Lomiko Metals, Canada Strategic to Complete PEA for La Loutre

The graphite space saw some excitement Tuesday when partners Lomiko Metals (TSXV:LMR) and Canada Strategic Metals (TSXV:CJC) released the maiden mineral resource estimate for the Quebec-based La Loutre flake graphite project. 
According to the companies, La Loutre contains 18.4 million tonnes of 3.19 percent graphitic carbon in the indicated category, and 16.7 million tonnes at 3.75 percent graphitic carbon in the inferred category; both amounts use a cut-off grade of 1.5 percent. The resource was calculated using only the Graphene-Battery zone, and does not include high-grade intercepts reported recently from the Refractory zone.
Commenting positively on the estimate, Jean-Sebastien Lavallee, president and CEO of Canada Strategic, said in a joint release with Lomiko, “[t]he results from this resource estimate clearly demonstrate the strong potential for future development on the property, particularly with all the infrastructure around the project and the proximity with the Imerys Carbon mine.”

Canada Strategic is the original owner of La Loutre, but Lomiko’s involvement with the project dates back to September 2014, when it optioned a 40-percent interest in it. After gaining that 40-percent stake in February 2015, Lomiko then optioned an additional 40-percent interest in the project; at the same time, it optioned an 80-percent interest in Canada Strategic’s Lac des Iles project.
Lomiko is still in the midst of earning those 80-percent stakes. Overall, it must make a $1,010,000 cash payment to Canada Strategic, issue 3 million common shares of Lomiko to Canada Strategic and spend $1.75 million on exploration over a two-year period. As of Tuesday, Lomiko had 1.5 million more shares to issue and $665,000 more to spend.
For A. Paul Gill, CEO of Lomiko, increasing the company’s stake in La Loutre is certainly a worthwhile investment. “Our location is very good compared to some, and our flake graphite grades and flake graphite distribution are good compared to others; our metallurgy is better than some, and our acquisition costs are very inexpensive,” he said via email to the Investing News Network.
“I will await the preliminary economic assessment( PEA) to make further comment, but I like what we have compared to anyone else in the market, anywhere in the world,” he added. As yet, no timeline has been given for the release of the PEA, but Gill did say that work on it has already begun.

Both companies saw slight share price boosts following the release of Tuesday’s news. At close of day Wednesday, Lomiko’s share price was sitting at $0.035, while Canada Strategic’s was at $0.025.
 
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.