Bacanora Minerals Ltd.
TSX VENTURE : BCN

July 25, 2011 11:35 ET

Bacanora Announces Second Round of Drilling on Cajon Borate Deposit Sonora, Mexico

CALGARY, ALBERTA--(Marketwire - July 25, 2011) - BACANORA MINERALS LTD. (TSX VENTURE:BCN) (the "Corporation" or "Bacanora") is pleased to announce the second round of in-fill drilling at the Cajon Borate Deposit in Sonora, Mexico. This campaign has been designed with the objective of increasing the tonnage of the deposit and assisting in the conversion of the Corporation's previously announced colemanite resources into reserves.

The current campaign contemplates 5,000 metres of HQ-Core drilling in 32 holes in order to create a 200 metre centre grid. The information gained from this campaign will assist in performing future reserve estimates, creating a 3D-block model for mining plans and performing metallurgical tests. After this campaign at total of 61 drill holes will have been completed on the project including 18 holes drilled in the first campaign and 11 holes drilled by past operators.

Currently, drilling has advanced 30%, with 1,500 metres in 12 holes completed to date. Three additional holes are being drilled to test the mineralization at shallow depth in order to provide material for metallurgical testing being carried out concurrently with the drilling. Drilling results will be announced upon receipt of assays upon completion of the drilling program. The campaign is being conducted with two drill rigs and is expected to be complete by the end of August. Upon completion, the rigs will be moved on to La Ventana lithium project to test the hectorite mineralization, where 18 holes and approximately 2,000 metres of drilling are planned.

The previously published resource estimate for the Cajon Borate Deposit identified inferred and indicated resources to a depth of approximately 150 metres and focused on the three stacked colemanite horizons. Inferred resources were based on diamond drill data obtained from prior operators' drilling and indicated resources from Bacanora's past drilling campaigns. The Cajon deposit is open to the northwest and southeast, as well as at depth.

Below is a table summarizing the June 27, 2011 published estimate of indicated and inferred resources for the Cajon Borate Deposit.

5% B2O3 Cut-off 8% B2O3 Cut-off (>3m)
Borate
Horizon
Resource Class
(CRIRSCO)
Tonnage Mt Grade % B2O3 Tonnage Mt Grade % B2O3
A Inferred 21.8 5.88 7.3 9.3
B Indicated 16.5 6.4 5.3 9.3
C Indicated 27.1 6.5 5.8 10.4
Total Indicated 43.6 6.5 11.1 9.9

Colemanite is a boron mineral that has industrial applications in glass, ceramics and agriculture and is also used to produce boric acid, a compound used in a number of industrial applications. In general, borate prices have been steadily increasing over the last three months, with prices up by as much as 14% in some grades. Boric Acid has increased from $US970 up to US$1,130 per tonne. The price of colemanite has increased by roughly 6%, from US$609 to US$656 per tonne, in the same period.

Paul Conroy, President and CEO, states: "We are very pleased with our results to date on the Cajon Borate Project and we are looking forward to completing this drilling campaign and up-grading this deposit from the "resource" to the "reserve" category. This program is one further milestone toward our objective of the commercial development of this deposit."

Martin Vidal, Professional Geoscientist, is the Qualified Person for this news release and has reviewed and approved its contents.

Forward Looking Statements

Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking information. Forward-looking information is 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 information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States, Mexico and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

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

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

Contact Information

  • Bacanora Minerals Ltd.
    Paul Conroy
    President and Chief Executive Officer
    (403) 237-6122
    (403) 237-6144 (FAX)