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Bactech Announces Completion Of Papua New Guinea Technical Report
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Toronto, Canada, November 19, 2008 - In June of this year, BacTech
Mining Corporation ("BacTech" or the "Company") 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 Company
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 Company 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.
Mr. 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 mineralized 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 mineralization 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
mineralization 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 mineralized 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 program of diamond drill holes that twin existing
mineralized RC holes.
- If the existing RC drilling data is shown to be of sufficient
quality to use in a resource estimate, then an additional program
of check assaying of stored sample pulps will be undertaken.
BacTech and GOA will now begin discussions to analyze the
recommendations offered in this report. Any work performed by BacTech
will be credited towards its two-year commitment to spend $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 Pe�oles 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 Company 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.
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For further information contact:
Ross Orr, President & CEO, 416-813-0303 ext 222
Investor Relations:
Pierre Anglos 1-800-436-2027 Email: capitalgainsco@shaw.ca
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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Copyright (c) 2008 BACTECH MINING CORPORATION (BM) All rights
reserved. For more information visit our website at
http://www.bactech.com/ or send mailto:info@bactech.com
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