Bioleaching Company Tests Gold, Silver Recovery in Kazakhstan

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

BacTech Environmental Corp. (BAC:CSE; BCCEF:OTCQB; 0BT1:FSE) has signed a technical consulting and testing agreement with Di-As Company Ltd. to assess how its proprietary Bacox bioleaching technology might apply to historic tailings in the Zyryanovsk district (now Altay City) of East Kazakhstan, according to a September 1 release.

Di-As will fund the work, which runs in three stages, so both companies can weigh the results before advancing each phase.

The aim is to use testwork on physical samples to determine whether Bacox can free and recover gold and silver from sulfide-rich tailings, and to generate metallurgical data showing whether the site warrants closer study, the release noted.

Bacox uses naturally occurring micro-organisms that draw energy from oxidizing sulfide minerals, exposing precious metals for later recovery and allowing elements such as arsenic to be treated and stabilized. Oxidizing sulfides under controlled conditions can also reduce the amount of reactive sulfide remaining in the treated material, potentially reducing a source of long-term acid generation and associated environmental-management requirements.

"This is exactly the type of technical challenge we believe Bacox is well suited to investigate — historic sulfide material containing precious metals that may be difficult to recover through conventional processing alone," BacTech President and Chief Executive Officer Ross Orr said. "It is also the first transaction structured to begin with Bacox, with zero tailings potentially to be added once that technology is commercialized."

Orr noted that BacTech is now positioning the deal as a two-step offering: clients would first license the company's Bacox bioleaching process to recover metals, then apply its patent-pending Zero Tailings™ technology to process what remains, leaving no legacy tailings behind while creating additional revenue streams such as magnetite for steel and ammonium sulphate fertilizer.

He added that the Zero Tailings process can be configured to yield sulfuric acid rather than fertilizer as a byproduct — a potential fit for uranium producers in Kazakhstan facing acid shortages tied to China's export restrictions.

A Historic Estimate, not a Current Resource

The Staroe facility took in material from the former Zyryanovsk processing operations between 1953 and 1968. A State Reserves Committee of the Republic of Kazakhstan protocol dated Jan. 2, 2022, logs 36.57 million tonnes averaging 1.16 grams per tonne (g/t) gold and 6.62 g/t silver, along with zinc, lead, and copper. Those figures are a historical estimate, not current mineral resources or reserves under National Instrument 43-101; no qualified person has done enough work to reclassify them, and BacTech said it does not treat them as current, according to the release.

The estimate matters because it indicates the general character of the material at Staroe and how it was processed, and because Di-As relied on it in deciding to fund the evaluation. BacTech has not used it to confirm the presence, tonnage, grade, or continuity of mineralization; it does not underpin the three-stage program's design, and the company has not independently verified the historical tonnage, grades, or the sampling and analytical work behind them.

The estimate was prepared under Kazakhstan's state-administered classification system, which differs materially from the Canadian Institute of Mining (CIM) standards used under NI 43-101. Both rely on geological confidence, but their categories are not directly comparable: Kazakhstan's framework uses state-approved economic parameters and a government classification process, while the CIM system requires independent judgment by a Qualified Person and weighs the factors needed to show reasonable prospects for economic extraction. As a result, the Kazakh estimate should not be treated as equivalent to an NI 43-101-compliant resource or reserve, and further verification would be needed to see how the historical data aligns with CIM standards, BacTech said.

Reclassifying the historical estimate as a current mineral resource would require a qualified person to complete a substantial verification program: validating the State Reserves Committee protocol and the underlying drilling, sampling, survey, assay and density records; surveying the tailings facility to confirm its contained volume; running a supervised verification drilling and sampling program, with density measurements to convert volume to tonnage; assaying at accredited laboratories under a documented quality-control protocol; re-estimating tonnage and grade in a CIM-compliant block model; and assessing reasonable prospects for economic extraction before preparing and filing an NI 43-101 technical report.

None of that work is done, and none of it is part of the three-stage program. BacTech said it has not set the cost or timing, and there is no guarantee it will happen or, if it does, that it will confirm the historical estimate. For Di-As, the program is a staged way to test whether historic material can be reprocessed with modern technology, rather than a commitment to large-scale development before the metallurgy and environmental performance are understood.

"What I particularly like about this program is the staged approach," Orr said. "Di-As is funding the technical work needed to understand both recovery and environmental performance before anyone makes a larger development decision. If the results are positive, we then have a clear technical pathway to the next stage. It is a disciplined way to develop a project and a model we believe could have application to other historic tailings opportunities internationally."

Historic tailings should be evaluated with modern technology and modern environmental standards, said Sergei Shipovsky, chief executive officer of Di-As, according to the release.

"Our objective is to understand whether this material can be responsibly reprocessed to recover value while improving its long-term management," he said. "Working with Bactech allows us to evaluate that opportunity step by step before making further investment decisions."

The agreement takes effect 30 days after the new CIL processing plant in Altay City is formally commissioned and carries an 18-month long-stop date, BacTech said. If the program succeeds, BacTech and Di-As may weigh a commercial arrangement to deploy Bacox, though any future development would still depend on further technical work, verification of the historical information, engineering, permitting, financing, and definitive agreements.

Three Stages From Bench Test to Engineering

BacTech said its three-stage metallurgical program will use physical samples from the Staroe facility, collected under Qualified Person supervision and analyzed by accredited laboratories. The first stage assesses the site and tests how much gold is tied to sulfides; the second compares Bacox biological oxidation with direct cyanidation for gold and silver recovery and evaluates sulfide oxidation and arsenic stabilization. If results support further work, the third develops preliminary engineering and costs for a nominal 50-tonne-per-day Bacox circuit, potentially expandable to about 100 tonnes per day, and assesses integration with Di-As's planned carbon-in-leach infrastructure.

Di-As is funding the program at an estimated US$350,000 to US$425,000, with completion expected within 26 to 34 weeks. BacTech stressed that the throughput figures do not indicate available material, mine life, or production, and that the study will not constitute an NI 43-101 economic assessment or establish a current mineral resource.

The program will also yield information on how sulfides and arsenic behave in biological treatment, while any use of BacTech's zero-tailings technology would be considered separately, since it is not part of the current work and its suitability remains untested.

Expert: Tech Will 'One Day Pay Off'

In his National Investor newsletter on March 23, Chris Temple wrote that "one of my very favorite themes in commodities/metals is not the metals stories themselves, … but the various emerging sciences that lead to enhanced recovery of metals from old tailings, troublesome ores, etc."

He added, "I've long been an advocate of BacTech Environmental and its wares (which will one day pay off)."

In a 2025 opinion piece contributed to Streetwise Reports, he wrote, "To me — and having over the last year especially been close to several conferences and initiatives — the big, long-term story is going to be the inevitable, BIG adoption of technologies like BacTech's and others'. So, I'm still patient with that confidence."

BacTech planned an owner-operated 50-tonne-per-day bioleaching plant near Ponce Enriquez, Ecuador, to treat high gold-arsenic (arsenopyrite) material, noted sponsored content by Ascenta Finance Corp. At a feed grade of 1.95 ounces of gold per tonne — comparable to material available from local miners — the plant would produce roughly 30,900 ounces of gold per year, with a modular design that can be expanded without interrupting production. The company estimates the local concentrate market at 200 to 250 tonnes per day, leaving room for a larger plant.

"BacTech's bioleaching process liberates precious and base metals from difficult-to-treat and generally harmful ores, concentrates, and tailings. BacTech's environmentally friendly processing benefits extend beyond the remediation of tailings and other mining stockpiles. Their solution strikes a balance and considers benefits towards the planet, people, and profit."

The Catalyst: Global Tailings Glut Fuels Growing Cleanup Market

In a May 15, 2021, piece for Elements, Nicholas LePan drew attention to mining's environmental toll, focusing on tailings, the waste left over from processing ore that operators typically hold in dams or ponds around the world.

Drawing on figures from respected bodies such as the International Council on Mining and Metals, the United Nations Environment Programme, and the Principles for Responsible Investment, LePan put the global count at roughly 8,500 tailings storage facilities. Active, idle, or closed, those sites together hold about 217 cubic kilometers of tailings, enough to build a cube six kilometers on every side.

A Market Research Future report pegged the mining tailings management market at US$11.74 billion in 2024 and projects it will climb from US$12.23 billion in 2025 to US$18.36 billion by 2035, a compound annual growth rate (CAGR) of 4.15% across the 2025-to-2035 forecast window.

"Filtered tailings dominate the market, while thickened tailings are emerging as the fastest-growing segment due to their efficiency in resource recovery," Market Research Future noted. "Increased environmental awareness and regulatory pressures are key drivers propelling investment in sustainable mining practices."

The report flags several trends, pointing to a clear move toward sustainable practices and the uptake of advanced technologies across the sector. It names North America the largest market, thanks largely to its stringent regulatory and environmental standards, while the Asia-Pacific region is rising fastest as demand grows for innovative, sustainable tailings management solutions.

Ownership and Share Structure¹

About 4.63% of the company is owned by insiders and management, including Orr, with about 2.9%. The rest is retail.

Its market cap is approximately CA$13.14 million, with 238.87 million shares outstanding. It trades in a 52-week range of approximately CA$0.025 to CA$0.095.

Common Investor Questions

What did BacTech announce? It signed a technical consulting and testing agreement with Di-As Company Ltd. to evaluate whether its proprietary Bacox bioleaching technology can be applied to historic tailings in the Zyryanovsk district (now Altay City) of East Kazakhstan, per a September 1 release.

What is Bacox, and how does it work? Bacox uses naturally occurring micro-organisms that draw energy from oxidizing sulfide minerals, exposing precious metals for recovery while treating and stabilizing elements such as arsenic and reducing the reactive sulfide that drives long-term acid generation.

How is the program structured and funded? Di-As is funding a three-stage metallurgical program, estimated at US$350,000 to US$425,000 and expected to take 26 to 34 weeks, with each stage gated on the prior stage's results — from site assessment and diagnostic testing, to Bacox amenability testing, to preliminary engineering and costing for a nominal 50-tonne-per-day circuit.

What is the Staroe material, and is it a mineral resource? The Staroe facility holds tailings from the former Zyryanovsk operations (1953–1968), logged in a 2022 Kazakh protocol at 36.57 million tonnes averaging 1.16 g/t gold and 6.62 g/t silver — but that is a historical estimate, not a current mineral resource or reserve under NI 43-101, and BacTech does not treat it as one.

Why isn't the Kazakh estimate treated as a current resource? Kazakhstan's state-administered classification system differs materially from the CIM standards used under NI 43-101, so the two are not directly comparable, and substantial independent verification by a qualified person would be required before the historical figures could be confirmed.

What does management say about the approach? CEO Ross Orr called it "exactly the type of technical challenge we believe Bacox is well suited to investigate," and praised the staged model that funds the technical and environmental work "before anyone makes a larger development decision." Di-As CEO Sergei Shipovsky said the goal is to learn whether the material "can be responsibly reprocessed to recover value while improving its long-term management."