CoTec Announces Updated Mineral Resource and Positive Preliminary Economic Assessment for the Lac Jeannine Iron Tailings Project, Quebec, Canada

The most recent news release (May 20, 2026) reports an updated 2026 Preliminary Economic Assessment (PEA) and Mineral Resource Estimate (MRE) for CoTec’s wholly‑owned Lac Jeannine Iron Tailings Project in Québec. Highlights include: - Resource increase: Indicated resource of 31 Mt at 6.82% FeT, inferred resource of 71 Mt at 6.80% FeT, for a total mineralized material of 103 Mt – a 41% increase over the 2024 PEA and 31 Mt converted from inferred to indicated. - Extended mine life: 15 years (up from 11 years), with average annual production of ~360 ktpa of 66.8% Fe concentrate. - Improved economics: Pre‑tax NPV (7%) US$141.5 M, post‑tax NPV US$91.9 M, pre‑tax IRR 33.8%, post‑tax IRR 29.6%, payback 2.3 years, profitability index 1.2. - Lower costs: C1 cash cost down to US$46.8/t (from $53/t), AISC US$54.5/t (from $61/t). - Technical adjustments: Mining method shifted to continuous miners with overland conveyors; initial CAPEX US$69.4 M (incl. 15% contingency); further exploration target of 28–40 Mt and planned 2027 drilling to convert additional inferred material. - Next steps: Results feed into the ongoing Bankable Feasibility Study (FS), with Salter gravity separation testing and infrastructure studies (solar/wind, Cartier railway) also underway.

CEO Julian Treger emphasizes the strategic value of the 15‑year mine life and the potential upside from additional exploration material and new technology.

This PEA update materially advances the Lac Jeannine project on multiple fronts: resource size, mine life, and cost structure all improved compared to the 2024 base case. The 41% jump in total mineralized material and the conversion of a large indicated resource reduce geological risk, while the shift to continuous mining and lower operating costs enhance economic resilience. Pre‑tax NPV grew by over 50% from the 2024 PEA’s US$93.6 M, confirming that ongoing optimization is adding tangible value.

The update arrives after a deliberate series of milestones – completion of infill drilling (Aug 2025), engagement of BBA for the FS (Oct 2025), purchase of a Salter MGS unit (Oct 2025), and commencement of environmental baseline studies (Jan 2026). The results are thus broadly in line with management’s roadmap (a Q1 2026 MRE was flagged in Jan 2026), but the magnitude of the resource increase and the extended mine life exceed the initial “doubling” target discussed in October 2025. The PEA also introduces a new mining method that lowers costs, which was not previously telegraphed.

In the context of CoTec’s overall portfolio – which also includes HyProMag USA (rare‑earth magnet recycling) and MagIron (iron ore pellets) – Lac Jeannine is the only 100%‑owned flagship. This update reinforces its role as a potentially standalone, medium‑scale iron concentrate supplier with a clear path to feasibility. The market had recently priced the stock at $1.34, well off 52‑week highs of $2.38, reflecting broader resource‑sector weakness and earlier delays. The PEA should re‑anchor valuation expectations and attract renewed attention.

Conclusion: The news is genuinely new, exceeds previous public expectations, and directly improves the economic case for a core asset. It qualifies as Material – Positive.

CoTec Holdings Corp. is a critical‑minerals technology company focused on recovering metals from legacy tailings and waste streams. Its three main assets are:

1. Lac Jeannine Iron Tailings Project (100% owned, Québec) – Reprocesses historic tailings from the former Lac Jeannine open‑pit iron mine. The 2026 PEA envisions a 15‑year, 360 ktpa concentrate operation. Total mineralized material stands at 103 Mt with an exploration target of an additional 28–40 Mt. The project is royalty‑free (not explicitly stated but no royalties mentioned; all claims appear 100% owned with no encumbrances noted). It holds 31 mineral claims covering 1,649 ha.

2. HyProMag USA (60.3% effective interest) – A 50:50 JV with HyProMag Ltd (itself 79.4% Mkango/20.6% CoTec) that is building a “hub‑and‑spoke” rare‑earth magnet recycling platform in the U.S. using patented HPMS technology. The Texas Hub is designed for 941 MTPA of recycled NdFeB magnets (total payable capacity 1,552 tpa) with a post‑tax NPV of $409 M (current prices) and IRR 27.6%. Expansion studies show a pathway to 4,656 tpa across three states by 2029. Facility lease signed, feedstock agreements with ILS, pre‑processing equipment commissioned, and a U.S. public listing under evaluation.

3. MagIron (16.5% fully‑diluted equity) – Owns the Plant 4 concentrator in Minnesota and the recently acquired Reynolds Pellet Plant in Indiana. A DFS published in Jan 2026 shows an after‑tax NPV of ~$1.6 B (IRR 27.6%, 32‑year mine life) for an integrated DR‑grade pellet and potential merchant pig iron operation. CoTec’s attributable pre‑financing value is ~US$272 M, though this is highly illiquid.

Additionally, CoTec holds a 20.6% stake in Maginito (which owns HyProMag UK/Germany) and has entered a non‑binding JV for copper tailings in the DRC.

The technology backbone includes an exclusive collaboration with Salter Cyclone for multi‑gravity separation and a licensing/partnership with Inserma for rapid HDD magnet extraction.