refresher
rockstone-research.com/index.php/en/research-reports/1628-Commerce-Resources-records-highest-niobium-mineralized-sample-to-date-at-Miranna
Last week, Commerce Resources Corp. reported sampling assays from the Miranna Area, located only 1 km east of its Ashram REE Deposit in Québec. The best results include 5.9% and 4.2% niobium pentoxide (Nb2O5). The 9 selected samples reported by Commerce averaged 2.3% Nb2O5. Of all 64 samples, 40 assayed >0.5% Nb2O5, with 16 surpassing 1%. Sampling also found significant grades of tantalum, phosphate and rare earth oxides (2 samples each graded >1,000 ppm Ta2O5 and 1% Nb2O5, while several samples revealed >10% P2O5).
When comparing these niobium grades with the range of global average mining grades of about 0.5 to 1.5% Nb2O5, and the average grades of niobium exploration projects, Commerce Resources indeed has every reason for being enthusiastic.
Niobium focused juniors seem to be enjoying a recent lift in share prices and market valuations potentially due to positive demand growth for niobium for structural steel for infrastructure projects, as well as for the current lighter and stronger chassis for cars. MDN Inc. has recently seen its’ share price appreciate by almost 400% following the announcement of their acquisition of the James Bay Niobium Project, called the Argor Project, which has an historic indicated resource with a grade of 0.52% Nb2O5.
Last year, NioCorp Developments Ltd. (originally structured by Zimtu Capital Corp.) reported an average indicated resource grade of 0.71% Nb2O5 assuming a 0.3% cut-off grade at its Elk Creek Niobium Deposit in Nebraska, USA. Today, NioCorp enjoys a market valuation exceeding $150 million CAD.
With a market share of about 90%, Brazil is the world’s largest producer of niobium, followed by Canada. Brazil has the world‘s largest niobium reserves (98.5%), followed by Canada (1%) and Australia (0.5%). Brazilian niobium reserves total about 840 million t of Nb2O5, with an average grade of 0.73%. The 2 Brazilian niobium mines are Araxá (owned by private company CBMM) producing about 85% of the world’s niobium with resource grades of about 2.5% Nb2O5 and Catalão (owned by China Molybdenum) producing about 7% of the world’s niobium with reserve grades of about 1.2% Nb2O5 (resources at 0.93% Nb2O5).
The third largest producer is the Niobec Mine in Québec (owned by private company Magris Resources) accounting for about 7% of global niobium mine output, with resource grades at 0.53% Nb2O5. Magris purchased Niobec from IamGold for $500 million CAD in January 2015. Market insiders believed this was a signal that infrastructure building was back on the horizon and that niobium demand would be positively affected.
Most of the current exploration, development, and operating mines for niobium have grades between 0.3% and 1.2% Nb2O5, apart from the world‘s largest and highest grade niobium mine, Araxá in Brazil, with resource grades of 2.5% Nb2O5. With an average of 2.3% Nb2O5 in the 9 samples reported from the Miranna Area, Commerce Resources may be close to the discovery of a high grade niobium deposit comparable to the leading global producer. Miranna has the right host rock and ore mineral for standard, highly efficient metallurgical processing, that being carbonatite rock and pyrochlore mineralogy hosting the niobium.
As Miranna is located only 1 km east of the Ashram Rare Earth Deposit, there could be significant potential for development synergies in the event a deposit of merit is defined at Miranna.
Having 2 strategic metals deposits right at surface would greatly facilitate the infrastructure development on the Eldor Property, as well as the entire region.
Developing 2 separate deposits on the Eldor Property would allow for significant synergies in CAPEX and OPEX, thereby bringing the overall costs down considerably in the event both assets were developed. The Plan Nord initiative, which has a focus on fostering the development of Quebec’s northern mineral resources, could soon have another good reason to consider Commerce Resources in its infrastructure development plans.
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