BacTech Environmental Corporation ("BacTech" or the "Company") today provided an update on the progress of its tailings reclamation project located at Telamayu, Bolivia.
BacTech is pleased to provide the following recent developments with its Telamayu tailings project in Bolivia. Telamayu is the first project for the Company in Bolivia. It consists of two separate tailings areas (Antigua and Nuevo) earmarked for remediation and is the result of many years of toll treating ores from four regional mines. Previous test work on the Antigua tailings revealed a silver grade of 8.8 oz/t and copper of 2.24%. There are also recoverable amounts of tin. The project is subject to the signing of a suitable association contract with COMIBOL, the Bolivian state mining company.
The above-mentioned association contract has been under negotiation since the beginning of March and should be completed shortly. Once the agreement is signed, due diligence will begin for the US$10M debt instrument that was announced on December 19, 2014. The term sheet contemplates a senior debt facility of up to US$10M to finance 100% of the capital requirements of bringing Telamayu into production.
Assuming the due diligence proves positive, BacTech will immediately begin a definition drilling program on both the Antigua and Nuevo tailings. The purpose of the drill program is threefold: 1) to obtain better knowledge of the distribution of the silver, copper and tin in Antigua for production planning, 2) to confirm the previous grades on Antigua and determine the grades for Nuevo, and 3) to provide fresh material to conduct enhanced gravity and flotation work and to study the recovery of silver, tin and the copper in solution in the tails for plant design.
BacTech is also pleased to announce that it has engaged the services of Dr. Jose Cordova. Dr. Cordova has 38 years of experience in the mining industry on a global scale. He studied Metallurgical Engineering in Oruro, Bolivia, Materials Science at the Technical University of Berlin, and he earned a Ph.D in Mining and Environment at the Technical University of Clausthal (FRG). Dr. Cordova has a broad range of experience including Mine Consulting, Design and Project Development, and the Management of Mine Operations. He has worked in Europe, Asia, Africa and Latin America. Prior to joining BacTech, Dr. Cordova held numerous managerial and technical positions in the resources sector, including; from 2010 to 2012, General Manager, Bolivar Mine of Sinchi Wayra (Glencore); from 2006 to 2010, Independent Consultant for Korea Zinc Limited, Corocobre Bolivia, Jindal Steel, Panamerican Silver and Glencore; from 2005 to 2006, Technical Manager, COMIBOL. Dr. Cordova has also held numerous mining positions within the Government of Bolivia as President of COMIBOL, and has worked for the World Bank and the United Nations in various mining consulting roles. Dr. Cordova has also authored over 40 Technical Publications relating to Mining Environmental Analysis and New Processes (Patented) for Silver and Gold Recovery in Bolivia, Germany and Colombia.
"We are very fortunate to attract a person with such impressive credentials to our team in Bolivia. He has been very involved with the discussions between BacTech and COMIBOL and will continue as country manager for us after the association contract is signed," said Ross Orr, President and CEO of BacTech.
The Company is also pleased to announce that it has engaged the services of Reynolds & Associates, a La Paz based law firm founded by lawyers Jorge Reynolds Rivera and Gonzalo Davila Maceda. The company historically has provided legal services in the areas of oil and gas, mining law, telecommunications and, most importantly, in environmental law. Reynolds has been working closely with Dr. Cordova with respect to the negotiation of the association contract.
"Our team is rounding into shape in Bolivia and we are anxious to get moving towards production and cash flow. We hope that Telamayu is the first of many reclamation opportunities in Bolivia," said John Gingerich, Chairman of BacTech.