(TheNewswire)
LOI’s propose 58 tpd of minimum 50gpt concentrates to be supplied
TORONTO, ON – TheNewswire - July 13, 2022 – BacTech EnvironmentalCorporation (CSE:BAC ) , ( OTC:BCCEF ) , ( FSE:0BT1)(“ BacTech ” or the “ Company ”), a commercially proven, environmental technology company deliveringeco-friendly bioleaching and remediation solutions for precious metaland critical mineral recovery , is pleased toannounce that it has signed letters of intent (“LOIs”) withseveral government-licensed gold mining cooperatives for initialorders to deliver up to 58 tonnes per day of arsenopyrite goldconcentrates at a cutoff grade of 50 grams per tonne.
The Company will negotiate final commercial terms andexecute definitive supply agreements prior to commissioning of theTenguel bioleaching plant. The agreements cover production from 3mines/processors and were signed on July 5th and 12th.
Strategically situated to meet the processing needs of90+ area government-licensed gold mining producers and companies, theproject will be a regional hub for BacTech’s proposed bioleachingprocessing plant for gold and silver recovery. Ecuador’s Ministry of Energy andNon-Renewable Resources has already issued a permit for plantconstruction, while preliminary DetailedEngineering plans project an initial 20-acre plant footprint thatallows for future expansion opportunities without disruption toexisting production.
“We’re taking proactive steps wherever we can tohelp solidify our plans and ensure that a steady stream of qualitymaterial will continuously feed this operation. With that said, wewill not purchase any concentrates that have been pre-treated withcyanide or mercury,” said Ross Orr, Presidentand CEO of BacTech Environmental. “We intendto capture the majority of the local small miner market by deliveringenvironmentally friendly processing that supports fair businesspractices. We’re excited to showcase the sustainable benefits ofbioleaching on a global stage that ultimately brings ethically sourcedgold to market.”
The Ponce Enriquez mining area is characterized by veryhigh grades of refractory arsenopyrite-rich material. BacTech will continue to selectively negotiate for the purchase of additional high gold/arsenic concentrates. Theintent is to return local miner compensation back to previous paymentlevels prior to severe price declines resulting from Chinesegovernment-directed import taxes placed on inbound arsenic goldconcentrates. Presently, area miners have no choice but to selltheir production at reduced prices to offshore buyers. BacTech intendsto eliminate financial penalties charged for arsenic and consequentlypay better prices for the miners’ material.
The Letters of Intent are non-binding and finalcommercial terms have not been executed in a definitive supplyagreement.
About the Tenguel – Ponce EnriquezBioleaching Project
BacTech is planning to build a new owner-operatedbioleaching facility in Tenguel, Ecuador, in a region where arsenic isassociated with gold ore (Arsenopyrite). The Company’s plan is tobuild a 50 tpd bioleach plant capable of treating high gold/arsenicmaterial. A 50 tpd plant, processing feed of 1.75 ounces of gold pertonne, similar to feeds available to the Company from local miners,would produce approximately 31,000 ounces per year. Plant designs aremodular and can be expanded without affecting ongoing production. Thetotal concentrate market in the Ponce Enriquez area is estimated to bebetween 200 and 250 tonnes per day, allowing for increased throughputpotential with a larger plant.
Key economic highlights, assuming a base gold price @$1,600 per ounce:
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Pre-tax NPV (Net Present Value with 5% discount rate)of $60.7M
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Pre-tax IRR (Internal Rate of Return) of 57.9%
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Annual Gold Production of 30, 900 ounces
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Capital Cost of $17M
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Bioleach Operating Cost of $212 per tonne
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Assumed Purchase Prices of Concentrate – 65% of thecontained gold value
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Pre-tax Earnings Prior to Employee Bonus – $10.9Mannually
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Estimated local employee bonus pool – $1.64M
In total, there are over 90 small mines operating inthe area. BacTech continues to investigate the prospects ofestablishing additional modern bioleaching facilities across otherareas of Ecuador, Peru, and Colombia. Where possible, the Company willpartner with national and local governments, non-governmentalorganizations (NGOs) and others to assist with the funding of theseprojects and ensure that they meet the Company’s high expectationsnot only for environmental standards, but also for the higheststandards in all ESG considerations.
About BacTech EnvironmentalCorporation
BacTech is a proven environmental technology company,delivering effective and eco-friendly bioleaching and remediationsolutions to commercial operations to process and recover preferredmetals (gold, silver, cobalt, nickel and copper) smartly and safelyremove and transform harmful contaminants like arsenic into benignEPA-approved products for landfill. Tapping into numerousenvironmental and economic advantages of its proprietary method ofbioleaching, BacTech uses naturally occurring bacteria, harmless toboth humans and the environment, to neutralize toxic mining sites withhigh-pay potential. BacTech is publicly traded on the CSE under thesymbol “BAC”; on the OTC as “BCCEF”; and the Frankfurt StockExchange as “0BT1”.
For further information contact:
President & CEO, BacTech Environmental Corporation
416-813-0303 ext. 222,
Email: borr@bactechgreen.com
Website: https://bactechgreen.com/
Investor Presentation: https://bactechgreen.com/investors/
Vimeo http://vimeo.com/bactechgreen
Special Note Regarding Forward-Looking Statements
This news release contains “forward-lookinginformation”, which may include, but is not limited to, statementswith respect to future tailings sites, sampling or otherinvestigations of tailing sites, the Company’s ability to make useof infrastructure around tailings sites or operating performance ofthe Company and its projects. Often, but not always, forward-lookingstatements can be identified using words such as “plans”,“expects”, “is expected”, “budget”, “scheduled”,“estimates”, “forecasts”, “intends”, “anticipates”, orbelieves” or variations (including negative variations) of suchwords and phrases, or state that certain actions, events or results“may”, “could”, “would”, “might” or “will” betaken, occur or be achieved. Forward-looking statements involve knownand unknown risks, uncertainties and other factors which may cause theactual results, performance, or achievements of the Company to bematerially different from any future results, performance orachievements expressed or implied by the forward-looking statements.Forward-looking statements contained herein are made as of the date ofthis news release and the Company disclaims, other than as required bylaw, any obligation to update any forward-looking statements whetherbecause of new information, results, future events, circumstances, orif management’s estimates or opinions should change, or otherwise.There can be no assurance that forward-looking statements will proveto be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly, thereader is cautioned not to place undue reliance on forward-lookingstatements.
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