The term “rare earth elements” is a bit of a misleading term, as they are relatively abundant in the earth’s crust, but what is rare is them concentrating into economically exploitable ore deposits. As defined by the International Union of Pure and Applied Chemistry (IUPAC), “rare earth elements or rare earth metals are a collection of seventeen chemical elements in the periodic table, namely scandium, yttrium, and the fifteen lanthanides.”
In today’s high-tech world, these elements are used for an ever-increasing amount of components due to modern technology including superconductors, magnets, polishers, hybrid car components, lasers, televisions and microwave resonators.
More importantly, what makes these elements even more valuable is that China controls more than 95% of the global market and has stopped shipping them to the rest of the world. Japan, which is home to many manufacturers that require the rare earth metals, estimates that without further imports from China, its supply will be completely depleted by March or April of 2011. Although China has delivered no official statement declaring an export ban, it is clear that they have decided to “red tape to death” importers wishing to get their hands on the valuable material. In fact, all 31 Japanese companies that handle rare earth minerals have reported a significant disruption or halt of shipments. It is theorized that China shuffling their feet to ship the product to Japan is in retaliation of Japan arresting a Chinese trawler captain in waters that the two countries are disputing over ownership.
Putting the Chinese/Japanese conflict aside, the value of rare earth metals is still growing exponentially as demand is growing faster than the minerals are being uncovered. Commerce Resources Corporation (TSX-Venture: CCE), an exploration and development company with a particular focus on tantalum, niobium and rare metal deposits, announced yesterday that with its joint venture partner Canadian International Minerals, Inc. (TSX-Venture:CIN), it has begun a minimum 1,000 meter diamond drill program on the Carbo Rare Earth Project in northeastern British Columbia.
Driven by knowledge from some of the world's largest rare earth element deposits and mines, which are hoasted with carbonatites, the goal of the drilling program is to identify carbonatite hosted rare earth element and rare metal mineralization. The targets for drilling were determined from results of a recently completed high resolution Aeroquest Radiometric-Mag survey and closely spaced auger soil geochemical sampling. The partners have initial plans of drilling at least 12 diamond holes from up to 6 drill sites. ALS Chemex labs in North Vancouver, British Columbia, will be handling testing of samples.
Per the joint venture agreement, Canadian International Minerals has the option to earn up to a 75% interest in the Carbo Project by paying Commerce $30,000 cash, issuing 1,500,000 common shares and incurring a total of $198,000 in exploration expenditures over a three year period. In addition, Commerce Resourses retains a 2% NSR Royalty on the claims.
The Carbo Project is not the only endeavor that Commerce is focused on at the moment. The Company is also seeing success at its 100%-owned Eldor Propery. The Eldor Property covers a carbonatite complex located within the central Labrador Trough located in northern Quebec; approximately 130 km south of the town of Kuujjuaq and encompasses 404 claims totaling approximately 19,006 hectares. Given the successes of large rare earth mineral producing mines with relation to carbonatite, the Eldor Project represents one of the largest carbonatite complexes known worldwide. Significant tonnage potential has been indicated by the broad thickness and relative continuity of grade encountered thus far in the first two holes at the Ashram Zone.
With the world not only growing to rely upon rare earth minerals, but also seeing an increasing demand from a country that doesn’t seem interested in sharing at the moment, companies such as Commerce Resources Corporation and their quest for rare earth minerals could be “as good as gold.”
