Mr. Ross Orr reports
BACTECH ENVIRONMENTAL RELEASES ASSAY RESULTS ON SNOW LAKE ARSENOPYRITE STOCKPILE
BacTech Environmental Corp. has released the assay results from its33-hole sonic drill program on the Snow Lake arsenopyrite stockpile inSnow Lake, Man. The program was structured to obtain a confirmation ofthe historic resource estimates issued previously and to obtain arepresentative sample for bioleach testwork. The company is pleased toreport that an average grade of 9.6 grams per tonne was received fromthe 33-hole program, which is consistent with previous results.
On April 25, BacTech was granted the rights by Manitoba Innovation,Energy and Mines to remediate the stockpile using the company'scommercial bioleaching technology. The company's plan is to stabilizethe arsenic as ferric arsenate and retain the recovered gold and silverfor its own account. On May 9, BacTech began a drill program on thestockpile using a 20-metre grid spacing that resulted in the drilling of33 holes roughly 10 metres in depth. One-half of the recovered core hasbeen stored in Snow Lake, with the balance shipped to InspectorateExploration in Vancouver for bioleach testwork, which is now under way.
At site, samples were taken every 50 centimetres, which were shipped tothe Saskatchewan Research Council in Saskatoon for fire assaying. Atotal of 432 samples were generated, of which 236 are to be used for aresource calculation. Given the large number of samples, the companyadvises the reader to visit the BacTech website to view a complete listof the drill holes and related samples.
It is anticipated that the company can now complete the NationalInstrument 43-101 report on the stockpile with these results. Inaddition, bioleach testwork has begun at the Inspectorate lab inVancouver, B.C. These results should be available in three to fourmonths.
"We are pleased that the program went smoothly and that the resultsappear to confirm our understanding of the content of the concentratestockpile. The good thing about tailings or, in this case, concentrate,is that we can use a sonic drill to obtain samples from the silt-likematerial. This allowed us to generate 33 holes in roughly seven days at afraction of the cost of a normal drill program," said Ross Orr,president and chief executive officer of BacTech.
The drill program was supervised by, and the technical disclosures inthis press release have been approved by, MaryAnn Mihychuk, PGeo, thequalified person responsible for this news release and a companydirector.
BacTech also announced today that it has closed the second tranche ofits private placement originally announced on June 1. An additional$100,000 was raised through the issuance of 500,000 units at a price of20 cents each. Each unit comprises one common share and one-half of acommon share purchase warrant. Each whole warrant entitles the holder topurchase an additional common share at 30 cents until July 16, 2012.
In connection with the closing of the second tranche, BacTech will payto arm's-length parties finders' fees totalling $3,000 and issue 15,000finders' warrants. Each finder's warrant will be exercisable into onecommon share at 20 cents until July 15, 2013. The common shares andunderlying securities issued pursuant to the private placement aresubject to a four-month hold period, which expires Nov. 16, 2011.