September 8, 2021
MONTREAL–(September 8, 2021) Lomiko Metals Inc. (Lomiko) ((TSX-V: LMR, OTC: LMRMF, FSE: DH8C)) (“Lomiko Metals Inc or “Lomiko” or the “Corporation”) is pleased to announce it has launched a new web site lomiko.com in French and English to communicate the positive results from the Preliminary Economic Assessment (“PEA”) on its 100 percent-owned La Loutre Project in south-eastern Quebec released July 29, 2021. Ausenco Engineering Canada Inc. (“Ausenco”) will complete the PEA in accordance with National Instrument 43-101 (“NI 43-101”) for filling on SEDAR which will also be fully translated. Lomiko has also initiated an Environmental Baseline Study and Communication Relations Plan announced August 27, 2021 and aims to initiate a Preliminary Feasibility Study (PFS) to advance its La Loutre Project towards production as part of a development strategy while continuing its aggressive drilling programs to maximize value creation.
Highlights of the PEA (all figures are stated in Canadian dollars unless otherwise stated):
- Long-term Weighted-Average1 Graphite Price US$916/t Cg conc. (graphitic carbon concentrate)
- Exchange rate: C$1.00 = US$0.75
- Pre-tax Net Present Value (NPV) (8%) of C$313.6M
- After-tax NPV (8%) of C$185.6M
- Pre-tax Internal Rate of Return (IRR) of 28.3%
- After-tax IRR of 21.5%
- Pre-tax payback period of 3.3 years
- After-tax payback period 4.2 years
- Initial capital of (“CAPEX”) of C$236.1M including mine pre-production, processing, infrastructure (roads, power line construction, co-disposal facility for mill tailings and mine waste rock, ancillary buildings, and water management)
- Life of mine processing period (“LOM”) of 14.7 years
- Average life of mine (LOM) strip ratio (Waste Rock:Mill Feed ) of 4.04:1
- LOM plant production of 21,874 Kilotonnes (kt=1,000 metric tonnes) of mill feed yielding 1,436 kt of graphite concentrate grading 95.0% Cg.
- Average annual graphite concentrate production of 108 kt for the first eight years; LOM average annual production of 97.4 kt.
- Average graphite mill head grade of 7.44% Cg for the first eight years; LOM average graphite mill head grade of 6.67% Cg.
- Average LOM recovery of 93.5% Cg.
- Indicated resources at the base case cut-off grade of 1.5% Cg of 23,165 kt at a 4.51% Cg grade for 1.04 Mt of graphite
- Inferred resource at the base case cut-off grade of 1.5% Cg of 46,821 kt at a 4.01% Cg grade for 1.9Mt of graphite
- Cash Cost of US$386 per tonne of graphite concentrate
- All-in Sustaining Cost (“AISC”) of US$406 per tonne of graphite concentrate