Tuesday, May 20, 2008
International Metals Expert Sees Canadian Tantalum-Niobium Company becoming “World-Class Producer”
by Sam Kiri company news image
Near the town of Blue River, a helicopter skiing destination in the North Thompson Valley of British Columbia, may be the world’s next great resource of tantalum and niobium.
Axel Hoppe thinks so. For the past three decades, Dr. Hoppe was a senior executive of H.C. Starck Inc., an international company serving electronic, semi-conductor and optical industries. Until recently, he headed Starck’s Technical Services and Engineering Group, with responsibility for production sites in Europe, North America and the Far East. In April this year, Hoppe became chairman of Commerce Resources Corporation, underlining the potential Commerce Resources has in store.
H.C. Starck has already alerted its customers to a long-term (secular trend) double-digit increase in the prices of tantalum and niobium, and Hoppe said, “When I heard about Commerce Resources, I was impressed with the potential of their tantalum and niobium deposits and then I was offered the chance to contribute to the company in developing the deposits into a producing mine. I’m glad to become a member of the management team in order to help Commerce Resources become a word-class producer.”
Production Slated for 2010
Toronto and Frankfurt listed Commerce Resources Corp (TSX: CCE, Frankfurt D7H) has been active in the exploration and development of tantalum-niobium properties since 2000. Headed by company president David Hodge, Commerce has acquired and 100 percent owns more than 1000 square kilometres of property in British Columbia and Quebec. The current focus is on British Columbia’s Blue River territory, with approximately 29 million tonnes of indicated and 24 million tonnes inferred resources (NI 43-101 compliant). The company’s competitive advantage lies in the fact that its projects are located in Canada, an area with low political and currency risk as compared to other world supplies.
The priority for 2008 is development of the Upper Fir project in Blue River, holding 23 million tonnes indicated and 13 million tonnes inferred. In 2007, eighteen HQ-sized drill holes totaling 4710 metres were completed at Upper Fir, all with intersecting mineralized carbonatite. Combined with the apparently contiguous Bone Creek occurrence, the Upper Fir complex now extends approximately 800 metres east-west by 1400 metres north-south. Condemnation holes will be drilled at Upper Fir this June, leading to mine site construction. Production, employing Commerce’s own processing facilities and progressing to manufacturing, is expected to begin by 2010.
Although Commerce Resources’ lead project is Upper Fir, the company has other projects worthy of attention in its Fir and Verity properties. The Fir property comprises twelve contiguous mineral areas (still to be surveyed) covering approximately 1725 hectares. It is estimated to hold 5.65 million tonnes of indicated resources, grading 203 g/t Ta205 and 1074 g/t Nb205 and 6.74 million tonnes of inferred resources, grading 203 g/t Ta205 and 1074 g/t Nb205. The deposit has been intersected by fifteen drill holes traced (on surface) along a strike length of approximately 400 metres.
The Verity project consists of thirteen claims over 325 acres. In the 1980s, the area was given extensive exploration, including diamond drilling, by Anschutz Mining Ltd. Verity has inferred resources of 3.06 million tonnes containing 196 g/t Ta205, 646 g/t Nb205 and 3.20% P205. The Verity project remains open for expansion.
Meanwhile, Commerce has been conducting early-stage exploration in the Labrador Trough area of Quebec. In 2007, at the Elder Carbonatite project, the company completed a comprehensive exploration program (magnetic/radiometric airborne geophysical survey, rock and soil sampling), which revealed significant concentrations of tantalum and niobium. This year’s extensive exploration program will include diamond drilling.
Essential Metals for the Electronic Age
The demand for tantalum and niobium is accelerating rapidly. According to the US Geological Survey and the Tantalum-Niobium International Study Centre, global consumption, six million pounds in 2007, is expected to increase by seven percent annually over the next twenty years.
The reasons for this growing demand include emerging industrial markets (China, et al.) and technological advances. Tantalum is essential to the electronic age. It is a crucial component in telecommunications, computers, data storage, digital cameras, DVD players and flat screen television. The aerospace industry needs tantalum for jet engines, turbines and space vehicles. Auto makers require tantalum for electronic and airbag systems. Tantalum is used in power plants, nuclear reactors and chemical production, and is playing an increasingly important role in medicine, in devices from auto-defibrillators to knee replacements.
Niobium’s unique value to industry is its strength as an alloy. Standard steel has a PSI (pounds per square inch) capacity of 40,000. With the addition of niobium, PSI is raised to 150,000, turning standard steel into super steel. No wonder niobium is in demand for bridge and building construction. There are many other applications as well, from pipelines to pacemakers.
Potentially North America’s Only Tantalum-Niobium Developer
Deposits of tantalum and niobium are rare. Most of the world’s tantalum supply currently comes from a single mine in Australia, with a few sources in Africa, Asia and South America. Secondary sources include recycled materials, processor inventories, tin slags, and the United States Defence Logistics Agency stockpile, which is now severely depleted. As for niobium, the DLA stockpile of niobium mineral concentrate inventory was exhausted in 2007, its niobium carbide inventory was exhausted in 2002, and its ferroniobium inventory was exhausted in 2001. With only 20% coming from secondary sources such as recycling, niobium also enjoy strong fundamentals.
The list of Commerce advantages include:
- Potential for low-cost open pit mining
- Higher grades.
- A recovery rate potentially higher than the industry standard. While most of the world’s deposits are in hard pegmatite, the host rock for Commerce deposits is softer carbonatite, allowing easier separation.
- Strong, near complete infrastructure in place—rail lines, paved roads, water and power supplies—to facilitate production and delivery, while further reducing costs.
- Proximity to the US market and established Canadian trade relations with China.
- Working capital of $34 million CDN.
- Capable, experienced, specialist workers.
“We are in an excellent position,” says David Hodge, “with sufficient capital to advance commercialization of a prospectively lucrative, low-cost mining operation.” Hodge also welcomes the addition of Axel Hoppe to the Commerce Resources management group. “We are extremely happy,” he said, “to have Dr. Hoppe join our team. His many years of experience in the industry will move us into the next phase of development.”
Summing up
The technological advances of our time have outpaced by far the most daring imagination. Part of these advances, a critical part, has been the essential role played by tantalum and niobium. The terms still are not widely known, but far-sighted developers and investors recognize the potential in them. The new, powerful player in this field is Canada’s Commerce Resources Corporation, responding to an increasing global demand, and moving toward production in 2010.
http://www.proactiveinvestors.com/companies/news/...roducer-0494.html
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