BacTech Mining Corporation

BacTech Mining Corporation

March 19, 2008 13:06 ET

BacTech Announces Termination of Proposed Merger With Scorpio Gold Corporation

TORONTO, ONTARIO--(Marketwire - March 19, 2008) - BacTech Mining Corporation (TSX VENTURE:BM) ("BacTech" or the "Company") today announced that its previously announced merger with Scorpio Gold Corporation (SGC) has been terminated. Among other things, the TSX Venture Exchange required a working capital infusion of $4M into the combined company in order to grant its approval to the merger. This money was to be raised by SGC, but they were unable to complete an equity financing in current equity market conditions.

Project Update

Over the past six months, BacTech has continued to push ahead on the negotiations for two advanced projects. If successful, BacTech shareholders will benefit from a much reduced dilution of its capital.

More specifically, the initial results from a large base metal tailing project have been very encouraging. BacTech is in discussions with the owner of the tailings about a possible commercial transaction. The contained value of the metal in the tailings is considerable.

In addition, BacTech continues to pursue a 1.5 M ounce refractory gold deposit that is owned by a state company. The project was the subject of a bioleaching amenability study as far back as the early 1990s.

The Company's "2 Boys" uranium claims, located approximately 80 km north of Godbout, Quebec, were staked by local prospectors who had undertaken a field reconnaissance program for uranium. The property consists of 64 map-designated claims covering an area of 3,558 hectares. It was discovered by the prospectors who were following up strong lake bottom sediment uranium anomalies on government maps. Two grab samples taken in July 2007, returned values of 0.81% U3O8 (16.2 lbs/t) and 0.65% U3O8 (13 lbs/t). The samples were assayed by ALS Chemex of North Vancouver, B.C.

The showing is made up of a series of parallel pegmatite dykes in a structure that is 150m in width and can be followed for hundreds of metres along strike. Mr. Etienne Forbes of Exploration Esbec, acting on BacTech's behalf, visited the property and has confirmed the presence of radioactivity in the pegmatite dykes. Radioactivity averages 1,000 counts per second ("CPS") within the dykes, with readings of 2,500 to 10,000 CPS common in many areas. The geology consists of a granitic gneiss hosting pegmatite dykes, both comprising part of a geochemical uranium anomaly that measures 5km in length and 3km in width.

An airborne magnetic and radiometric survey was flown over the property late last year. The areas of pegmatites and elevated radioactivity outlined by ground surveys are coincident with a NW-SE trending airborne uranium anomaly approximately 1,500 metres long, which itself is cut by potential structural zones highlighted by the magnetic survey. The anomalies will be investigated by additional field surveys this summer. The Qualified Person on the project, as defined under National Instrument 43-101, is Etienne Forbes, P.Geo, of Geoforbes Services Inc., Sept-Illes, Quebec.

With regard to the Godbout "A" and "B" properties, the Company has decided not to pursue any further work on the properties, thereby relinquishing its option rights.


BacTech has developed and patented bacterial oxidation technology for the treatment of refractory ores and concentrates to enhance the recovery of gold, silver and base metals. BacTech has successfully commissioned three bioleach plants for gold and demonstrated its technology in the selective recovery of base metals from complex sulphide concentrates in a joint project with Industrias Penoles de C.V. of Mexico that was completed in 2001. The Company's focus is the acquisition of equity positions in projects amenable to bioleaching.


Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements". Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other ecological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors described in the section entitled "Risks" in the Company's Management Discussion and Analysis for the Year Ended December 31, 2006. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.

Shares outstanding 57,607,206

The TSX Venture Exchange has not reviewed and does not accept any responsibility for the adequacy or accuracy of this release.

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