The Magdalena Borates Project, which is owned 100% by Bacanora and covers 16,503 Ha in Sonora State in northern Mexico, represents an excellent opportunity to develop boric acid production to be sold in the domestic Mexican market.
Previous studies have estimated that a low CAPEX cost project could enable the Company to commence production relatively quickly. The project is subject to a 3% royalty to a Rio Tinto subsidiary and a 3% royalty to Colin Orr-Ewing.
The project consists of seven concessions, and to date, three main borate zones have been located on the Magdalena project area: Cajon; Bellota and Pozo Nuevo. El Cajon is the most advanced project with a NI 43-101 indicated resource of 11.06m tonnes at 10.6% grade for 1,170,000 tonnes of boron trioxide (B2O3).
Test pit and boric acid pilot plant testwork is ongoing and to date 930 tonnes from the borates have been processed with samples of 99% boric acid sent to potential off take customers. With these results in hand, ongoing metallurgical testwork based on higher value boric acid will commence in late 2016/2017, focused on developing an operation of up to 50,000tpa of boric acid production for domestic use. Mexico has a market for borates and the project benefits from close proximity to established infrastructure, grid supply, road, water and rail.