February 17, 2010 14:35 ET

Bacanora Announces Details of NI 43-101 Technical Report and Valuation

CALGARY, ALBERTA--(Marketwire - Feb. 17, 2010) - BACANORA MINERALS LTD. (TSX VENTURE:BCN.P) (the "Corporation" or "Bacanora"), a capital pool company, is pleased to provide further details concerning its independent technical report dated September 18, 2009 prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43101") and entitled, Independent Technical Report 43-101, Magdalena-Tubutama Exploration Concessions, Northern Sonora State, Mexico, Latitude: North 30 degrees 30', Longitude: West 110 degrees 45', Report Prepared in Compliance with National Instrument 43-101 for Bacanora Minerals Ltd. (the "Technical Report"). The Technical Report was prepared by MineTech International Limited of Halifax, Nova Scotia ("MineTech"). The author of the report is Doris Fox, M.Sc., P.Geo., who is a "qualified person" within the meaning of NI 43-101 and is independent of the Corporation. The Technical Report was prepared in support of the Corporation's previously announced proposed Qualifying Transaction whereby the Corporation proposes to, among other things, acquire all of the outstanding shares of Mineramex Limited ("Mineramex"). Mineramex is a BVI company whose sole assets consist of 99.9% of the issued and outstanding shares of Minera Sonora Borax, S.A. de C.V. ("MSB") and 60% of the issued and outstanding shares of Minerales Industriales Tubutama, S.A. de C.V. ("MIT"). For additional information relating to the Qualifying Transaction, readers are referred to the Corporation's press release dated February 4, 2010.

Technical Report - General

MSB and MIT are two Mexican corporations that hold certain exploration and development stage borate and other mining claims in the Magdalena and Tubutama regions in the northern Sonora State of Mexico. The properties in the Tubutama region and the Magdalena region (together, the "Properties") consist of 13 individual Concessions, totalling 16,503 and 1,661 hectares respectively, and are targets for borate exploration which occurs as calcium borate minerals, colemanite and howlite. The Properties are located roughly 300 km north of the city of Hermosillo, and about 80 km south of the international border with the State of Arizona, USA. The two basins are separated by a narrow, low range and the Properties are approximately 100 km apart.

Sonora State has well developed infrastructure despite being a sparsely populated desert region. An extensive network of roads, including a four-lane highway that crosses the state from south to north, joins Sonora with the rest of Mexico and with the United States. The region is well known for cattle grazing, and ranches and fenced zones dot the area. The ranchers have created a network of secondary dirt roads to access the remote areas, and these roads can be used to access the Properties as well. The Sonora State region is referred to as the Sonoran Desert (or Gila Desert after the Gila River) an arid desert with rolling hills varying in elevation up to 100 m. The climate at the project site ranges from semi-arid to arid. Exploration work can be conducted year round in the desert. The average ambient temperature is 21 degrees Sonora State C, with minimum and maximum temperatures of -5 degrees C and 50 degrees C, respectively. Extreme high temperatures, upwards of 49 degrees C occur in summer in desert areas while winters, although short, are cool compared with most of Mexico. The region's bi-seasonal rainfall pattern results in more plant species than in any other North American desert. The average annual rainfall for the area is 330 mm with a maximum of 880 mm. The wet season or desert "monsoon" season occurs between the months of July and September and heavy rainfall can hamper exploration at times.

History and Exploration

Bacanora has not conducted any exploration or drilling activities on the Properties. All drilling discussed in the Technical Report is considered historical.


In 1964, US Borax, a subsidiary of Rio Tinto Group and the operator of the US's largest borate mines, began exploration in Mexico and successfully discovered borate mineralization near the town of Magdalena de Kino in Sonora State. Following the initial discovery, US Borax, through Mexican subsidiaries and joint ventures, explored the surrounding area, known as the Magdalena Basin. Exploration efforts continued until 2006, and were successful at identifying several borate targets in the Magdalena Basin, including the TDO deposit (also known as the Unimin deposit) for which they completed several pilot plant metallurgy studies. All of the exploration to date on the Magdalena Basin has been done by US Borax, its subsidiary or through joint venture agreement. The joint venture was dissolved in 1992 with the all of the Concessions reverting back to US Borax with the exception of the TDO / Unimin deposit, which was purchased by Vitro for $6 Million USD. Minera Santa Margarita S.A. de C.V. ("MSM"), a Mexican registered subsidiary of US Borax, carried on the exploration campaigns begun by the joint venture partners, and in 2002 staked the San Francisco properties that comprise Mineramex's Magdalena Concessions. The most recent exploration activities on the Magdalena Concessions can be divided into two parts: (i) re-interpretation of the basin geology, most importantly the basin stratigraphy; and (ii) diamond drilling of high priority targets.

A total of 311 NQ drill holes (54,550 m) have been drilled in the Magdalena Basin by the various operators. The first drill holes were drilled under the direction of Materias Primas Magdalena ("MPM"), a joint venture company between US Borax and Vitro. MPM drilled a series of holes into the Magdalena Basin between 1972 and 1992 aimed at testing various potential regions and in 1977 identified a deposit now referred to as TDO or Unimin. MPM completed a total of 280 NQ drill holes (44,538 m) in the Magdalena Basin, 175 of them on the TDO. MSM followed-up the interpretations of MPM and began an intensive basin-wide exploration program consisting of 32 holes over five drill campaigns. The MSM drill programmes identified six priority follow-up targets: The Bellota Yeso; Cajon; El Tigre; Pozo Nuevo; Escuadra; and Syncline. As of 2007, mapping, surface sampling and first pass drilling had been conducted on 5 of the targets. One target, the Syncline Target, remains untested. The following results are summarized from Vidal (2007).

Bellota: Drill holes tested the sediments exposed in a broad northwesterly plunging anticline. All drill holes intersected low grade disseminated colemanite and howlite mineralized zones (from 1% up to 10 % B2O3) and a 100 m halite halo zone was identified surrounding the mineralization. The Bellota-Yeso target area also hosts the Yeso Mine (a producing gypsum mine).

Cajon: The sediments below the Cajon Basalt showed visible colemanite and howlite mineralization cut by abundant gypsum veinlets. The drill holes in this area intersected concentrated mineralization up to a 7 m grading 12.1% B2O3 (MAG-2A), including 2.43 m grading 21.3% B2O3 at 180 m depth and 4.9 m of 15% B2O3.

Pozo Nuevo: This target was tested with MAG-6, which intersected a 41.5 m mineralized zone, containing colemanite, minor howlite and abundant gypsum with an average 6.5% B2O3, including a 5.5 m with 15.3% B2O3 at a relatively shallow depth of 115 m. MAG-6 intersected the entire Pozo Nuevo sequence from upper transition to lower conglomerate, including the lacustrine section and lower transition zone. Pathfinder elements were moderately anomalous in this region. Hole MAG-24 intersected 16 m of 6.2% B2O3 as colemanite and nodular howlite in a 2.6 m zone. MAG-26 intersected a 9.14 m section of 7% B2O3 with recrystallized colemanite forming small 5 mm crystals. Colemanite is also found as cement. MAG-27 intersected a zone of disseminated colemanite and millimetre scale crystals in a 7.92 m zone of 5.3% B2O3.

El Tigre: In this target a 50 m zone of dark grey, carbonaceous claystone with abundant calcite as alteration of borates was intersected. Remnant borate mineralization is inferred based on samples returning 2.7% B2O3. Based on the positive results further drilling to the east was conducted to determine the continuity of the mineralized zone. 265 m of fluvial-lacustrine sediments beneath the Los Fresnos basalt flow was intersected containing colemanite, scarce howlite and abundant gypsum mineralization. One 33 m zone intersected 7.6% B2O3 including a high grade 7.6 m zone of 13.5% B2O3 at a depth of 421 m. Subsequent drilling on the Tigre target by MSM had 2 objectives: (i) to determine possible continuation of TDO colemanite-type mineralization along the western portion of the target closest to the TDO deposit; and (ii) to find Magdalena Formation sediments beneath the post-basin Los Fresnos basaltic flow along the eastern and central portion of the target to expand known mineralized zone. 3 holes were drilled to fulfill the objectives, however, no visible mineralization was intersected and the eastern portion of the target was released by MSM.

Escuadra: This target is a NW-plunging syncline. Both limbs of the syncline were drill tested. Drilling in the southern limb intersected very low grade colemanite and howlite in a fine-grained sequence. Hole MAG-22 targeted the northern limb of the syncline intersected three mineralized zones: (i) an upper 7 m zone of howlite nodules with an average 6% B2O3; (ii) a middle zone of 3.7 m grading 13% B2O3 disseminated colemanite cementing sediments; and (iii) a lower 3.5 m zone of 17% B2O3 recrystallized colemanite.

Syncline: This target was not drill tested but much of the target area was released when MSM downsized their Magdalena claims in 2006.

MSM, in an attempt to understand the distribution of structures and volcanic sequences buried beneath the quaternary overburden, conducted a ground magnetic survey over the central portion of the Magdalena Basin in 2002. Additionally, fill-in stations were added in 2005. Survey lines were spaced 200 m apart with 10 m stations. The survey extended far enough south and east to take readings from known sedimentary outcrops for comparison. The interpreted survey results show a northwest trending magnetic low across the southern portion of the Magdalena Basin. MSM interpreted this as the northwest continuation of the Magdalena Formation sediments. The upper volcanic sequences appear as magnetic highs.

MSM conducted a 351 station semi-regional gravity survey in 2002. Raw data was submitted to the Kennecott Utah Copper Corporation (Kennecott) geophysics department for filtering and terrain corrections. Using residual gravity field display, the Magdalena Basin appears as a closed basin with a northwest trending gravity low. An island of higher gravity field is observed in the central portion of the basin, interpreted as either a tilted block that moved along the underlying detachment fault or a vent from upper volcanic rocks. The survey shows the Unimin deposit along the western edge of the gravity low, a relationship observed in gravity deposits elsewhere in the world (Vidal, 2007). The gravity lows (deep blue) were interpreted to possibly represent thick sequences of young, non-compact gravels in the north-central portion of the Magdalena Basin, corresponding to the results of the ground magnetic survey. A north-westerly trend observed in the central portion of the survey area is interpreted as tilted blocks along a detachment fault.

A fill-in survey was conducted in 2005, adding 487 stations. No direct relationship was observed between gravity survey results and borate mineralization, indicating that borates are deposited at the basin margins, and not in the basin depocentres identified in the survey.


The Council of Mineral Resources ("CMR"), a Mexican Federal council, declared the western portion of the Tubutama Basin a National Reserve in order to evaluate the potential of borates in the region. As a National Reserve, the area could not be staked by any person or company. The CMR conducted a series of exploration activities in the Tubutama Basin, including mapping, trenching, sampling and drilling. The region was released by the CMR in 1992 and subsequently staked by MIT in 2005, who have been conducting exploration activities since that time.

Based on the positive results of its trenching program, CMR drilled 64 holes in the restricted National Reserve portion of the Tubutama Basin. Based on a general economic study, CMR determined a minimum cut-off of 8% B2O3 (CMR, 1980) and conducted a series of volume calculations of potential B2O3 with a variety of unspecified assumptions using the trench and drill core B2O3 values. These calculations are not NI 43-101 compliant and therefore were not discussed further in the Technical Report.

Following the release of the Tubutama Basin from National Reserve status, MSM drilled 32 holes between 1996 and 1999. None of the holes were drilled on the Carlos Concessions. MIT followed-up the re-trenching program with a series of 8 drill holes on the Carlos Concessions. The eight drill holes varied in depth from 190 m to 258 m for a total of 1,882 m. The mineralized borate zone was intersected in all holes with the best results from BD-07 with 7.2% B2O3 over 40 m (CSA, 2007). The average intersected thickness was 14 m at 7% B2O3.


The Properties are primarily exploration targets for borates. There is a lack of exploration for evaporates, especially gypsum within the Concessions, but ample evidence that gypsum is present in the region exists, including the mining of a gypsum deposit (Yeso Mine) within the bounds of the Magdalena Concessions. As well, no historic exploration for base or precious metals has been conducted on the Properties, yet there is potential for gold, silver and base metals in the area as indicated by metallic deposits located in surrounding rocks of similar, contemporaneous origin.

The Concessions have principally been explored for borates, which occur as colemanite (Ca2B6O11-5H2O) and howlite (Ca2B5SiO9(OH)5) in bed-parallel, discontinuous, lenticular millimetre- to metre-scale layers interbedded with and hosted in gently to moderately dipping carbonaceous fluvio-lacustrine sedimentary packages. The aim of the exploration programs is to identify low-grade-bulk tonnage borate deposits with a proposed cut-off grade of 10% B2O3.

The Magdalena Concessions occupy the eastern edge of the Magdalena Basin with bedding striking north-south dipping moderately westward. The colemanite beds occur as sinuous bed-parallel lenses. Based on surface expressions of leached and altered colemanite outcrops identified in the sampling programs, the lenses extend up to 3 km along strike. Drilling has identified beds of up to 4 m grading greater than 20% B2O3, which remain open at depth and along strike. The thinning of the lenses at their extent and cross-cutting lateral faults are the principal factors affecting the possible extent of the colemanite lens.

The interpreted aerial extent of the mineralized zones ( greater than 5%) on the Magdalena Concessions is approximately 16,000,000 m2.

(Summary of Assays- Magdalena. Intersection greater than 8% B)2(O)3

Hole ID Depth (m) Thickness (m) B2 O3(%)
MAG-02A Intersection 1 178.60 5.80 13.78
MAG-03 Intersection 1 235.30 1.70 9.24
MAG-04 Intersection 1 93.30 1.50 8.48
MAG-05 Intersection 1 286.20 3.10 10.79
MAG-06 Intersection 1 123.70 4.60 11.49
MAG-06 Intersection 2 138.30 4.40 17.60
MAG-06 Intersection 3 149.70 1.50 10.86
MAG-10 Intersection 1 440.60 7.10 14.00
MAG-10 Intersection 2 452.40 2.40 20.05
MAG-10 Intersection 3 464.10 1.50 10.40
MAG-10 Intersection 4 469.70 0.90 12.10
MAG-10 Intersection 5 472.10 1.10 13.70
MAG-17 Intersection 1 348.39 1.52 10.54
MAG-17 Intersection 2 366.67 1.52 8.36
MAG-17 Intersection 3 378.87 1.52 12.30
MAG-17 Intersection 4 394.11 3.05 9.80
MAG-17 Intersection 5 410.87 1.52 10.02
MAG-22 Intersection 1 323.09 3.05 17.67
MAG-22 Intersection 2 341.38 3.05 16.75
MAG-24 Intersection 1 122.83 1.52 13.57
MAG-25 Intersection 1 280.72 1.14 9.20
MAG-26 Intersection 1 45.42 1.52 9.21

The Tubutama borate zones have been interpreted to reach thicknesses of 9m containing 8% B2O3 and to extend up to 1 km within northeast-striking, southeast dipping sinuous sedimentary beds. The sediment package reaches thickness of up to 100 m (Caballero 1983) and can be traced along the eastern edge of the Tubutama Basin for over 4 km with various concentrations of borates within. Caballero (1983), identified two mineralized zones during the CMR drilling campaign, consistent with earlier interpretations that there were at least two evaporate sequences in the Magdalena-Tubutama Basins.

The mineralogy of the borate deposits is variable, including, but not limited to, the boron bearing minerals of colemanite, howlite, mcallisterite, ulexite and wardsmithite (Cabellero, 1983). The predominant borate mineral is colemanite, which occurs as thin beds, lenses, veinlets and disseminated masses. The mineral occurs as granular masses, anhedral and subhedral grains with vitreous lustre, clear to white colour and are transparent to translucent. Howlite appears as veinlets and nodules that are bright creamy white in color.

(Summary of Assays- Tubutama. Intersections greater than 5% B)2(O)3

Hole ID Depth (m) Thickness(m) B2 O3(%)
BD-1 Intersection 1 35 10.6 6.4
BD-2 Intersection 1 38 1.5 8.7
BD-2 Intersection 2 41 1.5 6.1
BD-2 Intersection 3 44 3 6
BD-2 Intersection 4 53 1.5 5.1
BD-2 Intersection 5 68.6 4.3 6
BD-3 Intersection 1 93 1.5 6.8
BD-3 Intersection 2 128 1.5 5.5
BD-4 Intersection 1 84 1.5 5.1
BD-4 Intersection 2 128 1.5 5.8
BD-5 Intersection 1 105 1.5 6.4
BD-5 Intersection 2 108 1.5 6.4
BD-6 Intersection 1 112 1.5 6.7
BD-6 Intersection 2 134 1.5 5.8
BD-7 Intersection 1 42.6 1.5 5.1
BD-7 Intersection 2 97.5 1.5 6.1
BD-7 Intersection 3 100.5 4.6 5.8
BD-7 Intersection 4 110 3 7.4
BD-7 Intersection 5 114 1.5 5.1
BD-7 Intersection 6 122 6.1 6.3
BD-7 Intersection 7 129.5 3 6.3
BD-7 Intersection 8 138.6 1.5 5.5
BD-7 Intersection 9 144.8 1.5 5.8
BD-7 Intersection 10 152 3 6.1
BD-7 Intersection 11 96 1.5 6.4
BD-8 Intersection 1 99 4.6 7.1
BD-8 Intersection 2 114 1.5 5.1
BD-8 Intersection 3 125 1.5 5.1
BD-8 Intersection 4 132.6 1.5 5.8


No information on the sampling procedure for hand samples collected by CMR, MIT or MSM is available.

MSM drill core samples were collected in continuous intervals averaging 1.5 m and given a sequential unique sample identification number. Core intervals were cut in half with one half being sent for assay, and the remaining half retained for future analysis. The core saw was water cooled and cleaned between each sample with fresh water and dry rag, in order to prevent cross-contamination of the sampled material. Blank samples of limestone or mudstone were cut at various intervals and submitted with the sample batch for quality control.

As part of an internal Quality Assurance / Quality Control protocol ("QA/QC"), MSM conducted a core sample quality control analysis by sending samples to two labs, the US Borax internal lab and the SGS SA (SGS Group or SGS) lab in British Columbia, and comparing their ability to accurately analyze the same standards and blanks. The first 22 MSM holes (3,762 samples) were analyzed exclusively at US Borax and the last 6 MSM hole (3,067) were analyzed exclusively by SGS. US Borax ran 32 samples of standard CMLG and 31 of standard INVGEL (CMLG and INVGEL are internal US Borax Standards). SGS ran 16 CMLG and 15 INVGEL. The INVGEL standard is a low boron standard and the CMLG standard is a medium boron standard. Each lab also ran repeats on samples as part of their internal QA/QC protocols. No samples were analysed at both labs, so there is no ability to compare samples other than standards.

Both standards were created by Rio Tinto in 2002 for internal quality control. The standards were created at CDN Resource Laboratories in British Columbia, Canada, and analyzed in five different laboratories to refine precision and allow for calculation of standard deviation. Rio Tinto and MSM permitted +/- 10% mean deviation, +/- 2 standard deviations in their internal reviews. MSM also requested repeats on samples to evaluate the ability of the lab to duplicate their results. The QA/QC included As, Li, and Sr as these reflecting the importance of these elements as pathfinders in early stage exploration.

No data is available for the CMR quality control protocols or sampling procedures for the Tubutama region. MIT recognized that there may be issues with the trenching data and therefore re-trenched parallel to the CMR trenches in an attempt to replicate the findings of CMR. The trench results from MIT were broadly similar to CMR but due to lack of data for CMR that is the extent of the comparison that can be made. As with all trench sampling there is a possibility that samples were inadvertently high-graded, however to overcome this type of human error samples were collected over approximately equal lengths of the trench with approximately the same weight per sample. As this was an early stage exploration program, no formal QA/QC protocols were initiated.

MIT recognized the need for QA/QC at the drilling stage of exploration. MIT's attempts to develop QA/QC protocols for the approximately 800 drill core samples from Tubutama can be summarized as follows:

(i) The bagged samples were taken to Sonora Sample Preparation, SA de CV, a preparation laboratory in Sonora operated by International Plasma Labs of Vancouver, BC (IPL). Prepared samples were forwarded directly to the analytical laboratories from the IPL preparation laboratory. Samples were sent for analysis to the University of Sonora Department of Chemical Engineering and Metallurgy.

(ii) A series of duplicate samples was sent to IPL's analytical facility in Richmond, British Colombia, Canada, in order to provide a check against the samples sent to Unison. A systematic difference between the two laboratories was identified, with the IPL analyses, in general, consistently returning a lower B2O3 value than the Unison.

(iii) MIT then requested analysis of a further series of duplicate samples by Alfred H. Knight International Ltd. (AHK) at St. Helens, United Kingdom.

(iv) The results of several tests at different laboratories indicated that temperatures and time of drying of samples can cause significant apparent variance in measured concentrations of contained boron and, by calculation, borates. Out of the more than 800 samples sent to Unison up to April, 2006, approximately 220 duplicate analyses for B2O3 were undertaken by IPL. The results from IPL were consistently lower than the results from Unison. The results were reviewed by D. M. Jenkins, who concluded that systematic biases existed between the laboratories.

(v) Finally, samples were re-analyzed by IPL using the same preparation and analytical method as used by AHK, i.e., sodium oxide/sodium carbonate fusion with ICP finish. The results were generally significantly closer (generally within 10-20%) to those obtained by AHK compared with the original IPL analyses, which were approximately 30-50% lower than the AHK analyses, indicating that analytical methods affect assay results.

No information regarding the use of standards is available.

MSM samples were originally analysed for total boron only using aqua regia and that value is converted to percent boric acid (B x 3.22). Late in the exploration programs, MSM began analysis for a full ICP suite of elements (Ag, Al, As, B, Ba, Be, Bi Ca, Cd, Co, Cr, Cu, Fe, K, Li, Mg, Mn, Mo, Na, Ni, P, Pb, Sb, Se, Sn, Sr, Tl, Ti, U, V, Y, Zn; present in g/t) most important were As, Li, Mg and Sr as these have proven good pathfinders. As the percent B increased a more precise method of analysis of recoverable boron was required. Analysis of boron through titration was requested on samples returning total boron greater than 7%.

SGS provided the following summary to explain the analytical techniques: "The rock or mineral samples are digested in an acidic solution and then filtered. Bromine water is added to the filtrate to oxidize iron to the ferric (Fe+3) state. Barium carbonate is added to react with boric acid in the solution to form soluble barium borate, which acts as a buffer to cause precipitation of the hydroxides of interfering species such as iron, aluminum, manganese and other heavy metals. Insoluble barium compounds of the acidic compounds, such as silica, are also formed. The solution is filtered and complexed with mannitol or sorbitol. It is then titrated with NaOH to the phenolphthalein endpoint to determine the boric oxide content".

MIT samples were analysed for boron and arsenic only.

Data Verification

The permit area was visited June 22 to June 28, 2009 by Doris Fox to verify access, general topography, geography, geology and mineralogy. The Carlos Concessions in Tubutama and the San Francisco Concessions in Magdalena were visited. The core storage shed housing the MIT and recent MSM drill holes was also visited.

Surface grab samples and chip samples from the trenches were collected, in addition to re-sampling of select drill core intervals.

Re-sampling intervals were selected from two Tubutama drill holes: DH-1 and DH-7 and four Magdalena drill holes: MAG-2A, MAG-3, MAG-6, and MAG-22. The intervals returning the highest Boron values were re-sampled with the upper and lower enveloping samples re-sampled as well. Random samples from throughout the core were also re-sampled for a total of 48 drill core samples. The purpose of the re-sampling program was to verify historical assay data that reported economic intersections. The enveloping permits a low grade comparison as well.

The samples were collected represent the remaining half of the split core. This was done for two reasons:

(i) to remove possible contamination influences of the rock saw; and (ii) to submit a sample as equivalent as possible to the original sample and remove possible nodule concentration influences.

Samples were individually bagged and sent by courier to SGS Lakefield, Canada for preparation and assay by aqua regia. A full ICP profile of 32 elements was requested but most important was the analysis for B, As, Li and Sr. No standards were available for this exercise.

The assay results of the re-samples showed great similarity to historic values with 84% of the re-samples returning values within 5% B2O3 of the original values. Only six samples returned variance values greater than 5% B2O3. Although 5% B2O3 is substantial, 40% of the samples returned values of greater than 1% B2O3 variance. Most of these samples contained greater than 10% B2O3. The samples with the greatest variance were from intervals with the highest B2O3 content. It should also be noted that the re-assays were not consistent in returning higher or lower values. Of the samples returning greater than 5% variance, 50% of the samples returned higher values, while 50% returned lower values. This indicates it is not a systematic lab difference as discussed in the Tubutama quality control program.

The re-sampling program highlights two problems with boron assays: (i) the variability of boron within sections of core due to the nodular nature of howlite, similar to the nugget affect in gold exploration; and

(ii) that higher boron contents have greater variability most likely due to variances in preparation and analysis and not necessarily due to differences in actual boron content in the core.

Interpretations, Conclusions and Recommendations

The Technical Report concluded that, based on available data, the Magdalena-Tubutama Basins are borate bearing zones with potential economic concentrations. Overall, the re-sampling program substantiates the earlier results and conclusions that there are enriched boron zones within the sediments.

The surface expression in Magdalena, although leached of borates, are believed to represent the exposed surface of moderately west-dipping discontinuous colemanite lenses that extend subsurface and have been traced in drill holes to depths of up to 400 m. In Tubutama, the low-grade surface expressions have been traced through trenching over 3 km, dipping moderately east and have been tested in drill core up to 300 m depth.

The surface expressions, geological setting and drill core intersections exhibit characteristics of a lacustrine-type borate deposit, similar to Bigadic, Turkey. The Magdalena borate zones also host the known TDO borate deposit and the San Francisco Concessions occupy the same geological sequences as found in the TDO deposit area. It is a reasonable assumption that the mineralization extends into the San Francisco Concessions.

The Magdalena Basin represents a high priority target area for additional borate follow-up exploration. Several targets were identified during the MSM exploration campaign which should be the focus of the next phase of exploration. Most notably are the Cajon Target and the Pozo Nuevo Target. A detailed exploration program concentrated on these targets is recommended.

The Tubutama Basin represents a lower priority target area due to the disseminated low-grade nature of the mineralization and the failure to intersect a mineralized zone with greater than 10% B2O3. The mineralization is present at surface over a wide area, suggesting that the mineralization has not concentrated into beds to the same extent as it has in Magdalena. The Basin does, however, represent a large very low-grade mineralized zone that should not be ignored. The Tubutama Basin also represents a gold and silver exploration target and efforts should be made to evaluate this potential.

The Technical Report recommended a two phase exploration program for the Properties as a whole.

Phase I: A $760,000 Phase I program is recommended to continue exploration as a focused drill program on the Cajon and Pozo Nuevo Targets. A minimum of ten holes totaling 2,000 m are recommended on the Cajon and Pozo Nuevo Targets. A 3-D compilation of all historical drilling on all the Magdalena and Tubutama Concessions is also recommended, beginning with the Cajon and Pozo Nuevo Targets and continuing with all remaining properties. The 3-D models will permit the evaluation of the targets for additional drilling and allow more detailed interpretation of potential targets, geotechnical properties and hydrological properties. Phase I has an approximate 1.5 month field component for drilling and surface sampling / reconnaissance and approximately 1 month of office work compilation and modeling. The results of Phase I must provide adequate positive results and data to progress to Phase II.

Phase II: The recommendation for Phase II is based on positive results of Phase I indicating that additional work on the Cajon and Pozo Nuevo Targets is warranted. The first recommendation for Phase II is an advanced-stage large diameter (NQ or HQ) drill program on both the Cajon and Pozo Nuevo Targets, with a minimum of two large diameter holes per target totalling 1,200 m. Based on the results of Phase I and the calculation of an indicated resource, Phase II would see the necessary studies to evaluate geotechnical, hydrological, metallurgical and processing aspects of developing the deposits. Phase II would also see additional exploration on the Escuadra and Syncline targets to determine if there is sufficient borate mineralization to warrant an advanced stage exploration program on those areas. Initial early stage drilling on El Represso is also recommended. A total of 2,000 m of exploration drilling is recommended for these areas. The location and distribution of drill holes will be based on compilation and interpretation of the 3-D models. In addition to borate exploration, a review of surface data and existing drill hole data aimed at understanding gypsum mineralogy distribution is recommended. Also, in addition to borate exploration, a regional surface sampling program aimed at evaluating the Properties for base and precious metal potential is also recommended. Total time estimated for Phase II is approximately 6 months; 2 months for field work and reconnaissance and 4 months for the laboratory studies and compilation. The budget for the recommended Phase II exploration program is approximately $1,000,000.

Valuation Report

As previously noted on the Corporation's press release dated February 4, 2010, the Corporation received a valuation report entitled Technical Valuation Report, Magdalena Basin Borate Project, Magdalena, Sonora State, United States of Mexico, Latitude: North 30 degrees 30', Longitude: West 110 degrees 45', prepared for the Corporation by MineTech (the "Valuation"). The author of the Valuation is Patrick J. Hannon, M.A.Sc., P.Eng., who is a "qualified person" within the meaning of NI 43-101 and is independent of the Corporation. Under the Valuation, the author followed the "Cost Approach" in valuing the Properties, as the Properties do not have mineral reserves or a Feasibility Study, and there are no comparable market transactions known to the author. The Valuation contemplates that the value of exploration work completed on the Properties for the period 2002 - 2009 amounts to $3,709,000 for the Magdalena Properties and $1,431,000 for 2005 - 2009 work on the Tubutama Properties, for a total of $5,140,000. Drilling makes up 44% of the cost, geology, geochemical and geophysical surveys make up 24%, surveying, geodetic and photogrammetric surveys 7%, vehicles, maintenance and transportation 14% and the remaining 7% storage, camp and field office upkeep. The Valuation concludes that only 70% of the holes drilled increased the value of the Properties, 30% of the holes drilled did not add value to the Properties, thus the value of the Properties as of the valuation date of September 18, 2009, in Canadian dollars, is estimated to be $3.6 million, plus or minus 20%, giving a range of value between $2.9 million and $4.3 million.

Other Information

Both the Technical Report and the Valuation are concurrently being filed on SEDAR under the Corporation's profile at Copies of the foregoing documents will also be made available to shareholders upon request.

Patrick J. Hannon is the qualified person within the meaning of NI 43-101 that has reviewed and approved the information that forms the basis for this press release.

Completion of the Qualifying Transaction is subject to a number of conditions including, but not limited to, the satisfaction of the minimum listing requirements of the TSX Venture Exchange ("Exchange") and Exchange approval of the Qualifying Transaction. There can be no assurance that the transaction will be completed as proposed, or at all. The Qualifying Transaction will be an arms' length transaction.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the Qualifying Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool corporation should be considered highly speculative.

Certain statements contained in this press release constitute forward-looking statements (the "forwardlooking statements"). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, level of activity, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements and information.

The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking statements to conform such statements to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. The reader is cautioned not to place undue reliance on forward-looking statements.

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of the release.

Contact Information

  • Bacanora Minerals Ltd.
    Paul Conroy
    President and Chief Executive Officer
    (403) 697-4005
    (403) 263-0271 (FAX)