Lomiko Metals Inc. (TSX.V: LMR) (“Lomiko Metals” or the
“Company”) is pleased to provide an update on its operations,
market conditions and corporate activities.
Belinda Labatte, CEO and Director, stated: “Partnerships and
collaborations are a key Lomiko Advantage: we are pleased to be
progressing with metallurgical testing with our partners the
National Research Council of Canada (NRC) and Corem, along with
support from CRITM, the National Research Council of Canada
Industrial Research Assistance Program (NRC IRAP) and the MRNF on
these projects. We have completed the first steps with the bulk
sample material selection, and characterization work is underway
with a 1,000kg representative sample from our La Loutre graphite
project, located on Kitigan Zibi traditional land. With a
partnership model, we believe that the responsible development of
the La Loutre natural graphite project will ensure we can provide
energy security, resilience, and a high quality product for North
America.
According to the International Energy Agency Global EV Outlook
2023, demand for EVs and the underlying batteries is robust: in
2020 only 5% of all new cars sold were electric, with that figure
now at 14% and projected to be 18% by the end of 2023. The 30% to
40% annual growth rates in EV sales, and graphite demand, underline
the importance and rapid acceleration of energy transition to
critical minerals supply chains.
Natural flake graphite remains a key component in all current
battery technologies and Quebec has a tremendous opportunity to
lead in the exploration, development and production of a high
quality, responsibly sourced, carbon neutral product.
On behalf of the Lomiko team and board, we also wish to thank
our many supportive investors and colleagues who have reached out
over the summer with comments, ideas and questions. We appreciate
you. ”
CRITM Partnership and Testing Progress
Lomiko announced on July 24th, 2023, that the company secured up
to $500,000 in funding from federal and provincial agencies to
continue advancing pre-feasibility level battery trials with its La
Loutre natural flake graphite concentrate.
The project is supported by advisory services and funding from
NRC IRAP and funding from CRITM through the Québec Plan for the
Development of Critical and Strategic Minerals from Ministère des
Ressources naturelles et des Forêts (MRNF).
Bulk flotation sample: Lomiko has compiled a bulk sample
of over 1,000kg of rock samples with an average grade of 8.0%Cg
(graphitic carbon) for the bulk flotation testing that will take
place at Corem in Quebec City, to produce flotation concentrate.
The work on characterizing the material on 6 x 2kg samples will
take place in September and early October with the aim of running a
bulk sample in mid-October. The work with the NRC is progressing on
characterizing flotation samples prior to proceeding with
micronization and spheriodization tasks.
Prototyping: As indicated in the July press release, this
project will involve the research and development of a
technological prototype for graphite processing, comprising several
stages, including flotation testing, micronization, spheronization,
purification, and coating of the flotation concentrate prior to
coin and pouch battery testing. The work is being carried out over
the next 24 months by experts from the National Research Council of
Canada’s Automotive and Surface Transportation Research Centre at
its Boucherville facility in Quebec and is an important aspect the
Canadian critical minerals strategy; advancing transformation of
our raw natural resources into value-added high-tech products, such
as anode material. The main deliverables of this process,
particularly after electrochemical characterization of the
transformed graphite material, are anode composition and defined
charge/discharge capacities. The steps of the flotation testing and
cSPG replicate the sequence of the business process on a smaller
scale. The data collected during processing will be used to develop
the integrated process design criteria, which form the basis for
large-scale plant engineering.
It should be noted that the pre-feasibility metallurgical test
work achieved excellent results and demonstrated that an optimized
flotation plant flow sheet can achieve 94.7% graphite recovery and
average 98.7% graphitic carbon purity at the La Loutre natural
flake graphite project Lomiko's La Loutre project is a possible
source of high-quality natural flake graphite located in southern
Quebec.
Graphite and Downstream Market Update
North American natural graphite production continues to be at
critical deficit levels for all natural graphite grades, as battery
manufacturers are currently dependent on China for graphite, as the
country extracts around 70% of the world's natural graphite and
controls almost 100% of the refining process, according to the
International Energy Agency. China itself is experiencing massive
domestic growth: of the 26 million EVs on the road, over 50% are
currently in China therefore providing indications of a sustained
and long term supply chain issue (source: EIA EV Outlook 2023).
This activity has increased the reliance on foreign natural
graphite shipments from across the globe to supply end users across
Mexico, US, and Canada. According to Lone Star Consulting, USA,
“The urgency for a new natural graphite project in North America is
more important than ever to meet the demand for qualifiable
graphite powder products for the highest visible applications, such
as EV batteries, but also for critical applications, including fire
retardants/fire suppressants, primary batteries, nuclear
applications, automotive applications, plastics/polymers/rubber,
fuel cells, and industrial applications.”
In 2023, progress towards global electrification continued at a
measured pace as EV sales reached 4 million during the first 5
months of 2023. China sales are up 23% YoY to a 34% share despite
the reduction and subsequent elimination of subsidies beginning in
2018 and ending on January 01, 2023. Europe is up 29% YoY to a 23%
share, and demand for EV’s / HEV’s are showing signs of measured
recovery supported by price discounts by Tesla, Ford, and GM in the
first and second quarters of 2023.
In terms of demand, graphite is projected to be at 30% to 40%
demand growth per year according to Benchmark. Even with ongoing
R&D and diversification in battery chemistry, graphite is
needed in all battery types and remains lower cost and far less
emissions-intensive than synthetic graphite.
Lomiko Metals continues its progression across multiple lab
programs to provide a diversified view of its product, therefore
meeting the various important technical metrics for customers, and
being a successful and valued source of natural graphite project
for the energy transition.
Corporate Update
The Company’s updated investor presentation is available at
www.lomiko.com. Management will be participating at the following
Fall events:
20th September Belinda Labatte, CEO, CIM Toronto Branch,
participation in the panel participation on The Critical
Minerals outlook.
21-22nd of September 4th Energy Transition and Emission
Reduction for Metals and Mining, in Toronto, Canada. Gordana
Slepcev, COO, Lomiko presentation Belinda Labatte, CEO, Roundtable
host Sept 22: “Creating a link between emission reduction, energy
transition and community acceptability. What do we have to do
differently?”
September 28th Belinda Labatte, presenting Lomiko and
Corporate Purpose (virtual event) Metals and Mining,
Veristellinstitute
November 28, 29th Pathways to Net Zero Mining - 12th
Energy and Mines Toronto Summit Belinda Labatte, CEO and Director,
panelist “What Do Critical Minerals Miners Need to Build Capacity
and Decarbonize?” Gordana Slepcev, COO, moderator “Accelerating
Decarbonization: Synergizing C-Suite and Operations to Meet
Timelines “
About Lomiko Metals Inc.
The Company holds mineral interests in its La Loutre graphite
development in southern Quebec. The La Loutre project site is
within the Kitigan Zibi Anishinabeg (KZA) First Nation’s territory.
The KZA First Nation is part of the Algonquin Nation, and the KZA
traditional territory is situated within the Outaouais and
Laurentides regions. Located 180 kilometers northwest of Montreal,
the property consists of one large, continuous block with 76
mineral claims totaling 4,528 hectares (45.3 km2).
The Property is underlain by rocks from the Grenville Province
of the Precambrian Canadian Shield. The Grenville was formed under
conditions that were very favorable for the development of
coarse-grained, flake-type graphite mineralization from
organic-rich material during high-temperature metamorphism.
Lomiko Metals published April 13, 2023 Updated Mineral Resource
Estimate (MRE) which estimated 64.7 million tonnes of Indicated
Mineral Resources averaging 4.59% Cg per tonne for 3.0 million
tonnes of graphite, a tonnage increase of 184%. Indicated Mineral
Resources increased by 41.5 million tonnes as a result of the 2022
drilling campaign, from 17.5 million tonnes in 2021 MRE, with
additional Mineral resources reported down-dip and within marble
units resulted in the addition of 17.5 million tonnes of Inferred
Mineral Resources averaging 3.51% Cg per tonne for 0.65 million
tonnes of contained graphite; and the additional 13,107 metres of
infill drilling in 79 holes completed in 2022 combined with the
refinement of the deposit and structural models contributed to the
addition of most of the Inferred Mineral Resources to the Indicated
Mineral Resource category, relative to the 2021 Mineral Resource
Estimate. The MRE assumes a US$1,098.07 per tonne graphite price
and a cut-off grade of 1.50% Cg (graphitic carbon).
In addition to La Loutre, Lomiko is working with Critical
Elements Lithium Corporation towards earning its 49% stake in the
Bourier Project as per the option agreement announced on April
27th, 2021. The Bourier project site is located near Nemaska
Lithium and Critical Elements south-east of the Eeyou Istchee James
Bay territory in Quebec which consists of 203 claims, for a total
ground position of 10,252.20 hectares (102.52 km2), in Canada’s
lithium triangle near the James Bay region of Quebec that has
historically housed lithium deposits and mineralization trends.
On behalf of the Board, Belinda Labatte CEO and Director, Lomiko
Metals Inc.
For more information on Lomiko Metals, review the website at
www.lomiko.com
Cautionary Note Regarding Forward-Looking Information
This news release contains "forward-looking information" within
the meaning of the applicable Canadian securities legislation that
is based on expectations, estimates, projections and
interpretations as at the date of this news release. The
information in this news release about the Company; and any other
information herein that is not a historical fact may be
"forward-looking information" (“FLI”). All statements, other than
statements of historical fact, are FLI and can be identified by the
use of statements that include words such as "anticipates",
"plans", "continues", "estimates", "expects", "may", "will",
"projects", "predicts", “proposes”, "potential", "target",
"implement", “scheduled”, "intends", "could", "might", "should",
"believe" and similar words or expressions. FLI in this new release
includes, but is not limited to: the Company’s objective to become
a responsible supplier of critical minerals, exploration of the
Company’s projects, including expected costs of exploration, and
timing to achieve certain milestones, including timing for
completion of exploration programs; the Company’s ability to
successfully fund, or remain fully funded for the implementation of
its business strategy and for exploration of any of its projects
(including from the capital markets); any anticipated impacts of
COVID-19 on the Company’s business objectives or projects, the
Company's financial position or operations, and the expected timing
of announcements in this regard. FLI involves known and unknown
risks, assumptions, and other factors that may cause actual results
or performance to differ materially, and statements relating to the
intended use of proceeds of the Offering and the receipt of final
acceptance of the TSX Venture Exchange. This FLI reflects the
Company’s current views about future events, and while considered
reasonable by the Company at this time, are inherently subject to
significant uncertainties and contingencies. Accordingly, there can
be no certainty that they will accurately reflect actual results.
Assumptions upon which such FLI is based include, without
limitation: current market for critical minerals; current
technological trends; the business relationship between the Company
and its business partners; ability to implement its business
strategy and to fund, explore, advance and develop each of its
projects, including results therefrom and timing thereof; the
ability to operate in a safe and effective manner; uncertainties
related to receiving and maintaining exploration, environmental and
other permits or approvals in Quebec; any unforeseen impacts of
COVID-19; impact of increasing competition in the mineral
exploration business, including the Company’s competitive position
in the industry; general economic conditions, including in relation
to currency controls and interest rate fluctuations.
The FLI contained in this news release are expressly qualified
in their entirety by this cautionary statement, the
“Forward-Looking Statements” section contained in the Company’s
most recent management’s discussion and analysis (MD&A), which
is available on SEDAR at www.sedar.com, and on the investor
presentation on its website. All FLI in this news release are made
as of the date of this news release. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking information. The Company does not
undertake to update or revise any such forward-looking statements
or forward-looking information contained herein to reflect new
events or circumstances, except as may be required by applicable
securities laws.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230918258793/en/
Gordana Slepcev at 647-781-7344 or Belinda Labatte at
647-402-8379 or at 1-833-456-6456 or 1-833-4-LOMIKO or email:
info@lomiko.com
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