TORONTO, Nov. 12, 2003 (PRIMEZONE) -- BacTech Enviromet Corporation ("BacTech") (TSX Venture Exchange:YBA) today announced that the Estate of the late T. E. Arnold has granted BacTech the option to acquire 100% of the McKinnon Creek polymetallic deposit in southeast British Columbia.
There are two main deposits on the property; the Main Zone that hosts the gold resource and is the focus of BacTech's attention and the Yellowjacket Zone, which is a lead-zinc carbonate replacement deposit. The Main Zone is a continuous, tabular, structurally controlled arsenopyrite-precious metal bearing massive sulphide body hosted in a low angle, intensely sheared structure. It has been traced on surface and underground for over 3km and currently has a drill-indicated strike length of 1.8km. The average thickness is 2.5 metres with a maximum thickness of 10 metres. High gold content is associated with arsenopyrite. Drill indicated geological resources for the Main Zone, as published by H. A. Simons in 1996, show a total resource of 3.6 million tonnes grading 7.24g Au and 81.0g Ag. This equates to a gold equivalent resource of 960,000 oz/Au based on a gold/silver price ratio of 0.0136 (US$360/oz gold, US$4.90 oz/silver). In BacTech's opinion, the H.A. Simons historical estimate of resources is relevant and reliable. However, BacTech advises that this is historical information that has yet to be verified in detail and there is no certainty that economic resources will exist on the McKinnon Creek property. The historical resources estimated by H.A. Simons use resource categories that do not conform to National Instrument 43-101 standards. To the knowledge of BacTech, the resource estimate cited in this press release is the most recent estimate available.
The terms of the letter agreement with the Estate require BacTech to pay US$100,000 for a six-month option which will be used for title verification, environmental and permit due diligence, independent resource verification and pre-feasibility level production planning. A further US$150,000 will be paid after a positive decision has been made to proceed to a feasibility study. This decision is expected to be made within 6 months of the signing of this agreement. Finally, there will be a closing payment calculated at US$10 per ounce of gold equivalent reserves based on the independent feasibility study. All payments are at the option of BacTech and are non-refundable.
The McKinnon Creek property is located 45 km north of Revelstoke, British Columbia. The property is comprised of 28 mineral claims totalling 68.5sq.km. McKinnon Creek has a long history of exploration dating back to 1865. Over the years, roughly 1,900 metres of underground drifts, crosscuts, raises and shafts have been excavated in addition to several bulk samples extracted for metallurgical test work and piloting.
Between 1983 and 1993 over $12.5 million was spent on exploration for gold by numerous groups. In 1989 Equinox Resources completed a Mining and Milling Study with detailed cost estimates that was followed by additional work from 1994 to 1999 by Weymin Resources.
The McKinnon Creek ores are polymetallic and have a complex mineralogy. BacTech envisions run-of-mine material being crushed, wet screened, with the screen oversize subject to heavy metal separation. The float material would be rejected as tailings and the sink material, combined with the wet screen fines, would be transported to Tonkin Springs, Nevada for bioleaching at the Company-owned facility.
Prior to signing the option agreement, BacTech engaged Rescan Environmental Services Ltd. to conduct an environmental assessment of the property. The purpose of the study was to identify any environmental liability associated with the mineral claims and also assess the permit requirements for production. BacTech has received a favourable report from Rescan.
CORPORATE PROFILE
On August 5, 2003, BacTech announced the closing of its acquisition of a 55% interest in the Tonkin Springs Gold Mine located in north-central Nevada on the prolific Cortez Trend.
BacTech has developed and patented bioleach technology for the treatment of refractory ores and concentrates to enhance the recovery of gold, silver and base metals. BacTech has commissioned three commercial bioleach plants for the recovery of gold and more recently has successfully demonstrated its technology in the selective recovery of precious and base metals from complex sulphide concentrates. Bioleaching is a commercially accepted and environmentally friendly alternative to conventional smelting operations and provides BacTech with a distinct market advantage in the acquisition and operation of mineral properties. BacTech's business is to own and operate mining projects independently or in joint venture.
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