CoTec Announces Initial Mineral Resource and Positive Economic Assessment for Lac Jeannine Iron Tailings Project

Vancouver-based CoTec Holdings Corp. has announced the completion of an initial Mineral Resource Estimate (MRE) and a positive Preliminary Economic Assessment (PEA) for its Lac Jeannine Iron Tailings Project in Québec, Canada. The PEA was developed by independent experts, including Addison Mining Services Ltd., Soutex Inc., and JPL GeoServices.

The initial MRE indicates an inferred resource of 73 million tonnes (Mt) at 6.7% total Fe, equating to 4.9 Mt of contained total Fe. Potential additional tailings could add 50 to 70 Mt with further drilling and analysis. The project has a pre-tax NPV of $93.6M with an IRR of 38%. After-tax, the NPV is $59.5M with an IRR of 30%.

CoTec plans to complete a Feasibility Study, including additional drilling to upgrade the resource and to investigate innovative, low-carbon technologies. Julian Treger, CEO of CoTec, stated that the PEA is a first step in the company’s strategy to recover economic potential from historical tailing sites.