What does Commerce Resources bring to the table in the rare earths space?

In 2005, Commerce Resources conducted due diligence on rare earth elements (REEs) and the main producers. We quickly discovered that over 80% of REEs were hosted in a single geology: carbonatites. Furthermore, of hundreds of different minerals that can host rare earths, only four were ever commercialized. That has not changed in the last 17 years despite over a billion dollars of unsuccessful R&D metallurgy attempted on those other minerals. Within these four commercialized minerals, there is a hierarchy. The most abundant one currently in production may be bastnaesite, which is what MP Materials in California processes. However, the most attractive mineral is monazite, as it hosts more of what the market currently wants and values, which is magnet feed.

Our Ashram rare earth element and fluorspar project has the most attractive fundamentals of commercialized REE mines globally, as we now have the world's largest monazite dominant defined resource of REEs hosted in a carbonatite. Monazite dominant carbonatites are the most attractive fundamentals for a REE project, as evidenced by the Bayan Obo rare earth mine in China, which produces over 40% of the world's supply of REEs. At Ashram, mineralization starts at surface, and we have drilled the deposit down to below 600 m, which gives us potentially hundreds of years of production. This is an unparalleled combination of the right mineralization, good grades, and size.

Can you share your goals for the summer drill program at Ashram?

We began a summer drill program at Ashram in July 2022 with the primary focus to continue the work we have been doing over the past decade to increase the amount of measured and indicated resource. The total resource currently sits at 249 million tons based on the original 15,000 m of drilling. We have added 13,000 m and have conducted a few step-out holes, which aligns with our second priority of increasing the size of the deposit.

What makes Commerce Resources’ Ashram project so relevant in today’s rare earths market?

There is a strong misconception that rare earths mining and processing has to be damaging to the environment. This fits into an ongoing narrative that REEs are dirty and their role in reducing global dependence on fossil fuels is counterproductive for the environment. China became a net importer of REEs in late 2018 when policies emanating from Beijing outlined guidelines on certain styles of production and onsite processing. Nearly 20% of global production previously came from ionic clay deposits in South China that were shut down.

Today, China is a net importer of not only REEs but also of fluorspar, again due in large part to the country's shifting environmental policies. Current prices for rare earths are a clear reflection of increased global demand coupled with significant issues on the supply side. We see Commerce Resources playing a major role in the global picture, given the scale of the deposit and the mineral and geological fundamentals that allow us to be as competitive as possible outside China. We will be able to produce 50,000 tons of a 50% rare earth carbonate concentrate that is completely radioactive free for over 100 years of production given the current resource.

How does Commerce Resources factor ESG concerns into its operations?

We address the social license to operate as soon as possible, and this has manifested in strong relationships with the Inuit in Nunavik and other indigenous groups we meet with regularly. We also have the highest standards for environmental stewardship and are one of the few juniors that have an environmental and sustainability manager. For this work, we were awarded the E3 Plus award from the AEMQ in 2015.

Do you have a final message?

REEs are the most difficult commodity to find economic deposits of, and only rarely do you come across a deposit like Ashram. Ashram has more magnetic feed material than Bayan Obo, the world's largest producer, and it also has an extremely valuable byproduct, fluorspar, which is in huge demand right now for the manufacturing of aluminum.