Bacanora Minerals (TSXV:BCN) announced results of a Preliminary Economic Assessment on the Cajon Borate deposit in Sonora, Mexico: 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 $US25 million for an IRR of 24.8% with a 4 year pay back. Capital costs are estimated at at $US7.25 million and average operating costs at $US170/tonne. The Net Present Value of the project, discounted at 8%, is $US113 million, assuming an average colemanite concentrate price of $US500/tonne.
As quoted in the press release:
Management is very pleased with the preliminary economic assessment of El Cajon and looks forward to completing additional work for the purpose of advancing the project through feasibility and, ultimately, leading to the commercial development of this deposit. The full text of the PEA will be filed on SEDAR as a report in compliance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101″) and will be available on Bacanora’s website.