-- Posted Wednesday, 4 February 2004 | Digg This Article
Let’s do an update on a company we like a lot & a company we believe still has great future potential.
We’ve profiled BacTech several times over the last couple of years. Originally, BacTech was not a miner, but instead provided advanced ore processing technology to the gold mining industry using an exclusive bacterial leaching process. Now this has changed in the past year as BacTech has revised their strategy by buying into & participating in viable gold mining projects.
BacTech is now on their way to becoming soon a producing gold mining company utilizing their exclusive bacterial leaching process that will INCREASE the gold that may be mined in problem ores.
BacTech Update (BM.V)
Ross Orr, BacTech CEO, "We are a low risk approach to gold mining as we don't drill holes". BacTech only acquires proven assets.
In November 2003, BacTech purchased an option to buy 100% of the McKinnon Creek polymetallic deposit in southeast British Columbia. The McKinnon Creek property hosts two deposits that will be the focus of exploration and development. The property has been explored by previous owners for several years resulting in an estimated gold resource of 960,000 oz.
The MacKinnon Creek deposits have over $12 million spent by previous explorers. In 2004 mining permits will be applied for & production is expected by 2006.
http://biz.yahoo.com/pz/031112/48119.html
Another mine acquisition in Nevada was announced in October. BacTech purchased a 55% interest in the Tonkin Springs property from US Gold Corp. The Tonkin Springs property covers 36 square miles located within the Cortez Trend, a highly productive area of gold mining.
A potential gold resource of up to 1.5 million ounces is indicated at this site.
The Tonkin Springs property was once a producing mine and already has some production infrastructure in place. BacTech will install its proprietary bioleaching technology within the existing plant to provide more efficient gold extraction. Cash flow from the mine will be used to explore the property in detail for additional economic deposits of precious metals.
Tonkin Springs' production is planned for by October of this year, 2004. What is intriguing is that Placer Dome has made a large discovery on their northern border & the scuttlebutt is that their discovery may trend over into BacTech’s Tonkin Springs' property. If this proves out then this will be very interesting.
http://www.cpmgroup.com/BTJV.pdf
BacTech is also extending its core bioleaching business into China.
Several contracts were announced in December 2003 outlining agreements with Laizhou Jincheng Gold Mining Company, Michelago Limited, and Shandong Tarzan Biogold Co. to utilize BacTech’s proprietary technology in China. These agreements give BacTech both cash and ownership of several Chinese mining properties.
In China BacTech is buying back into a plant they built 4 years ago & BacTech’s Australian partner & president has spent the last 7 years becoming familiar with China. The Chinese like to give their nasty projects to the westerners & that is exactly what BacTech wants as they have the bioleaching technology to handle these problem ores.
Company Website: http://www.bactech.com/
The company has long intimated that it was interested in pursuing mining directly as an obvious extension of its mining support business. These acquisitions will bring the company fully into the production business and give investors in BacTech the enhanced value that actual gold mining provides.
The chart below represents the recent symbol change to BM on the Canadian TSX Exchange (the original ticker was YBA). BacTech has made a nice run over the last month to a new all-time high as a result of the spate of recent favorable news.
http://finance.yahoo.com/q/bc?s=BM.V&t=1y
BacTech has 33.9 million shares issued & traded around .85 Canadian Wednesday, 2-4-2004. Its present market cap is close to 22 million US.
BacTech is a company we like a lot primarily because of the future potential of their exclusive technology whose value will only increase over time.
BacTech is definitely improving their prospects & the fact that they are working toward becoming an actual miner will only add to BacTechs' value.
BacTech Update (BM.V)
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Again, why do we follow the gold mining stocks?
“If you can find the combination of a reasonably valued mid-cap or small-cap company with an interesting ore body that is in a growth phase, you are going to make an enormous amount on your money.” John Embry, Sprott Asset Management
For a knowledgeable gold analyst & former gold mining executive/geologist call Steve Todoruk at Global Resource Investment.
Steve knows the gold mining business inside out & what he doesn’t know he’ll find out.
Steve Todoruk, P.Geo.
Global Resource Investments Ltd.
Investment Executive
stodoruk@gril.net
(800) 477-7853
Gold Letter, Inc.
David4054@charter.net
Gold Letter Website
2-4-2004
Author/publisher does not trade stock of the company being followed for 30 days before & 30 days after an article is published. Readers are advised that the material contained herein is solely for information purposes. The author/publisher of this letter is not a qualified financial advisor & is not acting as such in this publication. Gold Letter, Inc. is not a registered financial advisory. Subscribers should not view this publication as offering personalized legal, tax, accounting or investment related advice. All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Authors of articles or special reports contained herein may have been compensated for their services in preparing such articles. Gold Letter and/or its affiliates may receive compensation & or stock options for the right to publish & reprint & to distribute this publication. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction. GoldSeek.com did not receive compensation for this report and does not hold any shares in BacTech at the time of this report.
-- Posted Wednesday, 4 February 2004 | Digg This Article
