Bacanora – Excellent Lithium and Borate Assets in Resource – Rich Sonora state Mexico
Overview
Bacanora Minerals Ltd. (TSXV:BCN) is a Canadian based exploration company based in Saskatoon Saskatchewan, operating in Mexico.
Strategy
- Long term potential: Lithium
NI 43-101 Inferred Resource at Ventana deposit of 930,000 tonnes Lithium Carbonate Equivalent
Potential to be mined using low-cost bulk-mining techniques
Preliminary Economic Assessment NPV 8%, US $848,000,000
- Near term driver: Borates
NI 43-101 Indicated Resource of 11 million tonnes
Pilot Plant: Test product for customer orders
Preliminary Economic Assessment NPV 8%, US $113,000,000
Investment Highlights
- Management with extensive experience in Mexico
- Proven discovery track record
- Excellent Borate and Lithium assets
- In mining friendly & resource-rich Sonora state
- Close to local markets and infrastructure
- Within easy access of overseas markets
- Near term: Borates – Commercial Production
- Future: Lithium – Large Tonnage low cost Bulk Mining
- ~$2m cash in hand
- No debt
Key Projects
- Focused on two 100% owned plays; both in the Sonora region of Northern Mexico: the Magdelana Borate Project & the Sonora Lithium Project
Current Lithium Projects
- Located in the same region as our Borate projects, slightly to the South East
- Four concession areas totaling 4,050 hectares
- Ventana is our most advanced deposit at this time
- Excellent opportunity to define large bulk-mineable lithium resources
- Relatively easy access and development potential
- Recently completed second round of drilling
- NI 43-101 inferred resource at Ventana of 930,000 tonnes of Lithium Carbonate Equivalent
- Continued exploration of El Sauz
Current Borates Projects
- Our borate projects are located in North West Mexico, just east of the Baja Peninsula
- Three borate zones in the San Francisco Concessions:
- Cajon; Bellota; Pozo Nuevo
- Cajon is the most developed part of our Borate project at this time.
- NI 43-101 indicated resource at Cajon:
- 11 m tonnes @ 10.6% Borate in three stacked beds
- Metallurgical testing is being finalized.
- Phase I Colemanite Production planned in 2013
Why Lithium?
• Has a number of useful and special, technology driven properties
• Seen as a potential future source of clean energy as a battery component.
• Like Borates, Lithium is not an exchange traded commodity, so it is sold on a contract basis.
• More than 80% of production is concentrated among four companies only.
In the form Lithium Carbonate (Li2CO3) sells for approximately USD $5,000/tonne.
• Lithium prices are on the rise.
• Lithium demand is on the rise.
Why Borates?
• Possess number of unique, high-tech & energy-saving uses for which substitution with other compounds is not possible.
• World markets require about 1.9 million tonnes of borates/year.
• Two thirds of borates are consumed in the glass and ceramic industries
• Two producers control 75% of the world market. Etimine, in Turkey, and US Borax, a Rio Tinto subsidiary, in the USA.
• Borates are not an exchange-traded commodity.
Colemanite, a borate compound, sells for approximately: USD $500/t.
Higher purity boric acid sells for approximately: USD $900/t.
• Borate prices are on the rise.
• Borate demand is on the rise.
Management
- Extensive experience operating in Mexico with proven discovery track record
- Excellent in country contacts working towards securing further high quality assets
- Fully operational office and field teams in place on site
Paul T. Conroy – President, CEO, and Director
Is the founder, President, Chief Executive Officer and a director of Bacanora Minerals Ltd. Over the past 40 years, Mr. Conroy has been involved in numerous resource companies holding the positions of Principal, Officer and Director.
Derek Batorowski – CFO and Director
Since 1993, Mr Batorowski has been an independent consultant to the oil and gas industry, having held various financial positions with junior private and public companies and has been a member of the Certified General Accountants Association of Alberta since June 21, 2000.
Colin Orr-Ewing – Director
Mr. Orr-Ewing has a wealth of over 35 years’ experience spanning both the oil and mining industries and has been a director of UK and Canadian oil companies and Irish and Canadian mining companies. He also currently acts as an adviser to a fund management company on its natural resources portfolios and is Executive Chairman of Vatukoula Gold Mines Plc.
Raymond Hodgkinson – Director
Mr. Hodgkinson has served as an engineering consultant to the oil and gas industry and a director with several private and public resource industry companies. He has been a member of the Alberta Association of Professional Engineers, Geologists and Geophysicists of Alberta.
James G. Leahy – Director (Non-Executive)
Mr. Leahy spent the last 26 years in the mining industry as a specialist corporate broker, including mining finance, origination and equity sales. He has worked on a wide range of projects worldwide, ranging from industrial minerals, precious metals, coal, diamonds, iron ore and copper. Over the years he has been involved in more than 30 IPOs and a large number of primary and secondary placing’s.
Martin Vidal Torres – VP of Exploration and General Manager of Minera Sonora Borax S.A. de C.V.
Mr. Vidal started his career as geologist with the US Borax exploration team and has years of experience working in Northern Mexico, particularly in the borate basins that Bacanora is now developing. His experience includes 20 years of working with Rio Tinto in exploration for industrial minerals in several countries in the Americas, where he occupied positions from principal geologist to country manager.
