Bacanora Lithium Share Discussion Threads

[rossowheels] 01/9/2015 09:38

Yet another positive RNS just out. It just keeps on getting better.

[chinese investor] 01/9/2015 08:30

Looking Good !

[adobbing] 31/8/2015 23:35

Bacanora Announces Sonora Lithium Project Drilling Program and Updated Results

CALGARY, ALBERTA--(Marketwired - Aug. 31, 2015) - BACANORA MINERALS LTD. ("Bacanora" or the "Company") (TSX VENTURE:BCN)(AIM:BCN), the London and Canadian listed (AIM: BCN and TSX-V: BCN) lithium and borates company focused on Mexico, is pleased to announce that it has mobilized a second drilling rig to site and also provides an update on the drilling program currently being undertaken as part of the pre-feasibility study ("PFS") at its Sonora Lithium Project1 in Mexico.

Bacanora has now completed nine holes (totaling 1,850 metres) of the currently planned 18 hole drilling program (approximately 4,000 metres). As a result of the Company's recent agreement with Tesla Motors, a second rig has been mobilized to site to increase the speed of drilling, with the intention to complete the remaining holes in September 2015.

Analyses received from the first four holes from the Fleur concession indicate that weighted averages for lithium content in the Upper Clay is 1,862 ppm Li over 24.15 metres in thickness and the Lower Clay averages 4,871 ppm Li over 24.15 metres. The thickness in metres and grades of the significant lithium intersections are shown in Table 1 as follows:

1 The Sonora Lithium Project is comprised of the following lithium properties: La Ventana lithium concession, which is 100 percent owned by Bacanora; El Sauz and Fleur concessions, which are held by Mexilit S.A. de C.V. ("Mexilit"); and the Megalit concession, which is held by Megalit S.A de C.V ("Megalit"). Mexilit and Megalit are owned 70 percent by Bacanora and 30 percent by Rare Earth Minerals, plc.

TABLE 1: Significant Lithium drilling intersections - Sonora Lithium Project (Fleur Concession)

Drill hole Upper Clay (m) Li
(ppm) %LCE* Lower Clay (m) Li (ppm) %LCE*
ES-44 31.01 2,127 1.13 15.54 5,032 2.68
ES-45 N/D Nil Nil 14.17 4,503 2.4
ES-46 24.74 1,918 1.02 15.98 4,605 2.45
ES-47 16.71 1,287 0.69 25.53 5,145 2.74
Note: N/D means not detected

* LCE = lithium carbonate (Li2CO3) Equivalent: determined by multiplying Li value in percent by 5.324 to get an equivalent Li2CO3 value in percent. Use of LCE is to provide data comparable with industry reports and assumes complete conversion of lithium in clays with no recovery or process losses.

The program is primarily focused on significantly increasing the Indicated Mineral Resources within the Sonora Lithium Project, as well as testing whether the high grades and near surface mineralisation identified at the La Ventana concession continue into the northern area of the Fleur concession, which immediately adjoins La Ventana to the south. The Company's resource was recently updated by SRK Consulting (UK) Limited ("SRK") to:

Indicated resources of 1.14 million tonnes ("Mt") lithium carbonate equivalent ("LCE") contained in 95Mt of clay, at lithium ("Li") grade of 2,200 ppm
Inferred resources of 6.3Mt LCE contained in 500 Mt of clay at a Li grade of 2,300 ppm
For further details, investors are encouraged to reference the Company's press releases dated May 13 and June 26, 2015 and/or the SRK's report that was filed on May 13, 2015 and is accessible on the Company's website.

Upon completion of the drill program and assaying, SRK will deliver an updated resource model for mine design purposes, with an initial focus on the higher grade, open pit resources on the La Ventana and Fleur concessions.

Peter Secker, CEO of Bacanora, commented, "Drilling is progressing very positively and with a second rig about to arrive on site, we expect to complete this program rapidly. This campaign will form a critical component of our pre-feasibility study and it is our hope and expectation that, upon completion of drilling, we will have sufficient data to update and upgrade our resources to advance the mine design."

The pre-feasibility study ("PFS") for the Sonora Lithium Project in Mexico is ongoing, with metallurgical testwork, mine design and process engineering proceeding according to schedule and due to be reported in Q1, 2016.

Martin Vidal is the Qualified Person pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the AIM Note for Mining and Oil and Gas Companies who has reviewed and approved the technical contents of this news release.

ABOUT BACANORA:

Bacanora is a Canadian and London listed minerals explorer (TSX-V: BCN and AIM: BCN). The Company explores and develops industrial mineral projects, with a primary focus on lithium and borates. The Company's operations are based in Hermosillo in northern Mexico and it currently has two significant projects under development in the state of Sonora. The two main assets of Bacanora are:

The Sonora Lithium Project, which consists of ten mining concession areas covering approximately 100 thousand hectares in the northeast of Sonora State. The Company, through drilling and exploration work to date, has established an Indicated Mineral Resource (in accordance with ("NI 43-101") of 1.12 Mt LCE contained in 95 Mt of clay at a Li grade of 2,200 ppm and an Inferred Mineral Resource of 6.3 Mt LCE contained in 500 Mt of clay at a Li grade of 2,300 ppm.
The Magdalena Borate Project, covering 16,503 hectares in Sonora state, Mexico, where the Company's main borate zone, El Cajon, has an Indicated Resource (in accordance with NI 43-101) of 1.17 Mt of B2O3, at an eight per cent. cut-off grade. The Company has completed a number of measures to determine the geological and commercial potential of the project and is undertaking a prefeasibility exercise to determine the economic benefit of developing the mine and constructing a processing plant on site in order to become a supplier of boric acid.
Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to future updates and upgrades to resource estimates and categorizations and preparation and completion of the PFS. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, 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 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: commodity price volatility; 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 the 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 this release.

Bacanora Minerals Ltd.
Peter Secker
Chief Executive Officer
[e-mail]

Bacanora Minerals Ltd.
Martin Vidal
President
Phone: [phone]

[bengt] 31/8/2015 21:39

wouldn't this be an 'in the money' contract?

[12bn12bn] 31/8/2015 21:32

Volume of trades up 1000% in Canada in last two trading days.

www.google.co.uk/finance?q=CVE%3ABCN&;ei=LrjkVYmUMIz6UvG3sdAH

[steeplejack] 31/8/2015 21:02

The analogy with out of the money call options is sound.TSLA might well find itself sourcing lithium from China but political as well as economic prudence and logistics impels TSLA to tie up with a "nearby" geographical producer.

This is a long game,it always seem to be a long game especially when Mr Lenigas is involved.What we have is a vote of confidence in Sonora and that's no bad thing despite the financial hurdles before production is finally achieved.

Canada retreated from closing at a premium to London's Friday close which is interesting.The volume is small over the water nowadays of course but I take that as something of a pointer that BCN or REM are unlikely to race to new highs over the next week or so.I'd be more than happy if they did but I certainly feel more comfortable post the TSLA news,as a long term holder,that we're in the foothills of a steady share price climb over the next few years.

[c31161] 31/8/2015 18:21

TESLA BUYS AN OUT OF THE MONEY CALL OPTION ON LITHIUM SUPPLYPosted on August 31, 2015 by stockchartistIt's been interesting to read the mainstream media's impression of the recently announced lithium hydroxide supply deal betweenTesla Motors (TSLA:NASDAQ) and Rare Earth Minerals plc (REM:LON) and Bacanora Minerals (BCN:TSXV, BCN:LON), a joint venture with lithium concessions in Mexico. Arguably the biggest misconception is that TSLA has consummated a deal with companies operating an existing mine. This is not the case as the deposit at the center of the agreement is just that – a deposit.Semantics aside, the agreement between the companies offers an interesting window into TSLA's supply chain strategy. In the end what the company has done here has purchased an out of the money call option on future lithium supply.Out of the money options have no intrinsic value (though do have time value) but are effectively used as a hedging strategy to lock in a given price in the future depending upon the option purchaser's view of future asset prices. The only capital in play is the option premium the option purchaser pays.The only "capital" TSLA has at risk here is its name. The company has yet to commit any money that we know of to future supply of lithium cobalt, or graphite – and this, to be clear, is still a significant risk for the company. The much more significant risks of financing a mining project, building the mine, and producing lithium hydroxide to TSLA's specifications still rest squarely with the REM/BCN joint venture (known as the Sonora Lithium Project Partners). The plan is that once the mine is built and lithium hydroxide is produced, TSLA will purchase a set amount at below market prevailing prices.With respect to TSLA's accessing lithium hydroxide supply in the near-term, we still believe it will originate in China. This thinking is based on analysis of existing producers ex-China and the potential demand not just from TSLA, but other lithium ion battery manufacturers with somewhat less grandiose plans than the Gigafactory such as LG Chem.One of the more interesting takeaways from the agreement is the fact that the Sonora lithium project is clay-based, rather than traditional brine or hard rock. As we currently know de minimis about the capital and operating expenditures at Sonora, trying to forecast financial metrics is difficult at best.The only other clay-based deposit where we have significant financial data is Western Lithium's (WLC:TSX, WLCDF:OTCBB) King's Valley deposit in Nevada, though using those metrics as a proxy for other clay-based lithium deposits would be unwise. That said, the ability to produce lithium hydroxide or lithium carbonate at scale from a clay-based deposit could have significant implications on lithium feedstock in the future. It's just too early to tell at this point, however TSLA's interest musn't be overlooked or minimized.The Important TakeawayPerhaps the most significant conclusion is that you're just starting to see these next generation value chains come to life. In an unrelated deal, auto parts maker Bosch (500530:BOM) purchasedSeeo, a California-based start-up which produces lithium polymer cells. This was likely done to lock up intellectual property around advanced battery chemistry. Similar deals are sure to follow as the "race" for the optimal lithium ion battery intensifies, not to mention the security of supply of various raw materials.All lithium majors reported earnings recently and the takeaway from their lithium businesses was the same: strong demand and the expectation for higher prices going forward. Given the increasingly acute threat of an economic deflation, this is decidedly good news. The forecast of higher prices can only help a junior lithium sector that is struggling and focused on sustainability at this stage of the commodity cycle. Perhaps an optimal strategy will be to wait for TSLA et al to push up lithium prices and then optimize economic studies and return to the market with more attractive valuations.Despite the lack of detail surrounding this lithium supply agreement, it is an encouraging first step. While it likely won't breathe new life into the mining space (if Friday's closing prices of the 34 lithium plays I track are any indication), it is a signal of companies anticipating future demand. I would expect to see TSLA and perhaps other battery manufacturers undertake additional "out of the money call option"-type deals as the lithium market tightens over the next two years. This is also likely to be true for cobalt and graphite.

[c31161] 31/8/2015 18:18

BACANORA MINERALS LTD. AND RARE EARTH MINERALS.THIS HAS LEFT THE RESEARCHERS EXCITEDPosted on August 31, 2015 by stockchartistTesla Motors Inc (NASDAQ:TSLA) is interested in buying lithium compound from a mining site in Mexico and has reportedly entered into a deal with two mining companies: Bacanora Minerals Ltd. and Rare Earth Minerals. Since the mine is not functional yet, the companies are required to raise funds for the construction of a mine and processing facilities in two years' time.Tesla Motors TSLATesla may provide funding for the siteBoth firms project that 35,000 tons of lithium compound (namely, lithium hydroxide and lithium carbonate) will be supplied per year once the mine is up and running. Eventually, the output will expand to 50,000 tons per year, according to the supply contract published by Bacanora.Once the mine becomes operational, Tesla will purchase a minimum amount of lithium hydroxide from Bacanora Minerals and Rare Earth Minerals over five years. This agreement could be extended after the agreed-upon period. The mining companies, in exchange, offer their mined materials to Tesla at rates below market prices, according to areport in The Wall Street Journal.The two mining companies, together called the Sonora Lithium Project Partners, will need to secure financing for this deal as is stated in Bacanora's supply contract. Tesla is allowed to contribute to the funding. Initially, the two companies estimated that they will need $114 million for building a lithium mine on the site. But a reassessment of this amount is needed keeping in mind the size of the demand from Tesla.Alternative cheaper sources availableThe lithium mined from the Sonora Lithium Project will be transported to Tesla's so-called gigafactory, which is being built in partnership with Panasonic Corporation (ADR) (OTCMKTS:PCRFY) (TYO:6752) and is located outside of Reno, Nev. By the next year, the first phase of Tesla's factory will be completed, as reported by The Wall Street Journal.Researchers at the University of Wyoming have found an enormous amount of lithium at Rock Springs Uplift, a geological feature in southwest Wyoming, reported TreeHugger. Initial tests indicate that 228,000 tons of lithium could be obtained from the lithium-rich brine, and it would be enough to meet the annual demand in the U.S. The lithium discovered is also double the amount available at Silver Peak in Nevada, which is the biggest domestic lithium producer presently.The lithium mined from this site can be processed at lower costs than those from other locations, and this has left the researchers excited. It also presents a good opportunity for Tesla to get its raw material at a cheap cost.

[jemjem] 31/8/2015 08:54

Loved this review of the deal :-))

Tesla Signs Deal To Obtain Lithium Supply For Gigafactoryadmin August 29, 2015 Tesla Signs Deal To Obtain Lithium Supply For Gigafactory2015-08-29T22:35:56+00:00 Car Reviews No Comment


Tesla Motors has sealed a understanding with mining companies Bacanora Minerals and Rare Earth Minerals in sequence to obtain a new source for a lithium-ion batteries it builds to energy a electric vehicles.


The agreement lets a electric automaker buy lithium from a cave called a Sonora Lithium Project that will be built in Northern Mexico for a batteries, that will be constructed during a company’s Gigafactory that is underneath construction of Reno, Nevada, according to Fortune.



One of a terms of a understanding is that Bacanora and Rare Earth Metals are compulsory to lift appropriation and afterwards build a cave and a lithium estimate facility. Another condition is that a mine, once completed, contingency yield Tesla with a volume of lithium it wants and during a speed that a association requires.

Lithium, many of that is found in South America, is one of several pivotal components in lithium-ion batteries, with others including copper, nickel and graphite, The Wall Street Journal reported.

The cave and estimate trickery are dictated to have an initial ability of 35,000 tons of lithium compounds, that could be stretched to 50,000 tons.

The Gigafactory will cost $5 billion to build, with a initial proviso of construction approaching to be finished subsequent year, WSJ reported. The battery bureau will be means to furnish 35 gigawatt-hours of battery cells once entirely built, that is some-more than all of today’s lithium-ion battery factories combined.

The idea for Tesla is to revoke battery costs, partly by regulating in-house materials suppliers, by during slightest 30 percent.

Tesla’s understanding with Bacanora and Rare Earth Minerals is for 5 years, and a choice to extend it for another 5 years is on a table, Fortune reported.

The idea for a Gigafactory is to furnish adequate lithium-ion batteries for 500,000 electric cars by 2020.

[ftangftang] 30/8/2015 13:32

wall street journal



cheers
ft ft

[senttothegallows] 29/8/2015 08:40

Both BCN and REM are going to multi bag from here quite quickly some interesting comments over on LSE stand out being when DL was asked at the REM AGM for value of Sonora the reply was:-

"When asked how much did he think Sonora could potentially be worth, he said $50Billion !"

Roll on Tuesday

[temmujin] 29/8/2015 07:20

in ya dreams millie...Elon Musk doesnt hang about..JCB diggers already on there way to mexico

[milliecusto] 28/8/2015 23:23

2020,think i may have time to buy cheaper.

[hutch_pod] 28/8/2015 23:14

Can only agree. What more could a lithium miner want?

Ok apart from dirt cheap production costs..

[btgman] 28/8/2015 22:34

Been here a good while holding quite a while before AIM listing. Today's news has not really been grasped by people this was a fundamental RNS.

We can now say we are working with Tesla nothing better for our CV more off take agreements will follow huge upside from here

[jemjem] 28/8/2015 15:40

You too aal.
For my sins, been in BCN from from day 3.
Bought at the top and the bottom in the mean time!
One for the bottom draw for 2020 - hopefully.

[alwaysaloser] 28/8/2015 15:13

JemjemGood to see you in bcnWe should see lots of press over the weekend Good luck to allAal

[jemjem] 28/8/2015 15:12

Tesla RNS just released

Tesla Secures Lithium Supply for Battery Factory
Date : 28/08/2015 @ 14:50
Source : Dow Jones News
Stock : Tesla Motors, Inc. (MM) (TSLA)
Quote : 246.5 3.51 (1.44%) @ 15:00
Tesla Motors, Inc. (MM) share price Chart Financials Trades Level2


Today : Friday 28 August 2015


Tesla Motors Inc. has secured a North American supply of lithium hydroxide through a long-term contract with mining company Bacanora Minerals Ltd. and Rare Earth Minerals PLC, giving the electric car maker a key base material used to produce lithium-ion batteries used its electric vehicles.

Tesla is building a $5 billion battery factory in Nevada that aims to reduce battery costs by 30% or more, partly by bringing in in-house materials suppliers. The agreement with the two companies gives Tesla access to below-market-rate lithium in exchange for minimum purchase amounts over a five-year period, according to a statement.

The first phase of the battery factory, under construction near Reno, is expected to be completed next year. When the battery factory is fully built out, it will be capable of making 35 gigawatt-hours of battery cells, which is more than all of the current lithium-ion battery plants in the world today combined.

The two companies in partnership with Tesla have rights to land in northern Mexico, where lithium can be obtained from mineral-rich clay, according to the release. The two companies are calling themselves the "Sonora Lithium Project Partners."

The mine and processing facility are expected to have an initial capacity of 35,000 tons of lithium compounds and could be expanded to 50,000 tons.

Most of the world's supply of lithium comes from South America. While a key component of the battery, other materials like copper, nickel and graphite make up more of the actual material in most lithium-ion batteries.

Write to Mike Ramsey at [e-mail]


Subscribe to WSJ:

(END) Dow Jones Newswires

[milliecusto] 28/8/2015 15:11

Alot of compliance issues to adhere to and significant debt to raise,alot of potential but certainly not a done deal,best to watch on the sidelines and pick a better entry point.

[adobbing] 28/8/2015 15:06

Bacanora Minerals Ltd.
TSXV:BCN
+44%

!!!