BacTech and Temex in Discussions on Processing Gowganda Silver Project Tailings
posted on Nov 16, 2009 11:10AM
Responsible Mining through Green Technology
|November 16, 2009|
|BacTech and Temex in Discussions on Processing Gowganda Silver Project Tailings|
|TORONTO, CANADA--(Marketwire - Nov. 16, 2009) - BacTech Mining Corporation ("BacTech" or the "Company") (TSX VENTURE:BM) today announced that it is in discussions with Temex Resources Corp. ("Temex") (TSX VENTURE:TME) with respect to an agreement to re-process the mine tailings ("Temex tailings") on the Gowganda Silver Project which contains the Miller Lake O'Brien Mine. The Miller Lake O'Brien Silver Mine, the largest past producing Cobalt-style silver mine outside of Cobalt, Ontario was operated by Miller Lake O'Brien Mines (1910-1944) and later by Siscoe Metals (1945-1972).
The Temex tailings sit adjacent to the Castle Mine tailings which is approximately 3 km from Gowganda, Ontario. The Castle Mine tailings are the focus of BacTech's bioleach demonstration plant proposed for the Cobalt mining camp. The Temex tailings' site contains approximately 1.8M tonnes of tailings grading on average 1.43 oz of silver/t or 2.7M oz of silver. There has been no evaluation done on the cobalt and nickel values. Temex selected five sites from previous sonic holes from which samples have been taken and these will be shipped to BacTech for concentration and bioleaching test work.
The Temex tailings were created when the property was mined between 1910 and 1944, and again between 1945 and 1972, with silver being the metal of interest. Like other tailings created in the Cobalt camp, little effort was made to recover the cobalt and nickel from the ore. Given the ability of bioleaching to treat low-grade concentrates, BacTech is confident that it can capture the cobalt and nickel, as well as a significant amount of the remaining silver.
"The Temex tailings are roughly ten times the size of the Castle tailings," said Ross Orr, President and CEO of BacTech. "It is a natural extension of our business model to include the whole area before we address the Cobalt camp. Since we will already have gravity and flotation equipment there for the Castle tailings, it's only natural that we would pursue this additional opportunity."
Temex has invested a considerable amount of time and money to date on environmental studies related to closing the tailings site. The fact that this work has been completed will expedite what is normally a lengthy aspect of planning for advanced exploration and development closure. The estimates above on tonnage and grade are not NI 43-101 compliant at this time, but Temex considers the estimates reliable and relevant based on verification of the results from historical sampling, as well as the repeatability of several tests carried out by Temex. BacTech and Temex hope to conclude a mutually beneficial agreement shortly.
BacTech also announces that it will now not be acquiring an equity interest in the Fergusson Island Gold Project ("Project") in Papua New Guinea. As part of a restructured agreement with the current owners, Yamana Gold Inc. ("Yamana") and Gold Anomaly Limited (formerly Gold Aura Limited), Gold Anomaly will purchase Yamana's 33% interest, resulting in owning 100% of the project. BacTech will be providing bioleach support to Gold Anomaly as part of the bankable feasibility study of the Project.
For additional information, please refer to BacTech news releases dated May 12, 2009, April 15, 2009, January 21, 2009, November 19, 2008, July 23, 2008 and June 18, 2008.
Ross Orr, President & CEO said, "Given our focus on the Cobalt tailings project and recent entry into Armenia for gold, we feel this restructuring of the transaction for the Project enables us to better focus our limited resources. Although we will no longer have an interest in the Project, we believe BacTech can still be a major contributor to the understanding of this refractory gold project."
BacTech owns patented bacterial oxidation technology for the treatment of refractory ores and concentrates to enhance the recovery of gold, silver and base metals. The Company's focus is the acquisition of equity positions in projects amenable to bioleaching. In September 2008, BacTech signed an MOU to investigate the use of bioleaching to reprocess arsenic-laden tailings in Cobalt, Ontario. This is the Company's first foray into the cleantech industry. BacTech is continuing to evaluate additional remediation projects.
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