Opportunity Overview

BacTech is actively investigating project opportunities in the Trujillo area of Peru will advance, focused on securing gold and copper concentrates and exploring potential metal recovery efforts. Professional mining executive and senior technical advisor Oscar A. Alvarado Sr. has been tapped to lead all program development efforts. Mr. Alvarado brings over 40 years of global exploration, mining, processing and business development experience to BacTech for base metals and precious metal operations.

With many known arsenic gold mines in the Trujillo area, BacTech has successfully completed a regional field study identifying arsenopyrite producers and discussing opportunities with other miners to expand into arsenopyrite production knowing that a safe and profitable processing solution to treat high arsenic concentrates in country is being considered. BacTech believes a bio-oxidation plant would support local economic development with the benefit of knowing that the processing of toxic materials would be dealt with in a sustainable manner. BacTech will extend the same offer to Peru’s artisanal mining community that it has in Ecuador — safe, earth-friendly solutions at superior prices.

Miners across South America have been affected by an October 1, 2021 Chinese government-directed import tax of 13% placed on arsenic gold concentrates coming into the country for processing. This action has resulted in price slashing scenarios in which the miners are paid approximately 50% of the gold value delivered. Penalties escalate further with contained arsenic levels above the 10% level.

In one illustrative meeting, BacTech was shown material from three different areas of a single mine – each selectively mined in an effort to produce lower arsenic values for Chinese buyers. All sample materials contained copper, gold and silver as recoverable metals, yet prices being paid all fell considerably short of BacTech’s Fair Market Value estimates:

Sample 1 – FMV / $750 per ton; Price Realized / $270 per ton
Sample 2 – FMV / $650 per ton; Price Realized / $200 per ton
Sample 3 – FMV / $500 per ton; Price Realized / $80 per ton

“China has historically been the dominant buyer of arsenopyrite concentrates in Ecuador, and these importing restrictions have BacTech well-positioned to capitalize on this windfall,” said CEO Ross Orr.

Moving Forward

Having developed relationships with a number of artisanal miners and processors throughout the Trujillo area, BacTech has made arrangements to collect seven 15kg concentrate samples during the next two-to-three months from selected producers and processors. When ready, the samples will be shipped to ALS Laboratories facilities in Perth, Australia and subjected to bioleach testing under the guidance of Dr. Paul Miller.

Important to note, BacTech has previous experience working with chalcopyrite having collaborated with Industrias Penoles, S.A.B. (Q: IPOAF) on a bioleaching R&D project at its research park in Monterrey, Mexico a number of years ago. At the time, Penoles committed US$5M to build a demonstration plant to investigate the use of bioleaching on dirty chalcopyrite copper concentrates. Copper recovery using bioleaching / solvent extraction / electrowinning technology was used to produce 99.99% pure copper plate.

“As we’ve seen in Ecuador, Peruvian producers are forced to mine selectively and avoid areas with high arsenic levels. The one big difference between projects is that Peru also includes copper in addition to gold, which has me excited,” Orr continued. “Because our novel bioleaching solutions use biology to safely process a wide array of mined metals, we’re able to seek out and capitalize on these opportunities that others find prohibitive. We believe Trujillo has the type of high-pay potential that our shareholders will find attractive, but we also see ourselves partnering with the community and being in a position to help lift the local economy while maintaining exceptional margins.”

BacTech will follow a development path similar to the Company’s current commercial interests in Ecuador. As more information becomes available, BacTech will provide additional updates.