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MEI Online: Plant Operation News: North America: Nov.27, 2009


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:: BacTech and Temex in Discussions on Processing Gowganda Silver Project Tailings

BacTech Mining Corporation has announced that it is in discussions with Temex Resources Corp. with respect to an agreement to re-process the mine tailings on the Gowganda Silver Project which contains the Miller Lake O'Brien Mine. The Miller Lake O'Brien Silver Mine, the largest past producing Cobalt-style silver mine outside of Cobalt, Ontario was operated by Miller Lake O'Brien Mines (1910-1944) and later by Siscoe Metals (1945-1972).

The Temex tailings sit adjacent to the Castle Mine tailings which is approximately 3 km from Gowganda, Ontario. The Castle Mine tailings are the focus of BacTech's bioleach demonstration plant proposed for the Cobalt mining camp. The Temex tailings' site contains approximately 1.8M tonnes of tailings grading on average 1.43 oz of silver/t or 2.7M oz of silver. There has been no evaluation done on the cobalt and nickel values. Temex selected five sites from previous sonic holes from which samples have been taken and these will be shipped to BacTech for concentration and bioleaching test work.

The Temex tailings were created when the property was mined between 1910 and 1944, and again between 1945 and 1972, with silver being the metal of interest. Like other tailings created in the Cobalt camp, little effort was made to recover the cobalt and nickel from the ore. Given the ability of bioleaching to treat low-grade concentrates, BacTech is confident that it can capture the cobalt and nickel, as well as a significant amount of the remaining silver.

"The Temex tailings are roughly ten times the size of the Castle tailings," said Ross Orr, President and CEO of BacTech. "It is a natural extension of our business model to include the whole area before we address the Cobalt camp. Since we will already have gravity and flotation equipment there for the Castle tailings, it's only natural that we would pursue this additional opportunity."

Temex has invested a considerable amount of time and money to date on environmental studies related to closing the tailings site. The fact that this work has been completed will expedite what is normally a lengthy aspect of planning for advanced exploration and development closure. The estimates above on tonnage and grade are not NI 43-101 compliant at this time, but Temex considers the estimates reliable and relevant based on verification of the results from historical sampling, as well as the repeatability of several tests carried out by Temex. BacTech and Temex hope to conclude a mutually beneficial agreement shortly.




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