Bacanora Minerals Ltd. announced the results of a Preliminary Economic Assessment on the company's Cajon Borate deposit in Sonora, Mexico. Highlights of the PEA for a potential colemanite mine and production facility with a mining rate of 231,100 tonnes averaging 10.5% B2O3 per annum to yield 50,000 tonnes of 40-42% colemanite concentrate per year over a 25 year mine life suggest annual revenue of $25 million for an IRR of 248.5% with a 4 year pay back. Capital costs are estimated at $7.25 million and average operating costs at $170/tonne.

The Cajon deposit forms part of the Magdalena Borate Project, which is 100% owned by Bacanora's wholly-owned subsidiary, Minera Sonora Borax S.A. de C.V., subject to a 3% royalty in favor of an arm's length third party and a 3% gross overriding royalty in favor of Mr. Colin Orr-Ewing, a director of Bacanora. Three main borate zones have been located on the Magdalena project area: El Cajon; Bellota and Pozo Nuevo. Other targets include the recently discovered Represo colemanite prospect and the Escuadra occurrence.

Of the main borate zones El Cajon is the most advanced. Drilling by Bacanora (48 holes) and a US Borax subsidiary (11 holes) has identified 3 separate colemanite horizons (units: A, B and C) within the gently south-dipping sediments that underlie the area of El Cajon. The drilling has allowed an indicated borate resource of 11 million tonnes averaging 10.6% B2O3 to be estimated for El Cajon under CIM resource-reserve criteria.

The estimate includes indicated resources for unit A of 7.5 million tonnes averaging 10.8% B2O3, 0.8 million tonnes averaging 9.0% B2O3 for unit B and 2.7 million tonnes averaging 10.5% B2O3 for unit C using a cut off of 8% B2O3. The average thickness for each bed making up the 3 units ranges from 4.2 to 9.8 metres. Readers are cautioned that mineral resources used in this PEA are not mineral reserves as they do not have demonstrated economic viability.

Initial metallurgical test work has indicated that a colemanite concentrate grading 38% - 42% B2O3 can be produced from an average feed of 10.5% B2O3 from El Cajon using a combination of scrubbing, de-sliming and flotation. Construction of a pilot plant in order to conduct detailed metallurgy and improve the borate content of the colemanite concentrate, as well as finalize a full scale production flow sheet and produce colemanite concentrates for test marketing is 80% complete. In addition, it is recommended that a boric acid circuit be included in the pilot plant.