31.6 155 492
F10-200 352879.7 5796436.0 1238.9 1.8 -90 65.6 69.5 3.9 157 1,361
F10-212 352949.7 5796427.7 1273.2 91.8 -60 130.6 132.1 1.5 323 2,095
F10-212
132.1 134.9 2.8 109 1,110
F10-212
134.9 144.1 9.2 144 2,482
F10-212
144.1 145.8 1.7 58 459
F10-212
145.8 159.0 13.2 154 2,875
F10-212
183.4 189.8 6.4 161 809
Note: ** “Length” column represents drill intercept, or drilled thicknesses.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-1 22 June 2012
11.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY
11.1 Sampling Methods
Samples were collected from an area approximately 1,600 m north–south by 1,000 m
east-west. Sampling is from a combination of vertical and inclined holes drilled from
common collar locations. This results in a drill hole or sample spacing which increases
with depth. Average spacing between drill hole intercepts in the mineral resource area
varies from 40 to 50 m.
Core sampling method and approach has been consistent through the 2005 to 2011
drill programs. Core was boxed on site and delivered each day to a core facility in
Blue River where the core was logged and sawn. Core logging involved both
geotechnical and geological information. Geotechnical logging included measuring
core recovery per core run, rock quality designation (RQD), fracture roughness and
orientation. Core recovery and RQD were generally good for most drill core, with
typically greater than 95% recovery. The geological logging included observations of
colour, lithology, texture, structure, mineralization, and alteration. All drill core was
digitally photographed under natural outdoor, or fluorescent indoor lighting prior to
splitting, of reasonable quality. In 2011, additional ultraviolet light digital photography
of core was introduced to better characterize structure and mineral variation within the
carbonatite. All digital photos are stored in Commerce’s computerized archiving
system.
The sampling procedure used to collect core at Blue River is as follows:
The entire carbonatite intersection and shoulder samples on each side of the
intersection are sampled
Samples intervals, generally 1 m in length, are marked on the core by a geologist
Sample intervals are assigned a unique sample number
The geological contacts are generally respected
Specific gravity measurements of the carbonatite are performed at approximately
3 m spacing
Carbonatite samples are checked over the entire sample interval with a GR-130
miniSPEC gamma ray spectrometer for the presence of U and Th
Core is sawn in half by diamond saw
Half of the core is sent for analysis
Half of the core is stored in labelled core boxes for reference or further sampling.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-2 22 June 2012
11.2 Metallurgical Sampling
The bulk sampling program conducted in 2008 to provide metallurgical samples is
discussed in Section 9.3. Additional information on the metallurgical sampling is
included in Section 13.
Metallurgical samples were collected from bulk sample material originating from BS-2
(approximately 173 t) during January 2009 and from BS-1 (approximately 6 t) during
November 2009. BS-2 samples were ferrocolumbite dominant and selected to best
represent the average tantalum-niobium grades for the carbonatite. BS-1 samples
were selected to best reflect pyrochlore dominant mineralization.
The two bulk samples were crushed to a particle size of <1 inch diameter. After
crushing, each group of samples was homogenized separately by a standard coning
and quartering procedure. The blended samples were bagged into one tonne bags
and put into storage. One tonne of each sample was delivered to Met Solve
Laboratory (Metsolve) in Burnaby in B.C. to air dry and further reduce the size to -
10 mesh for bench testing.
11.3 Density Determinations
Commerce collected specific gravity (SG) measurements in 2010 and 2011 covering
the spatial and temporal aspect of all drill campaigns and considering the various
lithologies present. The methodology implemented was a water immersion method
and determines the specific gravity by the following formula:
SG = (weight in air) / (weight in air – weight in water)
A 10 to 20 cm piece of whole, dry, HQ core is weighed dry on an Ohaus triple beam
balance and the weight recorded. The weight in water is determined by attaching the
core by a long nylon fishing line to the Ohaus balance, lowering the core piece into a
large plastic tub located immediately below the scale and filled with purified water.
The weight of the core while immersed is then recorded, and applied to the formula for
determining the SG. Porous core samples of fenite are coated with a thin veneer of
lacquer or sealant to seal any voids or fractures present in the sample.
Calibration weights are occasionally used to verify the accuracy of the balance beam.
The table used to complete the measurements is made of wood construction and
tested for level by the technician.
The SG results are summarized in Table 11-1 and Table 11-2.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-3 22 June 2012
Table 11-1: 2005 – 2010 Specific Gravity Determinations by Campaign
Year Count (%) Comment
2005 10 1%
2006 45 2%
2007 96 5%
2008 216 11%
2009 51 3%
2010 1,495 78%
Total 1,913 100%
Other 12
Includes samples < 0.1 m length, outliers, and
rock types of mylonite or altered gneiss
Table 11-2: 2005 – 2010 Specific Gravity Constants
Rock Type Count Min Max Mean CV Comments
Mg-Carbonatite 845 2.71 3.49 2.97 0.01
Ca-Carbonatite 72 2.85 3.28 3.01 0.03
Silico-
Carbonatite 4 2.98 3.06 3.03 0.01 Insufficient number of samples for constants
Carbonatite-
Total 921 2.71 3.49 2.97 0.01
Amphibolite 235 2.64 3.29 3.02 0.03
Calc-silicate 42 2.89 3.24 3.08 0.03
Fenite 101 2.82 3.06 2.96 0.01
Gneiss 467 2.65 3.21 2.82 0.03
Pegmatite 58 2.56 2.70 2.62 0.01
Quartzite 10 2.6 2.71 2.64 0.01 Insufficient number of samples for constants
Schist 20 2.70 3.09 2.89 0.04
Skarn 48 2.81 3.22 3.03 0.03
Ultramafic 8 2.98 3.21 3.10 0.03 Insufficient number of samples for constants
Vein 3 2.77 2.87 2.81 0.02 Insufficient number of samples for constants
Total 1,913 2.56 3.49 2.93 0.04
Others 12
Includes samples < 0.1 m length, outliers, and
rock types of mylonite or altered gneiss
Note: By volume, the rock types with insufficient number of samples are not material to the Mineral
Resource update.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-4 22 June 2012
11.3.1 Density Check Program
Specific gravity check measurements were completed during the 2010 season by
Commerce. One hundred and nine samples of the 2005 – 2009 drill campaigns were
sent to Met Solve Laboratories of Burnaby, B.C. for SG determinations by wax coat
preparation followed by water immersion method. The check values compared well to
the water immersion field measurements recorded in the exploration database with a
correlation of determination (R2) of 0.98.
The check samples completed do not cover the 2010 drill campaign samples which
comprise approximately 78% of the SG data used to support the Mineral Resource
update. In the opinion of AMEC, the risk related to no checks for the 2010 SG data is
considered not materially significant for this estimate based upon the strong correlation
observed for the checks completed to date. For the upcoming 2012 field season,
AMEC recommends Commerce-Dahrouge continue using the water immersion
method and complete a 5% check of the 2010 and 2011 density determinations using
wax immersion preparation followed by the water immersion method.
11.4 Analytical Laboratories
Acme Analytical Laboratories (Acme) in Vancouver was the primary laboratory for
sample preparation of the 2005 to 2008 drill core samples. PRA/Inspectorate
Laboratories (Inspectorate) in Richmond, B.C., was the primary laboratory for sample
preparation of the 2009 to 2011 drill core samples. Acme was the primary laboratory
for sample analysis since 2005 up to and including 2011 drill core samples.
Acme is an independent mineral testing laboratory which, in 1996, became the first
commercial geochemical analysis and assaying laboratory in North America registered
under ISO 9001. The laboratory has maintained its registration in good standing since
then. ISO 9001 addresses data and organizational management to ensure
appropriate output of all product and client service. Acme regularly participates in
proficiency testing and in October 2011 the Vancouver laboratory received formal
approval of its ISO/IEC 17025:2005 accreditation from Standards Council of Canada
for Au by fire assay. Acme is working on adding additional accredited methods but
acknowledges there are no internationally recognized routine programs for Nb and Ta
proficiency testing.
Inspectorate is also an independent mineral testing laboratory that reportedly works to
internationally-recognized standards such as ISO and ASTM. The Vancouver
laboratory received ISO9001:2000 accreditation in 2006 and 2009 and participates in
proficiency testing programs.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-5 22 June 2012
11.5 Sample Preparation and Analysis
Between 2005 and 2008 sawn core samples were shipped to Acme where the entire
sample was crushed in a jaw crusher to 70% passing -10 mesh (2 mm) from which a
250 g riffle split sample was pulverized in a ring-and-puck mill to 85% passing
200 mesh (75 µm).
Split core samples from the 2009 to 2011 drill programs were shipped to Inspectorate
where the entire sample was crushed to 80% passing 10 mesh and a 300 g split of the
crushed material was pulverized to 100% passing 200 mesh. In 2011, pulverization
was to 95% passing 200 mesh.
Between 2005 and 2008 drill core samples were analyzed at Acme for rare earth
metals and refractory elements including Ta and Nb by inductively coupled plasma
mass spectrometry (ICP-MS) following a lithium metaborate/tetraborate fusion of a
0.2 g sample followed by dilute nitric acid digestion of the fused pellet. Major oxides
and several minor elements were analyzed by ICP-emission spectrometry (ICP-ES)
using the same procedure preceding the instrumental analysis. In addition, 36
elements were analyzed by ICP-MS of a 0.5 g sample digested in aqua regia.
Between 2009 and 2011 drill core samples were analyzed at Acme by X-ray
fluorescence analysis following a lithium metaborate fusion of a 2 g sample (XRF(F)).
11.6 Quality Assurance and Quality Control
Assessing the accuracy of Ta and Nb results presents challenges not encountered
with other commonly analysed metals. Base and precious metal assays have a wide
selection of certified reference materials (CRMs) with their associated round robins
and proficiency assessment programs. Without such feedback mechanisms, assay
laboratories can be expected to show poorer agreement for the less commonly
analysed metals. Some host minerals of these elements may be resistant to strong
acid dissolution and/or form unstable solutions in dilute acid take-up after dissolution,
which may impact ICP-MS and ICP-AES results. XRF(F) determinations may be
impacted by background corrections that impact instrument calibration, particularly at
low concentrations or short counting times.
Quality control procedures used by Commerce to monitor laboratory results have
evolved over the life of the project. Between 2005 and 2007 Commerce inserted very
few blank, duplicate, or standard reference material (SRM) control samples. During
this period, analysis of several pulp check samples was completed at six different
laboratories. In 2008 the control sample insertion frequency was increased to an
average of 3% for each of blanks, quarter core field duplicates, and SRM control
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-6 22 June 2012
samples. In 2009 control sample insertion rates were increased to an average of 5%
per control sample type and pulp duplicates were added. Similar control sample
insertion rates were used for analysis of 2010 and 2011 drill core samples. Control
sample insertions are summarized in Table 11-3.
11.6.1 Assessment of Precision
Duplicates are used to assess laboratory precision. Duplicates in this case are
samples of the same material assayed at the same laboratory, using the same
procedure, and ideally analyzed in the same batch. Duplicate paired results are
assessed using Cumulative Frequency Absolute Relative Difference (ARD) charts.
For resource estimation purposes, a generally acceptable precision is achieved if 90%
of the duplicate pairs have an ARD less than 10% for pulp duplicates, less than 20%
for coarse reject duplicates, and less than 30% field duplicates.
Two hundred and twenty-nine quarter-core field duplicates were submitted between
2005 and 2008 as part of the regular QC program to support ICP-MS results. These
show a marginally acceptable precision for Ta ICP-MS (35% ARD at 90% cumulative
frequency, Figure 11-1). Nb paired results also have marginally acceptable precision.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-7 22 June 2012
Table 11-3 Control Sample Insertion Rate Summary
Year Primary Analysis
No. of Primary Samples
1/4 Core Field
Duplicates Insertion
Rate
Coarse Reject
Duplicates Insertion
Rate Pulp
Duplicates Insertion
Rate
2010 XRF(F) 4,518 105 2.3% 272 6.0% 258 5.7%
2009 XRF(F) 794 48 6.0% 0 0.0% 48 6.0%
2008 ICP-MS 5,882 191 3.2% 0 0.0% 268 4.6%
2007 ICP-MS 1,017 36 3.5% 0 0.0% 0 0.0%
2006 ICP-MS 1,140 2 0.2% 0 0.0% 0 0.0%
2005 ICP-MS 58 0 0.0% 0 0.0% 0 0.0%
Year Primary Analysis
No. of Primary Samples
Blue River SRMs
Insertion Rate
"BR-01" SRMs
Insertion Rate Blanks
Insertion Rate
2010 XRF(F) 4,518 291 6.5% 0 0.0% 248 5.5%
2009 XRF(F) 794 49 6.2% 0 0.0% 34 4.3%
2008 ICP-MS 5,882 0 0.0% 206 3.5% 222 3.8%
2007 ICP-MS 1,017 0 0.0% 49 4.8% 63 6.2%
2006 ICP-MS 1,140 0 0.0% 0 0.0% 48 4.2%
2005 ICP-MS 58 0 0.0% 3 5.2% 0 0.0%
Year Primary Analysis
No. of Primary Samples
1/4 Core Field
Checks Insertion
Rate
Coarse Reject
Checks Insertion
Rate Pulp
Checks Insertion
Rate
2010 XRF(F) 4,518 105 2.3% 272 6.0% 258 5.7%
2009 XRF(F) 794 0 0.0% 0 0.0% 49 6.2%
2008 ICP-MS 5,882 0 0.0% 0 0.0% 232 3.9%
2007 ICP-MS 1,017 0 0.0% 0 0.0% 373 36.7%
2006 ICP-MS 1,140 0 0.0% 0 0.0% 102 8.9%
2005 ICP-MS 58 0 0.0% 0 0.0% 58 100%
Table abbreviations: XRF(F) = X-ray fluorescence analysis following a lithium metaborate fusion; ICP-
MS=inductively coupled plasma mass spectrometry; Blue River SRMs = In 2008, fifteen SRMs were prepared for
Commerce by Process Research Associates (PRA, later Inspectorate) using core samples from the Blue River
carbonatite; "BR-01" SRMs = In 2005 SRM control sample BR-01 was prepared for Commerce by Acme, using
sample material from the Verity Carbonatite.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-8 22 June 2012
Figure 11-1: 2005 to 2008 Quarter-Core Duplicate Pair Cumulative Frequency ARD Chart
Forty-eight quarter-core and 48 pulp duplicates were submitted to support the 2009
drill program XRF(F) results. One hundred and five quarter core, 272 coarse reject,
and 258 pulp duplicate pairs were submitted to support the 2010 drill program results.
Cumulative frequency ARD chart results for duplicate pairs submitted as part of the
2005 to 2010 quality control program are summarized in Table 11-4 and Table 11-5.
Table 11-4: Cumulative Frequency ARD Summary for Tantalum
90% Cumulative Frequency ARD
Year Pulp
Coarse
Reject
Quarter
Core
2005 – 2008 ICP -
37%
2009 XRF(F) >100%
70%
2010 XRF(F) 15% 40% 55%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
|Pair D
iffe
rence| /
(P
air M
ean)
Cumulative Frequency (Percentile Rank)
ARD Chart: Quarter Core Duplicate Pairs 2005 to 2008 Ta ICP-MS
ACME Ta ICP-MS ACME Ta ICP-MS>50
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-9 22 June 2012
Table 11-5: Cumulative Frequency ARD Summary for Niobium
90% Cumulative Frequency ARD
Year Pulp
Coarse
Reject
Quarter
Core
2005 – 2008 ICP -
40%
2009 XRF(F) 20%
40%
2010 XRF(F) 10% 18% 45%
The 2009 pulp and quarter core duplicate precision is poor for Ta and Nb XRF(F). The
2010 pulp and coarse reject duplicates achieve acceptable precision for Nb XRF(F)
but marginal to poor precision for Ta XRF(F). As sample grades approach the lower
detection limits of the given analytical procedure, the ARD typically increases. The
2010 Ta pulp and coarse reject duplicate precision improves to an acceptable level for
paired duplicates with a mean grade greater than 50 ppm (Table 11-6, Figure 11-2).
Table 11-6: Cumulative Frequency ARD Summary for Tantalum (Mean > than 50 ppm Ta)
90% Cumulative Frequency ARD
Year Pulp
Coarse
Reject
Quarter
Core
2005 – 2008 ICP -
37%
2009 XRF(F) 89%
68%
2010 XRF(F) 11% 22% 50%
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-10 22 June 2012
Figure 11-2: 2010 Drill Core Assay Program Cumulative Frequency ARD Chart
Note: Black line represents cumulative frequency with no exclusion of paired data. Green line represents
cumulative frequency after exclusion of pairs with mean grade < 50 ppm. Acme 8x refers to Acme’s
Group 8 single element analysis by XRF(F).
In 2008, 300 pulps were resubmitted after initial assaying as a separate batch to Acme
for ICP-MS analysis. This work was part of a check program investigating accuracy
and precision differences between ICP-MS and XRF(F). The ARD at 90% cumulative
frequency was 28% for Ta and 22% for Nb. An acceptable level of precision was not
achieved even at a 50 ppm Ta cut-off. However, no significant bias between the
duplicate pairs for either Ta or Nb was apparent.
An XRF(F) re-assay program of 2008 coarse rejects was initiated in 2009. Pulp
duplicate results for 118 pairs show acceptable precision was achieved for Nb but not
for Ta (Figure 11-3 and Figure 11-4).
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
|Pair D
iffe
rence| /
(P
air M
ean)
Cumulative Frequency (Percentile Rank)
ARD Chart: Commerce Pulp Duplicate Pairs
ACME Acme Ta 8x (XRF-F) ACME Acme Ta 8x (XRF-F)>50
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-11 22 June 2012
Figure 11-3: 2009 Re-assay Program Ta XRF(F) Cumulative Frequency ARD Chart
Note: Black line represents cumulative frequency with no exclusion of paired data. Green line represents
cumulative frequency after exclusion of pairs with mean grade < 50 ppm.
Figure 11-4: 2009 Re-assay Program Nb XRF(F) Cumulative Frequency ARD Chart
Note: Green line represents cumulative frequency with no exclusion of paired data.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
|Pair D
iffe
rence| /
(P
air M
ean)
Cumulative Frequency (Percentile Rank)
ARD Chart: Pulp Duplicate Pairs for 2009 Re-assay Ta XRF(F)
ACME Ta XRF(F) ACME Ta XRF(F)>50
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
|Pair D
iffe
rence| /
(P
air M
ean)
Cumulative Frequency (Percentile Rank)
ARD Chart: Pulp Duplicate Pairs for 2009 Re-assay Nb XRF(F)
ACME Nb XRF(F) ACME Nb XRF(F)>0
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-12 22 June 2012
11.6.2 Assessment of Accuracy
Standard Reference Material (SRM) control samples are used to assess laboratory
accuracy. Accuracy is commonly measured as a bias between the Best Value (BV) of
the SRM and the SRM results from the drill sample batches. Biases less than ±5% are
commonplace and within the industry are widely accepted for the purposes of resource
estimation. A bias between five and ten percent is considered marginal and usually
warrants investigation. A bias exceeding 10% is considered significant and usually
warrants remedial action before samples are used to support resource estimations.
In 2005 SRM control sample BR-01 was prepared for Commerce by Acme, using
sample material from the Verity Carbonatite. The BR-01 SRM did not undergo round
robin testing: the best value (BV) is not certified and is used provisionally.
In 2008, fifteen SRMs (Blue River SRMs) were prepared for Commerce by Process
Research Associates (PRA, later Inspectorate) using core samples from the Blue River
carbonatite. Three samples of each standard were sent to six laboratories, for Ta
analysis, and seven laboratories for Nb analysis. Analytical procedures included
XRF(F) and XRF/pressed pellet, ICP-AES, ICP-MS, ICP-M, and atomic absorption.
The Blue River SRM round robin program used a small number of laboratories,
providing less reliable estimates of the BVs. The calculated 95% confidences of the Ta
BVs are unacceptably wide (greater than 5% and commonly greater than 10%). The
95% confidences for most of the Nb BVs are acceptably narrow (less than 5%), but the
small number of laboratories in the round robin increases the risk that the confidence
estimate is fortuitously small. The BVs could change significantly if more laboratories
were used in the round robin. The calculated BVs of these 15 SRMs are used on a
provisional basis and conclusions on accuracy are supported with results from check
samples.
Two hundred and six BR-01 SRMs were inserted by Acme into sample batches to
support the 2005 to 2008 ICP-MS drill sample results. Control sample results were
generally within ±5% of the best value. Less than 5% of the results exceeded
±2 standard deviations of the mean grade of all BR-01 results (Figure 11-5 and Figure
11-6).
Forty-seven Blue River SRMs were inserted to support the 2009 XRF(F) drill sample
results. There is an apparent negative bias for Ta results greater than 150 ppm and
no apparent bias for Nb results (Figure 11-7 and Figure 11-8). These charts show the
spread of Blue River SRM batch results around the expected value. Ta results are
quite variable; Nb results are quite tight.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-13 22 June 2012
Figure 11-5: 2005 to 2008 Ta ICP-MS BR-01 SRM Control Chart
Figure 11-6: 2005 to 2008 Nb ICP-MS BR-01 SRM Control Chart
80859095
100105110115120125130135140145150
2005
2007
2007
2007
2007
2007
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
Sta
nd
ard
BR
-01
, T
a 4
B p
pm
In order Assayed, by Date
SRM BR-01 Ta 2005 to 2008 ICP-MS
Data
Mean +/- 2
std.dev.s
Best Value
Moving Average
1.05 x Best
0.95 x Best
High Clusters
Low Clusters
600
650
700
750
800
850
900
950
1000
2005
2007
2007
2007
2007
2007
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
2008
Sta
nd
ard
BR
-01
, N
b 4
B p
pm
In order Assayed, by Date
SRM BR-01 Nb 2005 to 2008 ICP-MS
Data
Mean +/- 2
std.dev.s
Best Value
Moving Average
1.05 x Best
0.95 x Best
High Clusters
Low Clusters
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-14 22 June 2012
Figure 11-7: 2009 Ta XRF(F) Blue River SRMs Control Chart\
y = 0.9214x + 4.3841R² = 0.9664
0
50
100
150
200
250
300
350
400
0 50 100 150 200 250 300 350 400
Ta p
pm
XR
F(F)
fro
m b
atch
ru
ns
Ta ppm XRF(F) Best value
2009 Drill Program Blue River SRM Ta XRF(F) Results
2009 Batch SRM Results Result <± 5% of expected value y=x Linear (2009 Batch SRM Results)
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-15 22 June 2012
Figure 11-8: 2009 Nb XRF(F) Blue River SRMs Control Chart
Two hundred and ninety-one Blue River SRMs were inserted to support the 2010
XRF(F) drill sample results. There was no significant bias observed for Nb (Table
11-7). Ta results show a predominantly negative bias up to -9.7% relative to the
provisional BVs for most grade ranges (Table 11-8).
y = 1.0198x - 29.878R² = 0.9982
0
500
1000
1500
2000
2500
3000
3500
4000
4500
0 500 1000 1500 2000 2500 3000 3500 4000 4500
Nb
pp
m X
RF(
F) f
rom
bat
ch
run
s
Nb ppm XRF(F) Best value
2009 Drill Program Blue River SRM Nb XRF(F) Results
2009 Batch SRM Results Result < 5% of expected value y=x Linear (2009 Batch SRM Results)
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-16 22 June 2012
Table 11-7: 2010 Nb XRF(F) Blue River SRM Control Chart Summary
Lab
Standard
Sample
Best
Value 95% CI 95%CI/BV
Mean
Value Bias
Number of
Samples
Acme Uf-STD-03 3048 ±83 3% 3112 2.1% 33
Acme Uf-STD-04 3907 ±117 3% 4012 2.7% 34
Acme Uf-STD-06 2297 ±86 4% 2390 4.0% 6
Acme Uf-STD-07 1753 ±72 4% 1818 3.7% 37
Acme Uf-STD-08 244 ±29 12% 238 -2.4% 31
Acme Uf-STD-09 313 ±29 9% 316 0.9% 29
Acme Uf-STD-10 956 ±92 10% 996 4.2% 26
Acme Uf-STD-12 1478 ±85 6% 1540 4.2% 28
Acme Uf-STD-13 1744 ±74 4% 1810 3.8% 25
Acme Uf-STD-14 282 ±35 12% 274 -2.7% 31
Acme Uf-STD-15 2524 ±95 4% 2601 3.1% 11
Table 11-8: 2010 Ta XRF(F) Blue River SRM Control Chart Summary
Lab
Standard
Sample
Best
Value
95%
CI
95%CI/
BV Mean Value Bias
Number
of
Samples
Acme Uf-STD-03 74 ±18 24% 73 -1.8% 27
Acme Uf-STD-04 122 ±17 14% 136 11.5% 28
Acme Uf-STD-06 172 ±20 12% 169 -1.7% 6
Acme Uf-STD-07 179 ±17 10% 178 -0.8% 31
Acme Uf-STD-08 175 ±11 6% 158 -9.7% 28
Acme Uf-STD-09 193 ±15 8% 174 -9.7% 24
Acme Uf-STD-10 221 ±14 7% 210 -5.1% 23
Acme Uf-STD-12 241 ±17 7% 233 -3.2% 24
Acme Uf-STD-13 280 ±28 10% 281 0.4% 23
Acme Uf-STD-14 256 ±20 8% 235 -8.0% 25
Acme Uf-STD-15 377 ±31 8% 377 -0.1% 8
11.6.3 Assessment of Laboratory Bias
Check samples, typically pulp samples, are sent to secondary laboratories to assess
for between-laboratory bias. Between laboratory bias is assessed here using
Reduction to Major Axis (RMA) charts which take into consideration that laboratory
results are independent and that one set of the paired results may be more “erratic”
than the other. Between-laboratory biases less than ±5% are generally considered
acceptable.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-17 22 June 2012
Pulp check sample analyses were not systematically performed between 2005 and
2008, and SRMs were not consistently included with the check sample batches.
Therefore the results for this period are considered an indicator of laboratory bias, but
in isolation are not considered to be definitive. Since 2009, most check sample
programs are supported with adequate control samples.
A summary of RMA calculated biases between primary and secondary lab results by
year, shown in Table 11-9, indicates a general reduction in between-laboratory bias for
Nb between 2005 and 2009 drill programs. Ta bias has an acceptable level of ±5%
between 2006 and 2010 drill programs.
Table 11-9: Pulp Check Between-Laboratory Bias
Year Ta Bias (%) Nb Bias (%)
Check
Laboratory
2005 -43.6 11.65 GDL
2006 -1.9 - Becquerel
2007 -6.6 36.8 ActLab
2007 -0.6 22 ALS
2008 -3.4 -9.4 GDL
2008 4.0 5.0 Acme
2009 -0.21 2.61 Stark
2010 -5% -1% Stark
Figure 11-9 shows the RMA chart used to assess between-laboratory bias for 2010 Nb
XRF(F) check pair results.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-18 22 June 2012
Figure 11-9: 2010 Acme versus Stark Nb XRF(F) Check Pair RMA Chart
All Excluding Excluding
Data Outliers (1) Outliers (2)
N 254 253 252
Percent Rejected 0.0% 0.4% 0.8%
R squared 0.99 0.99 0.99
R 0.99 1.00 1.00
slope m 1.02 1.01 1.01
intercept b -2.39 1.05 2.79
error in slope 1% 1% 1%
error in intercept 15.7 15.7 15.7
Bias -2% -1% -1%
11.6.4 Assessment of Contamination
Blanks are used to assess contamination during sample preparation and analysis.
Commerce uses coarse crushed, optical quartz material sourced from Jim Coleman
Crystal Mines located near Hotsprings, Arkansas for their blank material.
0
1000
2000
3000
4000
5000
6000
0 1000 2000 3000 4000 5000 6000
STA
RK
IC
P N
b p
pm
ACME XRF (F) Nb ppm
Commerce Pulp Check Pair Results for ACME XRF(F) vs STARK ICP-AES
Data
Outliers (1)
Fit, all data
Fit, exclude Outliers (1)
Outliers (2)
Fit, excludes Outliers(2)
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-19 22 June 2012
Three hundred and five coarse blank control samples were inserted to support the
2005 to 2008 ICP-MS drill sample results; Thirty-two coarse blanks were inserted to
support the 2009 XRF(F) drill sample results. Two hundred and forty-eight coarse
blanks were inserted to support the 2010 XRF(F) drill sample results.
There is no indication of systematic contamination for 2005 to 2008 ICP-MS results
(Figure 11-10 and Figure 11-11). The blank performance charts show a few blank
sample results well in excess of background values. These results may indicate
periodic contamination but may also be a result of sample swaps or transcription
errors. The impact of these outliers in considered minor.
Figure 11-10: 2005 – 2008 Blank Ta ICP-MS Performance Chart
Note: This blank versus previous sample chart is prepared assuming samples were assayed in sample
number order.
0
20
40
60
80
100
120
140
160
180
0 50 100 150 200 250 300 350 400
Bla
nk
Ta p
pm
Previous Sample Ta ppm
QTZ BLK Blank Ta ICP-MS 2005 to 2008
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-20 22 June 2012
Figure 11-11: 2005 - 2008 Blank Nb ICP-MS Performance Chart
Note: This blank versus previous sample chart is prepared assuming samples were assayed in sample
number order.
There is no indication of systematic contamination of 2009 Ta XRF(F) results but Nb
XRF(F) results show an apparent systematic carry-over contamination of blanks for Nb
grades greater than 2,000 ppm (Figure 11-12 and Figure 11-13).
0
200
400
600
800
1000
1200
1400
1600
1800
0 500 1000 1500 2000 2500 3000 3500 4000
Bla
nk
Nb
pp
m
Previous Sample Nb ppm
QTZ BLK Blank Nb ICP-MS 2005 to 2008
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-21 22 June 2012
Figure 11-12: 2009 Ta XRF(F) Blank Performance Chart
Note: This blank versus previous sample chart is prepared assuming samples were assayed in sample
number order.
0
10
20
30
40
50
60
70
80
90
0 50 100 150 200 250 300 350 400 450 500
Ta_
pp
m X
RF(
F)
Previous Sample Ta_ppm XRF(F)
QTZ BLK Blank Ta_ppm XRF(F) 2009
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-22 22 June 2012
Figure 11-13: 2009 Nb XRF(F) Blank Performance Chart
Note: This blank versus previous sample chart is prepared assuming samples were assayed in sample
number order.
Blank performance charts for 2010 show no systematic contamination for Ta or Nb
XRF(F) results (Figure 11-14 and Figure 11-15).
0
10
20
30
40
50
60
0 500 1000 1500 2000 2500 3000 3500 4000
Nb
_p
pm
XR
F(F)
Previous Sample Nb_ppm XRF(F)
QTZ BLK Blank Nb_ppm XRF(F) 2009
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-23 22 June 2012
Figure 11-14: 2010 Ta XRF(F) Blank Performance Chart
0
10
20
30
40
50
60
70
0
10
20
30
40
50
60
70
BR
17
70
18
BR
17
90
75
BR
18
10
24
BR
18
11
49
BR
18
01
18
BR
18
40
20
BR
18
40
76
BR
18
22
20
BR
18
50
70
BR
18
71
16
BR
18
61
08
BR
18
90
45
BR
19
00
51
BR
19
10
49
BR
19
30
50
BR
19
20
97
BR
19
40
99
BR
19
50
97
BR
19
80
71
BR
19
90
45
BR
20
10
48
BR
20
50
25
BR
20
30
53
BR
20
80
50
BR
21
10
65
BR
20
90
89
BR
21
40
50
BR
21
50
95
BR
21
90
04
BR
22
10
05
BR
21
80
05
BR
22
61
25
BR
21
60
05
BR
21
61
45
BR
20
40
05
BR
22
31
24
BR
22
90
06
BR
22
90
98
BR
22
01
15
BR
22
20
50
BR
22
50
50
BR
22
70
47
XR
F(F)
Ta
pp
m
Sample Number
Blanks Ta XRF(F) for 2010
Blanks
LDL
10* LDL
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-24 22 June 2012
Figure 11-15: 2010 Nb XRF(F) Blank Performance Chart
11.6.5 Assay QA/QC Conclusions
Quality control sample insertion rates are sufficient to allow assessment of precision,
laboratory bias, and contamination. Accuracy assessment remains provisional due to
the difficulty of obtaining standards with suitable quality.
ICP-MS results for the 2005 to 2008 drill program have marginally acceptable
precision. XRF(F) precision is poor for 2009 results. XRF(F) precision is acceptable
for 2010 XRF(F) results for Ta and Nb grades above 50 ppm. Except for 2009 Ta
(XRF(F) results, no systematic accuracy or contamination problems are indicated for
these programs.
A re-assay program of 2008 coarse rejects resulted in poor precision for Ta XRF(F)
and acceptable precision for Nb XRF(F) results.
ICP-MS results supporting the 2005 to 2008 drill program and initial XRF(F) results
supporting the 2009 and 2010 drill programs are considered suitable for use in mineral
0
10
20
30
40
50
60
70
0
10
20
30
40
50
60
70
BR
17
70
18
BR
17
80
50
BR
17
90
75
BR
18
00
99
BR
18
10
99
BR
18
20
97
BR
18
30
45
BR
18
50
16
BR
18
60
92
BR
18
71
16
BR
19
00
26
BR
19
10
65
BR
19
20
50
BR
19
30
84
BR
19
50
02
BR
19
70
43
BR
19
81
09
BR
20
01
04
BR
20
20
29
BR
20
40
50
BR
20
50
69
BR
20
80
90
BR
21
00
16
BR
21
30
05
BR
21
40
05
BR
21
60
05
BR
21
61
95
BR
21
90
04
BR
22
00
33
BR
22
10
54
BR
22
21
43
BR
22
40
06
BR
22
51
25
BR
22
61
47
BR
22
80
48
BR
23
00
49
BR
23
30
41
BR
23
60
12
BR
24
50
45
BR
24
61
45
BR
24
80
36
XR
F(F)
Nb
pp
m
Sample Number
Blanks Nb XRF(F) Nb
Blanks
LDL
10* LDL
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-25 22 June 2012
resource estimation. Caution should be applied in assigning a high level of confidence
to the 2005 to 2009 results until precision and accuracy issues are resolved.
11.7 Databases
Collar, down-hole survey, geology, specific gravity and assays were stored in a
Gems™ database format. Prior to GEMS™, data capture occurs in a variety of
formats from hand logs and Excel files.
Assay data are received from the laboratories via comma-separated value (CSV) data
files. Collected data are subjected to validation prior to upload into the database using
built-in program triggers that automatically check the data. Verification checks include
collar co-ordinates, surveys, lithology, and assay data. After data are imported into
GEMS™, visual checks are completed to ensure that data placement was correct
within the various database fields.
Commerce has migrated to a Fusion data management system by Century Systems
Technologies Inc. during 2011 for all data captured during 2011 exploration activity.
Pre-2011 data are being migrated to the Fusion database on an incremental basis with
completion anticipated during 2012.
11.8 Security
The drill crew transports drill core to the Commerce field office in Blue River at the end
of every shift by pick-up truck. The boxes are laid out in order on saw horses and
inspected by the project manager. Dahrouge geologists and technicians log and
sample the drill. The core storage, logging and sampling facilities are not secured.
Samples are placed in pails and stored in the locked quonset hut for security prior to
shipping.
A commercial delivery service, Monashee Painting and Services of Blue River, B.C.,
transports the samples, to the preparation laboratory in Richmond, B.C. Sample sheet
manifests are submitted with the core samples. The manifests include information on
the operator, sample preparation laboratory, and a sample list. Sample rejects
returned from the laboratory are stored in the onsite quonset hut.
Archived 2010 and 2011 core is stored on pallets at the Blue River field office. The
pre-2010 core is stored on pallets in a field located at Valemount, B.C. During 2011,
Commerce initiated construction of a cold storage building and fenced compound at
the Valemount storage facility. Commerce plans to move the archived core into the
new storage facility at Valemount during 2012.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-26 22 June 2012
11.9 Comment on Section 11
The majority of drill core samples used to support the 2012 Mineral Resource estimate
were prepared at an independent laboratory before submission to the primary
laboratory for analysis. All drill core samples were analysed by independent
laboratories using ICP and XRF methods.
Typically, drill programs included insertion of blank, duplicate and standard reference
material samples. QA/QC submission rates meet industry-accepted standards for
insertion rates.
Quality control work completed by Commerce between 2005 and 2009 identified
laboratory precision and accuracy concerns. Achieving precision for tantalum by
XRF(F) and ICP-MS methods was difficult and is likely related to the difficulty of
digesting tantalum prior to ICP-MS analysis and the relatively high detection limit for
tantalum by XRF methods. The XRF(F) detection limit initially provided was close to
the lower economic cut-off for tantalum. Submission of the 2010 drill program samples
was delayed while Commerce and their primary laboratory, Acme, worked together to
address this concern. Procedures for XRF(F) analysis were modified and quality
control sample results supporting the 2010 drill program sample analysis indicate
Acme has achieved acceptable precision and accuracy for tantalum and niobium using
XRF(F) methods.
During preparation of the 2012 Mineral Resource update reported in Section 14,
AMEC and Commerce examined the sample preparation and analysis of Blue River
core. The principal findings of this work were as follows:
SRM control samples indicate provisionally acceptable levels of accuracy are for
the most part, achieved for Nb by either XRF(F) or ICP-MS methods;
SRM control samples indicated a low bias may exist for Ta by either XRF(F) or
ICP-MS methods;
Poor laboratory precision is evident for Ta and Nb results collected in 2008 and
2009, but no consistent bias is evident;
Acceptable precision is evident for 2010 Ta and Nb results;
Significant inter-laboratory grade biases are evident for Ta and Nb in the 2005 and
2006 sampling; these samples represent a small portion of the database and
would likely not materially impact the resource estimate;
Acceptable inter-laboratory biases are achieved in the remaining 2007 to 2010
sampling programs;
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 11-27 22 June 2012
AMEC concludes that the Blue River sample results show imprecision but no
consistent bias and that the ICP-MS results from 2005 to 2008, and the XRF(F) results
supporting the 2009 and 2010 drilling are suitable for use in mineral resource
estimation. Caution should be applied in assigning a high level of confidence to the
pre-2010 tantalum and niobium analytical results until precision and accuracy issues
are resolved.
AMEC concludes the SG field determinations are reasonable for the 2005 – 2009
campaigns. Additional SG checks at an independent laboratory are recommended for
the 2010 and 2011 drill campaigns using a wax immersion preparation, followed by a
water immersion determination.
Collected data are subjected to validation prior to upload into the database using built-
in program triggers that automatically check the data. Verification checks include
collar co-ordinates, surveys, lithology, and assay data. The checks are appropriate,
and consistent with industry standards. Independent data audits have been
conducted, and indicate that the sample collection and database entry procedures are
acceptable.
Sample security has relied upon the fact that the samples were always attended or
locked in appropriate storage facilities. Chain-of-custody procedures consist of filling
out sample submittal forms that are sent to the laboratory with sample shipments to
make certain that all samples are received by the laboratory;
Current sample storage procedures and indoor storage areas are consistent with
industry standards. Security for core on pallets stored outdoors in unfenced fields is
under improvement by Commerce.
The QPs are of the opinion that the quality of the specific gravity, tantalum and
niobium analytical data are sufficiently reliable to support mineral resource estimation
and that sample preparation, analysis, and security are generally performed in
accordance with exploration best practices and industry standards.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 12-1 22 June 2012
12.0 DATA VERIFICATION
Commerce implemented an industry-acceptable quality control program to manage
logging, sampling, and analysis. This section summarizes the database and site visit
verification work by AMEC.
12.1 Database Verification
AMEC completed a minimum 5% database verification check and concluded the collar
coordinates, down-hole surveys, lithologies, and assay databases are sufficiently free
of error (Chong and Postolski, 2011; Thompson, 2011). Other verification reviews
include calculation checks on the density determinations, rock quality designation, and
total core recovery using source record data. AMEC concludes that the density
determinations, total core recovery, and the rock quality designation database values
have been calculated appropriately.
Down-hole survey data quality was checked by AMEC for proper magnetic deviation
adjustments and for potential, erroneous, down-hole surveys that result in drill hole
deviations that exceed typical deviations expected for drill holes. AMEC concludes the
down-hole deviation surveys are reasonable and suitable for mineral resource
estimation (Chong and Postolski, 2011; Thompson, 2011).
12.2 Site Visits
The AMEC QPs were assisted by Dahrouge managers, geologists and technicians
during their site visits.
The AMEC geology QP, Albert Chong, P.Geo. visited the Project during 11 to 16 July
2010, and 6 to 14 September 2011 to verify the 2005–2010 drilling, sampling and
surface mapping campaigns. Outcrops, drill core and sampling method protocols were
reviewed to verify the data, the exploration protocols, and the resulting geological
interpretation.
During the September 2011 site visit, the AMEC QP was assisted by SRK structural
geologists J.F. Couture, P.Geo., and I. Nash to verify the enhanced structural geology
interpretation of the Upper Fir deposit.
The AMEC Mining QP, Ramon Mendoza Reyes, P.Eng., visited the Project during
2010 to assess the site for infrastructure planning purposes.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 12-2 22 June 2012
12.2.1 Drill Collar Location Check
The AMEC audit included 32 drill collars of 237 drill holes from the 2005–2010 drill
campaigns, or approximately 14% of the mineral resource drill holes.
AMEC checked the location of the drill collars using a hand-held Garmin GPS Map 60
CSX unit. The 2006 to 2009 drilling campaigns were verified based upon holes from
10 setups. All holes checked were within ±8 m and most were within ±3 m. The drill
hole locations with discrepancies greater than 3 m were found to be related to
disturbance of markers from drill road construction.
Upon completion of a drill hole, 4" x 4" wooden posts are placed into the hole. The drill
hole collar casings are in some cases still in place. Steel plates with the drill hole
names have been cemented into the ground adjacent to the hole collars making hole
identification relatively easy.
At the recommendation of AMEC, Commerce-Dahrouge commissioned McElhanney
Land Surveying of Vancouver (McElhanney) to re-survey all the available 2005–2009
drill collars, and complete primary surveys for the 2010 drilling. During November
2011, McElhanney completed a second primary survey of the 2011 drilling and the
bulk sample pits (BS1 and BS2). The drill hole collar database has S. Mosdell data for
the 2005–2008 campaigns, both S. Mosdell and McElhanney data for the 2009
campaign, and McElhanney data for the 2010 campaign.
12.2.2 Inspection of Drill Core and Verification of Mineralization
During the site visits, the AMEC QP checked drill log entries by re-logging drill core
from 14 (6%) Upper Fir deposit drill holes with a focus on as-logged lithology,
structural deformation observations, mineralization, sample intervals, and visual
checks on the total core recovery (Chong, 2010, 2012). Based upon the holes
reviewed, the AMEC QP concludes the database records reasonably reflects the as-
logged drill core observations by Commerce observed in the audited drill core.
AMEC collected and submitted 31 quarter-core samples to Acme in Vancouver for
preparation and analysis by Package 4B ICP-MS methods. A comparison of AMEC
results with matched interval results reported in the resource database reasonably
support the grades reported in the resource database (Table 12-1). The mean grade
of the original and check results show noteworthy agreement for a comparison of this
size and type.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 12-3 22 June 2012
Table 12-1: AMEC Site Visit Confirmation of Mineralization
Original Half Core Samples AMEC Quarter Core Samples
DHID From (m) To (m) Ta (ppm) Nb (ppm) Ta (ppm) Nb (ppm)
F07-028 135 136 421 4,405 244 2,404
F08-150 129.7 131 210 4,739 143 1,727
F08-151 194.3 195 219 2,887 187 2,084
F08-150 134 135 181 2,742 189 2,667
CF0612 105.3 106.3 365 1,494 287 1,305
F08-151 195 196 91 2,040 78* 1,786*
F08-150 158 159 86 1,559 134* 2,034*
F08-150 133 134 101 1,365 118 1,566
F07-028 134 135 128 1,261 64** 553**
F07-028 133 134 75 910 141** 1,734**
F08-151 192 193 143 744 140 798
CF0612 104.3 105.3 194 506 146 367
CF0612 106.3 107.3 122 466 146 565
CF0612 103.3 104.3 121 360 131 328
CF0612 108.2 109.2 43 128 112 392
F10-222 238 239 969 6,904 900 6,653
F10-184 249.5 250.76 382 4,462 483 5,141
F10-184 158.41 159.6 241 1,565 235 1,426
F10-184 260.46 261.57 252 1,526 327 2,006
F10-222 278 279 243 1,404 421 3,796
F10-222 248 249 213 1,455 218 1,430
F10-222 263 264 72 1,564 99 1,876
F10-184 196.6 197.84 176 1,057 218 1,338
F10-184 168.57 170 100 1,110 63 693
F10-184 228.22 229.3 188 926 145 749
F10-184 187.45 188.68 174 683 190 733
F10-220 301 301.5 173 380 110 281
F10-222 310 311 148 342 166 363
F10-220 317 318 120 226 155 228
F10-222 289.44 290.45 70 189 50 156
F10-220 308 309 26 69 37 83
Count 31 31 31 31
Mean 195 1,596 196 1,525
Relative Difference 0% -4%
Notes: The table is generally sorted by pre-2010 sampling versus 2010 sampling and then by Ta and Nb grade. Grey shaded records indicate samples with potential sample swaps.
* possible sample swap on the AMEC check sample analyses.
** possible sample swap on the AMEC check sample analyses.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 12-4 22 June 2012
12.3 Comment on Section 12
Based upon the database and site visit verification audits completed by AMEC, the
opinion of the QPs is that the collar coordinates, down-hole surveys, lithologies, and
assays are considered sufficiently free of error and that the data are suitable to support
mineral resource estimation.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 13-1 22 June 2012
13.0 MINERAL PROCESSING AND METALLURGICAL TESTING
Testwork began in 2009 and continued into 2010 to develop a process flowsheet for
the Blue River Project. The testwork was based on material produced from two bulk
samples, BS-2F and BS–2G. Mineralogical analysis was performed to obtain
knowledge regarding the occurrence of the tantalum and niobium within the material.
Given the complexities with assaying for the tantalum, a fair amount of effort also went
into developing the appropriate routine for the assaying of samples.
The 2009-2010 testwork primarily took place in two phases:
Phase I – focused on the recovery of the tantalum–niobium minerals by gravity
although grinding and mineralogy investigations were also performed.
Phase II – focused on the recovery and upgrading of the tantalum–niobium
minerals by flotation.
Work has continued in 2011 and 2012:
Phase III – continued optimization of the process flowsheet at the laboratory scale
for the production of a tantalum-niobium mineral concentrate.
A large amount of work was performed in Phase I that showed gravity could
concentrate the material to a low-grade product, but that upgrading increasingly gave
lower levels of metallurgical recovery as grade was sought. Mineralogical work
completed before and during this phase of work showed that the tantalum was not
present as tantalite but rather as the minerals ferrocolumbite and pyrochlore, which
limits recovery by the gravity route due to the low differential specific gravity between
pyrochlore and gangue minerals.
Work in Phase II saw the use of flotation concentration technology similar to that being
used for niobium-bearing carbonatites at Iamgold’s Niobec Mine in Quebec, Canada.
There was immediate success in the first phases of the work. Although there are
several stages to the concentration, the overall level of equipment, risk, and complexity
to produce a saleable or treatable concentrate is lower than the gravity route.
Process development work is continuing in this area, but for the purposes of the PEA,
the process suggested by Test F81 was selected as the basis of initial concentration
design because recoveries were good (approx. 70% for Ta) for this type of
mineralization and because a combined grade of 10% Ta–Nb was achieved. It is
expected that with further work, a combined grade of 30% Ta–Nb should be
achievable.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 13-2 22 June 2012
In both work phases, the emphasis of concentration techniques was to create a
material which would be easily upgraded by hydrometallurgical methods,
pyrometallurgical methods, or a combination of both. These processes would permit
the separation of Ta from Nb, allowing payment for both products. To this end, an in-
depth review was completed of those technologies for the production of high-value
intermediate products and final products. There is confidence that the concentrate
could be reduced to metal by the aluminothermic process. Subsequently there would
be chlorination of the granulated metal alloy product and distillation of the anhydrous
metal chloride products to produce high purity Nb and Ta chlorides. Tantalum chloride
is the precursor to capacitor grade Ta powder and can be marketed as such.
However, both Ta and Nb chlorides can also be hydrolyzed and calcined to generate
high purity oxide products for other applications.
In 2011 and 2012, work has continued into Phase III which is the optimization of work
conducted in Phase II. This optimization work has concentrated on de-sliming of
flotation feed, rejection flotation of carbonates and pyrrhotite, and subsequent flotation
of a tantalum-niobium concentrate for processing through extractive metallurgy.
Although progress has been made in the testwork, there is no material change from
the results indicated by the Phase I and II testwork. As a result there is no impact on
the performance assumptions, or the capital and operating costs in the PEA.
Confidence in the process design has been enhanced.
13.1 Head Samples for Initial Testing
In 2009, two bulk samples, BS-2F and BS–2G, sourced from a small pit in the Upper
Fir zone, and weighing approximately 200 t in total, were contract-crushed to a particle
size of <1 inch diameter. After crushing, each group of samples was homogenized
separately by a standard coning and quartering procedure. The well-mixed samples
were bagged into one tonne bags and put into storage. One tonne of each sample
was delivered to Met-Solve Laboratory (Met-Solve) in Burnaby B.C. to air dry and
further reduce the size to -10 mesh for bench testing.
Met-Solve is a commercial mineral and metallurgical testing facility that is independent
of Commerce, and specializes in mineral beneficiation and hydrometallurgical
testwork.
The mineralogical examinations of all the bulk samples taken during the 2008
exploration program are described by Chudy (2009). Additional mineralogical
examinations were performed on some of the test products during the mineral
processing investigations.
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The head assays, established using X-ray fluorescence (XRF) analysis, for the two
bulk samples are tabulated in Table 13-1.
Table 13-1: Head Assay Grades, Bulk Samples BS-2F and BS-2G
Sample Ta (ppm) Nb (ppm)
BS-2F 194 1,300
BS -2G 114 764
13.2 Phase I Testing
13.2.1 Grinding Size
Each sample was subjected to gravity separation tests at five different grind sizes of
80% passing 500 µm, 230 µm, 100 µm, 74 µm and 45 µm to determine the liberation
size using a centrifugal concentrator. A standard seven-pass procedure was used to
simulate continuous gravity concentrator action.
This work indicates that the liberation size for both samples is coarser than P80 of
76 µm. The relative position of the curves (Figure 13-1 and Figure 13-2) indicates that
effective liberation for gravity is likely achievable at a grind size slightly coarser than
120 µm. The results for niobium are similar.
Assaying of the individual size fractions of the tailings from the BS-2G tests indicate
that there are still a few locked particles between 74 µm and 106 µm when ground to
P80 112 µm but that material coarser than 150 µm does not contain any tantalum.
Given the natural size distribution obtained in grinding, this implies that effective
liberation for processing, is about P80 of 125 µm for gravity treatment and slightly
coarser for flotation (P80 up to 160 µm). These numbers are in line with independent
findings from the mineralogical examination of all bulk samples of the 2008
exploration program.
13.2.2 Roughing and Cleaning Gravity Concentration
With the establishment of the grind size and initial gravity results, it was decided to
progress with the gravity concentration work. The two samples were treated with a
centrifugal concentrator, using 10 consecutive stages for rougher concentration
followed by three cleaning stages of the combined rougher concentrates. Four
different grind sizes were tested for each sample. All results were similar, with
recoveries falling off quickly in cleaning and inability to raise the grades any higher
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than Ta 3,500 ppm (0.35% Ta). Results from sample BS-2G are shown on Figure
13-3.
Large batch samples of 60 kg were tested using a Falcon Centrifugal Gravity
Concentrator in 10 consecutive stages to produce a rougher and a scavenger
concentrate at a grind size of P80 100 µm. The rougher concentrate only was
screened to produce three size fractions as follows:
+74 µm
37 to 74 µm
-37 µm.
Figure 13-1: Sample BS-2F – Gravity Separation (Different Grinds)
0
10
20
30
40
50
60
70
80
90
100
0 200 400 600 800 1000 1200 1400 1600 1800 2000
Reco
very
(%
)
Grade Ta (ppm)
BS-2F - Gravity Separation Tantalum Grade/Recovery Curves
P80 500 um
P80 233 um
P80 112 um
P80 76 um
P80 45 um
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Figure 13-2: Sample BS-2G – Gravity Separation (Different Grinds)
Figure 13-3: Overall Rougher and Cleaner Recovery vs Grade by Centrifugal Gravity
Concentration
Each fraction was then cleaned by gravity using a Wilfley shaking table, with a
medium-size deck. Results were similar to the gravity separation using centrifugal
separator only, with no improvement in recoveries or grades. These fractions were
also tested using a Mozley table concentrator to determine the upgrading
characteristics of the products. Results showed that while it would be possible to
increase the grades by up to six times at the laboratory level, the recoveries would
drop accordingly. The results are shown in Figure 13-4.
0
10
20
30
40
50
60
70
80
90
100
0 200 400 600 800 1000
Reco
very
(%
)
Grade Ta (ppm)
BS-2G - Gravity Separation Tantalum Grade/Recovery Curves
P80 650 um
P80 250 um
P80 120 um
P80 76 um
P80 45 um
0
10
20
30
40
50
60
70
80
90
100
0 500 1000 1500 2000 2500 3000 3500 4000
Ta R
eco
very
, %
Ta Grade, ppm
Ta Grade Recovery Curve P80 116um
P80 83 um
P46 um
P80 238 um
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Tests were also performed to determine the benefits of additional steps, such as de-
sliming and de-sulphidization. These procedures were incorporated into the testwork
but essentially AMEC was of the opinion that concentration by gravity as the primary
method was not the optimum choice for Project development.
Figure 13-4: Upgrading by Wilfley and Mozley Units
13.3 Phase II Testing
13.3.1 Flotation Tests
Testwork in flotation has centered around using the same procedures in de-sliming
and flotation as used at the Niobec Mine.
Flotation testwork achieved higher recoveries and rougher grades than the gravity
method. While the rougher stage gave good results, the initial cleaning stage tests
were problematic due primarily to non-optimized conditions at this preliminary stage of
testing. These tests indicated that a total oxide grade of more than 30% combined
Nb2O5 and Ta2O5 is achievable although not at high recoveries. Later flotation
testwork used improved de-sliming equipment. Testwork with this equipment and
further flotation work indicated optimum ranges are similar to those obtained at Niobec.
Approximately 11% of the tantalum and 11% of the niobium was lost in this de-sliming
stage. A further 8% of the tantalum and 6% of the niobium were lost in the carbonate
and pyrrhotite rejection steps.
Tests were also performed to optimize the kinetics of the rougher tantalum–niobium
flotation and to test reagent conditions. It has been shown that control of the pH
through the stages is critical. The use of a tallow diamine acetate collector has also
proven to be important. Although this reagent is no longer available as a commercial
product, current practitioners such as the Niobec Mine now purchase the two main
reagents (the amine and acetic acid) and prepare the collector at site.
40
50
60
70
80
90
100
100 1,000 10,000 100,000
Ta R
eco
very
(%
)
Grade Ta (ppm)
Gravity Concentration
Mozley Characterization
Wilfley Table
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Process development work is continuing in this area, but for this report, the process
suggested by Test F81 (see Table 13-2) has been chosen as the basis of initial
concentration design as recoveries were good (approx. 70% Ta) for this type of
mineralization and due to a combined grade of 10% Ta–Nb (equivalent to
approximately 14% combined oxides) being achieved. It is expected that with further
work, a combined grade of 30% combined oxides should be achievable.
Table 13-2: Results from F81
Mass Assay Recovery
Products Ta Nb S Ta Nb S
% ppm ppm % % % %
Cyclone Overflow #1 16.5 49 338 0.35 6.9 7.4 9.0
Cyclone Overflow #2 7.1 73 410 0.41 4.4 3.8 4.5
Carbonate Concentrate 28.0 25 151 0.17 5.9 5.6 7.3
Pyrrhotite Concentrate 1.7 152 275 27.38 2.2 0.6 73.5
Magnetic product 0.1 56 395 21.59 0.0 0.0 2.3
Stage 5 Pyrochlore Cleaner Con 0.6 12,839 86,732 1.14 69.8 72.7 1.1
Stage 5 Pyrochlore Cleaner Tail 0.4 228 1816 0.15 0.7 0.9 0.1
Stage 4 Pyrochlore Cleaner Con 1.0 8,121 54,962 0.77 70.6 73.6 1.2
Stage 4 Pyrochlore Cleaner Tail 3.9 179 1397 0.06 6.0 7.3 0.4
Stage 3 Pyrochlore Cleaner Con 5.0 1,806 12,372 0.21 76.6 80.8 1.6
Stage 3 Pyrochlore Cleaner Tail 1.0 63 499 0.08 0.5 0.6 0.1
Stage 2 Pyrochlore Cleaner Con 5.9 1,525 10,459 0.19 77.1 81.5 1.7
Stage 2 Pyrochlore Cleaner Tail 5.3 10 96 0.02 0.5 0.7 0.2
Stage 1 Pyrochlore Cleaner Con 11.2 810 5,570 0.11 77.6 82.1 1.9
Stage 1 Pyrochlore Cleaner Tail 13.9 10 10 0.04 1.2 0.2 0.9
Total Pyrochlore Rougher Concentrate 25.1 367 2,492 0.07 78.7 82.3 2.8
Flotation Tails 21.5 10 10 0.02 1.8 0.3 0.7
Calculated Feed 117 760 0.64 100 100 100
Assayed Feed 113 764
In addition to flotation tests, preliminary dilute hydrochloric acid leaching tests were
performed. These indicated that low- to intermediate-grade gravity and flotation
products can be upgraded significantly with negligible loss of Ta + Nb. The final
upgrading flowsheet will be based on an economic comparison between pay metal
losses from physical beneficiation and the cost of acid plus stabilization/disposal of the
leach products.
Table 13-3 presents results of a four-stage hydrochloric acid (pH 2, pH 1.2,
6N/1h/100°C, 6N/5h/100°C) on a flotation middling product.
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Table 13-3: Results of a Sequential Hydrochloric Acid Leach of Flotation “Middling”
Products Weight Assay (ppm) Distribution (%)
(g) Ta Nb Ta Nb
Stage 1 Filtrate 180.0 0.002 0.00 0.0001 0.000004
Stage 2 Filtrate 220.0 0.031 0.34 0.001 0.002
Stage 3 Filtrate 255.0 0.024 0.63 0.001 0.003
Stage 4 Filtrate 210.0 1.491 12.27 0.056 0.053
Filter Cake 10.7 51,813 453,168 99.9 99.9
Calculated Head 26,824 234,609 100.0 100.0
Assayed Head 20.0 27,663 245,813
There was an indication of the technical feasibility of upgrading by acid leaching with
negligible solution loss of Ta + Nb. The final leach residue assay is > 50% Ta + Nb.
The Stage 3 and 4 strong acid leaches were designed to investigate the possibility of
dissolving Ta + Nb, but the minerals appear to be entirely resistant to this relatively
aggressive leach.
13.4 Phase III Testing
13.4.1 2011 and 2012 Work
A series of tests were performed by AcmeMet, a metallurgical testing facility located in
Vancouver, Canada, in the period up to the first quarter of in 2012. These tests were
performed to optimize the concentration of the tantalum and niobium into a mineral
concentrate. These tests focused on optimizing the flowsheet developed in Phase II.
This optimization work has concentrated on the reduction of reagents involved in the
de-sliming of flotation feed, rejection flotation of carbonates and pyrrhotite and the
subsequent flotation of a tantalum-niobium concentrate for processing through
extractive metallurgy. Although progress has been made in the testwork and the
levels of reagents, there is no major material change from the results indicated by the
Phase I and II testwork. Thus, the performance assumptions, capital and operating
costs are unchanged from those presented in the 2011 PEA. The Phase III testwork is
ongoing.
13.4.2 Review of Concentrate Treatment Options
In Phases I and II, the emphasis of concentration techniques was to create a material
which would be easily upgraded by hydrometallurgical methods, pyrometallurgical
methods, or a combination of both. This has led to a review of those technologies for
the production of high value intermediate products and final products. The process
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selected is a process which has been used commercially for the extraction of the
tantalum. The first stage of the process involves the reduction of the concentrate into
metal through the use of the aluminothermic process. Subsequently there would be
chlorination of the granulated metal alloy product and distillation of the anhydrous
metal chloride products to produce high purity Nb and Ta chlorides. Tantalum chloride
is the precursor to capacitor-grade Ta powder, so would be marketed in this form.
Niobium chloride can be sold as a chemical precursor. Both Ta and Nb chloride
products can be readily converted and marketed as high purity Ta2O5 and Nb2O5
oxides respectively.
13.5 Accuracy of Assaying
A review of all calculated and measured feed assay results for tests using bulk sample
BS-2G was performed to check on the accuracy of the chemical analysis and the tests
results. It was decided to continue the assaying of low values, such as tailings, in
duplicate on separate aliquots; this procedure will continue as these assays could
introduce variations to results.
13.6 Comment on Section 13
In the opinion of the QPs, the following conclusions are applicable:
Tantalum and niobium occur as ferrocolumbite and pyrochlore, which are
amenable to conventional flotation and proven refining processes with estimated
recoveries of 65% to 70%. For the purposes of the financial analysis in Section 22
of this Report, it was assumed that the process plant will have a 65% recovery for
Ta and 69% recovery for Nb in the flotation stage.
The metallurgical testwork has shown that it is possible to collect the tantalum and
niobium minerals into a concentrate suitable for extraction of the metals into
saleable products. The first step of the process uses typical grinding followed by
flotation. The secondary treatment or metal extraction of the material is possible
by an existing method such as aluminothermic reduction followed by chlorine
refining. These results are suitable to support estimation of mineral resources for
the deposits.
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14.0 MINERAL RESOURCE ESTIMATES
14.1 Introduction
The current resource block model was constructed inside carbonatite only. All
surrounding lithologies including fenite carry fairly low Ta2O5 and Nb2O5 grades and are
considered sub-economic. Generally assay data exist only for carbonatite. There are
some assay values for fenite and other wall rocks but not in sufficient numbers to
support creation of a block model for these lithologies.
14.2 Assay Data and Capping
The resource model was constructed inside carbonatite using 237 diamond drill holes.
Collar, survey, lithology and assay files were exported from the database as csv files,
imported into MineSight® commercial mine modeling software, and combined into a
drill hole assay file.
AMEC conducted grade capping on original samples that are mostly 1 m long.
Capping was required to limit the influence of outliers. The choice of capping was
based on visual inspection of histograms and probability plots. The amount of capping
was small; top-cuts of 1,000 ppm Ta2O5 and 10,000 ppm Nb2O5 were used in
carbonatite. Only six Ta2O5 samples and 13 Nb2O5 samples were capped resulting in
an expected metal removal of 0.24% Ta2O5 and 0.63% Nb2O5.
14.3 Composites
Capped drill core assays were composited down the hole to a fixed length of 2.5 m.
Compositing of Ta2O5 and Nb2O5 was performed in MineSight® software honouring
geologic boundaries. Composites with length less than 1.25 m were merged with the
previous composite. AMEC confirmed that the pre- and post-compositing Ta2O5 and
Nb2O5 means were identical and that compositing resulted in a reduced variability as
indicated by lower CV (CV=coefficient of variation; CV=standard deviation / mean).
This exercise demonstrated that no bias was introduced during compositing. Table
14-1 shows a summary of this check for carbonatite.
Table 14-1: Capped Assays vs. 2.5 m Composites Statistics inside Carbonatites
Variable
Assay
Capped Mean
Assay
Capped CV
2.5 m
Composites
Mean
2.5 m
Composites
CV
Mean diff
(from assays
capped to comps)
Ta2O5 187.4 0.47 187.4 0.35 0.0%
Nb2O5 1465.4 0.91 1465.6 0.78 0.0%
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14.4 Exploratory Data Analysis
Exploratory data analysis (EDA) was performed on the composites to better
understand the data used in the resource estimation. This type of investigation reveals
the underlying characteristics of the data. Table 14-2 contains a summary of
univariate statistics for Ta2O5 and Nb2O5 in carbonatite.
Table 14-2: Composite Statistics in Carbonatite
Area/Variable No. Mean Min Max Std. Dev. CV
Carbonatite
Ta2O5 4,171 187.4 3.1 598.9 64.9 0.35
Nb2O5 4,171 1,465.6 7.2 8,293.6 1,147.9 0.78
Note: CV is the Coefficient of Variation and is equal to the standard deviation divided by mean.
Figure 14-1 and Figure 14-2 show arithmetic and log histograms and probability plots
of Ta2O5 and Nb2O5 composites in carbonatite. Both distributions are positively
skewed, and the Nb2O5 distribution is approximately lognormal. The coefficients of
variation are low and support the use of linear grade interpolation methods such as
inverse distance methods.
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Figure 14-1: Ta2O5 Histograms and Probability Plot within Carbonatite
Note: Figure prepared by AMEC, June 2012.
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Figure 14-2: Nb2O5 Histograms and Probability Plot within Carbonatite
Note: Figure prepared by AMEC, June 2012.
14.5 Contact Analysis
AMEC calculated contact profiles on composite data using in-house software to
analyze grade behaviour at lithology boundaries. There were sharp differences in
grade for each of the variables at the carbonatite/fenite boundary, meaning that values
from outside the carbonatite should be disregarded in the interpolation process of
Ta2O5 and Nb2O5 grade inside the carbonatite. Figure 14-3 and Figure 14-4 show
contact profiles for respectively Ta2O5 and Nb2O5 grade at carbonatite and fenite
boundary.
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Figure 14-3: Ta2O5 Contact Plots between Carbonatite and Fenite
Note: Figure prepared by AMEC, June 2012.
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Figure 14-4: Nb2O5 Contact Plots between Carbonatite and Fenite
Note: Figure prepared by AMEC, June 2012.
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14.6 Variography
Variograms and correlograms are tools used to quantify the spatial variability of a
variable in a geological domain. AMEC used both in-house software and commercially
available Sage2001 software to produce variogram maps, and to construct down-the-
hole and directional correlograms for carbonatite composites. Ta2O5 and Nb2O5
correlograms were created within the entire carbonatite zone. Two spherical models
were used to fit the experimental correlograms; a summary of their parameters is
shown in Table 14-3.
Table 14-3: Ta2O5 and Nb2O5 Correlogram Parameters in Carbonatite
Metal C0*
1st
Structure 2nd
Structure
Rotation (°) Range (m) Rotation (°) Range (m)
C1* Z X Y X Y Z C2* Z X Y X Y Z
Ta2O5 0.336 0.554 -44 0 80 14.2 29.8 21.8 0.110 -44 0 80 32.8 158.4 92.2
Nb2O5 0.118 0.321 -157 -11 90 8.6 11.1 14.6 0.561 -157 -11 90 61.4 214.3 361.3
*C0 – nugget effect; C1-contribution of the 1st structure to the sill; C2-contribution of the 2nd
structure to the sill; sill
has been standardized to value of 1.
The first rotation uses a left hand rule around positive Z axis, the second rotation is a
right hand rule around positive X axis and finally the third rotation is a right hand rule
around positive Y axis. The nugget effects (C0) were modelled from the down-hole
correlograms.
14.7 Carbonatite Solid Modeling
Geological interpretations were provided by Commerce to AMEC in the form of 3D
solids in DXF format. The solids were created by Dahrouge geologists using GEMS™
geological modeling software for the major lithologies with the exception of gneiss,
which was left as a default. The carbonatite solids were provided as 48 structural
(different strike, dip and / or pitch) domains. AMEC reviewed the geological
interpretations and 3D solids and considers them to be appropriate for resource
estimation work.
14.8 Block Model Dimensions
The block model consists of unrotated regular blocks. The block model framework
parameters are listed in Table 14-4.
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Table 14-4: Block Model Dimensions
Axis Origin* Block Size (m) No. of Blocks Model Extension (m)
X 352,350 5 250 1,250
Y 5,795,850 5 390 1,950
Z 925 2.5 244 610
Note: *Origin is defined as the bottom southwest corner of the model, located at the lowest combined
northing and easting coordinates and the lowest elevation.
14.9 Assignment of Lithology and Specific Gravity to Blocks
Blocks in the block model were coded by lithology solids. A block was tagged by a
particular solid code if at least 50% of the block volume belonged to this solid. The
volume of each lithology solid was then compared with the volume of the blocks inside
a particular solid. The block model and corresponding lithology solid volumes
compared within ±1%.
Resource block model specific gravity was not estimated; instead a specific gravity
value was assigned by lithology to all blocks in the block model (including blocks
outside of carbonatite) as follows:
2.97 value was assigned to all blocks in carbonatite
2.96 value was assigned to all blocks in fenite
2.82 value was assigned to all blocks in gneiss
3.02 value was assigned to all blocks in amphibolite
2.62 value was assigned to all blocks in pegmatite
3.03 value was assigned to all blocks in skarn
All the above specific gravity values were derived as described in Section 11.3.
14.10 Block Model Grade Estimate
Ta2O5 and Nb2O5 grades were estimated in the carbonatite using an inverse distance
to the power of 3 (ID3) interpolation method. A four-pass interpolation approach was
used with each successive pass having greater search distances. A hard boundary
was used, meaning that composites from outside the carbonatite were not used in the
interpolation process. Estimation was done separately within each domain of the
carbonatite folds. Forty-eight different structural domains were identified and used in
the estimation process.
Table 14-5 shows the estimation search parameters for Ta2O5 and Nb2O5.
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Table 14-5: Estimation Parameters for Ta2O5 and Nb2O5
Domain Pass
Search Ellipse Min.
No.
Comp
Max.
No.
Comp
Max.
Comp.
/Hole
Rotation (°) Ranges(m)
Z X Z X Y Z
Common to
all domains
1 differ
by
domain
differ
by
domain
differ
by
domain
50 50 5 5 8 2
2 100 100 5 3 8 2
3 150 150 5 2 8 2
4 300 300 50 2 8 2
The rotation angles of the search ellipse are the same for each pass, but they are
different for each of the 48 structural domains. They reflect average strike, dip, and
pitch of each fold limb / domain.
14.11 Block Model Validation
The block model grades were validated by visual inspection comparing composites to
block grades on-screen, declustered global statistics checks, local biases checks using
swath plots, and finally model selectivity checks.
14.11.1 Visual Validation
AMEC completed a visual inspection of composites and blocks in vertical sections and
plan views. Figures 14-5 to 14-8 show colour-coded Ta2O5 or Nb2O5 composites and
corresponding ID3 block models on plan and in section. The model generally honours
both Ta2O5 and Nb2O5 data well, and grade extrapolation is well-controlled where
sufficient data exist.
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Figure 14-5: Ta2O5 ID3 Model within Carbonatite – Plan 1,146.25
Note: Figure prepared by AMEC, June 2012.
Figure 14-6: Ta2O5 ID3 Model within Carbonatite – Section N 5,796,932.5
Note: Figure prepared by AMEC, June 2012.
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Figure 14-7: Nb2O5 ID3 Model within Carbonatite – Plan 1,146.25
Note: Figure prepared by AMEC, June 2012.
Figure 14-8: Nb2O5 ID3 Model within Carbonatite – Section N 5,796,932.5
Note: Figure prepared by AMEC, June 2012.
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14.11.2 Global Grade Bias Check
The ID3 block models were checked for global bias by comparing the average grade
(with no cut-off) from these models with that obtained from nearest-neighbour (NN)
model estimates (Table 14-6). The NN estimator produces a globally unbiased
estimate of the average value when no cut-off grade is imposed and is a good basis
for checking the performance of different estimation methods. Table 14-6 shows that
global biases are well below the AMEC-recommended guideline of ±5% (relative
difference).
Table 14-6: Mean Grades for NN and ID3 Models
Model Ta2O5 Nb2O5
Nearest Neighbour 188.3 1,449.6
Inverse Distance (ID3) 188.5 1,439.2
% Diff (ID3 – NN)/NN 0.1% -0.7%
AMEC also estimated the impact of outlier capping on the estimated global mean of
the model. A comparison of global means of capped and uncapped ID3 models
showed the amount of metal removed by capping is minor (0.2% for Ta2O5 and 0.6%
for Nb2O5); it is almost identical to the expected metal removal based on composite
analysis (see Section 14.2).
14.11.3 Local Grade Bias Check (Swath Plots)
Checks for local biases were performed for Ta2O5 and Nb2O5 by creating and
analyzing local trends in the grade estimates using swath plots. This was done by
plotting the mean values from the NN estimate versus the ID3 estimates in east-west,
north-south and vertical swaths or increments. Swath intervals are 50 m in both the
northerly and easterly directions, and 10 m vertically. Swath plot checks using only
Indicated blocks for the ID3 Ta2O5 model are shown on Figure 14-9. Figure 14-10
shows corresponding swath plots using only Indicated blocks for Nb2O5.
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Figure 14-9: Swath Plot for Ta2O5 ID3 Model
Note: Figure prepared by AMEC, June 2012.
Figure 14-10: Swath Plot for Nb2O5 ID3 Model
Note: Figure prepared by AMEC, June 2012.
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In the upper row of the swath plots, the black line represents the ID3 model grades,
the red line represents the NN model grades, and the blue line represents the
composite grades. In the lower row of swath plots, the lines represent the number of
blocks contained in each swath, and the number of composites. Because the NN
model is declustered, it is a better reference to validate the resource block model.
Composites are not declustered and only provide an indicative check. Swath plot
checks conducted by AMEC show that there are no local biases between ID3 and NN
models for estimated Ta2O5 and Nb2O5 in the carbonatite.
14.11.4 Selectivity Check
Selectivity analysis for Ta2O5 and Nb2O5 was completed using the Discrete Gaussian
Model for change of support from composite size to a selective mining unit (SMU) size.
This was done using AMEC in-house software (Herco). The aim of this analysis was
to assess whether the estimated resource reasonably represents the recoverable
resources (represented by Herco curves) relative to the proposed mining method. The
selectivity analysis assumed a 10 m by 10 m by 5 m block as the smallest SMU size
for Blue River.
The results of the Herco analysis are generally discussed in terms of smoothness. An
over-smoothed model may over-estimate the tonnes and under-estimate the grade.
The model with an appropriate amount of smoothing will follow the Herco grade and
tonnage curves for values corresponding to different economic, or grade cut-offs.
The Herco analyses were undertaken using only Indicated blocks in order to obtain a
good understanding of the model selectivity, or smoothness. Inferred blocks are often
extrapolated and over-smoothed for lack of data are not recommended for use in this
analysis. Herco grade–tonnage curves checks using only Indicated blocks for ID3
Ta2O5 model are shown in Figure 14-11. Figure 14-12 shows the corresponding Herco
checks for Nb2O5. On both graphs, the upward-trending blue line represents the ID3
model grades, while the paired red line represents the Herco model grades. The
downward trending blue line represents the ID3 model tonnage, while the paired red
line represents the Herco model tonnes.
The Herco selectivity analyses show that the Ta2O5 and Nb2O5 ID3 models are
properly smoothed for the cut-offs of interest. These models are used for tabulating
the Blue River Mineral Resources.
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Figure 14-11: Herco Grade – Tonnage Curves for Ta2O5 ID3 Model
Note: Figure prepared by AMEC, June 2012.
Figure 14-12: Herco Grade – Tonnage Curves for Nb2O5 ID3 Model
Note: Figure prepared by AMEC, June 2012.
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14.12 In Situ Block Model Carbonatite Reconciliation
There is a 6% change in block model carbonatite volume going from the block model
used for the 2011 PEA to the current block model. The reason for this difference is a
change in the structural geology interpretation in carbonatite, resulting in a slight
increase of the overall carbonatite 3D solid volume.
There are 23% of blocks from the 2011 PEA block model that are not in the current
model, and there are 27.4% of blocks from the current model that are not in the block
model used for the 2011 PEA. The reason for these changes is again the result of the
structural geology interpretation of the carbonatite which modified somewhat the
position of the carbonatite in 3D space.
The differences in average grade from the block model used for the 2011 PEA to the
current block model within only those blocks estimated in both models are 1.4% for
Nb2O5 and 1.5% for Ta2O5.
14.13 Mineral Resource Classification
The Mineral Resources were classified in accordance with the 2010 Canadian Institute
of Mining, Metallurgy, and Petroleum (CIM) Definition Standards for Mineral Resources
and Mineral Reserves, whose definitions are incorporated by reference into NI 43-101.
Mineral resources are required to be classified as Inferred, Indicated, and Measured
according to increasing confidence in geological, grade continuity, and other aspects
impacting the resources. However, there are no regulatory specifications as to the
procedure to use to achieve that classification.
In addition to criteria such as sufficient geological continuity, grade continuity, and data
integrity, one AMEC guideline for resource classification is to have drill hole spacing
sufficient to predict potential production with reasonable precision. As such AMEC
conducted drill hole spacing studies taking into account both grade continuity and ore
tonnage / volume uncertainty.
Based on these drill hole spacing studies AMEC established the following criteria for
classification of mineral resources at Blue River:
Inferred Mineral Resources:
Minimum one drill hole
Distance to the closest composite less than 100 m
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Indicated Mineral Resources:
Minimum two drill holes
Distance to the closest composite less than 40 m
Distance to the second closest composite less than 60 m
Measured Mineral Resources:
Minimum three drill holes
Distance to the closest composite less than 20 m
Distance to the second closest composite less than 30 m
The above criteria are somewhat more restrictive than the criteria given in the. 2011
PEA, because the tonnage / volume uncertainties are now better understood and were
incorporated in the most recent drill hole spacing studies.
The current mineral resource classification at Blue River is restricted to Indicated or
Inferred, based on the following:
Confidence limits drill hole spacing studies
Concerns over analytical precision and provisional accuracy for the sample dataset
from 2005 to 2009
Required metallurgical testwork on the final stage of the proposed metallurgical
process is still ongoing to support proof-of–concept.
Eighty-two per cent of the carbonatite blocks are classified as Indicated. Seventeen
per cent of the carbonatite blocks are classified as Inferred. One per cent of the block
model in carbonatite is unclassified. Blocks that fall into the unclassified category are
within carbonatite solids that were intersected typically by one isolated drill hole. The
geological continuity and volume of those solids cannot be reasonably assumed.
Figure 14-13 and Figure 14-14 show examples of the resource classification.
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Figure 14-13: Resource Classification – Plan 1,161.25
Note: The following block colour scheme is used in the figure: Green – Indicated; Yellow – Inferred; Red
– Unclassified; drill hole projection ± 2.5 m. Figure prepared by AMEC, June 2012.
Figure 14-14: Resource Classification – Section N 5,796,882.5
Note: The following block colour scheme is used in the figure: Green – Indicated; Yellow – Inferred; Red
– Unclassified; drill hole projection ± 20 m; view north. Figure prepared by AMEC, June 2012.
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14.14 Reasonable Prospects for Economic Extraction
To assess reasonable prospects for economic extraction, AMEC assumed that the
Blue River deposit would be mined utilizing self-supported mining methods under a
conceptual scenario that considers mining and processing at a rate of 7,500 tonnes
per day. Mining and economic parameters applied for the 2012 estimate were
adjusted based on the results from the 2011 PEA.
14.14.1 Market Study
The marketing assumptions are discussed in Section 19.
14.14.2 Commodity Price
Commodity price assumptions are discussed in Section 19.
14.14.3 Physical Assumptions
Tantalum-niobium mineralization is hosted in carbonatite
Continuous mineralization is found in moderately flat and wide carbonatite bodies
with modest dips
Mineralized areas 20 m to 70 m in height are expected in several zones
Steep topography provides access to the mineralized areas in the form of adits on
the hillsides
Fair to good rock conditions are expected in the majority of the deposit
Identified faulted zones may require wider pillars to avoid unstable mining
conditions.
14.14.4 Operational Considerations
The underground mining methods envisaged are sublevel open stoping and room
and pillar without backfill
Mining recovery is assumed to vary from 65% to 85% depending on the mine and
stope layout and the success in which pillars can be mined on retreat. The rest of
the resource is expected to remain in place as pillars for stability considerations.
A bulk mining method with minimum stope size of 10 m x 10 m rooms with 15 m
height is assumed in order to attain a relatively high production rate of 7,500
tonnes per day
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A more selective method with stopes size of 10 m x 10 m rooms with 5 m height is
assumed to capture higher-grade material located on the thinner edges of the
mineralized zones
An external dilution factor was not considered during this estimation
Planned internal dilution within the minimum stope size is included
The concentration method considered is flotation followed by a refining process on
site; global recoveries to obtain metal grade products were assumed to be 65.4%
for tantalum and 68.2% for niobium.
14.14.5 Economic Assumptions
Since the block unit value (see Section 14.14.6) is estimated using commodity prices
expressed in US dollars, the costs and assumptions are also expressed in US dollars.
The following operating cost and price assumptions were adopted from the 2011 PEA,
but rounded. The exchange rate used to calculate the block unit value is US$0.92 =
CAD$1.00.
Mining cost – bulk mining method ................................. $US24/tonne
Mining cost – selective mining method .......................... $US42/tonne
Processing and refining cost ......................................... $US13/tonne
General and Administration ............................................. $US3/tonne
Base case scenario price of tantalum$US317/kg Ta metal in an oxide product
Base case scenario price of niobium $US46/kg Nb metal in an oxide product
14.14.6 Economic Cut-Off
Block Unit Value
The block model was adapted to represent the two payable metal contents in terms of
Block Unit Value (BUV) in US$/t using the following formula:
BUV = (Ta2O5 grade in ppm * Ta recovery factor * Ta price in US$/g *
proportion of 2Ta:Ta2O5) + (Nb2O5 grade in ppm * Nb recovery factor * Nb
price in US$/g * proportion of 2Nb:Nb2O5)
For the base case scenario:
BUV = (Ta2O5 * 0.654 * 0.317 * 0.819) + (Nb2O5 * 0.682 * 0.046 * 0.699)
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The tool “Stope Analyzer” from Vulcan® was utilized to identify the blocks that exceed
the cut-off value while complying with the aggregation constraint of minimum stope
size. This tool “floats” a stope with the specified dimensions and flags each block
when the average block unit value of the contained blocks within a stope exceeds the
designated cut-off value.
For constraining resources deemed to be mined by underground methods, the use of
this tool as an alternative to a conventional economic grade-shell provides an
advantage based on the ability to aggregate blocks into the minimum stope
dimensions and the automatic elimination of outliers that do not comply with this
condition.
For purposes of estimating the current model Mineral Resources, an underground
mining cut-off value of US$40/t BUV was established for the material susceptible to be
mined by bulk methods; the direct operating cost estimate for the bulk mining method
is the result of the 2011 PEA mine plan and its associated costs. For material to be
mined by a selective mining method a cut-off value of US$58/t BUV was adopted; the
direct operating cost for the selective mining method is an estimate of the associated
costs when a room and pillar mining method is assumed and was based on the work
performed during the 2011 PEA.
14.15 Mineral Resource Statement
The Mineral Resources were classified in accordance with the 2010 CIM Definition
Standards for Mineral Resources and Mineral Reserves, whose definitions are
incorporated by reference into NI 43-101.
Table 14-7 shows the estimated mineral resources. The Indicated Mineral Resources
are 51.78 million tonnes at 192 ppm Ta2O5 and 1,490 ppm Nb2O5. Inferred Mineral
Resources are 8.8 million tonnes at 186 ppm Ta2O5 and 1,660 ppm Nb2O5.
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Table 14-7: Blue River Project Estimated Mineral Resources; Effective Date 22 June,
2012, Tomasz Postolski, P.Eng, Qualified Person
Ta price
[US$/kg]
Confidence
Category Tonnes
Ta2O5
[ppm]
Nb2O5
[ppm]
Contained
Ta2O5
[1000s of kg]
Contained
Nb2O5
[1000s of kg]
317 Indicated 51,780,000 192 1,490 9,930 76,900
Inferred 8,800,000 186 1,660 1,600 14,600
Notes:
1. Assumptions include commodity prices of US$317/kg Ta, US$46/kg Nb, process recoveries of 65.4%
for Ta2O5 and 68.2% for Nb2O5, US$24/tonne mining cost, US$13/tonne process and refining cost,
US$3/tonne G&A cost
2. Mineral resources are amenable to underground mining methods and have been constrained using a
“Stope Analyzer”
3. An economic cut-off was based on the estimated operating costs assuming either the bulk or selective
mining method from the PEA mine plan. The block unit value cut-off ranged from US$40/t (bulk) to
US$58/t (selective)
4. Mining losses = 0%, external dilution = 0%; planned internal dilution within the minimum stope size is
included
5. In situ contained oxide reported. Discrepancies in contained oxide values are due to rounding.
This Mineral Resource estimate is supported by a base case price assumption of
US$317/kg Ta, which is higher than historic average prices. The Ta and Nb metal
prices assumptions are the same as those used in the 2011 PEA and are considered
still reasonable based on publicly available information on the current market prices.
Table 14-8 shows the sensitivity of the Blue River Mineral Resources to tantalum metal
price. Sensitivities are based on a fluctuating metal price but could also represent
fluctuating mining or processing costs or metallurgical recoveries or a combination of
all of these factors.
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Table 14-8: Blue River Project Sensitivity of Estimated Mineral Resources to Tantalum
Price; Effective Date 22 June 2012, Tomasz Postolski, P.Eng, Qualified
Person
Ta price
[US$/kg]
Confidence
Category
Mass
[tonnes]
Ta2O5
[ppm]
Nb2O5
[ppm]
Contained
Ta2O5
[1000s of kg]
Contained
Nb2O5
[1000s of kg]
470 Indicated 55,050,000 189 1,430 10,430 78,750
Inferred 9,800,000 182 1,610 1,800 15,700
381 Indicated 54,230,000 190 1,440 10,310 78,270
Inferred 9,300,000 184 1,630 1,700 15,300
317 Indicated 51,780,000 192 1,490 9,930 76,900
Inferred 8,800,000 186 1,660 1,600 14,600
272 Indicated 47,700,000 194 1,560 9,250 74,400
Inferred 8,100,000 187 1,700 1,500 13,900
238 Indicated 43,170,000 196 1,650 8,440 71,270
Inferred 7,500,000 188 1,760 1,400 13,200
Notes:
1. Ta price was varied and all other assumptions remained the same as base case. Base case is in bold.
2. Mineral resources are amenable to underground mining methods and have been constrained using a
“Stope Analyzer”.
3. An economic cut-off was based on the estimated operating costs assuming either the bulk or selective
mining method from the PEA mine plan. The block unit value cut-off ranged from US$40/t (bulk) to
US$58/t (selective)
4. Mining losses = 0%, external dilution = 0%; planned internal dilution within the minimum stope size is
included.
5. In situ contained oxide reported. Discrepancies in contained oxide values are due to rounding.
The Mineral Resources have been assessed for reasonable prospects for economic
extraction using assumptions based on similar deposits. Economic viability of the
Mineral Resource can only be demonstrated by Pre-Feasibility and Feasibility Studies,
and there is no assurance that the stated resources can be upgraded in confidence
and converted to mineral reserves. Since underground mining methods are
envisioned, the mining recovery may vary from 65% to 85% depending on the success
in which pillars can be mined on retreat and/or fill is utilized.
14.16 Comparison of Mineral Resources
The Indicated Mineral Resources in the current model total 51.78 million tonnes at
192 ppm Ta2O5 and 1,490 ppm Nb2O5. Inferred Mineral Resources total 8.8 million
tonnes at 186 ppm Ta2O5 and 1,660 ppm Nb2O5.
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The Indicated Mineral Resources in the model used for 2011 PEA were 36.35 million
tonnes at 195 ppm Ta2O5 and 1,700 ppm Nb2O5. Inferred Mineral Resources were 6.4
million tonnes at 199 ppm Ta2O5 and 1,890 ppm Nb2O5.
There is a considerable increase in resource tonnes for the current Mineral Resource
update relative to the 29 September 2011 tonnage estimate where the Indicated
category has increased by 42% and the Inferred category by 37%. This increase in
tonnes is mostly due to (1) lowering the bulk mining method block unit value cut-off
from US$52/t to US$40/t by eliminating backfill costs, and to a lesser extent (2)
additional infill diamond drilling.
14.17 Comment on Section 14
The QPs are of the opinion that the Mineral Resources for the Project, which have
been estimated using core drill data, have been completed using industry best
practices, and conform to the requirements of CIM (2010). The QPs are not aware of
any known environmental, permitting, legal, title, taxation, socio-economic, marketing,
political or other relevant factors that could materially affect the Mineral Resource
estimate. From the 2011 PEA, the Project is most sensitive to the American to
Canadian exchange rate, the operating costs, and the Ta and Nb metal commodity
prices.
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15.0 MINERAL RESERVE ESTIMATE
No Mineral Reserves have been estimated for the Project.
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16.0 MINING METHODS
16.1 Introduction
This mining section incorporates assumptions, analysis and findings of the Preliminary
Economic Assessment that had an effective date of 29 September 2011 (the 2011
PEA) by AMEC (Chong et al., 2011). The mineral resources used in the 2011 PEA
mine plan were those with an effective date of 29 September 2011.
The preliminary mine plan presented in this section is partly based on Inferred Mineral
Resources that are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized as Mineral
Reserves, and there is no certainty that the Preliminary Economic Assessment based
on these Mineral Resources will be realized.
The information relevant to the preliminary mine plan prepared during the 2011 PEA
based on a bulk mining method is included in this section and has not been updated
because AMEC considers that the assumptions supporting the outcomes remain
reasonable. The effective date of the 2011 PEA results remains 29 September 2011.
16.2 Optimization
16.2.1 Assumptions
Mining assumptions used to define the Mineral Resource estimate in Section 14 were
adapted from the 2011 PEA mine design.
The block model consists of regular blocks with dimensions of 5 m x 5 m in the
horizontal plane and 2.5 m vertically; no rotation was adopted.
The block model was adapted to represent the unit value per tonne of material
considering two payable metal contents. This value was named the block unit value
(BUV) in US$/t and was estimated using the following formula:
BUV = (Ta2O5 grade in ppm * Ta recovery factor * Ta price in US$/g *
proportion of 2Ta: Ta2O5) + (Nb2O5 grade in ppm * Nb recovery factor *
Nb price in US$/g * proportion of 2Nb:Nb2O5)
Price assumptions were US$317/kg tantalum metal and US$46/kg niobium metal,
contained in oxide product.
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Tantalum and niobium mineral occurrences are amenable to conventional flotation and
refining processes with estimated overall recoveries of 65.4% and 68.2%.
The block model was valued using the following formula, incorporating the specific
grades in each block:
BUV = (Ta2O5 * 0.654 * 0.317 * 0.819) + (Nb2O5 * 0.682 * 0.046 * 0.699)
The 29 September 2011 Mineral Resource estimates used an underground mining
cut-off value of US$52/t for the material susceptible to be mined by bulk methods and
a cut-off value of US$59/t for material to be mined by the selective methods. Mineral
Resources considered in the preliminary mine plan are those tabulated in Table 16-2.
The “Stope Analyzer” tool from commercially-available Vulcan® software was utilized
to identify blocks within the resource model for which the block unit value (BUV)
exceeded the cut-off value while complying with an aggregation constraint of a
specified minimum stope size. This tool “floats” a stope with previously specified
dimensions and flags each block when the average block unit value of the contained
blocks within a stope exceeds the designated cut-off value.
The use of this tool is an alternative to a conventional economic grade-shell for
constraining Mineral Resources deemed to be mined by underground methods, and
provides an advantage based on the ability to aggregate blocks into the minimum
stope dimensions and the automatic elimination of outliers that do not comply with this
condition. Stope dimensions are detailed in Table 16-1.
Table 16-1: Minimum Stope Dimensions for Constraining the Subset of Mineral
Resources within Designed Stopes
Mining Method Width (m) Length (m) Height (m)
Sub-level Open Stoping 10 10 15
Room and Pillar 10 10 5
16.2.2 Mining Method
Blue River Project is located largely along the steep, west-facing slopes of the
Monashee Mountains and it is closely positioned to, and just east of, the North
Thompson River. As mineralization is close to surface, extraction of the mineralized
material could potentially be by either open pit or underground methods, or a
combination of both.
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Initial assessment identified technical challenges and increased costs for tailings and
waste rock disposition related to local topography, stream courses and climate. For
this reason a decision was made to consider an underground mining scenario for PEA
purposes.
16.2.3 Mineral Resources considered for the 2011 PEA
The 2011 PEA was based on a mineral resource estimate announced in February
2011 (“Blue River Ta-Nb Project NI 43-101 Technical Report, Blue River, British
Columbia” by AMEC with effective date 31 January 2011). For this estimate, AMEC
used the drill results up to the end of 2009, which includes 183 drill holes comprising
37,446 metres of HQ drill core and 8,218 sawn core samples to develop the mineral
resource estimate. By inspection, the volume of rock (tonnes and grade) above cut-off
considered in the 2011 PEA are not materially different from the volume of rock above
the same cut-off in the updated 22 June 2012 mineral resource estimate.
Table 16-2 shows the estimated mineral resources used in the 2011 PEA. AMEC
cautions that Mineral Resources are not Mineral Reserves as they do not have
demonstrated economic viability.
Table 16-2: Blue River Project Estimated Mineral Resources Supporting 2011 PEA;
Effective Date 29 September 2011, Tomasz Postolski, P.Eng., Qualified
Person
Ta price
[US$/kg]
Confidence
Category Mass [tonnes]
Ta2O5
[ppm]
Nb2O5
[ppm]
Contained
Ta2O5
[1,000s of kg]
Contained
Nb2O5
[1,000s of kg]
317 Indicated 36,350,000 195 1,700 7,090 61,650
Inferred 6,400,000 199 1,890 1,300 12,100
Notes:
1. Assumptions include US$317/kg Ta, US$46/kg Nb, 65.4% Ta2O5 recovery, 68.2% Nb2O5 recovery,
US$32/tonne mining cost, US$17/tonne process and refining cost. Mining losses = 0% and dilution =
0%.
2. Mineral resources are amenable to underground mining methods and have been constrained using a
“Stope Analyzer”.
3. An economic cut-off was based on the estimated operating costs assuming either the bulk or selective
mining method. The block unit value cut-off ranged from US$52/t (bulk) to US$59/t (selective)
4. In situ contained oxide reported. Discrepancies in contained oxide values are due to rounding.
To support the 2010 Mineral Resource estimate underground mining methods were
envisioned (room and pillar or variants), with mining recovery assumed to vary from
65% to 85% depending on the success in which pillars could be mined on retreat
and/or fill is utilized.
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16.2.4 Production Rate
In 2009, AMEC carried out an “order of magnitude” financial analysis to evaluate a
range of processing throughput rates. This analysis indicated that the Project required
processing rates of greater than 5,000 t/d to provide economies of scale that allowed a
reasonable economic return on investment.
A processing rate of 7,500 t/d was assumed for Mineral Resource estimation and for
the conceptual design of an underground mine for the Project.
It is AMEC’s opinion that this mining rate is reasonable based on the geometry of the
deposit and the mining method selected.
16.3 Geotechnical Conditions
In the second half of 2010 AMEC carried out a geotechnical program to provide design
guidelines for the Blue River Project. This program included:
A geotechnical site investigation program;
Training for site geologists and geological technicians in oriented core logging;
QA/QC site visits during the geotechnical drilling program; and
Engineering analysis and recommendations applicable to the underground mining
method.
Rock types have been grouped into two main geotechnical domains: Intrusive and
Layered Rocks. The Intrusive group encompasses carbonatite and fenite rocks while
the Layered Rocks group encompasses gneiss and amphibolite.
Based on rock strength analysis and assessment of rock quality designation (RQD),
joint spacing, joint condition and groundwater condition assumptions, the rock mass
characteristics detailed in Table 16-3 were obtained for each rock group.
Table 16-3: Rock Mass Characteristics by Rock Group
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A structural set analysis showed similarities between the Intrusive and Layered Rock
groups with a strong concentration of flat joints dipping between 0° to 30° to the
east/northeast and sub-vertical joints striking northwest/southeast. The major joint
sets were identified as shown in Table 16-4.
Table 16-4: Major Joint Sets
16.4 Conceptual Mining Method
The major items governing the selection of underground mining methods include the
geology and geometry of the deposit and geotechnical properties of the mineralized
material and country rock.
AMEC followed the technique proposed by Nicholas (1992) to rank the underground
mining methods suitable for the Blue River deposit. AMEC classified the deposit as a
thick, tabular, and flat deposit with relatively uniform low grades and moderate
geotechnical conditions in the deposit as well as in the host rock. The three methods
with higher ranking are:
Sub-level stoping
Cut-and-fill
Sub-level caving
The first two methods were considered for this study. The first was evaluated for
areas where the carbonatite is greater than 15 m in thickness and the second for
thinner areas towards the edges of the carbonatite folds.
16.4.1 Backfill Considerations
During economic analysis it was found that the cut-and-fill method was likely to prove
uneconomic and it was excluded from the mine plan.
The 2011 PEA was developed assuming a sub-level open stoping mining method with
no backfill and no pillar recovery.
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16.5 Stoping Design
The Upper Fir deposit geological model shows thicknesses between 20 m to 80 m and
strike lengths between 50 m to 200 m in the east–west direction. Transverse
dimensions in the north–south direction range between 100 m to 500 m. Vertical
stopes oriented east–west with maximum dimensions of 30 m high, 15 m wide and
60 m long were selected for preliminary analysis.
Based on these stope dimensions, the following stope faces and hydraulic radius are
defined (Table 16-5).
Table 16-5: Stope Faces and Hydraulic Radius
Face A Face B Face C
Longwall Endwall Back
Height (m) 30 30
Width (m) 15 15
Length (m) 60 60
Hydraulic radius (m) 10 5 6
16.5.1 Stability Analysis and Ground Support
As part of geotechnical analysis, AMEC carried out stability analysis based on the
empirical Mathews/Potvin Stability Graph method.
Results of the analysis indicated:
Face A – Longwall: This wall is expected to be composed of competent Intact to
Blocky rock mass. The main jointing is sub-horizontal crosscut by two sub-vertical
joint sets. The stope wall is vertical and should be inherently stable unless
disturbed by over-blasting. Sloughing up to 0.5 m thick is expected. Cable bolting
may be required in certain places.
Face B – Endwall: Numerical modeling suggests that the stress is relatively high
compared with the rock strength and the joint set configuration favours sliding
failure. Cable bolts are required to provide stability. A square cable pattern of 2 m
by 2 m is recommended and will be installed from the sill drift fanning upwards to
cover the unsupported span between level drifts.
Face C – Back: This face is horizontal and as such is expected to be in a relaxed
stress state. Gravity driven rock fall is likely the dominant failure mode. Face
reinforcement is required with the development of a self supporting rock arch over
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the back face. A 15 m wide face requires cable bolting in square pattern of 2 m by
2 m and cable bolts of 9 m long.
16.5.2 Stope Geometry
AMEC made adjustments to the preliminary stope design to reduce the demand for
cable bolting; specifically the Back was reduced to a 5 m-wide entry. This requires the
stope drilling pattern to be changed from vertical to fanned holes.
16.5.3 Mining Sequence
The stope face will advance from the east end of each block to the west in a retreat
manner. Once the maximum unsupported stable length of the stope has been
reached, a pillar will be established, and mining will resume from a new stope.
16.5.4 Conceptual Mine Design
AMEC developed a conceptual design for one of the potential areas to be mined,
geological domain A110. This domain was selected because it was one of the thicker
areas within the deposit and represented a reasonable test area for mine design.
16.5.5 Mining Dilution and Recovery
Material deemed to be mined by bulk mining methods represents 84% of the Mineral
Resources. Within the mineable shapes there was internal dilution of 2% waste rock.
It was assumed that during mining 2% of waste material would be added as external
dilution and 2% of the broken material would not be recovered from the stopes due to
operational conditions.
The geotechnical investigation indicates that an extraction ratio of 67.5% is
reasonable. Applying this factor to subset the Mineral Resources considered in the
mine plan results in an overall mining extraction of 58% and provides 25.0 Mt of
material as run-of-mine (ROM) production to be processed. Applying internal and
external mining dilution, the overall subset Mineral Resource grades were diluted to
185 ppm of Ta2O5 and 1,591 ppm of Nb2O5 for mine planning purposes.
16.6 Drilling and Blasting
AMEC assumed conventional drilling methods: electro-hydraulic jumbos for face drift
rounds and electro-hydraulic long-hole drills for stope drilling.
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Due to the high precipitation in the region and water continuity along fractures and rock
layers, wet conditions were assumed for development and stoping areas requiring the
use of emulsion type explosives.
AMEC assumed the utilization of specifically-designed tanks to store emulsion
explosives in trucks delivering and loading explosives at development faces and
stopes. A centralized blasting system where all blasts are initiated sequentially from a
single location at the end of each shift will be used to reduce potential safety and
ventilation risks.
16.7 Mine Development
The deposit will be accessed through two main portals, the Upper and Lower Portals,
located in positions where the deposit outcrops on the hillside. The Upper Portal will
be located at Elevation 1,150 m. It will be used as the main entry and will have most
of the mine services. The Lower Portal will be located at Elevation 1,030 m and will be
used for haulage trucks access. Access to the portals will be by a road upgraded from
existing exploration roads. Location plans for the portals are included in Section 18.
The mine will be accessed by adits driven in pairs from the portals. All entries, ramps,
drifts and crosscuts will be 5 m wide by 5 m high with a semi-arched back to
accommodate the haulage trucks plus mine services, including pipelines for
compressed air, drill and drainage water, for ventilation ducts and electric and
communication cables.
Ramps will be driven at grades to a maximum of 15% to provide access to the
production areas. Two ramps or adits will be driven to each area to provide single-way
traffic of haulage trucks and to facilitate ventilation.
Top access crosscuts are driven from the main ramps to each level on vertical
intervals between 20 m to 30 m. Stope access crosscuts are driven along the levels
from west to east. Bottom-access crosscuts are driven to function as mucking drifts.
Ground support will be by grouted bolts in all man-entry drifts with steel mats, wire
mesh and plates assumed to be installed in 20% of the areas.
The length of development necessary was calculated by designing centrelines of
ramps and drifts to provide access to all potentially mineable areas of the mine.
Additional development for re-mucking cut-outs, sumps, substation rooms, storage and
any other excavation needed for infrastructure was included as an allowance of 20% of
the semi-permanent development entries. The total development was estimated at
92,500 m during the life-of-mine.
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A conceptual preliminary overall mine plan is included as Figure 16-1. Figure 16-2
displays an aerial view of the mining area from the Upper Portal.
16.8 Mineralized Material and Waste Rock Haulage
The PEA envisages that tailings material will be dry-stacked and waste rock will be
stored in the same general area. For convenience, the combined storage area is
referred to as the “co-disposal facility”.
Radio remote-controlled load-haul-dumps (LHDs) will be used to extract the
mineralized material from beyond the safety of the stope brow. This material will then
be loaded directly into the haulage trucks that will be spotted at the end of each stope
crosscut.
Underground trucks will haul the mined material through the access drifts and ramps,
unloading into the primary crusher surface stockpile located close to the Lower Portal.
Crushed material will be transferred to the process plant by a belt conveyor.
Waste from development will initially be utilized for construction of a structural shell for
the tailings co-disposal site located between Elevations 1,400 m and 1,600 m in an
area east of the process plant. The conveyor will be used to transport this material in
batches from the mine to a stockpile by the plant site.
A road developed at +10% grade will connect the plant with the co-disposal site.
Surface trucks will haul waste from the plant to the co-disposal site.
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Figure 16-1: Conceptual Mine Layout Plan (plan view projection)
Note: image figure colours may appear darker than reference key colours due to over-plotting of design layers. Figure prepared by AMEC, 2011.
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Figure 16-2: Aerial View of the Mining Area from Upper Portal
Note: image figure colours may appear darker than reference key colours due to over-plotting of design layers. Light brown blocks in background of
figure are the potentially-mineable blocks. Figure prepared by AMEC, 2011.
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16.9 Mine Services
Underground mine services such as ventilation and air heating, compressed air, water
for drilling and electric power supply will be provided to the mine via adits from the
portals. The main power substation and the air compressors will be installed in
facilities located adjacent to the Upper Portal.
Other mine services will include all the systems and supplies needed for the mining
operations, including explosives storage, communications, monitoring and control
systems, road maintenance and an underground equipment maintenance facility.
Portable self-contained refuge stations will be provided for the mine and will be located
at convenient locations. Refuge stations provide a common assembly area in the
event of a mine fire or other emergency and are portable so they can be easily
relocated to the next active area.
16.10 Mine Development and Production Forecasts
The forecast preproduction development is 12,000 m and the annual development
over the ten-year mine life is forecast to decrease from 15,000 m in the first full
production year to about 2,150 m in the final year.
Production was estimated at 2.7 Mt/a of mineralized material. Following the
preproduction development year full production is maintained for nine years followed
by decreased production in Year 10 as the subset of the Mineral Resources
considered in the mine plan are exhausted.
At this preliminary level of study the stope mining sequence was not defined and
therefore average grades were used for each year in the mine plan.
There is opportunity to increase the net present value (NPV) of the project by mining
higher-grade zones early in the mine life providing that the sequence and overall
recovery of the stopes is not negatively affected.
The development and production forecasts are shown in Table 16-6.
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Table 16-6: Mine Development and Production Forecasts
Production Schedule Units Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Nominal Production Rate tpd
7,500 7,500 7,500 7,500 7,500
Scheduled working days days/year 360 360 360 360 360 360
Production of Mineralized Material t/year
2,700,000 2,700,000 2,700,000 2,700,000 2,700,000
Ta2O5 Grade ppm
185 185 185 185 185
Nb2O5 Grade ppm
1,591 1,591 1,591 1,591 1,591
Development (total) m/year 12,000 15,000 12,834 10,980 9,394 8,038
Capital Development m/year 12,000 5,000 1,216 1,040 890 761
Operational Development m/year 0 10,000 11,618 9,940 8,505 7,276
Production Schedule Units Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Total
Nominal Production Rate tpd 7,500 7,500 7,500 7,500 7,500
Scheduled working days days/year 360 360 360 360 360
Production of Mineralized Material t/year 2,700,000 2,700,000 2,700,000 2,700,000 700,000 25,000,000
Ta2O5 Grade ppm 185 185 185 185 185 185
Nb2O5 Grade ppm 1,591 1,591 1,591 1,591 1,591 1,591
Development (total) m/year 6,877 5,884 5,034 4,307 2,153 92,500
Capital Development m/year 651 557 477 408 0 23,000
Operational Development m/year 6,225 5,326 4,557 3,899 2,153 69,500
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16.11 Mine Equipment Requirements
Table 16-7 shows the major mining equipment and the support equipment required
each year for the life of mine and includes allowances for equipment utilization and
availability due to maintenance downtime. The table includes equipment required for
the tailings and waste co-disposal facility.
The “Equipment additions” reflect additional requirements based on increased activity
levels and replacements assuming typical useful operating lives for the units.
16.12 Mine Infrastructure
The mine infrastructure planned for the Project is listed in the capital costs section of
this report and includes establishment of mine portals, access roads to portals
underground maintenance bays, ventilation and heating systems, air compressors, fuel
tanks, explosives magazines, pumps, electrical transformers and ancillary equipment.
16.13 Mining Personnel
The mine is scheduled for three 8-hour shifts per day, 360 days per year. This will
require an equivalent of 4.5 mine crews working a rotating schedule for activities
scheduled seven days a week and three crews for activities scheduled five days a
week. The annual personnel requirements are shown in Table 16-8. This includes
management and supervisory personnel and personnel to operate and maintain
equipment used to service the surface roads and the tailings disposal site.
16.14 Comment on Section 16
In the opinion of the QPs, the following conclusions are appropriate:
The deposits are amenable to underground mining, and the PEA developed
assuming a Base Case sub-level open stoping mining method with no backfill is
still valid
Material deemed to be mined by bulk mining methods is a subset of the Mineral
Resources supporting the 2011 PEA, and represents 84% of the Mineral
Resources estimated at that time; within the stopeable shape, an additional 2% of
waste was identified as internal dilution.
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Table 16-7: Mining and Tailings Facility Equipment Requirements
Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10
Major Equipment Units Required
Jumbo - 2 boom 4 4 4 4 3 3 3 3 2 2 2
Longhole dril l - 5 5 5 5 5 5 6 6 6 4
Bolter 3 3 3 3 3 2 2 2 2 1 2
Emulsion Truck 3 4 4 3 3 3 3 3 2 2 3
Scissor Lift 4 4 4 4 3 3 3 3 2 2 2
LHD - Ejector - 7 m3 3 5 5 5 5 5 5 5 4 4 4
Trucks 3 9 9 9 8 8 8 8 8 8 7
Major Equipment Purchases
Jumbo - 2 boom 4 - - - - 2 1 - - - -
Longhole dril l - 5 - - - 3 2 - - - -
Bolter 3 - - - - 1 1 - - - -
Emulsion Truck 3 1 - - - 2 1 - - - -
Scissor Lift 4 - - - - 2 1 - - - -
LHD - Ejector - 7 m3 3 2 - - - 3 2 - - - -
Trucks 3 6 - - - 4 4 - - - -
Support Equipment Purchases
Low profile U/G Motor Grader 1 - - - - 1 - - - - -
Crane truck 1 - - - - 1 - - - - -
Fuel/lube vehicle 2 - - - - 2 - - - - -
Service truck w/ scissor l ift 2 - - - - 2 - - - - -
Forklift/Cable reeler 1 - - - - 1 - - - - -
Mancarrier - 16 person 2 - - - 2 - - - 2 - -
Shotcrete Machine 2 - - - 2 - - - 2 - -
Mechanics truck w/ flat deck 2 - - - 2 - - - 2 - -
Supply truck w/ flat deck 2 - - - 2 - - - 2 - -
Crew cab 4 - - - 4 - - - 4 - -
Mine rescue van 1 - - - 1 - - - 1 - -
Surface Equipment Required
Grader 2 2 2 2 2 2 2 2 2 2 2
Water Truck 1 1 1 1 1 1 1 1 1 1 1
Compactor 1 1 1 1 1 1 1 1 1 1 1
Dozer 3 4 4 4 3 3 3 3 3 3 3
Excavator 1 2 2 2 2 2 2 2 2 2 1
Haul Truck 5 13 13 13 13 13 13 13 13 13 10
Surface Equipment Purchases
Grader 2 - - - - - 1 - - - -
Water Truck 1 - - - - - - - - - -
Compactor 1 - - - - - - - - - -
Dozer 3 1 - - - - 2 1 - - -
Excavator 1 1 - - - - 1 - - - -
Haul Truck 5 8 - - - - - - - - -
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Table 16-8: Mining Personnel Requirements
Mine Operations Personnel Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10
Operators for Major Equipment
Jumbo - 2 boom 14 17 15 13 11 9 8 7 6 5 8
Longhole drill 0 14 14 14 15 15 15 15 16 16 13
Bolter 21 26 22 19 16 14 12 11 9 8 10
Emulsion Truck 9 13 11 10 9 8 8 7 6 6 7
Scissor Lift 14 17 15 13 11 9 8 7 6 5 8
LHD - Ejector - 7 m3 9 20 19 18 17 16 16 15 15 14 14
Trucks 9 34 32 31 31 30 30 30 29 29 26
Operators for Support Equipment
Low profile U/G Motor Grader 5 5 5 5 5 5 5 5 5 5 5
Service truck w/ scissor lift 9 9 9 9 9 9 9 9 9 9 9
Forklift/Cable reeler 3 3 3 3 3 3 3 3 3 3 3
Operators for Surface Equipment
Grader 9 10 9 9 9 9 9 9 9 9 9
Water Truck 5 5 5 5 5 5 5 5 5 5 5
Compactor 3 6 3 3 3 3 3 3 3 3 3
Dozer 14 23 23 18 14 14 14 14 14 14 14
Excavator 3 6 6 6 6 6 6 6 6 6 3
Haul Truck 23 59 59 59 59 59 59 59 59 59 50
Maintenance
Crane truck 3 3 3 3 3 3 3 3 3 3 3
Fuel/lube vehicle 5 9 9 9 9 9 9 9 9 9 7
Mechanics truck w/ flat deck 10 18 18 18 18 15 15 15 15 15 10
Supply truck w/ flat deck 10 18 18 18 18 15 15 15 15 15 10
Maintenance Shop 13 20 14 9 5 8 7 5 3 2 6
Mine Services
Services installations 5 5 5 5 5 5 5 5 5 5 3
Grouting/shotcrete 5 5 5 5 5 5 5 5 5 5 3
Construction 5 5 5 5 5 5 5 5 5 5 3
Level maintenance 2 2 2 2 2 2 2 2 2 2 2
Nipper 2 2 2 2 2 2 2 2 2 2 2
General Mine Administration, Technical and Services
Mine Administration 19 19 19 19 19 19 19 19 19 19 15
Maintenance 11 11 11 11 11 11 11 11 11 11 8
Technical Services 23 23 23 23 23 23 23 23 23 23 20
Subtotal Mine Operations 263 407 384 364 348 336 331 324 317 312 279
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The geotechnical investigation indicates that an extraction of 67.5% can be
achieved, resulting in an overall mining recovery of 58%. It was assumed that an
additional 2% of waste material would be added as external dilution and 2% of
mineralization losses were incurred due to operating conditions. An overall mining
recovery factor of 58% of the estimated Mineral Resources was considered in this
study; this accounts for 25.0 Mt of mineralized material that is a subset of the
Mineral Resources as run-of-mine (ROM) production to be processed inclusive of
diluting material.
For the preliminary mine plan, considering waste inside stopes and external
dilution, the overall subset Mineral Resource estimate grades were diluted to
185 ppm of Ta2O5 and 1,591 ppm of Nb2O5 for the ROM estimates.
Production was estimated at 2.7 Mt/a of mineralized material to be extracted over
10 years; the first year was considered as preproduction, leaving nine years of
full-scale production.
Developments were modeled following a decreasing activity level from the
beginning to the end of the life of mine. A total of 92,500 m of development was
estimated.
The deposit will be accessed through two main portals, Upper and Lower, and a
series of adits from the portals. Top access crosscuts will be driven from the main
ramps to each level on vertical intervals between 20 to 30 m. Stope access
crosscuts will be driven at level from west to east. Bottom access crosscuts will be
driven to function as mucking drifts. Underground mine services such as
ventilation and air heating, compressed air, water for drilling and power supply will
be provided to the mine via the adits.
Radio remote-controlled load-haul-dump units (LHDs) will be used to extract the
mineralized material from the stope beyond the safety of the brow. The
mineralized material from stopes will be loaded directly to the haulage trucks that
will be spotted at the end of the crosscut. The trucks will drive down the ramps
and will exit the mine at the Lower Portal. The trucks will deliver the mined
material to a surface stockpile at the primary crusher close to the portal. Crushed
material will be transferred to the process plant by a belt conveyor.
Waste from development will be initially utilized for construction of a structural shell
of the tailings co-disposal site on surface, which is located in an area east of the
processing plant site. This material will be transferred to the plant site in batches
on the conveyor system.
Several areas of investigation are required to support a detailed mine plan. These
include underground geotechnical and geo-hydrological conditions for mine design,
the possible use of mining methods utilizing un-cemented backfill, and continuous
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handling systems for mineralized material and waste rock. Opportunities include
possible better ground conditions than assumed. With improved ground conditions
the size of stopes and production drifts could be increased.
There is opportunity to increase the net present value (NPV) of the Project by
mining higher-grade zones early in the mine life providing that a practical mining
sequence can be implemented and the overall recovery of the Mineral Resources
is not negatively affected.
There is opportunity to increase the net present value (NPV) of the Project by
optimising the mine layout to minimize development costs.
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17.0 RECOVERY METHODS
17.1 Introduction
This section on recovery methods incorporates assumptions, analysis and findings of
the Preliminary Economic Assessment that has an effective date of 29 September
2011.
The information relevant to the plant design supporting the financial analysis prepared
during the 2011 PEA is included in this section and has not been updated because
AMEC considers that the assumptions supporting the outcomes remain reasonable.
The effective date of the 2011 PEA results remains 29 September 2011.
17.2 Plant Design
The design for the process facilities considered a nominal processing capacity of
7,500 t/d. Where data were not available at the time of flowsheet development, AMEC
developed criteria for sizing and selection of equipment based on comparable industry
applications, benchmarking, and the use of modern modelling and simulation
techniques.
The mineral processing and the refining are based on conventional technology and
industry-proven equipment.
Run-of-mine (ROM) mineralized material from the underground will be crushed and
conveyed to the concentrator where the mineralization will be ground to liberate the
mineral values from the host rock and then separated by flotation. The bulk
tantalum-niobium concentrate produced will be filtered, dried, and introduced into the
refining plant. There the concentrate will undergo a thermal reduction which will
remove most of the gangue material and create a smaller, higher purity material for
chlorine processing. The distillation of the anhydrous metal chloride products will
produce separated high-purity Nb and Ta chlorides.
Tantalum chloride is the precursor to capacitor grade Ta powder, so would be
marketed in this form. Niobium chloride can be sold as a chemical precursor. Both Ta
and Nb chloride products can be readily converted and marketed as high-purity
technical grade Ta2O5 and Nb2O5 oxides respectively. The simplified flowsheet is
shown in Figure 17-1.
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17.3 Comminution (Crushing, Storage, and Grinding)
The primary crushing station will be a fixed jaw crusher. Mine haul trucks will dump
ROM mineralized material into the ROM surface stockpile located close to the Lower
Portal. Mineralized material will be fed to the crusher using an apron feeder. Crushed
mineralized material will fall onto a conveyor and be fed to a fine crushing circuit at the
plant site which will further reduce the material to -8 mm. The material will be stored in
a fine ore silo. It will be withdrawn by feeder into a rod mill. The discharge from the
rod mill will flow into the cyclone feed pumpbox. The cyclone feed pump will transfer
the material to the cyclone circuit which will produce finished product in the overflow (a
P80 size of 100 µm). The cyclone underflow will report to a ball mill for additional
grinding. The discharge from the ball mill will join the rod mill discharge as feed to the
cyclone pumpbox.
Figure 17-1: Concentration and Refining of Blue River Mineralization
Note: Figure generated by AMEC, 2011
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17.4 De-Sliming and Flotation
In both cases, the pyrrhotite and carbonate concentrates will join the de-sliming fines
in the tailings filtration system.
After the rejection flotation work, the carbonate tails will be processed through a
magnetic separator to recover any magnetite to tailings. The water will be exchanged
at this point to allow a higher level of control in the subsequent pyrochlore flotation to
recover tantalum and niobium.
Flotation of Nb-Ta-bearing minerals to a mineral concentrate will occur at a pH of 7.0
employing a pH modifier/promoter (fluosilicic acid), a collector (a Duomac-T
equivalent) and a frother (MIBC) as required. The pyrochlore tails will pass to the
tailings filtration system. The pyrochlore rougher concentrate will be reground and
cleaned in five stages with the same reagents. The mass of material will be reduced
substantially, to less than 1% of the feed into the plant. All cleaner tails will be sent
directly to the tailings filtration system.
17.5 Filtration
After de-sliming, magnetic separation, and flotation, the combined tailings will be
pumped to two separate tailings thickeners for water recovery. After thickening, the
material will be pumped into one of four tailings pressure filters. These filters will
reduce the moisture to a level for disposal to dry stacked tails.
Should a paste backfill option be considered during future studies, material after
filtration could be sent to a paste silo feed thickener. In this latter case, the material
could be withdrawn for use as required and transported to the underground mine portal
where it would be mixed with cement prior to use underground as backfill.
The pyrochlore concentrate product will be a much smaller mass and will first be sent
to a small concentrate thickener and filtered.
17.6 Concentrate Pre-Treatment
There are two options to pre-treat the flotation concentrate. If the concentrate grade is
between 10% and 30% Ta and Nb, then it is possible to perform a pre-leach with
strong acid to dissolve some of the gangue after which the material would be sent for
filtration. If the concentrate is more than 30% the non-acidified material would be sent
directly to filtration. After filtration, the concentrate would be dried and sent to the
concentrate receiving bin.
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Material would be recovered from the concentrate bin to a blender where flux (calcium
fluoride, quicklime), iron oxide, scrap aluminum and fuse mix would be added. After
blending the material is charged to burn pits. The aluminothermic reduction occurs in
these pits. After smelting and solidification, the alloy ingot (with adhering slag) is
removed from the burn pit by crane. After further cooling, the alloy ingot and adhering
slag would be broken, crushed and separated through the use of magnetic separation.
The slag material would be disposed of to tailings while the alloy material containing
the tantalum and niobium would be charged to the chlorination system.
17.7 Chlorination and Distillation
The material, which is charged into the chlorination system, will be set into fixed
charge pots where chlorine will be added and the mixture will be heated to 350°C. The
mixed chloride product from chlorination of the ferroalloy smelting product will then be
distilled to achieve high purity Ta and Nb chlorides. These distillation products will be
captured by separate condensers.
17.8 Product / Materials Handling
A conveyor is planned to transport materials from the portal to the plant.
17.9 Energy, Water, and Process Materials Requirements
Power for the proposed operation will be sourced from B.C. Hydro. The most
appropriate source will be investigated during more detailed Project studies.
17.10 Comment on Section 17
In the opinion of the QP, the metallurgical programs completed on the Blue River
Project have met their objective of identifying a processing method allowing for the
extraction of tantalum and niobium mineralization that has reasonable prospects of
being economic. Additional work is required to confirm the extractive metallurgy of the
concentrate, produce the target flotation concentrate grade and examine the response
of the process to variability of mineralization within the deposit and process conditions.
The following interpretations apply to the plant design and metallurgical testwork
results:
Tantalum and niobium occur as ferrocolumbite and pyrochlore, which are
amenable to conventional flotation and proven refining processes with estimated
recoveries of 65% to 70%. For the purposes of the financial analysis in Section 22
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of this Report, it was assumed that the process plant will have a 65% recovery for
Ta and 69% recovery for Nb in the flotation stage. The refining process will have a
97% recovery for both Ta and Nb.
Optimization of the supply and pricing of reagents for the refining process may
support lower operating cost assumptions.
Metallurgical testing has not yet attempted to demonstrate that a 30% combined
oxidized concentrate grade as a feed for the refining stage is achievable.
The proposed refining methods have been used in commercial applications but
have not been demonstrated in test work of Blue River material.
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18.0 PROJECT INFRASTRUCTURE
18.1 Introduction
This project infrastructure section incorporates assumptions, analysis and findings of
the Preliminary Economic Assessment that has an effective date of 29 September
2011.
The information relevant to the project infrastructure supporting the preliminary mine
plan prepared during the 2011 PEA is included in this section and has not been
updated because AMEC considers that the assumptions supporting the outcomes
remain reasonable. The effective date of the 2011 PEA results remains 29 September
2011.
18.2 Site Layout
The overall Project site layout plan is included as Figure 18-1. The planned Upper and
Lower Portals will be located about 4 km from the plant site. At the front of the Upper
Portal (service portal) sufficient space will be provided to accommodate the required
facilities for operation.
18.3 Buildings
18.3.1 Mine Service Building
The plant service building will be a multi-purpose complex in a two story building east
of the process building. The first floor (18 m by 40 m) will be a maintenance bay for
minor repairs and maintenance of the mobile equipment and will have an office for the
maintenance foreman, a small parts area, a tool crib, and a storage area for safety
equipment.
Part of the first floor will contain the men’s and women’s dry. The second floor will be
the administration offices. The complex will be connected to the process building by a
covered walkway.
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Figure 18-1: Proposed Site Layout Plan
Note: Figure prepared by AMEC, 2011
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18.3.2 Truck Shop
A 24 m by 36 m truck shop on the southwest end of the site will be operated by a
qualified contractor. The required equipment and tools for regular maintenance and
possible repair of the haul trucks are assumed to be supplied by the contractor.
18.3.3 Warehouse
To save cost and construction time, the warehouse will be a 24 m by 50 m
Coverall-type fabric building. One third or more of the building will be dedicated to
warehouse cold storage, and the remainder allocated to fire water and potable water
tanks and a fire pump skid. The building will be equipped with an interior liner as an
insulation layer to minimize the potential of freezing inside the warehouse. This will
save the cost of insulation and heat tracing of the tanks, pipes and all equipment and
is easier for operation and maintenance.
Forklifts, pallet racking, bins, and carousels will be provided for handling materials.
Flammable products such as solvents and paints will be stored separately.
The Coverall-type building life expectancy is 15 years and it will withstand design snow
and wind loads.
18.3.4 Process Building
The process building will be a 22 m by 52 m steel structure building sitting on a
concrete foundation. The mill foundation will be on bed rock; a geotechnical
investigation is required prior to determination of the final location of the mill.
A 15 m diameter tailing thickener will be located to the south of the process building
with a walkway/pipe rack connection to the building.
18.3.5 Crushing and Screening Circuit
The preliminary site layout is designed to take advantage of the topography to
minimize earthworks. The secondary crusher will be located in the northeast corner of
the site at a higher elevation.
The conveyor span from the secondary crusher discharge will rise at 12° (an access
safety constraint) to reach the height of the screen above the fine ore bin.
Screen oversize will pass via a return conveyor to the tertiary crusher.
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18.3.6 Portal Infrastructure
A yard will be constructed in front of the Upper Portal, which will accommodate an
electrical substation and generator set, and office building, provision for storage,
ventilation infrastructure, and heater, air compressor, diesel storage, a first aid rescue
vehicle bay and a water tank.
The buildings and related facilities will be pre-engineered as much as possible.
Drinking water will be provided from the plant site water treatment plant by containers.
A portable wash room will be provided for workers. Sewage will be trucked to the site
wastewater treatment plant.
18.3.7 Explosives Storage
Ammonium nitrate, blended emulsion, and explosives will be delivered to site on
demand by contractors. A small storage magazine will be constructed at a distance of
about 200 m from the Upper Portal. Room for explosive storage will be provided by
excavating into the rock. The walls and roof will be reinforced and a lockable door will
be provided, as per the requirements of the Quantity-Distance Principles User’s
Manual published by the Explosives Regulatory Division of NRCan. The magazine will
hold boosters, delays, detonating cords, detonating caps, and other explosive
accessories.
18.3.8 Aggregate Crushing and Concrete Batch Plants
A crushing and stockpiling facility will be required during construction to provide
crushed product for roads and surfacing. The mobile plant assembly will include a jaw
crusher, screening plant, closed-circuit secondary crushing unit, and washing plant.
Concrete supply from nearby towns is assumed adequate for construction purposes.
An on-site concrete batch plant is not proposed for the project. Availability of existing
concrete supply should be examined in the next phase of study.
18.4 Roads and Logistics
18.4.1 Access Road
The road access design includes a short new road with a 7.2 m wide gravel surface
from the existing road to plant site about 80 m in length and a 1.5 km new service road
from the existing road to the Upper Portal and upgrades to the current access road.
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An existing 80 m-long bridge crossing over the Thompson River has a limited load
capacity and might not qualify for crossing heavy loads during construction or
long-term use during the life of the mine. Therefore a new bridge has been included in
capital cost estimate. Using the existing railway for shipment should be investigated in
next phase of study.
18.4.2 Haul Road
Dual-lane traffic requires a travel width (16.2 m) of not less than three times the width
of the widest haulage vehicle used on the road (assumed to be trucks of the size of
CAT 775F with 5.4 m of overall width).
Single-lane traffic requires a travel width (11 m) of not less than two times the width of
the widest haulage vehicle used on the road.
Shoulder barriers should be at least three-quarters of the height of the largest tire on
any vehicle hauling on the road wherever a drop-off greater than 3 m exists. The
shoulder barriers are designed at 1.5:1 (H:V). The width of the barrier is excluded
from the travel width.
There is one main haul road, from the site to the waste rock stock pile, that will have a
length of about 8 km (refer to Figure 18-1). The road from the upper portal to the plant
will be a service road for personnel and supplies.
18.5 Co-Disposal Storage Facilities
The PEA design for tailings and waste management is to construct a co-disposal
drystack facility.
18.5.1 Drystack Considerations
Filtered tailings stacks are often referred to as “drystacks” and that nomenclature is
used in this chapter. However, these facilities are not “dry” per se as the tailings, while
placed in an unsaturated state, do have moisture contents that are typically 70% to
85% of saturation. Generally the tailings are filtered to within a few percent of optimum
standard Proctor moisture content, which is typically on the order of 15% (wt water :
wt solids). The main distinguishing feature from other tailings deposits is that filtered
tailings stacks are a solid rather than the more typical slurry and need to be
transported using mechanical means versus hydraulic methods.
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Tailings drystacks are particularly suited to locations with flat or gently sloping storage
sites and arid environments where it is relatively easy to place and compact filtered
tailings into a stable geometry. However, unlike conventional slurried tailings, tailings
drystacks can also be placed on relatively steep terrain in a similar manner to
conventional waste rock facilities. Placement practices and drystack design can be
adapted to different environments and drystacks have been successfully constructed
in cold climates.
The Blue River site is expected to have about 1.5 m of precipitation annually (KCB
2009a). The site experiences a cold winter and steep topography which can present
challenges for construction of a tailings drystack. AMEC notes, however, there are
operating drystacks in even wetter environments.
The general drystack concept for the Blue River site is to have an outer shell zone with
a general tailings placement area located upstream of the shell. The shell zone would
consist of well-compacted tailings placed only when it can be assured that such
compaction can be achieved. The waste rock could be placed inter-layered or mixed
with the tailings in the shell or could be used as armour on the face of the shell to
prevent erosion of the tailings surface. The outer shell would support a general tailings
placement area where tailings could be placed in poor weather and with less ability to
achieve compaction during winter months. The same operating attempts at
compaction would be made in winter/wet weather conditions but it is more difficult to
get assured densities. As a consequence, having a general placement area for such
materials where structural integrity of the overall stack is not at jeopardy if lower
densities are achieved is sound tailings management. It would also be possible to
store waste rock in the general placement area where it could be encapsulated within
the tailings. In order to effectively co-dispose of waste rock in the general fill area,
waste rock and tailings disposal would have to be appropriately timed and managed.
Typically, slopes of tailings drystacks are designed to be 3H:1V or less to minimize
erosion of the tailings on the downstream slope. This is particularly a consideration for
closure.
Steeper slopes will be required at the Blue River site due to topographical constraints.
The steeper slopes are achievable but require a potentially wider shell zone of good
compaction, confirmed foundation conditions for the shell and the slopes will require
erosion protection.
18.5.2 Evaluation of Potential Sites
A series of tailings storage location screening assessments were carried out during
2008, 2009, and 2010 (KCB 2009a, 2009b; AMEC 2010a, 2010b, 2010c), focusing
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mainly on conventional tailings storage. Some evaluation of potential waste rock
storage sites and a tailings drystack facility was undertaken in the 2009 studies.
The initial 2009 study (KCB 2009a) focused on the area in the immediate vicinity of the
deposits and was based on a desk study using available topography and other
information. Five conventional storage sites, using containment dams, were assessed.
The potential tailings drystack locations identified by KCB in 2009 are located on valley
sidehills and in flatter areas adjacent to the North Thompson River The tailings storage
facilities (TSFs) were assumed to be constructed of local borrow with slopes of
2.5H:1V and a settled density of 1.3 t/m3 was assumed for the tailings.
The second study carried out in 2009 (KCB 2009b) reviewed a number of alternative
sites for TSF storage away from the proposed mine site. The main focus of the study
was an industrial land parcel near Valemount, B.C., and consideration was given to
construction of a 40 Mt TSF, a plant, 30 kt of rock storage, and a rail-siding facility on
the property. Four other areas around Valemount were also considered as TSF
alternatives.
None of the options were considered ideal and additional studies were carried out over
an increasingly large area and with varying constraints to identify potential tailings
storage areas (AMEC 2010a, b, and c). Generally topographic and climatic conditions
are challenging for surface storage of tailings and no ideal location has been identified.
Given the current stage of project development and the constraints imposed, the input
provided should be considered as conceptual. Tailings storage site locations
determined by Klohn Crippen Berger (KCB) in 2009 were visually identified by AMEC
staff during a reconnaissance flight in July 2010 and were visited on foot by AMEC
personnel.
However, the proposed tailings storage sites have not been visited by geotechnical
personnel, there have been no site investigations and there have been no specific
technical analyses in support of facility layout. The suggestions presented in the PEA
for tailings storage were based on engineering judgment, AMEC’s experience with
filtered tailings, and standard industry practice for similar facilities.
18.5.3 Site Selection
Additional review for the PEA indicated that a site identified by KCB in 2009, termed
WSF3 and shown in Figure 18-1 as the co-disposal site, could be utilized, since the
volume of tailings storage had been revised downward from about 30 Mt as
conceptualized in 2009 to 22 Mt in the PEA. The facility was moved uphill slightly
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relative to the 2009 study to take advantage of locally flatter areas and reduce the
footprint of the facility in steeper areas.
Additional optimization of the facility layout could be carried out in consideration of
local topography and stability; however the volumes and areas would not be expected
to be significantly altered.
18.5.4 Facility Design
The facility was laid out with 2H:1V slopes. Attempts were made to use flatter slopes;
however, due to the topography, they were not feasible. If the project is advanced to a
later stage, the slopes could potentially be locally flattened in specific areas of flatter
topography. The facility will have the following dimensions:
Total storage volume: 20.9 Mm3
Total footprint area: 534,000 m2
Total surface area of drystack: 559,000 m2
Volume of sloped (shell) portion of facility (shell portion of facility): 13.2 Mm3
Footprint surface area under slope (shell): 385,000 m2
Surface area of sloped (shell) portion of tailings: 416,000 m2.
Conceptually, the sloped portion of the drystack would form a structural shell,
supporting the general tailings placement area behind it. The shell zone would consist
of compacted filtered tailings possibly interlayered or mixed with waste rock. Stringent
placement control and compaction would be required in the shell. It is possible that
the limits of the shell zone could be optimized at a later stage. The general tailings
placement zone would allow for placement in wet and cold weather when there would
be less assured compaction. Operating practices for the general tailings placement
zone will be identical to those required in the shell area.
Depending on the timing of any mine start-up and the tailings production schedule, it
may be necessary to construct a starter berm from non-tailings material to provide
sufficient storage for the first winter of tailings placement. The starter berm could be
constructed of non acid generating waste rock, general rockfill or granular overburden
obtained from a local borrow source.
Based on the volumetric proportions of the shell and general placement areas and
assuming a six-month period available for shell construction, there may be a deficit
with respect to the amount of tailings and waste rock available to construct the shell
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zone at certain points during operation. It is likely that the configuration of the facility
could be optimized during design to overcome this deficit. If supplemental fill material
were required in the shell, it could consist of general rock fill or granular overburden.
The option of storing some of the tailings produced during the winter for placement in
the drystack during the summer construction season could also be considered.
18.5.5 Co-Disposal Facility Geohazards Considerations
The area in the vicinity of the deposits has steep-sided valleys with glaciers located in
the upper portions of many of the catchments and visible avalanche tracks. The
WSF3 site is located on a side-hill near the mouth of the valley, away from the glaciers
located farther up the valley. It is also located on a spur minimizing the risk of
avalanches. A site-specific geohazards evaluation for the site has not been
completed, however, and should be carried out as the Project is advanced.
18.5.6 Co-Disposal Facility Stability Considerations
The 2H:1V slope required because the topography at the Blue River site is steep
compared to typical tailings drystacks. However, in such situations, flatter slopes are
often developed to minimize operating and closure erosion concerns. From a purely
structural stability perspective, provided the shell zone of appropriate size can be
developed while meeting compaction criteria, the use of 2H:1V slopes is acceptable.
Additionally, the general fill zone behind the shell is intended to allow placement of
tailings during poor weather and will potentially have lower strength and likely areas of
wetter tailings. The shell zone is therefore necessary to support the facility and will
require significant compaction and placement control to provide sufficient resistance.
The foundation is expected to consist of colluvium and/or silty to sandy tills which
should not be a concern with regard to overall stability, although this will require
confirmation as the project is advanced. A toe berm or shear key may be required for
stability of the drystack depending on specific foundation conditions. This should be
assessed in future design stages.
The Project is located in a moderately seismic area (KCB 2009a) and stability under
seismic loading will have to be considered during design of the facility. Because of
their unsaturated nature, the general placement tailings are considered unlikely to
liquefy and the shell tailings will not present a concern because the compacted nature
of the downstream shell will result in dilative behaviour under shear further improving
liquefaction resistance. Rain, ice, and snow may potentially create isolated areas in
the general placement area that are saturated and poorly compacted, and therefore
locally susceptible to liquefaction. It is highly unlikely that the entire zone would liquefy
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and over time the pore water in any saturated zones would seep out of the stack,
leaving it unsaturated and resistant to liquefaction in the long term. Although
liquefaction is not considered a concern, deformations due to increased loading during
seismic events will occur and should be quantified during detailed design phases.
For the Project base case it is assumed that the tailings facility does not require lining.
A requirement to line the facility would involve clearing and stripping the entire footprint
at start up, placing and compacting a bedding layer over the entire footprint, installing
the liner system over the entire footprint, and placing a protective cover layer over the
entire liner.
18.5.7 Co-Disposal Facility Surface Water Run-Off Considerations
Two surface water management systems will likely be required for the tailings
drystack.
The first system would divert non-contact (clean) water around the facility.
The second would collect run-off water which had been in contact with the tailings
drystack area.
Contact run-off water would have to be collected and potentially treated prior to
release, whereas the clean water would be diverted around the facility and into the
creeks downstream of the tailings facility.
The non-contact water diversion system would consist of a ditch located beyond the
final footprint of the drystack and would be a long-term structure. The contact water
collection system would consist of a ditch around the perimeter of the drystack
footprint and would be reconstructed annually, so as to be located slightly ahead of the
advancing drystack footprint. The perimeter ditch would require sediment-control
structures within it to help contain any tailings mobilized from the drystack. The
perimeter ditch would direct the contact run-off water to a collection and sedimentation
pond where eroded tailings could settle out and water treatment could be carried out if
required.
Located as it is on a side-slope and near the nose of the ridge, there is little catchment
area uphill of the drystack facility and it may be feasible to combine the two water
management systems, particularly upon closure. Combining the two systems would
increase the volume of water collected and potentially requiring treatment, however,
the increased water volume may also contribute to dilution of the contact water.
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18.5.8 Co-Disposal Facility Closure Considerations
At mine closure, the surface of the drystack would be sloped/contoured for drainage,
covered with an appropriate material and vegetated to enhance erosion protection.
The shell face will require armouring to reduce erosion. The perimeter ditches will be
increased in size and lined with rip-rap following mine closure to minimize the amount
of run-off water that comes into contact with the stack, further reducing the potential for
erosion. Depending on the chemistry and flows, it may be possible to combine the
water diversion ditch with the closure perimeter ditch.
The Project base case is that the uranium and thorium levels are sufficiently low to not
be a concern. If the levels were found to be an issue, however, it would affect closure
requirements. In addition to the potential difficulty of treating any seepage, if radon
gas emission was above regulatory levels, the cover system would have to be
designed to contain radon gas. Specific details of the cover would be based on
applicable regulations but it may well require that the cover last for a very long period
of time necessitating rock armouring among other considerations.
18.6 Avalanche Hazard
No allowance for avalanche protection for any infrastructure has been considered at
this stage, but considering the steep slope and possible heavy snow at the area an
avalanche study is recommended during more detailed studies.
18.7 Water Supply, Distribution, and Treatment Systems
The potable water system and layout for the process and administrative area is
designed to service buildings and a workforce of 120 persons. Potable water for the
mining section will be constructed as part of the portal and underground infrastructure.
Raw water will be provided from a well and a prefabricated water treatment module will
treat water to standard drinking water requirements. Treated water will be stored in a
potable water tank.
Fire protection water for the construction camp and later for all buildings will be
provided by a prefabricated diesel-driven fire and electric jockey pump on a skid that
will be located in the coverall building.
Both the potable and the dedicated fire water tanks will be located under the coverall
building adjacent to the fire pump skid and the water treatment module.
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Potable and fire water will be distributed to the plant buildings through separate pipes.
All water mains will be buried to a depth in excess of 3 m, or will be insulated providing
an equivalent degree of cover to prevent freezing.
18.8 Waste Considerations
Waste-water treatment sludge will be trucked away to a nearby municipal facility or
approved landfill.
Waste lubrication and hydraulic oils from vehicle maintenance will be stored in
dedicated tanks and sent to a recycling facility offsite. Their disposal will be contracted
to an approved contractor.
A modular sewage treatment system will be installed as part of the initial construction
infrastructure. A small package treatment plant will provide treatment to the domestic
sewage at the site. Effluent from this plant will meet specified water discharge
guidelines prior to discharge into the environment.
Buried gravity sewer lines and manholes will collect and direct sewage from the
service building and truck shop to an equalization tank adjacent to the wastewater
treatment module for treatment.
18.9 Accommodation
Contractors and employees will commute from the nearby towns, such as Blue River
and Valemount, during construction.
No on-site permanent accommodation will be provided for personnel. It is assumed
that the workforce, including management staff, will reside in the nearby communities
and will commute, via buses, on a daily basis. For safety reasons, no private vehicles
will be permitted on the site access road or at the site.
18.10 Power and Electrical
Power supplies in the region have been assumed to be sufficient for Project
requirements, and no allocation for additional power line construction has been
included.
The BC Hydro 136,000 volt supply line for the North Thompson valley passes through
the west side of the property adjacent to the rail line. The 20 megawatt Bone Creek
run-of-river hydroelectricity project, owned by Transalta Corp., was commissioned in
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June 2011, and is adjacent to the Project area its powerhouse is located approximately
4.4 km south of the Lower Portal.
The mill will be the greatest consumer of power. The high voltage line from the grid
would go to a main substation close to the mill. From this sub-station, lower voltage
power will be distributed to the mill, offices, maintenance shop, and other
infrastructure, and to the proposed mine substation. The PEA assumes power will be
supplied to the mine via the portals. The sub-station for the main power distribution
system and the air compressors will be installed in facilities located adjacent to the
Upper Portal.
18.11 Fuel
Fuel will be delivered to the mine site using tanker trucks. The fuel storage tanks will
be single-walled within a lined containment berm. Tank design will comply with the
appropriate regulatory requirements.
18.12 Comment on Section 18
In the opinion of the QPs, the following conclusions are appropriate:
The project infrastructure supporting the preliminary mine plan prepared for the
2011 PEA remains appropriate and current for the conceptual mining method,
mineral processing method, treatment plant and planned throughput rate.
Infrastructure envisaged includes a plant, plant service building, truckshop, potable
and process water systems, a sewerage system, co-disposal site, underground
mining operation, conveyor system, and various haul and access roads. The
planned Upper and Lower Portals will be located about 4 km from the plant site.
The co-disposal facility will be about 8 km from the plant site.
Facilities to support mine operations will require construction.
No on-site permanent accommodation will be provided for personnel. It is
assumed that the workforce, including management staff, will reside in the nearby
communities and will commute, via buses, on a daily basis.
Geohazards are present in the area, and will require careful consideration in future
studies.
Water management studies, in particular for the co-disposal site, will be required.
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19.0 MARKET STUDIES AND CONTRACTS
19.1 Introduction
This section includes a summary from the 29 September 2011 Preliminary Economic
Assessment (the PEA) by AMEC (Chong et al., 2011). AMEC has reviewed recent
publicly available information for Ta metal prices and Nb metal prices as at May 2012
and found that the Ta and Nb prices used for both the 22 June 2012 Mineral Resource
update and the 2011 PEA to remain as reasonable assumptions, which are US$317/kg
tantalum metal and US$46/kg niobium metal.
19.2 2011 PEA Market Studies
For the 2011 PEA, Commerce prepared assessments of the tantalum and niobium
markets which outlined their supply and demand. The tantalum assessment was
prepared by a tantalum market expert employed by Commerce who is not
independent. His analysis reflected the general consensus of other analysts regarding
the tantalum market expressed in publicly available information.
The 2011 PEA niobium assessment was prepared by an independent niobium expert
and also reflected the general consensus of analysts in publicly-available information
for the niobium market.
As the Project is still at an early evaluation stage, Commerce has not initiated requests
for expression of interests from potential buyers of the proposed Blue River products
and has not negotiated any purchases or off-take agreements.
19.3 2011 PEA Commodity Price
19.3.1 Tantalum
Tantalum is commonly quoted in two separate forms:
Ta2O5 in tantalite concentrate: a non-refined, tantalum-bearing concentrate of
variable composition and trace element content; and
Tantalum metal scrap (99.9% pure Ta): this form of tantalum product receives a
premium price in the market relative to tantalite concentrate.
Over the five years from 2005 to 2010 tantalite concentrate prices ranged from
US$75/kg contained Ta2O5 to US$100/kg contained Ta2O5 (US$35/lb to US$45/lb). In
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the same period tantalum metal scrap prices ranged from US$110/kg Ta to US$180/kg
Ta metal (US$50/lb to US$80/lb).
In 2010, prices rose dramatically in response to changing market conditions including
reduced production, increased concerns about conflict-tantalum production in Africa,
depletion of known strategic stockpiles, and curtailed exports from China. In mid-
October 2010 the price for Ta2O5 in tantalite concentrate was US$195/kg and for
tantalum metal scrap was US$280/kg.
The higher price for tantalum metal scrap compared to the price for Ta2O5 in
concentrate is considered a proxy to the added value Commerce should recognize by
refining the Blue River concentrate to high purity Ta2O5.
In AMEC’s opinion, the base case price for tantalum (US$317/kg) is reasonable for
constraining mineral resources based on recent market conditions, but notes it is
significantly higher than historical prices. There is a risk that using current price
assumptions may not reflect the long term price of Ta and Nb, particularly in the
present volatile market conditions.
19.3.2 Niobium
Niobium generally trades as Nb metal, or ferroalloy, and the price has remained
relatively constant at US$44.08/kg Nb metal (US$20/lb Nb) over the last several years.
A base case price of US$46/kg Nb metal was assumed.
19.4 Price Assumption Discussion
Review of recent publicly available information on Ta and Nb prices by AMEC notes
that the market prices have not changed significantly enough to warrant altering the
2011 PEA price assumptions (Ta US$317/kg and Nb US$46/kg) for the current mineral
resource update (Figure 19-1 and Figure 19-2).
AMEC believes the market studies prepared for the 2011 PEA provide a reasonable
basis for the long-term Ta and Nb prices used in the 2011 PEA and that the
assumption that there will be a market for future mine production is also reasonable.
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Figure 19-1: Ta Price Trend
Note: Table and Ta price trend from www.metalprices.com on 22 May 2012. US$92/lb Tantalite is
equivalent to US$317/kg Tantalum.
2011 PEA Price $US 92 /lb Tantalite
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Figure 19-2: Nb Price Trend
Note: Table and Nb price trend from www.metalprices.com on 22 May 2012. US$21/lb Nb is equivalent to
$US 46/kg Nb.
19.5 Comment on Section 19
In the opinion of the QPs, the following conclusions can be drawn from the marketing
strategy used to support the PEA:
Commerce has prepared assessments of the tantalum and niobium markets which
outline the supply and demand for tantalum and niobium.
As the Project is still at an early evaluation stage, Commerce has not initiated
requests for expression of interests from potential buyers of the proposed Blue
River products and has not negotiated any purchase or off-take agreements.
The price assumptions from the 2011 PEA are still reasonable and are suitable to
use in the current (22 June 2012) mineral resource estimate.
PEA 2011 $US 21/lb Nb
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20.0 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR
COMMUNITY IMPACT
20.1 Environmental Assessment for Mining Projects
The Blue River Project will require approval under the Federal and Provincial
environmental assessment (EA) processes prior to applying for the necessary permits
and authorizations for construction and mine operation. This section discusses the
environmental assessment and permitting process as it stands today, and describes
the principal licences and permits which would be required for the Blue River Project.
The British Columbia Environmental Assessment Office (BCEAO) and the Canadian
Environmental Assessment Agency (CEAA) would both conduct an environmental
review of the Upper Fir Project, as defined respectively under the B.C. Environmental
Management Act and the Canadian Environmental Assessment Act.
Overall the environmental review of a project is a process that could take up to
24 months to complete. The process would include the development of several
important documents by Commerce, including the Project Description, Assessment
Information Requirements and an Environmental Impact Assessment application,
followed by the review of these documents by the public, interested stakeholders, First
Nations and regulators.
Both the Provincial and Federal processes have defined timelines for project review
though these timelines are not yet currently harmonized and past attempts to do so
have not been overly successful. Though this is under review, enabling regulations
have not yet been passed, and under present legislation, the Federal timeline is likely
to be the longer of the two at up to two years to review the Environmental Assessment
application and make a decision, while the provincial application review stage is 180
days plus 45 days for decision. Additionally, the Federal clock is stopped each time
CEAA submits comments to the proponent for review, to respond to, or revise; this can
possibly extend the time line.
There is also a need for additional time on the front end of the process to develop the
Project Description. This document must first be accepted by the regulators, and then
will be used to develop Assessment Information Requirements or Terms of Reference
which must be put out for public review prior to acceptance. These Assessment
Information Requirements will define the content required for the Environmental
Assessment application. The Federal government allows 90 days for this, while the
Provincial government has no timeline on this process.
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The environmental review and assessment process results in a decision with respect
to whether or not the Project should be issued an Environmental Assessment
Certificate by the Provincial government, as well as receive Federal Ministerial
approval based on the recommendations put forth to the Minister of Environment in a
Comprehensive Study Report prepared by the Major Projects Management Office.
Both are required for a project to proceed to permitting and development.
20.2 Project Studies
Environmental monitoring, baseline studies and site investigations have been ongoing
at the Blue River Project site since the summer season of 2006 with the selection of
local and regional studies areas for each biophysical discipline.
Field studies completed by specialist consultants independent of Commerce
Resources include:
Site hydrology (2006–present);
Snow course depths (2007, 2008);
Fisheries and aquatics (2006–2008);
Soils, flora and fauna assessments (2006, 2007), including studies of rare,
threatened and endangered plants (2007), breeding birds (2007) and terrestrial
ecosystem mapping (2006, 2007), wildlife studies and habitat suitability mapping
(2006–2008);
Geochemistry, mineralized material and waste rock characterization with baseline
ABA and metals analyses (2007, 2008);
Surface water and sediment quality (2006–present);
Groundwater (2007–2009); and
Terrain stability assessment for roads (2007–present).
Kinetic test work for ARD/ML was initiated in June 2010 and is ongoing; results of this
work will give an indication of the type of management strategies required for handling
PAG waste rock.
Additional environmental baseline programs are expected to continue, as required
through 2012.
Monitoring of meteorology, air quality, hydrology, and water quality will continue
throughout the construction, operation, closure and post-closure phases.
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It is anticipated that with this work and the results of the PEA in hand, Commerce will
have the necessary information to start development of a draft Project Description
which is a prerequisite to entering the Environmental Assessment process. These
data will provide a strong base to initiate meetings with the BCEAO and CEAA, as well
as with key provincial regulators such as Ministries of Energy and Mines, Forests
Lands and Natural Resource Operations, and Environment, to discuss specific project
requirements under the Provincial and Federal environmental assessment processes.
Summaries will be prepared of baseline data collected and work plans as appropriate
for submission, review and input by Federal and Provincial regulators.
20.3 Environmental Setting and Review of Environmental Baseline
Characterization of existing environmental conditions, which began in 2006, is an
important component of the risk management and permitting process for the Blue
River Project.
The Blue River Project area is located within the B.C. Ministry of Environment
Thompson-Nicola Region (Region 3), what was the Ministry of Forests and Range
Headwaters Forest District and Fisheries and Oceans Canada Sub-district 29J
(Clearwater). It falls towards the northern end of the Kamloops Land Resource
Management Plan (LRMP) which was approved by the province in 1995. This LRMP
is the first plan of its kind in British Columbia in that it is a locally-developed plan that is
designed to guide land and resource management decisions in a way to balance
community needs, environmental concerns and economic values. This LRMP is
termed a sub-regional integrated land use plan in that it establishes the framework for
land use and resource management objectives and strategies. The Plan requires that
more detailed operational plans which are subsequently developed be consistent with
the management strategies and objectives defined in the LRMP.
Following implementation of the B.C. Mountain Caribou Recovery Strategy, site-
specific objectives and strategies for caribou management were developed (first in
2006, then updated in 2009) which included objectives pertaining to mineral
exploration. The Blue River Project area falls within the Wells Gray-Thompson caribou
planning unit (unit 4A). In this case, the relevant portion of the LRMP was repealed
and replaced under a Government Actions Regulation (GAR) by a
caribou-management strategy, specifically the identification of Ungulate Winter Range
(UWR) zones. The GAR order states that exploration and mine development activities
within the UWR are considered by the government to be an acceptable risk to caribou,
and are allowed to proceed without requiring an exemption from the Ministry of
Forests, Lands and Natural Resource Operations.
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The bulk of the infrastructure proposed for the Blue River Project falls within an area
identified as a Modified Harvest Zone. In such zones, operational activity is expected
to be considerate of caribou habitat and disturbance in caribou areas. Commerce is
committed to seeking specialized professional advice to minimize or eliminate
disturbances to caribou using best management or other practices. Wildlife studies to
date suggest that caribou are recorded only rarely in the area of the proposed Project.
The larger Blue River Project area lies on the eastern side of the south-flowing North
Thompson River where claims held encompass portions of the Bone, Gum,
Moonbeam, Paradise Lake, Pyramid, and Serpentine Creek watersheds. The overall
relief is moderate to steep, with an average elevation of 1,625 m, a maximum elevation
of 3,225 m, and a minimum elevation of 580 m. Some small glaciers exist in the
easternmost part of the Project area, and moderate to steep forested slopes rise
above the North Thompson River valley. The North Thompson River drainage
continues south to join the South Thompson River at Kamloops, B.C.
Proposed Project infrastructure is located along a western-facing slope immediately
above a gravelly part of the North Thompson River valley, and includes portions of the
Bone and Gum Creek watersheds as well as residual areas draining directly into the
North Thompson River. The tree line is located at approximately 2,000 m elevation,
and the Upper Fir deposit centre is located at 1,180 m elevation along a network of
previously-constructed logging and skid roads. Much of the area of the proposed
Project infrastructure, including the Upper Fir deposit had been logged prior to the
commencement of mineral exploration. Naturally-occurring outcrop is generally poor,
with limited exposure of underlying country rocks along road cuts and locally in
streams.
The area has a continental climate which is subject to frequent modification by
maritime air masses from the Pacific Ocean. The area is part of a "wet belt" which
occupies part of eastern British Columbia. Heavy snow falls occur almost every
winter, in which temperatures stay close to the freezing point when maritime air
dominates. The most severe cold spells may send thermometer readings below -
40°C/F. Rain is frequent in other seasons. Summer days are warm or occasionally
hot, with thunderstorms often spawning over the nearby mountains. The optimal field
exploration season is mid-June through mid-September.
Streams within the Project Area are generally characterized by a snowmelt-dominated
peak rising in April or May and peaking sometime between June and July. Rain-on-
snow events occasionally occur in this region and these can enhance both winter flows
and spring peaks. In addition, late fall rainstorms are common, recharging soil
moisture heading into winter and producing short-duration peak flows. Low flows
occur generally from the end of November to March, and in hot summer months, with
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the lowest flows commonly occurring in January or February. No wetlands have been
identified within areas of proposed Project infrastructure.
Surficial materials were typed for texture, drainage, moisture and nutrient regime, and
parent material. This not only supports ecosystem classification, but also provides
baseline soils data for eventual environmental impact assessment and reclamation
planning. Materials range from colluvial veneers to fluvial plains, glaciofluvial terraces,
rock, and morainal blankets. On the Upper Fir slope, morainal materials are most
common, while fluvial and glaciofluvial deposits are limited to lower elevations near the
valley bottom. Silts and sands are the most prevalent soil textures, although mixed
fragments, rubble, and gravel also occur. Overall the deposits are relatively shallow,
although blankets, which have more than 1 m of surficial materials (e.g., glacial till),
are much more common than veneers, which have less than 1 m of surficial materials.
Soil moisture and nutrient regime are generally average over the majority of the site
and have formed in place within morainal and glaciofluvial landforms.
Brunisols are the most dominant soil order found, while podzols are secondary,
becoming more prominent in areas with increasing rainfall and elevations above
1,500 m. Soil quality and quantity appear to be adequate to support soil salvage and
reclamation activities in the area of the proposed development. Soil fertility suggests
normal levels of soil nutrients as compared to other mine sites in B.C. Soils are
moderately acidic (i.e., pH 4-5.5) and considered normal for mesic, conifer-dominated,
forested vegetation in similar areas. Soils are very rapidly to imperfectly-drained with
soil moisture regimes ranging from sub-xeric to hygric and soil nutrient regimes limited
to moderate and rich.
Terrestrial Ecosystem Mapping (TEM) was completed to describe terrestrial
ecosystems according to the bioterrain base and standards established by British
Columbia’s Resource Information Standards Committee. The Blue River Project falls
within the Cariboo Mountain Ecosection of the Northern Columbia Mountains. Two
biogeoclimatic zones are found in the project study area. These are the Interior Cedar
Hemlock (ICH) zone, which occurs at lower elevations, and the Engelmann Spruce
Subalpine Fir (ESSF) zone which occurs at higher elevations above the ICH zone.
Biogeoclimatic zones, subzones and variants within the Study Area were classified
using the Ministry of Forests Biogeoclimatic Ecosystem system. The following
subzones/variants are present within the larger project study area:
Wells Gray Wet Cool Interior Cedar – Hemlock Variant (ICHwk1)
Mica Very Wet Cool Interior Cedar – Hemlock Variant (ICHvk1)
Northern Monashee Wet Cold Engelmann Spruce – Subalpine Fir Variant
(ESSFwc2)
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Wet Cold Engelmann Spruce –Subalpine Fir Woodland Subzone (ESSFwcw)
Wet Cold Engelmann Spruce – Subalpine Fir Parkland Subzone.
Much of the area is forested, although avalanche chutes punctuate the landscape at
seemingly regular intervals and forest harvesting has been extensive at lower to mid
elevations.
In terms of vegetation, the area directly covered by the proposed Blue River Project
infrastructure is relatively small and generally characterized by common plant
communities associated with five biogeoclimatic subzones (ICHwk1, ICHvk1,
ESSFwc2, ESSFwcw and ESSFwcp). Based on an assessment of biogeoclimatic
units in the Study Area and the B.C. Conservation Data Centre species at risk list for
the Headwaters Forest District (B.C. Conservation Data Centre 2006), at least 37
ranked plants may occur within the larger study area. However, a field study of rare
vascular plants identified only four populations of two Provincially-listed rare plants
(Galium trifidum ssp. trifidum and Carex paysonis) occurring outside the current project
envelope. No Federally-listed plant species or plant communities were identified.
The region encompassing the proposed Project infrastructure is likely home to many
terrestrial wildlife species including black and grizzly bears, deer, moose and mountain
goats; birds are likely to include osprey, eagle, woodpecker and raven, migratory
songbirds, raptors; and numerous small mammals.
Wildlife species of concern, whose confirmed distribution intersects that of the Blue
River Project area, include the blue-listed grizzly bear (Ursus arctos) and red-listed
mountain caribou (Rangifer tarandus caribou). Mountain caribou presence on the
larger area of the mining claims making up the property and in the general area has
been confirmed through ongoing government radio-telemetry studies. Mountain
caribou are a Federally- and Provincially-listed species and are of considerable
concern to the public. They have the greatest potential to interact with the Project
property in early winter.
Due to deep snow pack in the region, and considerable management and local
interest, other species of concern include mountain goat (Oreamnos americanus) and
moose (Alces alces). Mountain goat winter range exists throughout the area, with
occupied ranges within 2 km of the area of potential Project development. Moose are
the most heavily-hunted ungulate in the area. Moose winter range occurs throughout
the North Thompson valley, with valley wetlands and early seral stage habitats of
prime importance.
Habitat suitability was assessed for wildlife focal species selected based on their
at-risk status under the British Columbia Conservation Data Centre (CDC) and the
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Committee on the Status of Endangered Wildlife in Canada (COSEWIC) systems, and
their level of local concern. Species include mountain caribou (Rangifer tarandus
tarandus; southern populations), moose (Alces alces), grizzly bear (Ursus arctos),
mountain goat (Oreamnos americanus), and marten (Martes americana). Specific
habitat notes were also recorded for other species such as deer (Odocoileus sp.), elk
(Cervus canadensis), wolves (Canis lupis), and black bear (Ursus americanus).
Habitat ratings suggest moderate and high suitability for mountain caribou during the
early winter season in the ICH. Moderate ratings were also assigned to marten in
many sites in the ICH. No sites were rated as high or moderate suitability for mountain
goat in the immediate areas of potential Project infrastructure.
Regional and site specific fisheries studies show that bull trout and mountain whitefish
are utilizing lower Gum Creek for rearing. Bull trout consisted of both juveniles and
young-of-the-year suggesting that it is being used for spawning by this species. The
lower reach of Bone Creek is being utilized by coho salmon, parr, and torrent sculpin.
Benthic invertebrate data were also collected. Habitat available for fish within Gum
and Bone creeks is limited to their lowermost reaches, near their mouths. Gum Creek
fish habitat use is limited to the lowermost portion of the creek, from the mouth to
600 m upstream before a falls/gradient barrier (>20%) and fish distribution in Bone
Creek is limited to the section from its confluence with the North Thompson River to
approximately 2,100 m upstream before an impassable water fall.
Water quality studies were conducted at various sites within the Project area from
2006 to the present, with the objective of providing a long-term record of the relative
chemical stability of the project area. Samples were analyzed for physical variables,
anions, nutrients, total organic carbon, and total and dissolved metals. Data for each
site were compared to the Canadian Council of Ministers of the Environment (CCME)
and B.C. water quality guidelines (BCWQG).
Total suspended solids (TSS) and turbidity values tend to be the highest at sample
sites in the North Thompson River and Bone Creek, the latter the result of small scale
debris flows upstream caused by larger rain events. Metals that exceeded the
applicable aquatic life protection guidelines included total and dissolved aluminum,
total and dissolved cadmium, total chromium, total cobalt, total and dissolved copper,
total and dissolved iron, and total lead, total manganese, total selenium, total silver,
total thallium and total zinc. Of these, dissolved cadmium, total cobalt, dissolved
copper, total and dissolved iron, total manganese, total selenium, total silver, total
thallium and total zinc did not exceed the applicable guidelines in most years. In most
years, concentrations of total chromium and total copper tend to be naturally elevated
in the North Thompson River and Bone Creek compared to other sites. As the Project
is at the exploration stage, these values reflect natural background values. While
elevated metal concentrations were noted in the sediment samples from selected
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streams, chromium was the only metal to exceed CCME Sediment Guidelines in one
sample collected from Bone Creek.
Samples from surface rocks and drill core were collected and tested as part of the
Upper Fir acid rock drainage/metal leaching (ARD/ML) characterization program.
Laboratory tests included static acid-base accounting, total inorganic carbon and a
standard multi-element ICP suite on material solids.
A subset of samples were submitted for additional testing including solids trace
element/rare earth element (REE) chemistry, short-term leach extraction tests, acid
buffering characteristic curves (ABCC) and mineralogical analysis including
petrography and Rietveld XRD. All carbonatite samples tested were classified as non-
potentially acid generating (non-PAG). Paste pHs for nearly all host rock samples
were near-neutral to alkaline indicating currently available buffering capacity in the
samples at the time of testing.
Most country rock in the Upper Fir deposit was characterized by generally low to
moderate sulphide content (<1% sulphur) and low to moderate neutralization potential
predominantly provided by slower reacting silicate minerals. However, a minor
proportion of country rock (~10% of samples) was associated with elevated sulphide
content (>1% sulphur). These rock units showed a range in acid generation potential
classifications, and in particular, a significant proportion of gneiss (~52% of gneiss
samples) was considered potentially acid generating (PAG). The majority of
amphibolite (~85%) and pegmatite (~65%) samples were classified as non-acid
generating (non-PAG), with a minor proportion classifying as PAG, typically associated
with higher sulphide samples. Fenite material was considered to be non-PAG.
Based on this initial characterization program, though some proportion of waste rock
appears to be PAG, it would appear that the Blue River Mineral Resource has an
overall low potential for acid rock drainage/metal leaching (ARD/ML) generation,
especially if waste segregation strategies can be incorporated into proposed mining
methods. Kinetic test work on two composite samples remains ongoing and results
will be incorporated into planning for additional sampling as well as modeling of PAG.
No work has yet been completed on the ARD/ML potential of tailings.
Hydrogeologic investigations show that groundwater elevation in bedrock roughly
mimics topography in the Project area, so flow in the vicinity of the Upper Fir Deposit is
generally from east to west. Groundwater depth in boreholes was observed to range
from 15 m to 130 m in the area of the deposit, and is near the surface at lower
elevations. Most groundwater flow through bedrock occurs through fractures, and the
bulk hydraulic conductivity of bedrock was estimated to range from 10-8 m/s to
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10-6 m/s. Due to fracture-control, flow through bedrock is likely complex, and may not
be well connected to the surface.
Of the six groundwater samples collected in 2009, the British Columbia Ministry of the
Environment Water Quality Criteria for Freshwater Aquatic Life (BCMOE) and the
Canadian Water Quality Guidelines for the Protection of Aquatic Life (CCREM) criteria
for aquatic life were exceeded in five samples for fluoride, one sample for aluminum,
three samples for chromium, one sample for copper, and three samples for zinc. No
other parameters exceeded these criteria. However, as the boreholes used in this and
past hydrogeology studies of the Project site are deep exploration holes, and were not
developed or purged prior to sampling, sample chemistry may not be accurately
characterizing existing groundwater conditions.
Current air quality at the site is considered excellent with limited influence from road
traffic and forestry activities. No site specific data has been collected to date.
An initial review of environmental conditions and planned project features indicates
that proactive design and mitigation can be successful in addressing environmental
impacts associated with developing, constructing, operating and closing the proposed
Blue River Project. As with other projects in the many B.C. mines located in
mountainous terrains, water management will be a key issue.
20.4 Closure Considerations
Commerce has engaged in progressive reclamation activities during exploration since
geological work and drilling began to focus on the area of, and around, the Upper Fir
resource.
Conceptual closure planning for the Blue River Project involves staged reclamation
and closure over the life of the exploration, development, construction and operation of
the mine. This will include appropriate contouring and revegetation of any waste
dumps, the Upper and Lower Portals, the drystack tailings storage facility, closure of
exploration roads, trails and platforms, closure of mine roads and removal of all mine
facilities, as well as post-closure management and monitoring plans for a defined
period of time.
It is expected that the initial design of the drystack tailings storage facility, water
storage, diversion and water management structures, waste rock dumps, and other
mine and plant facilities will be integrated into closure designs for each component as
well as for the mine as a whole.
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20.5 Current Environmental Liabilities
Current environmental liabilities are believed to be restricted to exploration drilling
programs. Existing disturbances due to exploration include drill pads, trails and
access ways, which are remediated in an ongoing program of progressive closure
once Commerce establishes exploration has been completed in a particular area.
Under the existing exploration permit, a reclamation bond is in place which will cover
the cost of any outstanding reclamation from these activities.
20.6 2011 PEA Closure Plan
For the purposes of the PEA, a closure estimate of CAD$10 million was incorporated
in the financial analysis. The figure was obtained by benchmarking to similar-size
mines with the same level of complexity.
20.7 Permitting
Following environmental assessment approval, permits needed for construction and
mine operations can be issued. In B.C. there is an option to apply for concurrent
permitting. This allows a review for permit applications to be processed at the same
time as the environmental assessment is being conducted, resulting in the permits
required for construction being issued shortly after a positive environmental review
decision.
Table 20-1 and Table 20-2 provide a listing of possible federal and provincial permits
that will be required for construction, mine operations, closure and post-closure.
This listing cannot be considered comprehensive due to the complexity of government
regulatory processes, which evolve over time, and the large number of minor permits,
licences, approvals, consents, and authorizations, and potential amendments that will
be required throughout the life of the mine. The permit requirements will be reviewed
and updated as the Project advances.
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Table 20-1: Provincial Permits, Approvals, Licences, and Authorizations
Provincial Permits Description ACT
Notice of Work Approval for exploration and site programs
to be conducted to gather geological and
other site information
Mines Act
Mines Act permit Approval to construct, operate and reclaim
mine and its infrastructure
Mines Act
Mining Lease Land occupancy for mine (sub-surface
rights)
Mineral Tenure Act
Surface Lease Surface land occupancy for mine and site
infrastructure
Land Act
Licence of Occupation Land occupancy for other features (e.g.
borrow pits)
Land Act
Statutory Right of Way Land occupancy for linear features Land Act
Waste Discharge Permit – Water Approval to discharge mine effluent and
sewage into the environment
Environmental
Management Act
Waste Discharge Permit – Air Approval to discharge air emissions into the
environment
Environmental
Management Act
Occupant Licence to Cut Approval to remove timber (mine,
infrastructure, borrow areas)
Forest Act
Road Use permits Approval to use existing forestry roads Forest and Range
Practices Act
Special Use permit Approval to construct new roads Forest Practices Code
of B.C.
Water Licence Approval to construct, maintain and
decommission water works
Water Act
Section 9 Approval Approval for changes in and about a stream Water Act
Section 8 Approval Approval for short term use of surface water Water Act
Authorization for Public Highway Use Approval to use public highways Transportation Act
Exemption Permit Approval to haul concentrate (if required) Transportation Act
Construction Permit To construct a potable water system Drinking Water
Protection Act
Table 20-2: Federal Permits, Approval, Licences, and Authorizations
Federal Permits Description ACT
Navigable Waters Approval Approval to build bridges across streams Navigable Waters Protection Act
Section 35(2) Authorization Allows harmful alteration or disruption of
fish habitat (HADD) (e.g. bridge upgrade)
Fisheries Act
Explosives Magazine Licence Approval to store explosives Explosives Act
Radio Licences Approval to operate radios Radio Communications Act
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20.8 Considerations of Social and Community Impacts
Socioeconomic and cultural heritage studies have not yet been initiated for the Blue
River Project. Basic community profiling has been completed of the individual
communities nearby as well as relevant regional government and planning
organizations. This work shows that as with other areas of rural B.C., there is a large
dependence on primary resource industries, and overall the population of the area is in
decline.
The Blue River Project is located in the North Thompson River valley within the
Thompson-Nicola Regional District (TNRD). TNRD functions as a partnership of
11 member municipalities (Ashcroft, Barriere, Cache Creek, Chase, Clearwater,
Clinton, Kamloops, Logan Lake, Lytton, Merritt and Sun Peaks) as well as 10 electoral
areas whose voices at the Board table are representative of many small
unincorporated communities, member municipalities and electoral areas.
The area has a population of over 122,286 (2006 census) and a total area of
45,279 km2. The Regional District is active in providing over 115 services including
planning and building inspection, emergency preparedness and 911 services,
recreation, utilities, TV rebroadcasting, river buoys, transit, tourism, economic
development as well as environmental health services, which include waste reduction,
mosquito and weed control.
The closest town to the Project is the small community of Blue River located about
20 km south of the project. Blue River is an unincorporated village, located at the
confluence of the Blue and North Thompson Rivers along the Yellowhead Highway
about halfway between Kamloops, B.C. and Jasper, Alberta. It currently has a
declining population of about 260 residents, with a local economy supported by
logging, tourism, and transportation industries. Accommodation is available for
exploration crews by way of hotels and rental housing. Commerce maintains an active
presence in the town with a field office open during the exploration season.
The Project is about 90 km south of the village of Valemount, B.C., a rural community
of about 1,150 situated between the Rocky, Monashee, and Cariboo Mountains. It is
the nearest community to the west of Jasper National Park, and is also the nearest
community to Mount Robson Provincial Park.
Outdoor recreation is popular in summer and winter; hiking, skiing, snowmobiling, and
horseback riding are common activities. Economic activities include logging, railway,
transport and tourism. Valemount is considered a fully-serviced village, boasting high-
speed wireless internet, train, bus and highway service. The town serves as a supply
centre for another 700 people who live in the Regional District of Fraser-Fort George,
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from Albreda to Small River. Today Valemount’s economy is based on logging and a
rapidly-growing tourism industry.
20.8.1 First Nations
The Blue River Project lies on lands which comprise part of the traditional territory of
the Simpcw First Nation. Simpcw First Nation is a member of Secwepemc (Shuswap)
Nation Tribal Council (SNTC), a political organization, which works on matters of
common concern, including the development of self-government and the settlement of
the aboriginal land title questions. The SNTC is involved with natural resource
management within the Secwepemc Nations territory and the creation of economic
development opportunities for Secwepemc communities. Commerce is very aware of
its responsibility to appropriately engage local and regional First Nations early in the
planning and development stages of the project.
On behalf of Commerce, members of the Simpcw First Nation completed
Archaeological Overview Assessments (AOA) over all areas of proposed disturbance
related to Commerce exploration activities, as well as over key areas of potential
project infrastructure. No concerns were noted by the archaeology field technicians
and exploration activities were approved to proceed by the Simpcw archaeologist with
no further recommendations for work necessary in the areas surveyed.
Traditional Knowledge/Traditional Use (TK/TU) studies, as well as a detailed
archaeological impact assessment will need to be undertaken and will also involve
Simpcw First Nation participation. Such studies may identify areas and seasons
where Simpcw have engaged in traditional activities such as hunting, fishing, gathering
and spiritual ceremonies, and the outcomes will be used to inform the overall design
and operation of the Project.
First Nations engagement, with respect to exploration activities, began in May 2007,
and will be continuing for the duration of the project. Engagement activities have
included presentations and discussions with Chief and Council and Sustainable
Resources Department staff, one-on-one meetings and a site visit by elders.
On 25 October 2010, Simpcw First Nation and Commerce signed a confidential
Exploration Agreement with respect to exploration activities on the Blue River project,
which formalized a process for ongoing discussion regarding all exploration activities,
recognizes the traditional cultural, heritage, and environmental interest of the Simpcw,
and ensures that benefits from the project are realized by Simpcw First Nation.
Commerce has also committed to involve the Simpcw in environmental plans to gain
from their knowledge of the region, as well as to keep them informed of project goals.
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20.8.2 Local Communities
The Blue River Project is only at the exploration and early economic evaluation stage;
however, to introduce Commerce and its Project to its communities, Commerce has
hosted one community meeting in each of Blue River and Valemount, and has made
presentations to the Valemount Council. The Valemount Mayor and Council have also
toured the property and continue to receive regular updates on the project. Periodic
community newsletters provide updates on the Blue River Project; these are
distributed in the town of Blue River and are readily available on Commerce’s website.
In the summer of 2010, Commerce hosted a community barbeque in Blue River to
thank its neighbours and the local people for their assistance and support over the
past exploration seasons. As the project moves forward, open houses/information
sessions and meetings will take place in other local communities such as Barriere,
Clearwater and Chu Chua.
Public engagement to date has included meetings with local councils (e.g., Valemount,
Barriere) and informal discussions with local land-owners.
20.9 Comment on Section 20
In the opinion of the QPs, the following conclusions are appropriate:
The Blue River Project will require approval under the Federal and Provincial
environmental assessment (EA) processes prior to receiving the necessary permits
and authorizations for construction and mine operation.
Overall the environmental review of a project is a process that will take at least
18 months to complete. The process would include the development of several
important documents by Commerce, including the Project Description, Assessment
Information Requirements and an Environmental Impact Assessment application,
followed by the review of these documents by the public, interested stakeholders,
First Nations and regulators.
The environmental review and assessment process results in a decision with
respect to whether or not the Project should be issued an Environmental
Assessment Certificate by the provincial government, as well as receive federal
Ministerial approval based on the recommendations put forth to the Minister of
Environment in a Comprehensive Study Report prepared by the Major Projects
Management Office. Both are required for a project to proceed to permitting and
development.
Environmental monitoring, baseline studies and site investigations have been
ongoing at the Blue River Project site since the summer season of 2006 with the
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selection of local and regional studies areas for each biophysical discipline. Field
studies completed by specialist consultants independent of Commerce include: site
hydrology (2006–present); snow course depths (2007, 2008); fisheries and
aquatics (2006–2008); soils, flora and fauna assessments (2006, 2007), including
studies of rare, threatened and endangered plants (2007), breeding birds (2007)
and terrestrial ecosystem mapping (2006, 2007); wildlife studies and habitat
suitability mapping (2006–2008); geochemistry, mineralized material and waste
rock characterization with baseline ABA and metals analyses (2007, 2008), surface
water and sediment quality (2006–present), groundwater (2007–2009) and terrain
stability assessment for roads (2007–present).
Kinetic test work for ARD/ML was initiated in June 2010 and remains ongoing;
results of this work will give an indication of the type of management strategies
required for handling PAG waste rock.
Additional environmental baseline programs are expected to continue, as required
through 2012.
A preliminary list of the Federal and Provincial permits required for operation of a
mine has been developed. This listing cannot be considered comprehensive due
to the complexity of government regulatory processes, which evolve over time, and
the large number of minor permits, licences, approvals, consents, and
authorizations, and potential amendments that will be required throughout the life
of the mine. The permit requirements will be reviewed and updated as the Project
advances.
Socioeconomic and cultural heritage studies have not yet been initiated for the
Blue River Project. Basic community profiling has been completed of the individual
communities nearby, as well as relevant regional government and planning
organizations. This work shows that as with other areas of rural B.C., there is a
large dependence on primary resource industries, and overall the population of the
area is in decline.
The Blue River Project lies on lands which comprise part of the traditional territory
of the Simpcw First Nation.
First Nations engagement, with respect to exploration activities, began in May
2007, and will be continuing for the duration of the project. Engagement activities
have included presentations and discussions with Chief and Council and
Sustainable Resources Department staff, one-on-one meetings and a site visit by
elders. On behalf of Commerce, members of the Simpcw First Nation completed
Archaeological Overview Assessments (AOA) over all areas of proposed
disturbance related to Commerce exploration activities, as well as over key areas
of potential project infrastructure. Traditional Knowledge/Traditional Use (TK/TU)
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studies, as well as a detailed archaeological impact assessment will need to be
undertaken and will also involve Simpcw First Nation participation.
On 25 October 2010, Simpcw First Nation and Commerce signed an Exploration
Agreement with respect to exploration activities on the Blue River project, which,
amongst other aspects, formalized a process for ongoing discussion regarding all
exploration activities, recognizes the traditional cultural, heritage, and
environmental interest of the Simpcw, and ensures that benefits from the project
are realized by Simpcw First Nation. Commerce has also committed to involve the
Simpcw in environmental plans to gain from their knowledge of the region, as well
as to keep them informed of project goals.
Public engagement to date has included meetings with local councils (e.g.,
Valemount, Barriere) and informal discussions with local land-owners.
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21.0 2011 PEA CAPITAL AND OPERATING COSTS
This section includes a summary from the 29 September 2011 Preliminary Economic
Assessment (the 2011 PEA) by AMEC (Chong et al., 2011).
21.1 2011 PEA Basis of Estimate
All costs in the 2011 PEA were expressed in constant first quarter (Q1) 2011 Canadian
dollars. No allowance had been included for escalation, interest or financing fees,
taxes or duties, or working capital during construction. The level of accuracy for the
estimate was +40 /-20% of estimated final costs, as per the Association of Advanced
Cost Estimators (AACE) Class 5 (scoping level) definition.
The estimate scope is limited to the battery limits of the plant and mine sites with no
allowance for off-site facilities.
The estimate covered the direct field costs of executing the project, plus the Owner’s
indirect costs associated with design, construction, and commissioning. The
preproduction costs were capitalized and included all the expenditures before Year 1
of production.
21.2 2011 PEA Capital Costs
The costs are divided into five areas: (1) infrastructure, (2) material handling,
(3) process, (4) mining, (5) contingency, and (6) indirect.
21.2.1 Infrastructure
Blue River initial direct civil infrastructure capital costs amount to CAD$30 million. This
area covers the infrastructure and facilities required to support the mine/mill operations
including site preparation, civil work, services, roads, explosive facilities and electrical
substation.
The planned surface conveyor system is included as a material handling item, and
does not appear in the civil infrastructure total.
Power supplies in the region have been assumed to be sufficient for Project
requirements, and no allocation for additional power line construction has been
included.
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21.2.2 Material Handling
Blue River initial direct material handling capital costs amount to CAD$8 million. This
area covers belt conveyors and transfer stations and is based on in-house AMEC data
and benchmarking against comparable projects. The cost estimate for the primary
crusher, bin and structure is included in the process plant capital estimates.
21.2.3 Process Plant
Blue River initial direct process plant capital costs amount to CAD$116 million. This
area covers all the process equipment and structures from mills to tailing filters, as well
as pre-treatment and refinery facilities.
21.2.4 Mining
Blue River initial direct mining capital costs amount to CAD$89 million. Mining direct
capital costs include pre-production mining, capital development costs, mine mobile
equipment, and mine infrastructure.
Development to be completed prior to the commencement of production at full rate
was classified as pre-production development. This development was assumed to be
undertaken by Owner’s mining crews with unit costs rates as shown in the operating
cost section.
Development associated with semi-permanent excavations, when used for more than
two years, was treated as capital development. Based on preliminary designs, an
estimate of 20% of all development was treated as capital development.
The equipment hours required for each unit of activity and daily service equipment
requirements were estimated. The required equipment operating hours for each
equipment type were aggregated. Assuming typical yearly operating hours for each
type of equipment, AMEC has estimated minimum equipment fleets to forecast capital
expenditure.
AMEC used a database of budget costs for mine equipment. Where necessary, the
budget costs were factored to reflect Q1 2011 costs.
AMEC used a database of costs estimates for mining infrastructure and fixed service
equipment. Where necessary, the budget costs were factored to reflect Q1 2011
costs.
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Initial direct mining capital requirements include major equipment for underground
operations (drilling, loading and hauling), support equipment for underground
operations, equipment for surface road maintenance and hauling and handling of
tailings from the process plant to the drystack (co-disposal) area.
Mining capital requirements were allocated to Year -1, but during more detailed
studies, consideration should be given to allocating the capital requirements over more
than one year, as it is likely that payments for equipment will be required prior to the
equipment being delivered to site.
In a similar manner, the development metreage achieved during the pre-production
year should be re-evaluated during more detailed studies, and a formal pre-production
development schedule with achievable monthly development metreage targets should
be developed.
21.2.5 Contingency Costs
Blue River contingency costs amount to CAD$44 million. Contingency accounts for
unforeseen costs within the project scope. Contingency costs were calculated using a
factor of 25% of civil infrastructure, material handling, process plant, and mine
infrastructure direct capital costs. A contingency factor of 5% was applied to the mine
mobile equipment direct capital costs. No contingency was calculated for
pre-production mining and capital development costs. The contingency factors are
considered appropriate for the level of engineering work performed in the preparation
of this Report. Input variables used in calculating the contingency are a result of
information gathered from previous projects and industry standards.
21.2.6 Indirect Costs
The indirect costs of CAD$92 million cover temporary construction facilities and
services, construction equipment, freight, vendor’s representatives, start-up and
commissioning, engineering, procurement and contract management (EPCM), working
capital, warehousing spares, and first fill. Indirect costs were calculated using a factor
of 30% of civil infrastructure, material handling, process plant, and mine infrastructure
direct capital and contingency costs. An indirect costs factor of 5% was applied to the
mine mobile equipment direct capital and contingency costs. No indirect cost was
calculated for pre-production mining and capital development costs.
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21.2.7 Sustaining Capital
The sustaining capital costs of Blue River total CAD$116 million. The primary
sustaining capital components of the proposed mine are:
Underground mine development, CAD$34 million
Fleet replacement, CAD$73 million
For underground development, the cost of development of the entire mine life was
estimated, and then factors were applied to distribute this cost over the life-of-mine,
with costs decreasing as time increased. A unit cost in CAD$/m was then applied
against the annual metres.
The second portion of the initial truck purchases in the first production year was
categorized as sustaining capital. Equipment fleet replacement costs were based on
actual requirements as the useful life of each unit was reached. Major mobile
equipment replacements were considered in Years 5–6 of operation, smaller mobile
equipment was considered to be replaced in four-year intervals.
21.2.8 Mine Closure
A total of CAD$10 million was estimated for mine closure and was benchmarked to
similar-size mines with the same level of complexity.
21.2.9 Capital Cost Estimate Summary
The total estimated capital cost to design and build the Blue River tantalum project at
7,500 t/d capacity is CAD$379 million. The estimate is summarized in Table 21-1.
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Table 21-1: Summary of Estimated Capital Costs (CAD, 2011 constant dollars)
Item
Total
(CAD$000’s)
(CAD$000’s)
(CAD$000’s)
Project year
1 2
Production year
-2 -1
Capital expenditure
Initial Capital Infrastructure 29,500 10,300 19,200
Process Initial Capital 116,200 40,700 75,600
Mining Initial Capital 89,400
89,400
Material Handling 8,000
8,000
Contingency 43,600 12,800 30,900
Indirect/Owner Costs 92,300 29,600 62,600
Total 379,000 93,400 285,600
Note: Summation discrepancy due to rounding.
21.2.10 2011 PEA Operating Costs
The operating costs for the Blue River project are based on an Owner-operated mining
fleet and process facility and are stated in first quarter 2011 Canadian dollars.
Operating costs over the life-of-mine are estimated at CAD$38.44/t milled.
Operating costs include the three key areas of mining, process, and overall general
and administrative costs. The estimates are based upon the staffing level,
consumables, and expenditures detailed as part of the underground mine plan and
process design.
Average operating costs are listed in Table 21-2.
Table 21-2: Average Life-of-Mine Operating Cost Summary
(CAD, 2011 constant dollars)
Summary of Average Production Costs
LOM Total
(CAD$000’s)
Cost per Tonne
Milled
(CAD$/t)
Mining 528,900 21.16
Process 338,500 13.54
Material Handling 18,500 0.74
G&A 75,000 3.00
Sub-total 960,900 38.44
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21.2.11 Capital and Operating Cost Discussion
AMEC assumes the price assumptions, mining, and process recovery methods from
the 2011 PEA remain as reasonable assumptions. AMECs opinion is that the 2011
PEA capital and operating costs for the Project also remain reasonable for this
technical report.
21.3 Comment on Section 21
It is the opinion of the QPs that:
The 2011 PEA price assumptions, conceptual mining, and conceptual recovery
methods are considered reasonable for the purposes of the technical report.
The assumptions used for capital and operating costs in the 2011 PEA are
considered reasonable for the purposes of this Technical Report.
Regarding the 2011 PEA results, the following key outcomes are concluded:
The total estimated capital cost to design and build the Blue River Project at an
assumed 7,500 t/d capacity is CAD$379 million
A total of CAD$10 million was included in the capital cost estimate for mine closure
and was benchmarked to similar-size mines with the same level of complexity
Operating costs over the life-of-mine are estimated at CAD$38.44/t milled.
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22.0 2011 PEA ECONOMIC ANALYSIS
This section includes a summary from the 29 September 2011 Preliminary Economic
Assessment (the 2011 PEA) by AMEC (Chong et al., 2011). In addition, AMEC
believes the PEA economic analysis assumptions and outcomes remain reasonable.
The results of the PEA economic analyses discussed in this section represent forward-
looking information as defined under Canadian securities law. The results depend on
inputs that are subject to a number of known and unknown risks, uncertainties and
other factors that may cause actual results to differ materially from those presented
here.
Information that is forward-looking includes:
Mineral Resource estimates
Assumed metallurgical recoveries
Assumed commodity prices, exchange rates, and markets for mine production
The proposed mine production plan
Projected recovery rates
Capital costs, operating costs, and schedules
Assumptions that an EA will be approved by Provincial and Federal authorities.
The financial analysis of the 2011 PEA was partly based on Inferred Mineral
Resources that were considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized as Mineral
Reserves, and there is no certainty that the Preliminary Assessment based on these
Mineral Resources will be realized. Approximately 15% of the Mineral Resources that
support the financial model had been classified as Inferred Mineral Resources.
22.1 2011 PEA Valuation Method
The Project is valued using a discounted cash flow (DCF) analysis, assuming all equity
financing (no debt). Cash flows are assumed to occur at the end of each period. Cash
inflows consisted of annual revenue projections for the mine. Cash outflows such as
capital and operating costs were subtracted from the inflows to arrive at the annual
cash flow projections.
The resulting net annual cash flows were discounted back to the date of valuation the
beginning of 2011 and totalled to determine the net present value (NPV) at the
selected discount rates. Constant 2011 dollars were used for the entire DCF model.
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All NPVs in this report are on a pre-tax basis. The project’s internal rate of return
(IRR) was calculated as the discount rate that yields a zero NPV. The simple payback
period was calculated as the time needed to recover the initial capital spent from the
start of production
22.2 2011 PEA Financial Model Parameters
22.2.1 Mineral Resources and Mine Life
The model includes 36,349 kt of Indicated Mineral Resources as well as 6,385 kt of
Inferred Mineral Resources. For this study AMEC utilized average grades of
mineralized materials throughout the mine life at 195 ppm for Ta and 1,700 ppm for
Nb. The diluted grades as the result of the proposed mining method were assumed at
185 ppm Ta and 1,591 ppm Nb. After applying mine recovery and dilution factors, the
financial model assumes that the mine life is 10 years, assuming the plant will process
25 Mt at a 7.5 kt/d plant throughput rate (2.7 Mt/a).
22.2.2 Metallurgical Process
Recovery assumptions from the process plant include 65% recovery for Ta and 69%
recovery for Nb in the flotation stage. The refining process has an estimated 97%
recovery for both Ta and Nb.
22.2.3 Commodity Prices and Foreign Exchange
Publicly-available tantalum and niobium pricing information is very limited as the
markets tend to be based on long-term relationships between few buyers and sellers.
Slightly more information is available for niobium than for tantalum.
A tantalum price of US$317/kg of contained metal in the oxide product is supported by
the prices for tantalum reported on subscription news services.
The niobium price was set at US$46/kg of contained metal in the oxide product over
the life-of-mine.
An exchange rate of US$0.95 to CAD$1.00 is used for all years of the financial model.
22.2.4 Taxes
The discounted cash flow model is pre-tax. Publicly-available taxation information
suggests that the following taxes could be levied.
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Taxation considerations comprise Provincial and Federal corporate income taxes and
BC Mineral taxes. The following discussion outlines the main Federal and Provincial
taxation and considerations for mining ventures in B.C.:
Federal taxes: Includes income tax, customs duties, fuel taxes, payroll taxes and
transaction taxes. The general rate of Federal income tax on active business
income earned by a corporation for 2011 is 16.5% and is legislated to decrease to
15% starting in 2012.
Provincial income tax: The general rate of BC Provincial income tax on active
business income earned by a corporation in the Province is 10%.
Provincial mineral taxes: The BC Mineral Tax provides for the Crown's financial
share of mineral production in two ways. The primary way is to receive 13% of a
producer’s profit that is in excess of a normal return on investment over the life of a
mine. This is referred to as Net Revenue Tax. To minimize any disincentive to
investment, the Province does not receive this share until the producer’s
investment and a reasonable return on it have been recovered. The second way is
to receive 2% of operating cash flow from production in each year. This is referred
to as Net Current Proceeds Tax. It is intended to provide compensation for
depletion of the resource when production yields less than a reasonable profit for
the producer. So that only one or the other share is paid, Net Current Proceeds
Tax is fully creditable against Net Revenue Tax.
Depreciation/Salvage Value
No depreciation is incorporated in the model.
Financing
The project is assumed to be 100% Owner-financed.
Capital Costs
The total estimated capital cost to design and build the Blue River Project at 7,500 t/d
capacity is CAD$379 million.
Operating Costs
Operating costs over the life-of-mine are estimated at CAD$38.44/t milled.
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Working Capital
No working capital is incorporated in the model. Working capital allowances required
to operate this Project are not expected to have a significant impact on the cash flow of
the mine.
Inflation
No inflation adjustments are incorporated in the model. Capital and operating costs
are based on first quarter 2011 Canadian dollars.
Royalty
The Project is not subject to any royalties.
22.2.5 PEA Financial Results
The Project Base Case (8% discount rate) returns an NPV of CAD$18.5 million and an
IRR of 9.1% before tax, and a 6.3 year payback period. Table 22-1 summarizes the
NPV for the Project at a range of discount rates, with the base case highlighted.
Table 22-1: Summary Financial Analysis at Various Discount Rates
Summary of Cash Flow
Pre-tax
Cumulative net cash flow
Undiscounted CAD$000 236,631
Net present value
Discounted at 5% CAD$000 80,349
Discounted at 6% CAD$000 57,612
Discounted at 7% CAD$000 37,064
Discounted at 8% (Project Base Case) CAD$000 18,487
Discounted at 9% CAD$000 1,685
Discounted at 10% CAD$000 (13,514)
Internal rate of return % 9.1
Payback period Years 6.3
Note: base case is highlighted. Exchange rate is US$0.95 to CAD$1.00.
22.2.6 2011 PEA Cash Costs
The cash cost value represents the cost incurred to produce 1 kg of primary product
after deducting the revenue from sales of secondary products. Since the price
analysis for the report was performed around Ta price variation, Ta was chosen as the
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main product and Nb was treated as the secondary product for the assessment of
cash cost.
Cash costs are derived through the following formulae:
Production costs = (Mining + Process + G&A + Material Handling)
Cash cost = (Production costs - Revenue of Nb sales) ÷ tantalum production in kg
Using the Brook Hunt convention for reporting C1 cash costs2 , after credit for Niobium
contribution, the tantalum cash cost is calculated to be approximately $24.91/kg
contained in oxide product (equivalent to US$23.66/kg contained in oxide product with
the PEA study exchange rate of US$0.95 to C$1).
The tantalum cash cost was calculated to be approximately CAD$24.91/kg contained
in oxide product (after credit for niobium contribution) as shown in Table 22-2.
Table 22-2: Life of Mine Cash Cost Summary
Section
LOM Total
(CAD$000’s)
Cost per Tonne Milled
(CAD$/t)
Cost per Kg Ta Payable
(CAD$/kg)
Cash costs
Mining 528,900 21.16 220.13
Process 338,500 13.54 140.87
G&A 75,000 3.00 31.21
Material Handling 18,500 0.74 7.71
Sub-total 960,900 38.44 399.92
Credits
Nb (901,100) (36.04) (375.01)
Sub-total (901,100) (36.04) (375.01)
Adjusted cash costs
Total 59,800 2.40 24.91
Note: The figures in this table do not include considerations of working capital or royalty payments
The cash cost for production of tantalum during the earlier years of the proposed
mining operation is $57/kg and decreases over the life of the mine. The major driver
behind the changing costs is the decrease in the mining costs over the life-of-mine. In
the last three years of operation, the revenue generated from niobium exceeds the
2 Brook Hunt, established in 1975, is a global group that specializes in in-depth market analysis across the mining and metals
industries. Brook Hunt has established a method of comparison of costs between projects, countries and commodities that is considered an industry standard. C1 cash costs are defined by Brook Hunt as: the costs of mining, milling and concentrating, on-site administration and general expenses, property and production royalties not related to revenues or profits, metal concentrate treatment charges, and freight and marketing costs less the net value of by-product credits.
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total operating costs (mining, processing and G&A). The mining cost for the entire
Project (i.e. mining cost of both tantalum and niobium) drops from an average of $24/t
in the first few years to $18/t in the last year of full production.
22.2.7 2011 PEA Sensitivity Analysis
The sensitivity analysis showed that the project was more sensitive to changes in
operating expenditures than capital expenditures. The project was most sensitive, in
order, to changes in exchange rate, operating expenditure, niobium price, tantalum
price and capital expenditure. Since the sales currency was US dollars and
operational costs were in Canadian dollars, a rising US dollar value versus Canadian
dollar value improved the mine profitability.
The project IRR increased to 14.4% and the NPV increased to CAD$125 million at an
8% discount rate if a Ta price of US$380/kg (20% increase) was assumed.
Sensitivities are summarized in Table 22-3 and Figure 22-1 for the 8% discount base
case rate.
Table 22-3: Sensitivity Summary in CAD, 8% Discount Rate
SENSITIVITY OF NPV @ 8%
Change in Factor
-30% -20% -10% 0% 10% 20% 30%
Facto
r
Exchange rate 448.7 269.5 130.0 18.5 (72.8) (148.8) (213.2)
Capital expenditure 117.9 84.8 51.6 18.5 (14.6) (47.8) (80.9)
Operating expenditure 190.5 133.1 75.8 18.5 (38.8) (96.2) (153.5)
Nb price (140.9) (87.8) (34.6) 18.5 71.6 124.7 177.9
Ta price (123.3) (76.1) (28.8) 18.5 65.8 113.0 160.3
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Figure 22-1: Sensitivity Summary in CAD, 8% Discount Rate
22.2.8 Financial Analysis Discussion
It is reasonable to expect that there has been cost escalation since the base of first
quarter 2011 but this has not been quantified for this Technical Report. However, the
sensitivity analysis in this report shows the Project’s sensitivity to the capital and
operating costs.
22.3 Comment on Section 22
In the opinion of the QPs:
The PEA financial analysis remains reasonable and current for the price
assumptions, conceptual mining method, mineral processing and recovery factors,
and costs.
Based on the assumptions in this Report, the financial analysis for the Blue River
project, using a discount rate of 8%, returns an NPV of about CAD$18.5 million
and an IRR of 9.1% before tax.
The Project is most sensitive, in order, to changes in exchange rate, operating
costs, niobium price, and less sensitive to changes in tantalum price , and least
sensitive to changes in capital costs.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 23-1 22 June 2012
23.0 ADJACENT PROPERTIES
There are no adjacent properties that are relevant to the Report.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 24-1 22 June 2012
24.0 OTHER RELEVANT DATA AND INFORMATION
AMEC is not aware of any other relevant data or required information for inclusion to
make the report not misleading.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 25-1 22 June 2012
25.0 INTERPRETATION AND CONCLUSIONS
25.1 Mineral Resource Update (Effective Date 22 June 2012)
Commerce has delineated a significant tantalum- and niobium-rich carbonatite deposit
near the town of Blue River in central eastern British Columbia. The company holds a
100% interest in the project.
Commerce has professionally executed an exploration program. The quantity and
quality of the lithological, geotechnical, and collar location, down-hole survey, and
drill-core sample data collected by Commerce in the exploration and delineation drill
programs meet and exceed industry standard practice.
The Blue River Project has very good access and supporting infrastructure.
The Blue River Mineral Resources have the following characteristics:
The mineralization is hosted by a polyfolded carbonatite sill swarm averaging 30 m
thick and 1,100 m long
Close-spaced drilling has confirmed local continuity of the carbonatite
The deposit is amenable to conventional underground mining methods with
estimated mining recoveries that may vary from 65 – 85% depending on the mine
and stope layout and the success in which pillars can be mined on retreat
Tantalum and niobium occur in the minerals pyrochlore and ferrocolumbite and are
amenable to conventional flotation and proven refining processes with estimated
recoveries of 65% to 70%
The Mineral Resource estimate is based on information of reasonable quality
There are reasonable prospects for economic extraction
The deposit and Mineral Resource geometry allows for large-scale and selective
mining methods
The Mineral Resources have significantly increased in tonnage mostly due to
reducing the block unit value (BUV) cut-off by eliminating back-fill costs and, to a
lesser extent, additional infill diamond drilling.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 25-2 22 June 2012
The key findings of the Mineral Resource update (effective date 22 June 2012) are
summarized as follows:
Indicated Category: 51.8 million tonnes @ 192 ppm Ta2O5 and 1,490 ppm Nb2O5
Inferred Category: 8.8 million tonnes @ 186 ppm Ta2O5 and 1,660 ppm Nb2O5
The updated Mineral Resources use the same assumptions from the 2011 PEA for the
following items:
Ta and Nb metal prices
Mining method and mining extraction factor
Processing method and recovery factor
CAPEX and OPEX costs
Block Unit Value cut-off values of US$40/t for the bulk mining method and US$58/t
for the selective mining method.
It is expected that any future mining operations will be able to be conducted year-
round. High-quality technical grade tantalum and niobium products proposed for
production at-site are suitable for several markets.
Commerce has been pro-active with regard to environmental and socioeconomic
issues. Environmental monitoring, baseline studies and site investigations have been
ongoing at the Blue River Project site since the summer season of 2006. Kinetic test
work for acid rock drainage and metals leaching was initiated in 2010. Additional
environmental baseline programs are expected to continue, as required through 2012.
First Nations engagement, with respect to exploration activities, began in 2007, and
will continue for the duration of the Project. The Blue River Project lies on lands which
comprise part of the traditional territory of the Simpcw First Nation. First Nations
engagement, with respect to exploration activities, began in 2007. Public engagement
to date has included meetings with local councils and informal discussions with local
land-owners.
As the Project is still at an early evaluation stage, Commerce has not initiated requests
for expressions of interest from potential buyers of the proposed Blue River products
and has not negotiated any purchase or off-take agreements.
25.2 2011 PEA
From the 2011 PEA, the following work and outcomes are considered to remain
reasonable as their underlying assumptions have not changed.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 25-3 22 June 2012
Estimated internal rate of return: 9.1% (before tax)
Estimated net present value: CAD$18.5 million at 8% discount rate (before tax)
Estimated payback: 6.3 years
Average diluted grade in the conceptual mine plan to the mill:
185 ppm Ta2O5 and 1,591 ppm Nb2O5
Conceptual project operating cost: CAD$38.44/t milled
Conceptual capital cost: CAD$379 million
Proposed product: High purity Ta and Nb chloride product that is suitable for
several markets
Conceptual mine life: 10 years based upon the Mineral Resources (effective date
20 September 2011)
Most significant conceptual OPEX costs: mining (55%)
Most significant conceptual CAPEX cost: process initial capital (31%)
NPV sensitivity: The Upper Fir deposit is most sensitive to changes in exchange
rate, mining costs, and commodity prices.
The tantalum price assumption used in the 2011 PEA is based on 4th quarter 2010
information. The tantalum price moved significantly higher through 2011. AMEC has
checked the publicly available tantalum and niobium metal prices as at May 2012 and
found the Ta and Nb price assumptions used for both the current Mineral Resource
estimate and the 2011 PEA to remain reasonable.
A higher tantalum price would improve profitability and also increase the mine life.
Additional exploration potential could also provide additional mine life. A two or more
times capital payback is possible.
25.2.1 Opportunities
As a result of engineering work during the 2011 PEA, a lower block unit value cut-off
can be achieved by revising the mine design to eliminate back-fill costs. This
approach was used support the current 22 June 2012 Mineral Resource update, which
in turn has increased the Mineral Resource tonnage at the Project. The increase in
Mineral Resources provides more flexibility for future mining studies and hence
opportunities to improve the Project NPV are as follows:
Optimization of the mine plan by mining higher-grade zones earlier in the mine life,
providing that a practical mining sequence can be implemented and the overall
recovery of the Mineral Resources is not negatively affected
Optimization of the mine layout to minimize development costs
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 25-4 22 June 2012
Advanced geotechnical studied to identify and understand ground conditions which
could allow an increase in the size of stopes and production drifts
Optimization of the supply and pricing of reagents for the refining.
25.2.2 Risks
The risk factors are:
The current Mineral Resource estimate is supported by current tantalum and
niobium prices which are higher than historic average prices and may not reflect
long term prices.
Commerce has not initiated requests for expressions of interest from potential
buyers of the proposed Blue River products and has not negotiated any purchase
or off-take agreements.
The proposed refining methods have been used in commercial applications but
have not been demonstrated in test work of Blue River material.
Testwork to date has not considered factors such as water recycling. A water
treatment plant may be required and may result in increased capital costs.
The 2011 PEA financial analysis is partly based on Inferred Mineral Resources
(effective date 29 September 2011) that are considered too speculative
geologically to have the economic considerations applied to them that would
enable them to be categorized as Mineral Reserves, and there is no certainty that
the Preliminary Economic Assessment based on these Mineral Resources will be
realized.
The Blue River Project will require approval under the federal and provincial
environmental assessment (EA) processes prior to receiving the necessary permits
and authorizations for construction and mine operation. Overall the environmental
review of a project is a process that can take up to 24 months to complete.
Traditional Knowledge/Traditional Use (TK/TU) studies, as well as a detailed
archaeological impact assessment will need to be undertaken.
The Project warrants additional work to examine the opportunities and mitigate the
risks. On completion of this work, Commerce may consider proceeding with a pre-
feasibility study.
Uranium and thorium are present in the resource and waste rocks. Any radon
produced in the mine and process plant is likely manageable with ventilation, dust
control, and monitoring. Expected CAPEX and OPEX costs will not be significantly
increased as a result of these safety measures.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 25-5 22 June 2012
An extensional faulting event has potential for displacements of greater than 10 m.
Such offsets would certainly impact deposit geometry and future mine designs.
Mining recovery may vary from 65% to 85% depending on the success in which
pillars can be mined on retreat and/or fill is utilized, however mining recovery could
be lower and dilution increased in areas with moderate dips greater than 10°.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 26-1 22 June 2012
26.0 RECOMMENDATIONS
AMEC recommends a work program for an estimated total cost of CAD$5.2 million.
The recommendations are based on the current Mineral Resource estimate with
effective date 22 June 2012. Table 26-1 summarizes the recommended work program
with estimated costs.
Table 26-1: Recommendations Summary
Task
Estimated
Budget Comment
Project Management +
Claims + Socio-Economic
+ Administration
$630,000
2012 Field work $625,000 Geology mapping; re-sampling; core review; structural
geology reviews; on-going research; assay QA/QC SRM
replenishment program.
Security (Valemount core
facility)
$75,000 On-going upgrades to Valemount facility.
Marketing $50,000
Mining trade-off studies $200,000 Trade-off studies on mine and stope design
Resource modeling trade-
off studies
$40,000 Studies to optimize grade distribution and domains
Mineral Resource Update
2013
$360,000 Incorporate 2011 drilling, 2012 exploration data, and new
information from mining or metallurgical optimization
trade-off studies.
Diamond drilling:
for mineral resource
definition
$2,660,000 About 40 diamond drill holes comprising an estimate
10,000 m of HQ diameter coring for infill and step-out
drilling to support confidence category upgrades
Diamond drilling:
to supply metallurgical
testwork
$560,000
About 8 diamond drill holes comprising approximately
2,000 m of PQ diameter coring
Metallurgical testwork $ - $1M budgeted for metallurgical testwork in the 2011
PEA. This work is on-going and results will lead to a
more definitive budget going forward.
Total $5,200,000
Project management, field work, and desk top studies total about $2.0 million and
includes the following: (1) project management and administration costs; (2) field
costs comprising a re-sampling program for campaigns with poor precision and
accuracy to improve confidence in their analyses, structural geology studies, and
manpower and field support costs; (3) core farm security improvements; (4) on-going
marketing work; (5) mining trade-off studies to optimize mine and stope design; (6)
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 26-2 22 June 2012
resource modeling trade-off studies to optimize grade distribution; and (7) a mineral
resource estimate update.
The re-sampling program should focus on re-assaying samples within an area where
the first five years of mining is likely to occur.
An additional mineral resource update is recommended after all the 2011 drilling data
has been analysed, verified, updated into the drilling database, and interpreted. This
mineral resource update would include all drilling information up to and including the
2011 campaign plus outcomes from any mining, resource modeling, or metallurgical
optimization studies.
Additional diamond drilling is recommended totalling about $3.2 million for drilling,
sampling, assaying, and logging costs. The recommended drilling is to focus on the
volume within the first 5 years of the conceptual mine plan. The recommended
program has about 40 diamond drill holes comprising about 10,000 m of HQ diameter
coring for resource infill and step-out drilling and about 8 diamond drill holes
comprising about 2,000 m of PQ diameter coring for metallurgical testwork purposes.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 27-1 22 June 2012
27.0 REFERENCES
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Energy, Mines Petr. Res. Ass. Rept. 10 274, 30 p.
Aaquist, B., 1982b: Assessment Report Blue River Carbonatites, British Columbia: B.C.
Min. Energy Mines Petr. Res. Ass. Rept. 11 130, 15 p.
Aaquist, B., 1982c: Assessment Report on Verity First 1,2,3, Claims, Blue River British
Columbia: B.C. Min. Energy Mines Petr. Res. Ass. Rept. 10 955.
Birkett, T.C. and Simandl, G.J., 1999: Carbonatite-associated Deposits: Magmatic,
Replacement and Residual: in Selected British Columbia Mineral Deposit Profiles,
Volume 3, Industrial Minerals, G.J. Simandl, Z.D. Hora and D.V. Lefebure, Editors,
British Columbia Ministry of Energy and Mines.
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), (2010). CIM Standards for
Mineral Resources and Mineral Reserves, Definitions and Guidelines: Canadian
Institute of Mining, Metallurgy and Petroleum, November 2010,
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Chong, A., 2010. Upper Fir Ta-Nb Project, Blue River, B.C., Site Visit Report – July 2010.
Confidential AMEC Americas Ltd. report for Commerce Resources Corporation.
31 p.
Chong, A., 2011. Upper Fir Ta-Nb Project, Blue River, B.C., Site Visit Report – September
2011. Confidential AMEC Americas Ltd. report for Commerce Resources
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Chong, A., and Postolski, T., 2011: NI 43-101 Technical Report, Blue River Ta-Nb Project,
Blue River, British Columbia. 145 p.
Chong, A., Postolski, P., Mendoza, R., Lipiec, T., and Omidvar, B., 2011. NI 43-101
Technical Report on Preliminary Economic Assessment, Blue River Ta-Nb Project,
Blue River, British Columbia, Canada. 208 p.
Chudy, T., 2008: Mineralogical Report on samples from the Upper Fir Carbonatite, Blue
River, British Columbia. PART A: Petrographic description; PART B: Mineral
Liberation Analysis, December 2008.
Chudy, T., 2010: The Niobium-Tantalum Mineralization In The Upper Fir Carbonatite: A
Summary Of Current Knowledge, 4 p.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 27-2 22 June 2012
Chudy, T. and Ulry, B., 2012. The Petrogrphy, Geochemistry and Mineral Chemistry of the
Upper Fir Carbonatite System: an Update of Current Knowledge with Implications
for Exploration. Confidential report for Commerce Resource Corporation. 54p.
Couture, J.F. and Nash, I., 2011a: Upper Fir Site Visit Report. Confidential SRK
memorandum for Commerce Resources Corporation. 5p.
Couture, J.F. and Nash, I., 2011b. Blue River Site Visit. Confidential SRK memorandum
for Commerce Resources Corporation. 10p.
Currie, K.L. 1976: The Alkaline Rocks of Canada: Geol. Surv. Can., Bull. 239, 228 p.
Dahrouge, J., 2001a: 2000 Geologic Mapping and Sampling on the Verity Property: B.C.
Min. Energy, Mines Petr. Res. Ass. Rept 26550, 7 p.
Dahrouge, J., 2001b: 2000 Geologic Mapping and Sampling on the Fir Property: B.C.
Min. Energy, Mines Petr. Res. Ass. Rept 26549, 7 p.
Dahrouge, J. and Reeder J., 2001: 2001 Geologic Mapping, Sampling and Geophysical
Surveys on the Mara Property: B.C. Min. Energy, Mines Petr. Res. Ass. Rept.
26733, 14 p.
Dahrouge, J. and Reeder J., 2002: 2001 Geologic Mapping, Sampling and Geophysical
Surveys on the Fir Property: B.C. Min. Energy, Mines Petr. Res. Ass. Rept. 26781,
9 p.
Davis, C., 2006: 2005 Diamond Drilling and Exploration at the Blue River Property: B.C.
Min. Energy Mines Petr. Res. Ass. Rept, 10 p.
Diegel, S.G., Ghent, E.D., and Simony, P.S., 1989: Metamorphism and Structure of the
Mount Cheadle area, Monashee Mountains: in Current Research, Part E, Geol.
Surv. Can., Paper 89–1E, pp. 95–100.
Ghent, E.D., Simony, P.S., Mitchell, W., Perry, J., Robbins, D. and Wagner, J., 1977:
Structure and Metamorphism in the Southeast Canoe River area, British Columbia:
in Report of Activities, Part C, Geological Survey of Canada, Paper 77–1C, pp. 13–
17.
Gervais, F., 2011. Summary Report - Integration of Surface and Underground Geology of
the Upper Fir Carbonatite Deposit, Blue River, B.C., 4p.
Gervais, F., 2009: Personal Communication to John Gorham.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Page 27-3 22 June 2012
Gorham, J., 2007: Technical Report on the Upper Fir Ta-Nb Bearing Carbonatite 20 June
2007, 48 p. plus appendices.
Gorham, J., 2008: Report on 2007 Diamond Drilling and Exploration at the Blue River
Property 20 June 2008: 48 p. plus appendices and maps.
Gorham, J., Ulry, B. And Brown, J., 2009: 2008 Diamond Drilling and Exploration at the
Blue River Property, Kamloops Mining Division B.C Ministry of Energy, Mines and
Petroleum Resources, Assessment Report 31174, 79 p (plus appendices and
maps)..
Klohn, Crippen Berger, 2009a: Blue River-Upper Fir Deposit Tailings and Waste Rock
Scoping Study: Prepared for Commerce Resources Corp.
Klohn, Crippen Berger, 2009b: Valemount Tailings Storage Options Scoping Study:
Prepared for Commerce Resources Corp.
Kraft, J., 2010: Structural geology of the Upper Fir carbonatite deposit, Blue River, British
Columbia: Confidential report for Dahrouge Geological Consulting Ltd. and
Commerce Resources Corp., 15 p.
Lee, C., 2012. Blue River Ta-Nb Project – Structural Geology Review. Confidential
Touchstone Geoscience Inc. memorandum prepared for AMEC Americas Ltd. 5 p.
Mariano, A.N., 1982: Petrology, Mineralogy and Geochemistry of the Blue River
Carbonatites: Confidential report, 130 p.
Mariano, A.N. 2000: Personal communication to J. Dahrouge.
MESH Environmental Inc. 2008: Static Test Characterization of Rock Units from the Upper
Fir Deposit, Blue River Tantalum-Niobium Project: Confidential report prepared for
Commerce Resources, August 2008.
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Upper Fir Deposit, Blue River Tantalum-Niobium Project. Phase 2 Static Test
Report: Confidential report prepared for Commerce Resources, April 2009.
McCrea, J. 2001: Summary Report on the Blue River Carbonatite Property, East-Central
British Columbia: Prepared for Commerce Resources Corp., 34 p.
McCrea, J. 2002: Fir Carbonatite Property, Resource Estimate: Prepared for Commerce
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British Columbia, Canada
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Project No.: 168967 Page 27-4 22 June 2012
Mitchell, R.H., 2010b: Niobium Mineralization in Carbonatites: Paragenesis and Origins:
in International Workshop of Geology of Rare Metals, edited by Simandl, G.J. and
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Canada British Columbia Geological Survey, Open File 2010-10, pp 13–14.
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Edition, Volume 2
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Syenites, Kimberlites and Related Rocks: B.C. Min. Energy, Mines Petr. Res.
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Columbia: B.C. Min. Energy, Mines, Petr. Res., Bulletin 88, 136 p.
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Canadian Cordillera: in: Carbonatites: Genesis and Evolution (K. Bell, ed.). Unwin
Hyman, London, UK. pp. 200–220.
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Scripp Nappe, Monashee Mountains, British Columbia: Canadian Journal of Earth
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Metamorphic Evolution of the Northeast Flank of the Shuswap Complex, Southern
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pp. 445-461.
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Energy, Mines Petr. Res. Ass. Rept. 26911, 13 p. with appendices.
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River Property: B.C. Min. Energy, Mines Petr. Res. Ass. Rept. 27131, 20 p. with
appendices.
Smith, T., 2008: Terrain stability study for the development of an environmental baseline
for the Fir Property near Blue River B.C: Confidential report prepared for
Commerce Resources Corp.
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British Columbia, Canada
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Project No.: 168967 Page 27-5 22 June 2012
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River, British Columbia, Canada. 116 p.
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River Ta-Nb Project. 16 p.
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Ministry of Energy, Mines and Petroleum Resources, Geological Fieldwork, 1984,
Paper 1985-1, pp. 95-100.
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Compositions, and Element Distribution: in: Carbonatites, Genesis and Evolution
(K. Bell, ed.). Unwin Hyman, London. pp. 1–37.
Commerce Resources Corp.
Blue River Tantalum–Niobium Project
British Columbia, Canada
NI 43-101 Technical Report on Mineral Resource Update
Project No.: 168967 Appendix 22 June 2012
A P P E N D I X A
LIST OF C L A I M S
SCHEDULE A
Blue River Property, located in the Kamloops Mining Division, north and northeast of Blue River, British Columbia, Canada.
Tenure Tenure Tenure Sub Map Number Claim Name Owner Type Type Number
374665 FIR 3 142572 (100%) Mineral Claim 083D025
374670 FIR 8 142572 (100%) Mineral Claim 083D035
380034 MARA 5 142572(100%) Mineral Claim 083D045
382164 FIR II 142572 (100%) Mineral Claim 083D035
506262 142572 (100%) Mineral Claim 083D
506263 142572(100%) Mineral Claim 083D
506264 142572 (100%) Mineral Claim 083D
506265 142572 (100%) Mineral Claim 083D
506267 142572 (100%) Mineral Claim 083D
506270 142572(100%) Mineral Claim 083D
506273 142572 (100%) Mineral Claim 083D
506274 142572(100%) Mineral Claim 083D
506387 142572 (100%) Mineral Claim 083D
506391 142572(100%) Mineral Claim 083D
506392 142572(100%) Mineral Claim 083D
506393 142572 (100%) Mineral Claim 083D
506395 142572 (100%) Mineral Claim 083D
506397 142572 (100%) Mineral Claim 083D
506399 142572 (100%) Mineral Claim 083D
506401 142572 (100%) Mineral Claim 083D
506402 142572 (100%) Mineral Claim 083D
506403 142572 (100%) Mineral Claim 083D
506405 142572 (100%) Mineral Claim 083D
506407 142572(100%) Mineral Claim 083D
506408 142572(100%) Mineral Claim 083D
506423 142572 (100%) Mineral Claim 083D
506425 142572(100%) Mineral Claim 083D
506426 142572 (100%) Mineral Claim 083D
506427 142572 (100%) Mineral Claim 083D
506428 142572 (100%) Mineral Claim 083D
506429 142572 (100%) Mineral Claim 083D
506430 142572 (100%) Mineral Claim 083D
506431 142572 (100%) Mineral Claim 083D
506433 142572 (100%) Mineral Claim 083D
506445 142572 (100%) Mineral Claim 083D
506450 142572 (100%) Mineral Claim 083D
506459 142572 (100%) Mineral Claim 083D
506461 142572 (100%) Mineral Claim 083D
506464 142572 (100%) Mineral Claim 083D
506466 142572 (100%) Mineral Claim 083D
506468 142572 (100%) Mineral Claim 083D
506473 142572 (100%) Mineral Claim 083D
Issue Date Good To Date Status Area (ha)
2000/feb/I 6 2021 /mar/31 GOOD 25.0
2000/feb/I 6 2021/mar/31 GOOD 25.0
2000/aug/18 2021/mar/31 GOOD 25.0
2000/oct/28 2021/mar/31 GOOD 500.0
2005/feb/08 2021/mar/3 I GOOD 98.623
2005/feb/08 2021/mar/3 1 GOOD 295.727
2005/fŁb/08 202 1/mar/31 GOOD 236.8
2005/feb/08 2021/mar/31 GOOD 79.069
2005/feb/08 2021/mar/31 GOOD 98.817
2005/feb/08 2021/mar/31 GOOD 1225.766
2005/feb/08 2021 /mar/31 GOOD 1619.061
2005/feb/08 202 1/mar/31 GOOD 1244.47
2005/feb/09 2021/mar/31 GOOD 98.638
2005/feb/09 2021/mar/31 GOOD 39.459
2005/feb/09 2021/mar/31 GOOD 39.46
2005/feb/09 2021/mar/31 GOOD 39.447
2005/feb/09 2021/mar/31 GOOD 39.452
2005/feb/09 2021/mar/31 GOOD 19.728
2005/feb/09 2021/mar/31 GOOD 79.084
2005/feb/09 2021/mar/3I GOOD 39.542
2005/feb/09 2021/mar/31 GOOD 19.768
2005/feb/09 2021/mar/31 GOOD 19.766
2005/feb/09 202 1/mar/31 GOOD 19.765
2005/feb/09 2021/mar/31 GOOD 591.699
2005/feb/09 2021/mar/31 GOOD 118.38
2005/feb/09 202 1/mar/31 GOOD 591.653
2005/feb/09 2021/mar/31 GOOD 157.847
2005/feb/09 202 1/mar/31 GOOD 39.439
2005/feb/09 2021/mar/31 GOOD 19.717
2005/feb/09 2021/mar/31 GOOD 551.916
2005/feb/09 2021/mar/31 GOOD 78.924
2005/feb/09 202 1/mar/31 GOOD 414.436
2005/fcb/09 202 1/mar/31 GOOD 315.765
2005/feb/09 2021 /mar/31 GOOD 533.482
2005/feb/09 2021/mar/31 GOOD 355.921
2005/feb/09 2021/mar/31 GOOD 236.589
2005/feb/09 202 1/mar/31 GOOD 473.37
2005/feb/09 2021/mar/31 GOOD 315.725
2005/feb/09 2021/mar/31 GOOD 78.95
2005/feb/09 2021/mar/31 GOOD 217.118
2005/feb/09 2021/mar/31 GOOD 355.271
2005/feb/09 2021/mar/31 GOOD 474.81
CW523273 I I
A-2
Tenure Tenure Tenure Sub Map Number Claim Name Owner Type Type Number Issue Date Good To Date Status Area (ha)
506475 142572(100%) Mineral Claim 083D 2005/feb/09 202l/mar/3l GOOD 395.675
507391 142572 (100%) Mineral Claim 083D 2005/feb/17 2021/mar/31 GOOD 553.698
530510 LIGHTNING 142572 (100%) Mineral Claim 083D 2006/mar/24 2021/mar/31 GOOD 494.525
530511 LIGHTNING 2 142572 (100%) Mineral Claim 083D 2006/mar/24 2021/mar/31 GOOD 395.741
530513 LIGHTNING 3 142572 (100%) Mineral Claim 083D 2006/mar/24 2021/mar/31 GOOD 217.556
537452 PYRAMID 1 142572(100%) Mineral Claim 083D 2006/jul/20 202I/mar/31 GOOD 493.795
537454 PYRAMID 2 142572 (100%) Mineral Claim 083D 2006/jul/20 2021/mar/31 GOOD 494.024
537456 PYRAMID 3 142572 (100%) Mineral Claim 083D 2006/jul/20 2021/mar/31 GOOD 197.674
550560 MUD 10 142572(100%) Mineral Claim 083D 2007/jan/29 2021/mar/31 GOOD 495.976
550562 MUD 11 142572(100%) Mineral Claim 083D 2007/jan/29 2021/mar/31 GOOD 475.2631
550563 MUD 13 142572(100%) Mineral Claim 083D 2007/jan/29 2021/mar/31 GOOD 454.3769
550565 MUD 14 142572 (100%) Mineral Claim 083D 2007/jan/29 2021/mar/31 GOOD 376.8803
550568 MUDI5 142572 (100%) Mineral Claim 083D 2007/jan/29 2021/mar/31 GOOD 178.5237
550603 ARIANEI 142572 (100%) Mineral Claim 0831) 2007/jan/30 2021/mar/31 GOOD 493.6076
550605 ARIANE2 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.8371
550607 ARIANF3 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.6181
550608 ARIANE4 142572 (100%) Mineral Claim 083D 2007/jan/30 202 1/mar/31 GOOD 493.8457
550609 ARIANE5 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.6292
550610 ARIANE6 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.8557
550612 ARIANE7 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/3I GOOD 473.8467
550613 ARIANE8 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 473.8462
550614 ARIANE9 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.7679
550615 ARIANEIO 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/3l GOOD 474.1587
550616 ARIANEI 1 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.4837
550620 ARIANEI2 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.1158
550621 4512124519227384 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 474.5925
550622 ARIANEI3 142572 (100%) Mineral Claim 083D 2007/jan/30 202I/mar/31 GOOD 474.8547
550623 ARIANE 14 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.3431
550624 ARIANE 15 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.5709
550626 ARIANE 16 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.2518
550628 ARIANEI7 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 492.9972
550629 ARIANE 18 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 473.2487
550632 ARIANE 19 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.2489
550633 ARIANE 20 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 414.104
550636 ARIANE 20 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/3 1 GOOD 493.7078
550637 ARIANE 21 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 197.646
550638 ARIANE 22 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.9378
550639 ARIANE 23 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.1652
550640 ARIANE 24 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.3914
550641 ARIANE 25 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 395.6757
550643 ARIANE 26 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.4941
550645 ARIANE 27 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.7162
550646 ARIANE 28 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.945
550647 ARIANE 29 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.17
550648 ARIANE 30 142572 (100%) Mineral Claim 083D 2007/Jan/30 2021/mar/31 GOOD 494.3939
550649 ARIANE 31 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 395.6765
550651 ARIANE 32 142572 (100%) Mineral Claim 083D 2007/jan/30 202l/mar/3l GOOD 493.2738
550652 ARIANE 33 142572 (100%) Mineral Claim 083D 2007/jan/30 202l/mar/31 GOOD 493.0544
CW523273 I . I
A-3
Tenure Tenure Tenure Sub Map Number Claim Name Owner Type Type Number Issue Date Good To Date Status Area (ha)
550655 ARIANE 34 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 1971623
550658 AR1ANE 35 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 492.9679
550661 ARIANE 36 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.1803
550662 ARIANE 37 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 197.3343
550663 ARIANE 38 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.4895
550664 ARIANE 39 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.7116
550665 ARIANE 40 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.9411
550666 ARIANE 41 142572 (100%) Mineral Claim 0831) 2007/jan/30 2021/mar/31 GOOD 494.1665
550667 ARIANE 42 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.3907
550668 ARIANE 43 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 395.6735
550669 ARIANE 44 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.5726
550670 ARIANE 45 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.3505
550671 ARIANE 46 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.1291
550672 ARIANE 47 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 414.9194
550673 ARIANE 48 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 414.7999
550675 ARIANE 49 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 414.6872
550676 ARIANE 51 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 276.3955
550679 ARIANE 52 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 414.4994
550681 ARIANE 53 142572 (100%) Mineral Claim 083D 2007/jan/30 202l/mar/31 GOOD 493.2689
550683 ARIANE 54 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.0508
550685 ARIANE 55 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 197.1645
550687 ARIANE 56 142572(100%) Mineral Claim 083D 2007/Jan/30 2021/mar/31 GOOD 473.5216
550689 ARIANE 57 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 473.2768
550691 ARIANE 58 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 492.9774
550693 ARIANE 59 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.1813
550695 ARIANE 60 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.4055
550697 ARIANE 61 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 454.5639
550698 ARIANE 62 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.077
550700 ARIANE 63 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.0662
550701 ARIANE 64 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 197.6254
550703 ARIANE 65 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.3049
550704 ARIANE 66 142572 (100%) Mineral Claim 0831) 2007/jan/30 202l/mar/3l GOOD 494.2991
550706 ARIANE 67 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 494.2915
550707 ARIANE 68 142572 (100%) Mineral Claim 0831) 2007/an/30 2021/mar/31 GOOD 435.0935
550709 AR1ANE 69 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 474.7668
550711 ARIANE 70 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/3l GOOD 474.7626
550714 ARIANE 71 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 474.7591
550715 ARIANE 72 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 356.0679
550718 ARIANE 73 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.3919
550721 ARIANE 74 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.3791
550726 ARIANE 75 142572 (100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.1657
550728 ARIANE 76 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 493.1504
550731 ARIANE 77 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 492.9639
550734 ARIANE 78 142572(100%) Mineral Claim 083D 2007/jan/30 2021/mar/31 GOOD 492.9498
550886 HELLROAR 142572(100%) Mineral Claim 0831) 2007/feb/01 2021/mar/31 GOOD 435.4711
550887 IIELLROARS 142572 (100%) Mineral Claim 083D 2007/feb/01 2021/mar/31 GOOD 475.2464
550888 BAT OUT OF HELL 142572 (100%) Mineral Claim 083D 2007/feb/01 2021/mar/31 GOOD 475.3964 TI IF MONSTER IS
550889 LOOSE 142572(100%) Mineral Claim 083D 2007/feb/Ol 2021/mar/31 GOOD 475.2026
CW5232731 I
BE
Tenure Tenure Tenure Sub Map Number Claim Name Owner Type Type Number Issue Date Good To Date Status Area (ha)
565127 PROSPER 1 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.099
565128 PROSPER 2 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 474.9845
565129 PROPSER 3 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.7982
565130 PROSPER 4 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 237.5248
565131 PROSPERS 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.798
565132 PROSPER 6 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.799
565133 PROSPER 7 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.7994
565135 PROSPER 8 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.7979
565136 PROSPER 9 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.8015
565138 PROSPER 10 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.8003
565139 PROSPER II 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 494.7982
565140 PROSIER 12 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.1588
565141 PROSPER 13 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.1812
565143 PROSPER 14 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.1819
565144 PROSPER 15 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.1839
565145 PROSPER 15 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.1849
565146 PROSPER 16 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.1878
565147 PROSPER 17 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/3l GOOD 178.195
565148 PROSPER 18 142572 (100%) Mineral Claim 083D 2007/aug/28 202l/mar/31 GOOD 336.7507
565149 PROSPER 19 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.1628
565150 PROSPER 20 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.1627
565152 PROSPER 21 142572(100%) Mineral Claim 083D 2007/augI28 2021/mar/31 GOOD 495.164
565153 PROSPER 22 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 396.1312
565154 PROSPER 23 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 396.1312
565156 PROSPER 25 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.1664
565157 PROSPER 26 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 396.1327
565158 PROSPER 27 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 396.1328
565159 PROSPER 28 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 455.5466
565160 PROSPER 29 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.4003
565161 PROSPER 30 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.3904
565162 PROSPER 31 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.3914
565163 PROSPER 31 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.3913
565164 PROSPER 32 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.3917
565165 PROSPER 33 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.393
565166 PROSPER 34 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.393
565167 PROSPER 35 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.3941
565168 PROSPER 35 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/3 I GOOD 495.3947
565169 PROSPER 36 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.3944
565170 IROSPER 37 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.5681
565171 SHADOWI 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6504
565172 SHADOW 2 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 436.1667
565173 SI IADOW 3 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6211
565174 SHADOW 4 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6207
565175 SHADOWS 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6219
565176 SHADOW 6 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6221
565177 SHADOW 7 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6222
565178 SHADOW 8 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.6232
565179 SHADOW 8 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 317.1876
CW5232731 I
Tenure Tenure Tenure Sub Map Number Claim Name Owner Type Type Number Issue Date Good To Date Status Area (ha)
565180 SHADOW 9 142572(100%) Mineral Claim 083D 2007/augI28 2021/mar/31 GOOD 475.9524
565181 SHADOW 10 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 475.9516
565182 SHADOW II 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.8402
565183 SHADOW 12 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.9419
565184 SHADOW 13 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/3I GOOD 495.9423
565185 SHADOW 13 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.9411
565186 SHADOW 15 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 456.3659
565187 FALKOR 1 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 456.0848
565188 FALKOR 2 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.763
565189 FALKOR 3 142572(100%) Mineral Claim 083D 2007/aug/28 202l/mar/31 GOOD 396.7453
565190 FALKOR 4 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.993
565191 FALKOR 5 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 374.6441
565192 FALKOR 6 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.1392
565193 FALKOR 7 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 4717231
565194 FALKOR 8 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.4453
565195 FALKOR 9 142572(100%) Mineral Claim 083D 2007/aug/28 202l/mar/3l GOOD 496.3699
565196 FALKOR 10 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 476.5252
565197 FALKOR II 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.401
565198 FALKOR 12 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 495.497
565199 MINI 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 39.7012
565200 FALKOR 13 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 476.5167
565201 FALKOR 14 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 357.3435
565202 FALKOR 15 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.1679
565203 FALKOR 15 142572 (100%) Mineral Claim 083D 2007/augI28 2021/mar/31 GOOD 496.169
565204 FALKOR 16 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 377.0984
565205 FALKOR 17 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 476.7777
565206 MINI 2 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 39.6939
565207 FALKOR 18 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 437.0555
565208 FALKOR 19 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.5879
565209 FALKOR 20 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.3959
565210 FALKOR 21 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 476.7461
565211 FALKOR 22 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 476.9548
565212 FALKOR 23 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.3943
565213 FALKOR 24 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 238.4882
565214 FALKOR 25 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.6332
565215 FALKOR 26 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 397.4372
565216 FALKOR 27 142572(100%) Mineral Claim 083D 2007/aug/28 202I/mar/31 GOOD 496.6269
565217 FALKOR 28 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 476.9699
565218 FALKOR 29 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.626
565219 FALKOR 30 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.863
565220 FALKOR 31 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.6276
565221 FALKOR 32 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.859
565222 FALKOR 33 142572 (100%) Mineral Claim 083D 2007/aug/28 2021/mar/3 1 GOOD 397.1157
565223 FALKOR 34 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.8588
565224 FALKOR 35 142572(100%) Mineral Claim 083D 2007/aug/28 2021/mar/31 GOOD 496.6289
588427 WASTED 1 142572(100%) Mineral Claim 083D 2008/jul/l8 2021/mar/31 GOOD 494.2937
588428 WASTED 2 142572(100%) Mineral Claim 083D 2008/jul/l8 2021/mar/31 GOOD 474.3304
588429 WASTED 3 142572(100%) Mineral Claim 083D 2008/jul/18 2021/mar/31 GOOD 474.1507
CW5232731,1
Tenure Tenure Tenure Sub Map Number Claim Name Owner Type Type Number
588430 WASTED 4 142572 (100%) Mineral Claim 083D
589537 FELIX! 142572 (100%) Mineral Claim 083D
589538 FELIX2 142572 (100%) Mineral Claim 083D
589539 FELIX3 142572 (100%) Mineral Claim 083D
589540 FELIX4 142572 (100%) Mineral Claim 083D
589541 FELIX5 142572(100%) Mineral Claim 083D
589542 FELIX6 142572 (100%) Mineral Claim 083D
589544 FELIX7 142572 (100%) Mineral Claim 083D
589551 FELIX8 142572 (100%) Mineral Claim 083D
589554 FELIX9 142572 (100%) Mineral Claim 083D
589556 FELIX1O 142572 (100%) Mineral Claim 083D
589557 FELIXII 142572(100%) Mineral Claim 083D
589559 FELIXI2 142572 (100%) Mineral Claim 083D
589563 FELIXI3 142572 (100%) Mineral Claim 083D
798362 JOIN 142572 (100%) Mineral Claim 083D
Issue Date Good To Date Status Area (ha)
2008/jul/I 8 202 1/mar/31 GOOD 473.977
2008/aug/05 2021/mar/31 GOOD 496.3964
2008/aug/05 2021/mar/31 GOOD 496.3976
2008/augI05 2021 /mar/31 GOOD 377.1036
2008/aug/05 2021 /mar/31 GOOD 496.1697
2008/aug/05 2021/mar/31 GOOD 495.9655
2008/aug/05 2O21/mar/31 GOOD 436.3101
2008/aug/05 2021/mar/31 GOOD 376.6839
2008/aug/05 2021/mar/31 GOOD 475.8199
2008/aug/05 2021/mar/31 GOOD 396.317
2008/aug/05 202 1/mar/31 GOOD 495.4715
2008/aug/05 2021/mar/31 GOOD 415.9727
2008/aug/05 2021/mar/31 GOOD 495.1674
2008/aug/05 202 1/mar/31 GOOD 356.6787
201 0/jun/25 2021/mar/31 GOOD 177.9794
CW5232731 I
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