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CoTec Updates Mineral Resource and Economic Assessment for Lac Jeannine Project

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FAQSIR News Desk
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#CoTec Holdings Corp. Unveils Comprehensive Update on Lac Jeannine Project

CoTec Holdings Corp., listed on TSXV and OTCQB, has released a significant update regarding its Lac Jeannine Iron Tailings Project, located in Québec, Canada. This new update includes an independent Preliminary Economic Assessment (PEA) and a revised Mineral Resource Estimate (MRE) that reflect the project’s promising economic potential.

#Updated Mineral Resource Estimate

Following a drilling program conducted in August 2025, the latest MRE indicates a remarkable 41% increase in mineral resources compared to previous assessments. The project’s lifespan has been extended from 11 years to 15 years, with concentrate production rising from 3.8 million tonnes to 5.4 million tonnes. This MRE was prepared by Minéralis Consulting Services, highlighting an increase in the total iron content from 6.7% to 6.8% FeTotal.

#Financial Metrics Showcase Robust Viability

The financial implications of the 2026 PEA provide a favorable outlook, featuring a pre-tax net present value (NPV) of US$141.5 million and an internal rate of return (IRR) of 33.8%. The after-tax NPV stands at US$91.9 million with an IRR of 29.6%, suggesting a quick payback period of approximately 2.3 years. These figures underscore the project’s substantial economic potential.

#Improvements in Mining Methodology

In a strategic shift, the mining method has transitioned from contract mining to a continuous mining system utilizing overland conveyors. This change is expected to enhance efficiency and lower overall operational costs. The capital expenditure (CAPEX) for initiating this new system is estimated at US$6.8 million, contributing to an overall project CAPEX of US$69.4 million.

#Future Exploration and Technological Enhancements

CoTec plans to continue exploration beyond the current resource estimates, with ongoing drilling anticipated to convert additional inferred resources into indicated resources. The use of Salter gravity separation technology could further enhance iron recovery rates from ultra-fine materials.

#Conclusion: Strategic Framework for Development

With supportive community engagement and clear objectives for a Bankable Feasibility Study, CoTec Holdings is strategically positioned to advance the Lac Jeannine project. Essential steps include acquiring necessary environmental permits and pursuing potential government and economic support to further solidify the project’s prospects.

#Key Takeaways

  • The updated PEA reflects a 41% increase in mineral resources and extends the project life to 15 years.
  • Total concentrate production is projected to increase to 5.4 million tonnes.
  • Key financial metrics indicate a strong economic profile with an after-tax NPV of US$91.9 million and an IRR of 29.6%.
  • The shift to a continuous mining method is expected to improve operational efficiency and reduce costs.
  • Future drilling and technology applications offer potential for further resource enhancement.

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Frequently Asked Questions

The updated PEA presents a significant 41% increase in mineral resources compared to the previous assessment, extending the life of the mine from 11 to 15 years and increasing total concentrate production from 3.8 million tonnes to 5.4 million tonnes. This reflects a robust economic potential for the project.
The mining method has transitioned from contract mining to a continuous miner with overland conveyors, which is expected to enhance operational efficiencies and reduce overall costs, showcasing a positive shift in the project’s execution strategy.
The 2026 PEA estimates a pre-tax NPV of US$141.5 million and an IRR of 33.8%, along with a payback period of just 2.3 years. These metrics indicate a strong financial viability, underpinning the investment case for stakeholders.
The project anticipates an average production of approximately 360,000 tonnes of high-purity iron concentrate annually for 15 years, reflecting a reliable and sustained output which can cater to market demand.
The conversion of inferred resources into indicated resources bolsters the project's confidence level and suggests potential for future increases in resource estimates, which could further enhance project viability.
Future work aims to enhance resource classification, investigate the use of advanced technologies for iron recovery, and explore potential partnerships for project financing. These initiatives suggest a proactive approach towards maximising project potential.
Operating costs have decreased from US$53 per tonne to US$46.8 per tonne due to improved methodologies, which contributes positively to the project's cost efficiency and enhances its attractiveness to investors.
The 2026 PEA acknowledges additional tailings that could be further explored, potentially increasing the resource base and providing additional economic benefits, indicating solid prospects for expansion beyond current estimates.