Commerce Resources Corp. (TSXv: CCE, FSE: D7H) (the “Company” or “Commerce”) is pleased to announce that it has signed a Memorandum of Understanding (the “MOU”) with TUGLIQ Energy Co. (TUGLIQ) to complete a definitive assessment on the use of wind energy to satisfy part of the Ashram Rare Earth Project’s energy requirements at the mine-site1(the “Wind Energy Project”).
A preliminary evaluation of local and regional wind data to the west of Lac Le Moyne was completed by TUGLIQ in 2016, indicating favourable wind speeds for renewable power development as part of the Ashram Project’s energy mix at the mine-site1 (see news release dated April 21, 2016). These encouraging results have now led to the signing of an MOU between the two companies in order to carry-out a more definitive assessment.
The Wind Energy Project will be comprised of three main components; Wind Resource Assessment, Electrical System Engineering, and an Integration Study including assessment of greenhouse gas (GHG) emission reductions. The ultimate objective of the project will be to determine if the incorporation of wind power into the baseload diesel power supply at the mine-site1 is cost-effective. The project will be partially funded through the support of the ÉcoPerformance grant provided by the Ministère de l’Énergie et des Ressources naturelles du Québec.
Company President Chris Grove states, “We are excited to be collaborating with TUGLIQ, and to have the support of the Quebec Government on this renewable resource project. We look forward to evaluating this potential in much further detail. The potential to incorporate cost-effective renewable energy into the Ashram Project only makes it that much more attractive for development.”
The results of the programs described in this news release are anticipated to be incorporated, along with other necessary technical data including geological and engineering studies, into the ongoing Pre-feasibility Study, with costs and potential benefits to be described in more detail therein.
- Refers to the Ashram Deposit area, including the proposed mine-site infrastructure that would be required in the event of a mining operation.
Commerce Resources Corp. would also like to announce that Sven Olsson has resigned from the Board of Directors of the Company.The Company would like to thank Mr. Olsson for his service and dedication to the Company and its shareholders.
NI 43-101 Disclosure
Darren L. Smith, M.Sc., P.Geol., Dahrouge Geological Consulting Ltd., a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
About Wind Energy at Mine-sites in Canada
Benefits of wind power generation for mining projects include reducing the project’s overall carbon footprint through a reduction in fossil fuel use and related transportation costs. In addition, the advancement of wind turbine technology in recent years has made the method more cost competitive and applicable to remote environments where a connection to the regional power grid is not practical.
Wind power generation for northern mining projects is currently operating successfully at two Canadian mine sites; the Diavik Mine, NWT, with a four turbine wind farm (9.2 MW generating capacity) operating since 2012, and most recently at the Raglan Mine, Nunavik, QC, with a single 3 MW turbine with energy storage commissioned in 2014.
About TUGLIQ Energy Corp.
TUGLIQ is a specialist Independent Power Producer (IPP) focused on remote and hybrid energy diversification for off-grid solutions tailored to the mining industry or islanded grids. TUGLIQ offers flexible structures and agreements ensuring CAPEX conservation for mining clients, and immediate savings over current diesel power generation costs, adapting to low prices in commodities and fossil fuels.
TUGLIQ takes responsibility on a turnkey basis of the financing, technology assessment, ownership, development, construction, execution and commissioning, operation and maintenance, in the end offering mining customers an advantageous all-inclusive price of energy on a $/kWh or $/GJ basis.
About Commerce Resources Corp.
Commerce Resources Corp. is an exploration and development company with a particular focus on deposits of rare metals and rare earth elements.The Company is focused on the development of its Ashram Rare Earth Element Deposit in Quebec and the Upper Fir Tantalum and Niobium Deposit in British Columbia.
For more information please visit the corporate website at http://www.commerceresources.com, or contact Investor Relations at 604.484.2700 or [email protected].
On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements.For example, forward looking statements in this press release include and are not limited to the statements that we will receive a grant provided by the Ministère de l’Énergie et des Ressources naturelles du Québec; that benefits of wind power generation for mining projects include reducing the project’s overall carbon footprint and related transportation costs, as well as that we will have a definitive assessment prepared by TUGLIQ.These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information.Risks that could change or prevent these statements from coming to fruition include that we may not reach a final arrangement with TUGLIQ, changing costs for mining and processing; increased capital costs; the timing and content of upcoming work programs; interpretations based on current data that may change with more detailed information; the availability oflabour, equipment and markets; and despite the current expected viability of the project, wind power may not prove feasible at our site. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.