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It’s summertime and like most commodities, the tantalum market is slow. Commerce Resources has been hard at work, however, with the recent update to their mineral resource estimate.
Primary ingot is currently trading hands for between $460 and $485 per kilogram in the United States. Across the pond, sellers are resisting being bid down to $440 per kg. Meanwhile, prices for tantalite have been holding steady at $120 to $127 per pound Ta2O5.
H.C. Starck, leading manufacturer of technology metals and advanced ceramics, announced on July 8 that the EICC, a coalition aimed at improving efficiency, social, ethical and environmental responsibility in the global supply chain, has deemed its supply chain conflict free for the third year in a row. The decision was made following an independent audit conducted by a third party as part of the Conflict-Free Smelter Program.
Commerce Resources updates mineral resource
Canadian junior exploration and development company Commerce Resources (TSXV:CCE) is making headway on its Upper Fir tantalum-niobium project in British Columbia. Commerce recently updated the mineral resource estimate for Upper Fir. The new mineral estimate has improved geological interpretation of mineralized carbonatite host found in 2011′s infill diamond drilling. The results of the study show that the total indicated mineral resource is 48.4 million tonnes of 197 parts per million (ppm) Ta2O5 and 1,1610 ppm Nb2O5. The mineral increase is a significant event for the company, which is currently planning the next step in the project’s development: the prefeasibility study.
In 2011, Commerce completed a preliminary economic assessment for the Upper Fir deposit. With the new mineral resource estimates, AMEC reviewed the previous numbers and concluded that the project has the potential for positive cash flow of 7,500 tonnes per day from an underground operation at the deposit.
Upper Fir is expected to be able to produce an estimated 2.7 million tonnes per year for over nine years. The project’s operating costs for this period are roughly C$379 million. Cash costs for tantalum are C$24.91 per kilogram for metal contained in a technical-grade chloride product (after credit for niobium contribution).
Upper Fir
The Upper Fir deposit is part of the bigger Blue River project, located just over 20 kilometers from the small town of Blue River in British Columbia. The project is accessible year round via a logging road that branches off one of the main highways in the area. The project also has access to good infrastructure, including highways, railroad and power lines that intersect the property.
Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article.