CoTec Announces Mid-project Update For Its Lac Jeannine Mine Tailings Reclamation And Restoration Project, Quebec, Canada

Executive Summary

• CoTec Holdings Corp. released a mid-project update on its Lac Jeannine Mine Tailings Reclamation and Restoration Project in Québec, Canada, confirming progress toward a Feasibility Study completion targeted for Q2 2027.
• An updated Preliminary Economic Assessment (PEA) reports an after-tax NPV of US$91.9M and an IRR of 29.6% over a 15-year life of mine, with a 2.3-year payback period.
• Initial metallurgical testing at Corem indicates the potential to produce a >67% FeT direct reduction concentrate, qualifying the project as a critical mineral under federal and provincial initiatives, while federal environmental assessment has been confirmed as unnecessary.

Key Details

• Financial Metrics (2026 PEA): Pre-tax NPV of US$141.5M and IRR of 33.8%; After-tax NPV of US$91.9M and IRR of 29.6%; Payback period of 2.3 years; Profitability Index of 1.2; Discount rate of 7.0%; 15-year life of mine.
• Feasibility Study & Permitting Timeline: Feasibility Study (FS) expected to be completed in Q2 2027; Targeted provincial Environmental Impact Assessment (EIA) submission also set for Q2 2027.
• Regulatory Status: Received confirmation letter in May 2026 from the Impact Assessment Agency of Canada (IAAC) that the project is not subject to the federal impact assessment process; will proceed solely under the provincial EIA procedure.
• Metallurgy & Processing: Optimized flowsheet targeting a >67% FeT concentrate at a finer P80; Initial Corem test results produced direct reduction (DR) iron concentrates qualifying for critical mineral status; Upgrade from current 66.8% FeT concentrate; Salter gravity separation technology application planned to access ultra-fine tailings material for future upside.
• Exploration Upside: 28 million tonnes of additional exploration material identified outside the current indicated/inferred drilling area, excluded from current PEA but targeted for future inclusion.
• Site Layout & Tailings Strategy: Preliminary site layout finalized, including process plant, staff accommodation, run-of-mine stockpiles, and concentrate load-out location; Tailings disposal strategy agreed upon to backfill the historical Lac Jeannine mine pit for landscape rehabilitation.
• Environmental & Biological Studies: Baseline environmental studies commenced (water sampling from lakes, old mine pits, and streams); Early fish DNA sampling in old pits indicates possible fish species, triggering further environmental testing and discussions with Fisheries and Oceans Canada and Environment and Climate Change Canada.
• Stakeholder & Indigenous Engagement: Ongoing constructive discussions with Québec Ministry of Natural Resources and Forests (MRNF), MELCCFP, Ministry of Economy, Innovation and Energy (MEIE), and Investissement Quebec; Engagement initiated with Pessamit and ITUM Innu First Nations communities; Indigenous enterprise Groupe Nipi onboarded to support BBA on environmental studies.
• Power Supply: Initial discussions commenced with Hydro-Québec for clean hydroelectric power; evaluating alternative power supply options including renewables and diesel.
• Engineering & Technical: BBA completed a gap analysis on the 2024 PEA to de-risk the path to FS and EIA submission; Environmental permitting roadmap developed based on provincial Ministry comments; Metallurgical test work program at Corem ongoing to verify beneficiation circuit.

Notable Quotes

• "The Project continues to make good progress, and the mid-project review builds on the recently updated and enhanced Mineral Resource Estimate and Preliminary Economic Assessment. We are working closely with our stakeholders, Innu local enterprise Groupe Nipi, and BBA, and have developed an environmental baseline roadmap which de-risks the Project whilst at the same time optimises value." — Julian Treger, CoTec CEO
• "The initial metallurgical results from Corem are very exciting and indicate the Project could qualify for critical mineral status with both Federal and Provincial governments with an upgrade of the concentrate from the current level of 66.8% to greater than 67% Total Fe, which is essential for low carbon, green steel production." — Julian Treger, CoTec CEO