Cotec Announces Initial Mineral Resource and Positive Preliminary Economic Assessment for the Lac Jeannine Iron Tailings Project, Québec, Canada

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[{"type":"text","content":"Cotec Announces Initial Mineral Resource and Positive Preliminary Economic Assessment for the Lac Jeannine Iron Tailings Project, Québec, CanadaVANCOUVER, BC / ACCESSWIRE / June 27, 2024 / CoTec Holdings Corp. (TSXV:CTH)(OTCQB:CTHCF) (\"CoTec\" or the \"Company\") is pleased to announce the completion of an initial Mineral Resource Estimate (the \"MRE\") and positive Preliminary Economic Assessment (\"PEA\") for the Lac Jeannine Iron Tailings Project, Québec, Canada (\"Lac Jeannine\", or the \"Project\"). The PEA was prepared by independent experts Addison Mining Services Ltd., Soutex Inc, JPL GeoServices and other independent experts.The highlights of the MRE and PEA are as follows:Initial Inferred Mineral Resource of 73 million tonnes (Mt) at 6.7% total Fe for 4.9 Mt of contained total Fe (Note: tonnes are metric tonnes)Identified tailings material surrounding the Inferred Mineral Resource (the \"Adjacent Tailings\"), if confirmed by drilling and analysis, could potentially add 50 to 70 Mt to the ProjectTotal Fe grade in the Project schedule reduces from approximately 8.4% total Fe to 7.0% total Fe in the first 3.5 years of production to approximately 6.0% total Fe by year 8 and subsequently 5.6% total Fe in the final yearBased on open-pit extraction methods and the production of a gravity concentrate via conventional processing techniques and at a discount rate of 7.0% (and based solely on the MRE), the pre-tax NPV is US$93.6M, and its IRR is 38%, and the after tax NPV is US$59.5M, and its IRR is 30%Product is a high purity iron concentrate at 66.8% total Fe, low contaminant SiO2, Al2O3 and phosphorus with an average production of circa 380k tonnes per annum for just over 10 yearsThe up-front capital cost of the Project is US$64.6M (inclusive of a 15% contingency margin and estimated further study and engineering costs), with payback achieved in 2.5 years and a profitability index (PI) of 0.921C1 cash costs of US$53/t (excl. transport to port and royalty payments)All-in Sustaining Cost (ASIC) of US$61/t (incl. transport to port and royalty payments)The Project significantly reduces the environmental liability of the Lac Jeannine site. The current tailings pile is considered an orphan site and the provincial government carries the environmental liabilityThe Company will now proceed with the completion of a Feasibilit...

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