BacTech Mining to acquire a 33% interest in two gold deposits in PNG
21-NOV-2008 Intellasia | marketwire
Nov 21, 2008 - 7:00:00 AM
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In June of this year, BacTech Mining Corp ("BacTech" or the "Company") (TSX VENTURE:BM) entered into an agreement to acquire a 33% interest in two refractory gold deposits located on Fergusson Island, Papua New Guinea ("PNG"), from Yamana Gold Inc. ("Yamana") in exchange for 15 million shares in the Company. The agreement is subject to receipt of regulatory approval by the Co including the approval of the TSX Venture Exchange (the "Exchange"). On closing of the transaction, Yamana will hold a 19.97% undiluted interest in BacTech. The balance of ownership in the projects (67%), is held by the current operator, Gold Aura Limited ("GOA") (ASX:GOA), of Brisbane, Australia.
The Co initiated an independent review of the historical work performed on the deposits, and has now received an independent technical report prepared by Hellman & Schofield Pty Ltd, an Australian-based consulting group. William Yeo, PhD, MAusIMM, is a Qualified Person as defined under National Instrument 43-101. He is the author of the technical report and is responsible for its content. Yeo verified the geologic data in this news release. Summaries of the report's Conclusions and Recommendations are listed below.
It is anticipated that in order to obtain the approval of the Exchange to the completion of the acquisition, BacTech will require shareholder approval in accordance with the rules of the TSX Venture Exchange, which BacTech hopes to procure by written consents.
While the supporting database for this project lacks the QAQC procedures currently required to meet resource or reserve criteria, BacTech is sufficiently encouraged by the size and grade of the identified mineralised systems, and their suitability to treatment using BacTech's bacteriological leaching technology, to aggressively pursue various avenues to validate and confirm the existence of a minable gold reserve.
Technical Report Conclusions
-An extensive amount of geological work has been carried out on the Fergusson Island prospects.
-A total of 296 RC and air core holes (11,646m), and 97 diamond core holes (6,401m) have been drilled at Wapolu.
-A total of 195 RC holes (10,179m) and 33 diamond holes (4,181m) have been drilled at Gameta.
-The geological models of the mineralisation are well advanced and documented.
-Gold analyses were obtained by a combination of aqua regia digest with AAS finish and conventional fire assay. The use of only an aqua regia sample digestion may result in incomplete gold digestion and result in lower than actual gold values. This possibility will be investigated by follow-up fire assaying of selected samples.
-No resource estimate is reported at this time as QAQC procedures at the time of the previous drilling were not compliant with current requirements. However, a number of historical resource estimates have been completed that provide a reasonable indication as to the likely size and grade of resources on Fergusson Island.
-Mining was carried out at Wapolu between December 1995 and June 1997 and, although the results from the operation were disappointing, re-evaluation of the geology indicates a greater extent and depth of colluviums than was initially thought, and that in-situ mineralisation beneath the colluvium remains poorly tested.
-The current database is not in good standing. Steps need to be taken urgently to compile a single database for each project that contains ALL the data acquired.
-A sample bias may exist between the core and RC drilling that could render the latter unreliable.
Technical Report Recommendations
-Re-surveying of the collar locations of all holes that are relevant to the definition of resources.
-Compile a single database for each project area with all drill hole data included. The new database needs to be validated against original drilling, logging and analytical records.
-All existing QAQC data needs to be compiled and determined what, if any, meets current regulatory standards, and additional analytical checks completed using stored sample materials.
-All mineralised intervals analysed for gold by the aqua regia method should be re-analysed by fire assay if the sample rejects or pulps are retrievable.
-Determine the reliability of the existing RC drilling by completing a programme of diamond drill holes that twin existing mineralised RC holes.
-If the existing RC drilling data is shown to be of sufficient quality to use in a resource estimate, then an additional programme of check assaying of stored sample pulps will be undertaken.
BacTech and GOA will now begin discussions to analyse the recommendations offered in this report. Any work performed by BacTech will be credited towards its two-year commitment to spend US$1.5M on the advancement of the project to earn an additional 7% of the project. See BacTech's news release dated June 18, 2008 for additional details.
BACTECH PROFILE
BacTech has developed and patented bacterial oxidation technology for the treatment of refractory ores and concentrates to enhance the recovery of gold, silver and base metals. BacTech has successfully commissioned three bioleach plants for gold and demonstrated its technology in the selective recovery of base metals from complex sulphide concentrates in a joint project with Industrias Penoles de C.V. of Mexico that was completed in 2001. The Company's focus is the acquisition of equity positions in projects amenable to bioleaching. The Co recently signed an agreement to acquire Yamana Gold Inc.'s 33% interest in 2 refractory gold deposits in Papua New Guinea.
Prospective and current shareholders are invited to join the Company's official investment forum exclusively at www.pinnacledigest.com. The forum allows for investor controlled discussion, questions, third party reports and articles, and progressive feedback from other shareholders and investors. See http://www.pinnacledigest.com/company/bm%Aca. Also, visit www.bactech.com for ongoing updates and to have your name added to our mailing list.
Shares outstanding 60,107,206
The TSX Venture Exchange has not reviewed and does not accept any responsibility for the adequacy or accuracy of this release.
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