Pecoy Copper Phase 1 Metallurgical Review Identifies Potential Step-Change in Gold Recovery and Optimization Opportunities
Pecoy Copper Phase 1 Metallurgical Review Identifies Potential Step-Change in
Gold Recovery and Optimization Opportunities
VANCOUVER, British Columbia, May 26, 2026 -- Pecoy Copper Corp. (“Pecoy Copper ” or the “Company”) (TSXV: PCU;
FSE: D5E; OTCQB: PCUUF) is pleased to announce the results of a Phase 1 independent metallurgical review completed by
Global Resource Engineering Ltd. (“GRE”) on the Company’s Pecoy copper-gold-molybdenum-silver project in Peru (“Pecoy”
or the “Project”).
Historical metallurgical work at Pecoy was designed to optimize copper recovery and concentrate quality. GRE’s Phase 1
review re-examined the historical test work, metal deportment and flotation performance through a broader payable-metals
lens, reflecting the potential contribution of gold, silver and molybdenum in the current commodity price environment. The
review identified opportunities to improve gold recovery while maintaining a marketable copper concentrate grade and
commercially acceptable concentrate quality.
The Phase 1 review outlines:
• A potential to significantly improve gold recovery;
• Continued strong copper recoveries and marketable concentrate grades; and
• Molybdenum optionality, including the potential of a separate molybdenum concentrate, which could introduce a
second payable product stream.
Table 1: Updated Phase 1 Base Case Recovery Estimates Identified for Phase 2 Validation
Domain Cu Recovery Au Recovery Ag Recovery Mo Recovery
Primary – South Breccia 90% 73% 85% 74%
Primary – Granite 93% 70% 84% 72%
Primary* 92% 72% 84% 73%
*Primary weighted average is based on the South Breccia and Primary Granite domains and does not represent updated
recoveries for oxide, supergene, enriched, transitional or leached material. The updated recovery estimates remain subject to
validation through Phase 2 metallurgical test work.
“This work represents an important evolution in how we evaluate Pecoy,” said Vincent Metcalfe, President and CEO of Pecoy
Copper. “Historical metallurgy was successful in demonstrating strong copper recoveries and a marketable concentrate, but it
did not capture the full value potential of the project. Our updated analysis supports a clear pathway to materially improve
precious metal recoveries while maintaining copper concentrate quality, and introduces the potential for a separate
molybdenum product, effectively converting previously unrecovered metal into meaningful value. This work positions Pecoy as
a project with multiple revenue streams and enhanced economic leverage.”
Key Findings from Phase 1 Review
• Existing metallurgical test work was primarily designed to optimize copper concentrate grade and copper recovery,
rather than optimize the value of the overall concentrate stream.
• Historical gold recoveries to copper concentrate were materially lower than copper recoveries in the final concentrate
while rougher recoveries were high for both metals, indicating potential gold losses during cleaner flotation.
• GRE’s simulations suggest that gold recovery from South Breccia material may be increased to approximately 73%
through a modified flotation approach.
• Flash flotation, cleaner-stage mass pull optimization, reagent selection, and pH control were identified as key areas for
follow-up testing.
• Test work review allowed for updated flowsheet simulations providing recovery improvements while maintaining
potentially saleable copper concentrate grades.
• Additional variability testing is required to confirm recovery assumptions across domains, grades, alteration types,
depths, and elevations.
A Material Potential Step-Change in Gold Recovery
GRE’s review indicates that the existing metallurgical work, while limited, supports a potential pathway to enhanced gold
recovery through modifications to the flotation flowsheet and operating conditions. In particular, GRE identified the potential
benefit of incorporating a flash flotation stage and adjusting cleaner flotation parameters to reduce gold losses during
concentrate cleaning.
Based on simulations using available laboratory data, GRE estimates that gold recoveries from South Breccia material could
range from approximately 60% to 76%, with recoveries of approximately 73% considered the most likely outcome under the
simulated conditions. This compares with historical locked-cycle flotation test gold recoveries of approximately 40% to 43% in
certain prior tests. These improvements are subject to confirmatory metallurgical test work.
The South Breccia domain is of particular metallurgical and economic interest, as it contains the highest proportion of gold
within the primary mineralized system. GRE notes that prior mineralogical work indicates that a significant portion of the gold
in the breccia material is free or exposed, suggesting that a portion of the gold previously reporting to flotation tailings or
cleaner-stage rejects may be recoverable through optimized flotation conditions.
Importantly, GRE’s simulations indicate that improved gold recoveries may be achievable while maintaining potentially saleable
copper concentrate grades, subject to confirmatory test work.
Table 2: Gold Recovery Phase 1 Review Results
Domain Prior Au Recovery New Au Recovery Comment
South Breccia ~40–43% 73% Supported by flash flotation simulation and
reduced cleaner-stage losses
Granite ~40% 70% Similar improvement path, but slightly lower than
South Breccia
Two-Concentrate Strategy and Molybdenum Optionality
The Phase 1 review also identified molybdenum as an area of potential process optionality. GRE’s review supports further
assessment of a separate molybdenum flotation circuit, which could potentially produce a molybdenum concentrate in addition
to a copper concentrate containing payable gold and silver by-products. Indicative molybdenum recoveries of approximately
72% to 74% were identified; however, this option requires further trade-off evaluation, including potential copper losses, silver
deportment, flowsheet complexity, and incremental capital and operating requirements. These factors are expected to be
assessed in the planned Phase 2 metallurgical program.
Next Steps: Phase 2 Metallurgical Program
The Company intends to initiate a Phase 2 metallurgical test program using new material from drill holes that form part of the
Company’s current drilling campaign.
The program is expected to include confirmatory flotation testing, rougher kinetic work, cleaner flotation optimization, locked-
cycle testing where appropriate, and additional mineralogical and deportment studies.
The Phase 2 program will focus on:
• Confirming improved recoveries for copper, gold, silver and molybdenum
• Testing and optimizing the proposed flotation flowsheet modifications
• Evaluating the performance and economics of a molybdenum flotation circuit
• Quantifying trade-offs between recovery, concentrate grade and mass pull
• Generate metallurgical parameters suitable for future engineering and economic studies.
The Company expects that this next phase of work will provide a more robust basis for evaluating metal recoveries and
concentrate quality across the Pecoy system.
Metallurgical Context
Historical metallurgical studies completed between 2014 and 2017 by C.H. Plenge & Cía S.A., Lima, Peru, included flotation,
mineralogical, comminution and column leach testing on composite samples representing primary, breccia-hosted and
supergene mineralization. GRE concluded that additional metallurgical work is required to validate the potential benefits of
flash flotation, assess cleaner flotation conditions, and evaluate variability across the main mineralized domains.
The Phase 1 review does not constitute an updated mineral resource estimate, preliminary economic assessment, pre-
feasibility study or feasibility study, and the updated recovery estimates should not be interpreted as final design criteria.
Table 3: Summary of Historical Recoveries from the Flotation 2014 Test Result
Domain Cu Recovery Au Recovery Ag Recovery Mo Recovery
Oxide and Supergene 69.9% 36.3% 67.0% 32.0%
Primary – South Breccia 88.5% 55.1% - 70.0%
Primary – Granite 93.3% 39.9% 79.9% 72.0%
Note regarding 2014 results currently incorporated in the NI 43-101 technical report of the Pecoy Project with an effective date
of April 30, 2025 and dated July 23, 2025 : C.H. Plenge & CIA S.A., a metallurgical laboratory based in Lima, Peru,
conducted preliminary metallurgical test work between 2014 and 2018, the program included chemical analysis, mineralogy
(MLA), flotation, comminution, and column leach tests on four metallurgical composites representing granite (primary zone),
south breccia (primary zone), and supergene mineralization. Preliminary column leach tests undertaken on a composite
sample of supergene mineralization suggest that at least 60% of the copper can be recovered using conventional acid heap
leaching technology. Saleable copper concentrates containing gold, silver and molybdenum but with negligible deleterious
elements have been produced using bench scale flotation tests for material from the supergene, south breccia and granite
zones. Recoveries from this testing range from 70% to 93%, with concentrate grades above 26% Cu. Gold recoveries varied
between 36% and 55%, with the highest gold content in the breccia composite but results indicate there is further potential to
optimize recoveries. Silver recoveries reached up to 83%, and molybdenum recoveries up to 72%, depending on the
mineralization type.
For more information about Pecoy Copper, please visit our website at www.pecoycopper.com.
Qualified Persons and Technical Notes
The scientific and technical information in this news release has been reviewed and approved by Vincent Cardin-Tremblay,
P.Geo., Chief Geological Officer of Pecoy Copper, a Qualified Person as defined by National Instrument 43-101 – Standards of
Disclosure for Mineral Projects (“NI 43-101”).
The scientific and technical information in this news release has also been reviewed and approved by J. Todd Harvey, MBA,
Ph.D., RM SME, President and Director of Process Engineering, Global Resource Engineering Ltd and Qualified Person as
defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The Phase 1 metallurgical
review referenced in this release was prepared by Global Resource Engineering Ltd.
An NI 43-101 technical report in respect of the Pecoy Project with an effective date of April 30, 2025 and dated July 23, 2025
was prepared by Mining Plus and is available on SEDAR+ under the Company’s profile. Mineral resources are not mineral
reserves and do not have demonstrated economic viability.
About Pecoy Copper
Pecoy Copper is advancing the 9,975-hectare Pecoy Copper-Gold-Molybdenum-Silver Project, a large, undeveloped porphyry
system located in southern Peru’s Arequipa region, within one of the world’s most prolific copper belts. The Pecoy deposit
hosts a current copper inferred resource of 865 million tonnes at 0.34% Cu, with significant associated gold, molybdenum, and
silver credits.
To date, less than 49,000 metres of historical drilling have been completed at Pecoy, defining a broad and continuous
mineralized system with potential for expansion along strike and at depth. The project benefits from its favourable elevation of
approximately 1,650 metres above sea level, providing year-round access and reduced operating complexity compared to
many high-altitude Andean deposits.
Strategically located near the Pacific coast, Pecoy enjoys excellent infrastructure, with close proximity to highways, power
lines, and water sources, and good access to the deep-water ports of Matarani (approximately 240 km southwest) and Ilo.
This infrastructure advantage positions Pecoy Copper to advance the project efficiently from exploration toward future
development within one of the world’s most established and mining-friendly jurisdictions.
The Company’s common shares are listed on the TSX Venture under the symbol “PCU” and also trade on the OTCQB under
the symbol “PCUUF”.
For further information, please contact:
Vincent Metcalfe, President & CEO
Pecoy Copper Corp.
Suite 1500, 1055 West Georgia Street, Vancouver, BC V6E 4N7
Tel: (514) 249-9960 | Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities
commission or other regulatory authority has approved or disapproved the information contained herein.
Cautionary Note Regarding Forward-Looking Information
This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable
securities legislation. The forward-looking statements herein are made as of the date of this press release only, and the
Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future
events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be
identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts",
"predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of
such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should",
"would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this press release includes, but is not
limited to, statements relating to: potential metallurgical recoveries, the potential effectiveness of flash flotation or other
process modifications, the timing and scope of future metallurgical test work, the use of new drill core material in a Phase 2
program, potential future technical studies, the potential contribution of gold, silver, and molybdenum to project economics,
availability of representative drill core material, the successful completion of planned metallurgical programs, and the ability to
validate recovery improvements identified in the Phase 1 review. Actual results may differ materially from those expressed or
implied by such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking
statements. Forward-looking statements and information are subject to various known and unknown risks and uncertainties,
many of which are beyond the ability of Pecoy Copper to control or predict, that may cause Pecoy Copper's actual results,
performance or achievements to be materially different from those expressed or implied thereby, and are developed based on
assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to, the risk factors set
out under the heading "Risk Factors" in the Company's listing application available for review on the Company's profile at
www.sedarplus.ca. Such forward-looking information represents management's best judgment based on information currently
available. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-
looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. No forward
-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to
place undue reliance on forward-looking statements or information.