Sodium Sulfate

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Sodium Sulfate
Mining ProJect Bacadehuachi, Sonora, Mexico
1.- Introduction
4.- Technical Analysis
5.- Final Conclusions
2.- Previous Information
3.- Market
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1.- Introduction.
Alkatec, S.A. de C.V. is a Mexican corporation
established on March 14th, 1994. Its main
objectives are the exploration and exploitation
of different non-metallic minerals.
Alkatec, forms part of Sand-Corporative, a group
of enterprises resulted from 25 years of
expierence in the exploitation of different
minerals all along Mexican territory.
This group was initiated with our first mining
company Minera Frio Zac, S.A. de C.V. in 1974.
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2.- Previous Information.
Alkatec, S.A. de C.V. began works of exploration
and geology in Bacadehuachi Sonora in 1997. It
acquired several federal-mining leases, which are
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3.- Market.
3.1 Product Description and Characteristics.
Sodium Sulfate Na2 So4 (Thenardite) is a sodium
salt witch has several uses as color fixer in
the textile industry as raw material for the
detergent industry, etc.
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3.- Market. (cont...)
3.2 Previous Information and Market Perspectives.
Information Our load (demand) analysis has been
focused basically on these two industries. It was
made by Minera Frio Zac, S.A. de C.V another
mining corporation which actually supplies other
raw materials and is aware of the great need of a
new supplier.
3.3 Load (Demand).
Our load (demand) analysis has been directly
focused on the annual consumption of the
following industries all established in Mexico.
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3.- Market. (cont...)
3.3.1 Detergents
All these industries are our actual consumers and
have expressed enormous interest in consuming our
sodium sulfate.
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3.- Market. (cont...)
3.3.2 Textiles
Estimated consumption 130,000 tons/year as a
color fixing.
3.3.3 Exportation
Thanks to our unique locations (only 240 kms.
From Agua Prieta, Sonora border with the USA) we
can export with great competitivity in USA.
3.4 Supply
Nowadays, the only sodium sulfate supplier for
the whole Mexican territory is Quimica del Rey,
S.A. de C.V., located the Mexican state of
Coahuila it has a presence for last 18 years in
market, therefore the interest in finding another
supplier, augers well for Alkatec.
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3.- Market. (cont...)
3.5 Competitive Analysis
3.5.1 Quality
Thanks to the nature of the mineral deposit, we
can obtain a high quality product, similar to our
competitors Quimica del Rey, S.A. de C.V.
3.5.2 Price
Our price is highly attractive because our raw
material and production procedure will take place
on site, therefore it would allow us to take
advantage of lower cost of production, so our
prices can always be below our competitors
(Quimica del Rey 137.00 USD. F.O.B. Plant).
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4.- Technical Analysis.
4.1 Introduction.
This project is part of an exploration project of
evaporating deposits in the State of Sonora,
Mexico. At first, explorations nearby
Bacadehuachi were done (NW of Hermosillo,
Sonora). Our project includes an area of over
5,400 hectares from which only 300 hectares have
been explored with drilling. The remaining
exploration was performed in surface. The
drilling covered length of 1,546 m., 24 drill
holes went as deep as 42 to 75 m. and 16 (75.00)
turned out to be positive. All drilling was done
on dry bases therefore results of material
analysis are real since none dilution by water is
present.
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4.- Technical Analysis. (cont...)
These sodium sulfate deposits have strata of
white light grey and light brown in color, which
shows a high degree of purity and low
contamination. The thickness of strata varies
from 0.3 m. to 10 m. with alternate layers of
mud, clay and fine grain sand. This is typical of
alluvial basins of evaporating type deposits.
The average thickness is 28 m. of sodium sulfate
(Thenardite).
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4.- Technical Analysis. (cont...)
4.2 Location.
Our project is located 250 km. NW from the city
of Hermosillo, Sonora it is within the town
limits of Bacadehuachi, in the same State. The
mining claims have following coordinates
29º 46 20 - 29º 52 00 North Latitude 109º
06 10 - 109º 10 20 West Longitude
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4.- Technical Analysis. (cont...)
How to get there From the city of Hermosillo,
proceed toward Nogales, then take the highway to
Ures, Moctezuma, Huasabas and El Coyote. From
the last point continue south on the road to
Bacadehuachi. The town of Bacadehuachi has
adequate infrastructure such as good roads,
electricity, potable water, telephone, fax and
medical services. Another advantage is its
proximity to the U.S. border 280 km. by road
from Douglas, Arizona.
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4.- Technical Analysis. (cont...)
4.3 Objectives.
The Bacadehuachi area has been explored several
times for sodium sulfate, confirming regular size
strata as well as salty efflorescence which is
closely related to such strata. These last ones
have been exploited for livestock. This first
evaluation, associated whit morphologic evidence
and salty efflorescence help to generated the
first preliminary geologic model consisting of a
river-basin.
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4.- Technical Analysis. (cont...)

• The previous information allowed us to establish
  the following objectives
• a) Geological definition of the area
• Mineralogical formations
• Topographical formations
• Geomorphological formations
• Stratigraphic formations
• All the above allowed us to determine the sodium
  sulfate deposits.

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4.- Technical Analysis. (cont...)
b) In order to establish on short term bases the
necessary information, we have proceeded with
pneumatic drilling, using the reverse circulation
method. c) Determination of usable salt
strata. d) Determination of total potential
reserves.
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4.- Technical Analysis. (cont...)
4.4 Drilling Results.
After evaluating the different geological
information obtained, it was decided to invest in
a deep hole drilling (72 m.) to quantify the
reserves of sodium sulfate. Following where the
next steps
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4.- Technical Analysis. (cont...)
1.- By means of reverse pneumatic drilling, a
total of 1546 m. Of holes were drilled. The fine
powder recovered from these drilling was used to
determine the thickness and quality of thenardite
(sodium sulfate layers). A total of 24 drill
holes were completed with up to 70 m. depth. The
following results were obtained 1.1.- The
average thickness of the sodium sulfate strata is
28.0 m. The salt and the cutoff grade of 78.00
of sodium sulfate was used. Therefore the deposit
averages between 78 and 98 of sodium sulfate.
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4.- Technical Analysis. (cont...)
4.5 Project Dimension Reserves Calculations.
Based on our pneumatic reverse drilling method
the results obtained from the 24 drills certify
that an average 28 m. thick layer of sodium
sulfate is located under a 22 to30 m. sand
surface layer. The above drill holes covered 300
hectares representing 28,000,000 tons of proven
sodium sulfate reserves. These figures were
obtained by the following calculations 400 m.
(width) x 2,000 m. (length) x 28 m. (depth)
22,400,000 m3 x 2.5 p.e. (specific gravity)
56,000,000 tons.
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4.- Technical Analysis. (cont...)
Our geologists took a 50 confidence fact
therefore we arrived at 28,000,000 tons. of
proven reserves. Beneficiation methods should
allow us to recover some additional tons from the
additional resources.
4.6 Mining Works.
With the results obtained from the pneumatic hole
drilling, we decided to make a work of vertical
exploration with a section of 2.40 m. X 2.20 m.
where nowadays we are at 42m. depth and we found
salty strata since 34 m. depth. Nowadays, this
work can be used to an initial exploitation of
the mineral deposit.
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5.- Conclusions.
5.1 Market
Our product has a high demand in Mexico since
presently there is only one producer, who uses a
high cost chemical process of production. Addition
ally sodium sulfate has a good market in the US
which we can readily access through Douglas
Arizona or by ocean from Guaymas. We consider
Guaymas Sonora to be the Pacific Ocean city only
400 km. from our deposit and an excellent gateway
not only to the US but other world
markets. Initial commercial contacts give us the
confidence that the Mexican consumers are ready
to purchase our product due good quality and
competitive pricing.
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5.- Conclusions. (cont...)
We could reach 500,000 tons a year production
within to years of project go ahead which would
generate grow sales of 50,000,000.00 USD.
5.2 Project Life
At a yearly production level of 500,000 tons.,
the mine life will last for approximately 60
years. Since the total claims of Alkatec cover
5,000 hectares of which only 300 have been
explored, the estimate substantial future growth
of minable reserves. This can be proven with deep
hole pneumatic drill and work on beneficiation
methods.
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5.- Conclusions. (cont...)
5.3 Legal Issues
Alkatec is totally owned by Sand Corporation who
has over 25 year of mine development and mineral
sales experience in Mexico. There are no
outstanding legal issues for the Alkatec property
and Sand Corporation can provide the necessary
support to complete the market study and initiate
this project. Sand corporation is looking for a
partner with the necessary technological
background and capability to move forward a
mining project on a level best suited to market
conditions.
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5.- Conclusions. (cont...)
5.4 Further Information
Addendum following geological information is
available for review i n our Mexico City offices

• Pneumatic hole drulling logs descriptions
• Several federal leases
• maps and geological sections, etc.
• Periférico Sur No. 4225 Desp. 002 Col. Jardines
  en la Montaña
• Tlalpan, México D.F. C.P. 14210
• Tels. [phone], 5020, 5026 Fax (525)
  645-3993
• E-Mail sinkteck_at_df1.telmex.net.mx