Neotech Metals Initiates Metallurgical Development with ANZAPLAN for Ontario's Hecla-Kilmer Rare Earth Project

Strategic Collaboration with ANZAPLAN Propels Hecla-Kilmer Project Forward

Neotech Metals has partnered with Dorfner ANZAPLAN GmbH, a German metallurgical consultancy specializing in process development for industrial minerals, rare earth elements, and critical raw materials including phosphate chemistry. This collaboration marks a pivotal advancement from early exploration toward advanced development of the Hecla-Kilmer project. ANZAPLAN’s expertise in metallurgical consulting and process optimization aligns with Neotech’s goal to establish an efficient and cost-effective processing strategy for its Ontario rare earth deposit.

The program benefits from partial funding by Ontario's Critical Mineral Innovation Fund (CMIF), highlighting provincial support for the project's progression. Strategically located 20 kilometres from the Otter Rapids 180-megawatt hydroelectric station and near the Ontario Northland Railway, the project enjoys logistical advantages for potential future processing operations.

Leveraging Robust 2025 Metallurgical Foundations

This metallurgical development program builds directly on 2025 testwork results that reported recovery rates near 75% for total rare earth oxides and 89% for phosphate. According to Neotech, these recoveries were achieved without aggressive pretreatment, indicating the apatite mineralization at Hecla-Kilmer is amenable to conventional leaching under mild conditions. CEO Reagan Glazier noted the mineralization "responds well to conventional leaching under relatively mild conditions," suggesting simplified processing compared to more complex rare earth systems.

Neotech’s analysis suggests that apatite-hosted mineralization at Hecla-Kilmer may enable lower operating cost flowsheets relative to refractory rare earth systems, which often require higher reagent consumption, elevated temperatures, or multi-stage roasting. If confirmed through the ANZAPLAN program, this could provide a competitive edge in rare earth processing economics. The company emphasized that efficiencies demonstrated in 2025 "could translate into meaningful operating cost advantages over more complex rare earth processing routes."

Comprehensive Three-Phase Bench-Scale Testwork Plan

The ANZAPLAN program is divided into three phases utilizing reject materials from the 2025 Hecla-Kilmer drill program. Phase one targets mineral processing optimization, including magnetic separation and flotation to generate a high-grade rare earth element-bearing apatite concentrate from run-of-mine material. Gravity separation testing of pyrochlore will also assess niobium recovery potential. This phase aims to develop effective concentration techniques to produce economically viable feeds for downstream processing.

Phase two involves producing approximately 60 kilograms of rare earth element-bearing bulk concentrate to facilitate full-scale hydrometallurgical testing. This includes scale-up flotation and locked-cycle testing to validate the flowsheet under steady-state conditions. Locked-cycle testing simulates continuous processing to identify potential operational challenges.

The third phase focuses on hydrometallurgical process development, including leach testing with various reagents, fluorine and impurity removal, and rare earth element precipitation. Critically, this phase will evaluate the feasibility of producing high-purity purified phosphoric acid (PPA) from crude phosphoric acid generated during rare earth precipitation, potentially adding a valuable revenue stream.

Multi-Metal Recovery Assessment Enhances Project Value

In addition to rare earth oxides, the ANZAPLAN program will monitor niobium, tantalum, and gallium throughout all process streams via geochemical analysis to determine their distribution and assess their potential as supplementary value drivers. This multi-element recovery strategy aligns with Neotech’s objective to maximize economic returns from the Hecla-Kilmer deposit, which hosts rare earth elements, niobium, and phosphate in a diverse mineral assemblage.

Tracking these elements enables Neotech and ANZAPLAN to evaluate whether recovering niobium, tantalum, and gallium justifies additional processing or if managing them as tailings is more economical. This integrated approach is critical for optimizing the project’s processing flowsheet.

Purified Phosphoric Acid Production as a Secondary Revenue Opportunity

A key component of the program is assessing the production of purified phosphoric acid (PPA) from the processing circuit. The hydrometallurgical phase will specifically determine if high-purity PPA can be obtained from crude phosphoric acid generated during rare earth element precipitation. Given phosphoric acid’s applications in agriculture, food, and industrial chemistry, this could represent a valuable co-product from Hecla-Kilmer.

This biorefinery-style approach, extracting multiple commodities, aims to enhance project economics. Successfully producing commercial-grade purified phosphoric acid as a by-product would create an additional revenue stream alongside rare earth oxides and secondary niobium and gallium recoveries.

Program Deliverables and Expected Outcomes

The company anticipates delivering a final report summarizing recovery rates, concentrate grades, reagent consumption, and recommendations for subsequent steps upon program completion. While no specific timeline was provided, the report may include guidance on advancing to a pilot testing phase, indicating potential scale-up following successful bench-scale results.

Utilizing reject materials from the 2025 drill program for testwork demonstrates efficient sample use, avoiding the need for additional drilling specifically for process development, thereby reducing costs and expediting technical progress.

Neotech Metals’ Project Portfolio and Strategic Location

Neotech Metals also holds the Torrance Project, situated 70 kilometres northeast of Hecla-Kilmer, along with the TREO and Foothills projects in British Columbia, all 100% owned. The company is focused on exploring and developing critical mineral resources with an emphasis on environmental stewardship and sustainability. Hecla-Kilmer is currently its most advanced metallurgical development project.

The project’s proximity to the Otter Rapids hydroelectric power station and the Ontario Northland Railway offers logistical and energy advantages, potentially lowering capital and operational costs for future processing activities.

Qualified Person Review and Compliance with NI 43-101

All technical information disclosed complies with Canadian National Instrument 43-101 standards. Jared Galenzoski, Vice President Exploration and Professional Geoscientist (P.Geo.), serves as the Qualified Person who reviewed and approved the data and statements in the release. This ensures adherence to professional and regulatory standards for technical disclosure in Canadian mineral exploration communications.

The involvement of a Qualified Person and compliance with NI 43-101 provide investors with confidence that technical claims are rigorously vetted and meet established industry practices.

Investor Watchpoints and Future Developments

Investors should monitor the completion of the ANZAPLAN metallurgical program and the release of its final report, which will be pivotal in shaping Neotech’s development strategy for Hecla-Kilmer. Key technical outcomes such as purified phosphoric acid production feasibility and the deportment of niobium, tantalum, and gallium will be critical in assessing project economics.

Additionally, regulatory updates related to Ontario’s critical minerals strategy and potential further funding or policy support for rare earth projects may influence the company’s progress. Ongoing exploration at Neotech’s other properties—Torrance, TREO, and Foothills—may also impact corporate strategy and resource allocation. The immediate effect on Neotech’s share price remains unclear based on current public information.