In this interview, FTMIG talks with Paul Gill, CEO of Lomiko Metals (TSX-V: LMR). It's been a while since we've had Paul in for a chat, so we sat down to discuss recent developments at the company as well as macro impacts to the graphite sector as a whole related to an increasing appetite for a domestic, North American supply of critical materials.
Lomiko is a Canadian-listed junior graphite exploration and development company. It's flagship asset is the La Loutre graphite deposit, located in Quebec, Canada about 120 km north-west of Montreal and 53 km southeast of the currently operating Imerys Graphite and Carbon Timcal Lac des Iles graphite mine. The La Loutre deposit currently has an NI 43-101 compliant resource estimate completed in 2016, with 4.1 M tonnes of 6.5% flake graphite in the indicated category and 6.2 M tonnes of 6.1% flake graphite in the inferred category based on a cut-off grade of 3% in a open pit. As we discuss in the video, Lomiko plans on updating their resource estimate soon, integrating drilling data from 2019 in the property's Refractory Zone which features some notable, relatively long and high grade intercepts that would expected to add tonnes and potentially improve the grade of the overall deposit. The resource estimate update is currently expected in Q1 of 2021. Lomiko currently owns 80% of La Loutre, but has an option to acquire the remaining 20% from Quebec Precious Metals by spending $1,125,000 in additional exploration expenditures at the property.
Lomiko recently raised $750,000, a portion of which will be allocated to updating the resource estimate as well as completing metallurgical studies of the La Loutre graphite. This metallurgical data is critical for identifying which areas of the La Loutre deposit would be amenable to producing graphite for use in lithium ion batteries (a high margin market) and therefore completion of this study, expected by the end of 2020, is critical for derisking the project. A portion of the capital raised will also go towards raising awareness of the company, especially in the US and European markets.
Lomiko's share price is finally showing some life and increased volume, as are several of its graphite peers such as Nouveau Monde, Mason Graphite and Northern Graphite. It seems interest is coming back into the graphite sector which has been for some time fairly beat up. Recent agreements regarding so-called critical materials (which includes graphite) between the U.S. and Canada, as well as bipartisan support from both Republicans and Democrats in the U.S. on wanting to establish sources of domestic, North American supply of critical materials are likely playing a role in this.
(1:18) Macro graphite picture and implications of bi-partisan appetite for North American production of critical materials
(8:55) Changing landscape for graphite with recent price runs
(12:40) Near term catalysts for Lomiko
(14:30) Expanding on plans for metallurgical study at La Loutre
(21:27) Timeline for catalysts: Metallurgy, Resource Estimate, PEA
(25:09) Update on Promethius Technologies asset
(29:38) Why invest now in Lomiko?
(31:52) Role of Kenmar Securities partnership
Lomiko trades on the Toronto Venture Exchange under the symbol TSX-V: LMR and on the OTCQX marketplace under the symbol OTCQX: LMRMF.
For more information on Lomiko, you can visit their website at: https://www.lomiko.com/
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Originally filmed on October 29th, 2020