Bacanora Minerals Ltd. (TSXV:BCN) is an exploration and development company with advanced exploration operations in Mexico. The Company is focused on advancing two projects in the Sonora region of Northern Mexico: The Sonora Lithium Project and The Magdalena Borate Project.
- Management with extensive experience in Mexico and a proven discovery track record
- Excellent borate and lithium assets
- Mining friendly and resource-rich Sonora state
- Close to local markets and infrastructure (road, rail, electricity)
- Within easy access of overseas markets
- Near term: Borates – commercial Production
- Future: Lithium – large tonnage low cost bulk mining
- Approximately $3.5 million cash in hand
- No debt
Sonora Lithium Project
- La Ventana Concession PEA NPV 8%: $US 848 Million+ (based upon a commodity price of US$6,000/tonne for lithium carbonate)
- ·NI 43-101 Inferred Resource of 930,000 tonnes Lithium Carbonate Equivalent
- El Sauz and Fleur Concession NI 43-101 Inferred Resource of 1,486,000 Lithium Carbonate Equivalent
- Potentially mineable using low-cost bulk-mining techniques
The Sonora Lithium Project is located in Sonora, Mexico and consists of nine individual concessions totaling 9,249 hectares. The project consists of three 100% owned concessions and five concessions in joint venture with Rare Earth Minerals plc.
There is a NI 43-101 inferred resource at La Ventana of 930,000 tonnes LCE (calculated by multiplying the Li value, expressed in percent, by 5.324 to get LCE in percent, then multiplying the total estimated tonnage by LCE % to get tonnes of LCE) and a preliminary Economic Assessment has been completed.
The project has relatively easy access and development potential. There is excellent opportunity to define large bulk-mineable open pit lithium resources.
La Ventana Lithium Deposit
The estimate for the upper clay unit is 22,642,000 tonnes averaging 2,632 ppm Li (1.3% LCE). The lower clay unit is estimated at 20,682,000 tonnes averaging 4,103 ppm Li (2.0% LCE). Both the upper and lower clay units are open down-dip; the beds dip 20 degrees to the east. The lower clay unit has additional inferred resources up-dip estimated at 16,829,000 tonnes averaging at 2,557 ppm Li (1.3% LCE). The total for estimated inferred resources for the combined clay units is 60, 153, 000 tonnes averaging 3,000ppm Li (1.6% LCE).
El Sauz and Fleur Concessions
Bacanora Minerals entered into a Shareholder Agreement with Rare Earth Minerals plc. For the El Sauz and Fleur concessions. Phase 1 drilling has been completed with NI 43-101 inferred resource of 1,486,000 tonnes of Lithium Carbonate Equivalent (LCE is calculated by multiplying the Li value, expressed in percent, by 5.324 to get LCE in percent, then multiplying the total estimated tonnage by LCE % to get tonnes of LCE). Phase 2 drilling has started with one hole completed and metallurgical testing is underway. Drill program final results are expected by Q1 2014.
- Has a number of useful and special, technology driven properties
- A light metal with high energy density
- Lithium is seen as a potential future source of clean energy as a component used in:
- Lithium ion batteries
- Consumer electronics
- Electric vehicles
- Smart grids
- Lithium is not an exchange traded commodity and is sold on a contract basis
- More than 80% of production is concentrated among four companies
- In the form Lithium Carbonate (Li2CO3) sells for approximately USD $6,000/tonne
- Lithium demand is on the rise
- Lithium prices are stable
- Preliminary Economic Assessment NPV 8%: $US 113 Million (based upon a commodity price of US$500/tonne for colemanite concentrate)
- Pilot Plant Construction Q3 2013
- Commercial Production Q3/Q4 2014
Bacanora Mineral’s borate projects cover 19,834 hectares and the three borate targets East of Magdalena, Sonora are El Cajon, Bellota, and Pozo Nuevo. Infrastructure in terms of electricity, roads, water, and rail are in place.
El Cajon is the most developed part of the Borate project at this time:
- NI 43-101 indicated resource at Cajon:
- 11 million tonnes @ 10.6% B2O3 in 3 stacked beds
- 40%+ Colemanite concentrate achieved, bench testing finalized.
- 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 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 $1,000/t.
- Borate demand is on the rise
- Borate prices are stable
Tentative 2013 Lithium Work Program
- Launch second Phase 2 drilling program at El Sauz and Fleur
- Solubility and metallurgical testing at El Sauz and Fleur
- Planning of La Ventana drilling program
Tentative 2013/14 Borates Work Program
- Additional testing of higher grade colemanite in pilot plant
- Order critical equipment for commercial plant
- Infill drilling at Magdelena for pit control
- Start construction of borate plant
- Commission borate production
- 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
Shane Shircliff – Chief Executive Officer
Mr. Shircliff is COO of Westcore Energy, (TSXV-WTR) an oil, gas and coal exploration company based in Saskatoon, Saskatchewan. Mr. Shircliff is also a director and co-founder of Kenna Resources Corp. (TSXV-KNA) and Ituna Capital Corp. (TSXV-TUN.P). Prior to this, Mr. Shircliff has consulted for a variety of public and private junior resource companies with a focus on corporate strategy and operations. Mr. Shircliff spent 13 years with Cameco Corporation where he handled all aspects of the evaluation of uranium acquisition, divestiture and joint venture opportunities around the globe including due diligence, financing and deal negotiations. He has an MBA and B.Comm. in Finance and Economics, both from the University of Saskatchewan.
Martin Vidal Torres – President and Director
Mr. Vidal has served as the Vice President, Exploration – Mexico for Bacanora since January 2011. He currently serves as General Manager of Minerales Industriales Tubutama S.A. de C.V. and Minera Sonora Borax S.A. de C.V., two fully-owned Mexican subsidiaries of Bacanora and the operating vehicles for the development of the Company’s projects owned in Mexico. 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 project areas that Bacanora are now developing. His experience includes almost 20 years of working with the multinational company Rio Tinto in the exploration of industrial minerals in several countries in America, occupying different technical and managerial positions. Mr. Vidal has a BSc. in Geology from the University of Sonora (1987) and studies in Non-Ferrous extractive Metallurgy in the same University.
Paul T. Conroy – Vice President Special Projects and Director
Mr. Conroy is the founder, President, Chief Executive Officer and a director of Bacanora. He also serves as President and a Director of Westcore Energy Ltd. a TSXV listed mining exploration company and as a director of Troy Energy Corp., and NEX listed exploration company. Over the past 30 years he has been involved in numerous resource companies holding the positions of principal, officer and director.
Derek Batorowski – Chief Financial Officer and Director
Mr. Batorowski currently serves as the Chief Financial Officer and a director of Bacanora. He also serves as Chief Financial Officer, Corporate Secretary and a director for Westcore Energy Ltd., a TSXV listed company. Since 1993, he has been an independent consultant to the oil and gas industry, having held various financial positions with junior private and public companies. Mr. Batorowski received his Business Administration Diploma from Mount Royal University in 1989. He has been a member of the Certified General Accountants Association of Alberta since June 21, 2000.
Colin Orr-Ewing – Director
Mr. Orr-Ewing began his career as an investment manager for the Shell Pension Fund in London after qualifying as a Certified Accountant. He 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. Mr. Orr-Ewing was, until recently, adviser to a fund management company on its natural resources portfolio and Chairman of Vatukoula Gold Mines. He was actively involved in the oil industry from 1971 through to 1987, working with numerous companies in the North Sea, Libya, Nigeria and Algeria. Mr. Orr-Ewing is a geography graduate of Oxford University.
James G. Leahy – Director
Mr. Leahy is a director of Bacanora. He spent the last 26 years in the mining industry as a specalist corporate broker, including mining finance, orgination 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. He has substantial experience in dealing with international institutional fund managers, hedge funds and private equity specialists. Over the years he has been involved in more than 30 IPOÕs and a large number of primary and secondary placings. He is currently a director of African Power Corporation (APC) and Non-Executive Director of Continental Coal Limited.
Guy Walker – Director
Mr. Walker is a highly accomplished director and senior investment management executive with over 20 years financial markets experience. Guy currently sits on the boards of several mining companies at different stages of development including Metals Exploration plc. (an AIM listed gold development company, whose project is in the Philippines), Mineral Commodities Limited (an ASX listed mineral sands pre-production company with projects in South Africa) and ENK plc. (a Nickel mining company with a mining project in the Philippines). Mr Walker has extensive experience in capital raising through both traditional banks and alternative lenders.
Paul Bolger – Corporate Secretary
Mr. Bolger serves as the Corporate Secretary of the Corporation. Paul Bolger is a partner with Tingle Merrett LLP, a Calgary-based corporate and securities law boutique firm, with a practice focused on corporate securities, corporate finance and commercial transactions involving emergin, growth and mid-capitalization companies. Mr. Bolger has extensive experience acting for public and private companies in a range of matters including equity and debt financings, public and private corporate acquisitions and business combinations, continuous disclosure obligations, share and asset acquisitions and dispositions, corporate restructurings, amalgamations, reorganizations and other business transactions.