EDM Announces Positive Ore Sorting Testwork Results for the Scotia Mine

Ore sorting testwork shows higher grades and lower costs, but benefits remain uncommitted.

What the company is saying

EDM Resources Inc. is highlighting the results of XRF sensor-based ore sorting testwork on material from its 100% owned Scotia Mine, emphasizing significant increases in zinc and lead grades and recoveries compared to previous DMS testwork. The company frames ore sorting as a potential game-changer, citing a 57% lower estimated capital cost ($1.5 million vs. $3.5 million for DMS) and preliminary capital savings of about $2 million. Management, led by President and CEO Mark Haywood, positions these results as a step toward optimizing the Scotia Mine’s processing flowsheet, with the intent to incorporate findings into an updated Pre-Feasibility Study. The announcement also details equity compensation grants: 1,500,000 stock options at C$0.70 per share expiring September 25, 2031, and 575,000 RSUs vested as of September 25, 2026, distributed among officers, directors, consultants, and employees. The tone is confident and forward-looking, stressing the adaptability and efficiency potential of ore sorting, but it acknowledges that further engineering, assessment, and economic evaluation are required before any implementation.

What the data suggests

The ore sorting testwork achieved a zinc grade of 20.7% (up 26.1%) and a lead grade of 19.4% (up 27.9%) in the retained material, with recoveries of 93.2% for zinc and 94.8% for lead. The retained material’s grades increased by 33.2% for zinc and 35.5% for lead relative to the ore sorter feed. Globally, 25.2% of the original feed mass was rejected as waste, and 58.8% was retained as eject products, with the eject plus fines totaling 74.8% of the feed. Compared to DMS, ore sorting outperformed in zinc grade increase (41.8% higher) and zinc recovery (6.7% higher), but DMS had higher lead recovery (99.7% vs. 95.6%) and a greater lead grade increase (33.5% vs. 27.9%). Estimated capital costs for ore sorting are ~$1.5 million, versus ~$3.5 million for DMS, a 57% reduction. The Scotia Mine has an existing 2,700 tonne-per-day mill concentrator. Equity compensation is fully detailed, with 1,500,000 options at C$0.70 and 575,000 RSUs granted. All technical data is robust and specific, but no operational or financial performance metrics (revenue, cash flow) are provided. The results are laboratory and pilot-scale only, and no commitment to implement ore sorting has been made.

Analysis

The announcement provides detailed, realised technical results from ore sorting and DMS testwork, including specific grades, recoveries, and comparative capital cost estimates. These realised facts are balanced by a significant number of forward-looking statements about potential operational and economic benefits, such as improved efficiency, reduced costs, and increased concentrate production, all of which are contingent on future decisions and further study (e.g., incorporation into an updated Pre-Feasibility Study). The capital cost savings cited are preliminary and not yet realised, and there is no commitment to immediate capital outlay or operational change. The tone is optimistic, with language suggesting significant future upside, but the actual progress is limited to laboratory and pilot-scale testwork. No profitability, revenue, or cash flow metrics are disclosed, and the operational impact remains long-term and uncertain. The equity compensation disclosure is factual and routine.

Risk flags

• ●The operational benefits of ore sorting are unproven at scale, as results are based on laboratory and pilot testwork rather than full-scale production. This creates a risk that projected grade increases and recoveries may not be replicated in commercial operations.
• ●Capital cost estimates for ore sorting are preliminary and not supported by a detailed breakdown or binding commitment. Actual costs could be higher once full engineering and procurement are completed, which could erode the projected $2 million savings.
• ●The company has not committed to implementing ore sorting or any specific processing configuration, making all stated benefits speculative until the updated Pre-Feasibility Study is completed and a final investment decision is made.
• ●The announcement does not provide any updated resource, reserve, or economic assessment, nor does it disclose current financial performance, limiting the ability to assess the broader impact of these technical results on company value.

Bottom line

EDM Resources’ ore sorting testwork at the Scotia Mine shows strong technical results, with zinc and lead grades and recoveries exceeding those from prior DMS testwork and a headline capital cost estimate of $1.5 million, 57% lower than DMS. However, these figures are from laboratory and pilot-scale evaluations, not commercial operations, and the company has not committed to implementing ore sorting or any related capital outlay. All potential benefits—higher concentrate grades, reduced processing mass, and capital savings—remain subject to further engineering, economic evaluation, and the outcome of an updated Pre-Feasibility Study. The detailed equity compensation grants are routine and do not materially affect the investment case. For investors, the most important takeaway is that while the technical upside is credible at the testwork stage, the timeline to value is long and contingent on future study results and board decisions. Watch for the next Pre-Feasibility Study update to see if these laboratory gains translate into a committed operational plan.

Announcement summary

(TSXV:EDM) (FSE:P3Z) (OTCQB:EDMFF) EDM Resources Inc. announced results from ore sorting testwork completed by SGS Canada Inc. and Steinert USA laboratories on mineralized material from the Company's 100% owned Scotia Mine in Nova Scotia. The ore sorting testwork used XRF sensor-based technology with AI-assisted programming to reject waste material prior to downstream mineral processing while retaining a high proportion of contained zinc and lead. Ore sorting resulted in a zinc grade of 20.7%, an increase of 26.1%, and a lead grade of 19.4%, an increase of 27.9%. The ore sorting outperformed previous DMS results by increasing the zinc grade by 41.8% and zinc recovery by 6.7%, with similar mass rejection. Ore sorting is currently estimated to have an approximately 57% lower capital cost than DMS, representing preliminary estimated capital savings of approximately $2 million. The ore sorter stage metallurgical balance showed combined retained products grading 19.4% lead and 20.7% zinc, with recoveries of 94.8% of the lead and 93.2% of the zinc. The retained material represented a grade increase of 35.5% for lead and 33.2% for zinc relative to the ore sorter feed. The global metallurgical balance, including the fines bypass stream, indicated that 25.2% of the original feed mass was rejected to drop waste, with the combined retained ore (eject) products representing 58.8% of the original feed mass. The retained material plus fines represented a grade increase of 27.9% for lead and 26.1% for zinc. The DMS pilot plant testwork previously completed by SGS showed that flotation feed comprising DMS sinks and fines represented 74.7% of the original feed mass, corresponding to a mass rejection of approximately 25.3%. The DMS process plus fines retained 88.4% of the zinc and 99.7% of the lead, increasing flotation feed grades by 18.4% for zinc and 33.5% for lead. The DMS pilot program used a 3.3 mm crush size and an optimal DMS specific-gravity cut point of 2.77. The Scotia Mine has an existing approximately 2,700 tonne-per-day mill concentrator. EDM intends to incorporate the ore sorting testwork into its ongoing evaluation of processing alternatives for the Scotia Mine and determine the appropriate configuration for assessment in the updated Pre-Feasibility Study. Mr. Curtis Mohns, P.Eng., Principal Metallurgist for SGS Canada Inc., approved the technical information related to the ore sorting and DMS testwork metallurgical results. The Board of Directors granted an aggregate of 1,500,000 stock options to certain officers, directors, consultants, and employees, exercisable at a price of C$0.70 per common share and expiring on September 25, 2031. The options were allocated as follows: 300,000 to Mr. Mark Haywood, 100,000 to Mr. Arnab De, 200,000 to Mr. Mark Van Remortel, 300,000 to Mr. Eugene Chen, 200,000 to Mr. Justin Barragan, 200,000 to Mr. Manish Grigo, and 200,000 to two employees of the Company's subsidiary. The Board also granted an aggregate of 575,000 restricted stock units (RSUs) to certain officers, directors, and consultants, which vested on September 25, 2026. The RSUs were allocated as follows: 200,000 to Mr. Mark Haywood, 50,000 to Mr. Arnab De, 50,000 to Mr. Mark Van Remortel, 75,000 to Mr. Eugene Chen, 50,000 to Mr. Justin Barragan, and 150,000 to Mr. Manish Grigo. Any common shares issued upon settlement of the RSUs will be subject to a hold period of four months and one day from the date of grant.

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