BioteQ Environmental Technologies Inc.
TSX : BQE

BioteQ Environmental Technologies Inc.

December 16, 2008 08:30 ET

BioteQ Announces Modified Plans at Lluvia de Oro Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2008) - BioteQ Environmental Technologies Inc. (TSX:BQE), a leader in the treatment of metal and sulphate contaminated water, announced that activities at the Lluvia de Oro gold mine near Sonora, Mexico have been modified pending mine owner NMW Mining Corporation (TSX VENTURE:COL) securing certain operating permits and providing required infrastructure for commercial mining operations.

NWM recently announced completion of a final option payment to secure mining claims for the Lluvia site. This provides the basis for continued planning and development at the site. The project has satisfactorily completed all testing of the heap leach operation and BioteQ's water treatment system. However, production has been lower than expected, due to mining shortfalls, and costs were higher, primarily due to labour costs. To the end of November, the site has produced 1,300 ounces of gold, 2,200 ounces of silver and 30,000 pounds of copper. Additional engineering is now required so that NWM can submit the necessary documentation for long term operating permits, leach pad expansion and a development plan to mine in the higher grade Jojoba deposit. In addition, NWM is planning to complete site infrastructure requirements for steady state mining operations.

While active mining is not presently possible at the site pending certain permits, it is possible to operate the ADR gold circuit and the SART plant for copper recovery and reagent recycle to process the existing heap leach now in place. BioteQ and NWM Mining have reduced site overheads and will operate the existing leach pad and SART water treatment circuit on a reduced production basis until July 2009, when it is anticipated that mining activities will be re-started. BioteQ outlined expected production for the Lluvia site in an October 14 press release, and in its recent MD&A. These projections are now under review, and should not be relied upon as guidance for the Lluvia project.

"We are disappointed by this delay in the plan," stated BioteQ's CEO, Brad Marchant. "However, NWM has made the final property payment, which is very good news and consolidates the ownership of the site to eliminate that risk. In addition, the gold leaching system and ADR plant as well as our water treatment technology have proven successful at this site, removing technology as a risk factor. As a water treatment service provider we must rely on the project owner to deliver the required mining permits and working capital for infrastructure for continuous operation and this will simply take more time than originally anticipated. We have reduced the scope of operations at the site to preserve our working capital and protect our investment for the longer term."

The Lluvia de Oro mine has provided BioteQ the opportunity to demonstrate SART technology, combined with BioteQ's sulphide technology, as an enabling technology for low grade gold-copper ores, providing a sustainable alternative for copper removal from waste water and recycle of the gold leaching reagent. BioteQ's treatment plant has successfully removed high-grade copper concentrate from the gold solution, which allows gold recovery, removes the deleterious impact of soluble copper at the site and concurrently regenerates valuable leaching reagents for gold extraction. BioteQ has recently sold the first copper production from the new plant, approximately 20 tonnes of copper concentrate containing greater than 65% copper, to Trafigura, an international metals trader, at commercially competitive rates.

BioteQ Corporate Profile

BioteQ builds, owns and operates industrial water treatment plants, reducing environmental liabilities while generating revenue from waste water. The Company's commercially proven technology treats acid mine drainage and other metal-laden waste water by sequentially removing metals and sulphate, producing saleable metal products and clean water that can be discharged safely to the environment. BioteQ has built 8 plants at sites in Canada, the US, China, Australia and Mexico, with new projects in design and construction. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, please go to www.bioteq.ca.

On behalf of the Board of Directors

Brad Marchant

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. 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 "might" 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 development, construction and operation of water treatment plants, variations in water quality, 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 Annual Report for the Year Ended December 31, 2007. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • BioteQ Environmental Technologies Inc.
    Tanja McQueen
    Corporate Development
    (604) 685-1243 or 1-800-537-3073
    or
    BioteQ Environmental Technologies Inc.
    Caren Holtby
    Investor Relations
    (604) 685-1243 or 1-800-537-3073
    (604) 685-7778 (FAX)
    Email: investor@bioteq.ca
    Website: www.bioteq.ca