Hot Stocks: Commerce Resources’ Grab Bag of Strategic Materials
The recent announcement that the world’s top producer of tantalum is going to restart production after almost two years of inactivity signals a change in the market that could only be good news to potential producers like Commerce Resources (TSX-V:CCE).
The company is actively developing its Blue River tantalum and niobium project in BC as well as its Eldor REE project in Quebec.
The improving market conditions and the vital role that tantalum plays in the production of today’s high-tech and “green” gadgets breed predictions that serious shortages of this rare metal are looming. With the Blue River Tantalum-Niobium Project being in an advanced stage, Commerce Resources certainly looks like it is in an advantageous position in the field of rare metals.
To date, the company has identified a large indicated resource of the critical metals tantalum and niobium and is continuing field and engineering work. Following the completion of a preliminary economic assessment, Commerce Resources plans to update its mineral resource estimate with the 52 holes drilled in 2010, presenting a potential upside for investors.
The company is also excited about its second project, the Eldor Rare Earth Project in northern Quebec. “We are excited about the encouraging results received from extensive exploration in 2010. These results even led newsletter analyst John Kaiser to describe the Eldor as ‘the most important new grassroots rare earth discovery since market interest took off in 2009’,” CEO David Hodge told Resource Intelligence recently.
A key thing to watch over the next few months are the company’s next development decision on its Blue River project and the results of additional drilling at Eldor. “We have contracted SGS Geostat to complete the first 43-101 resource calculation for this deposit and expect it to be delivered shortly,” said Hodge.
Check out our Interview with Director of Corporate Communications HERE to get a sense of the value of these two deposits.