Agoracom Blog

Paul Gill discusses Lomiko’s Quebec flake graphite project

Posted by AGORACOM-JC at 10:21 AM on Thursday, November 22nd, 2012

By Kevin Michael Grace

Lomiko Metals Inc (V.LMR) announced November 13 assay results from the final 17 of 23 drillholes completed at its Quatre Milles East Flake Graphite Property in Quebec. Highlights include

  • 2.47% Cgr (carbon in graphite or graphitic carbon) over 42.92 metres
    (including 8.02% Cgr over 5.46 metres)
  • 6.23% Cgr over 19.52 metres
  • 2.89% Cgr over 32.53 metres
  • 2.73% Cgr over 41.3 metres
  • 2.83% Cgr over 40.45 metres
    (including 10.01% Cgr over 3.45 metres)
  • 3.43% Cgr over 38.15 metres
    (including 10.8% Cgr over 4.77 metres)
  • 3.71% Cgr over 39.8 metres
    (including 8.81% Cgr over 9.9 metres)
  • 3.71% Cgr over 43.20 metres

Quatre Milles East consists of 1,600 hectares located 175 kilometres northwest of Montreal. In May, Lomiko optioned the Quatre Milles West Property, 2,180 hectares adjacent to Quatre Milles East. In addition to these graphite properties, Lomiko owns the Vines Lake gold property in the Liard Mining District of northwest British Columbia and the Salar de Aguas Caliente Lithium Brine Property in Chile.

Lomiko President/CEO Paul Gill spoke to Kevin Michael Grace November 14.

RW: The assays you released yesterday are part of Phase 1, right?

PG: Yes. What we’ve done is release the last 17 holes of Phase 1. We released the initial results for Phase 1 in October.

RW: How many drillholes in Phase 1?

PG: Twenty-three.

RW: These are the first drillholes you’ve done there yourself, correct?

PG: Yes.

RW: How would you characterize the grades and lengths?

PG: I would characterize them as outstanding. What we expected was smaller high-grade areas and a five-million-tonne maximum deposit. We’ve taken the cap off that now, and the size of the deposit could be up to 50 million to 100 million tonnes.

RW: When I spoke to you in late September you said Phase 2 was dependent on financing, right?

PG: Yes.

RW: At that time, you said Phase 2 would be 50 holes. How many holes are you looking at now?

PG: I think we’d still do 50 holes. We’ll probably have a Phase 3 afterwards, simply because Phase 2 will get enough holes to report an initial resource, but I don’t think we’d find the end resource. What we’d be looking for in Phase 2 is to define the outer limits of the significant mineralization: anything over 1.5% and 40 metres. And the outer limits just got a lot bigger because we went from 300- to 400-metre strike length to 1.1 kilometres, and the width is about half a kilometre. It has gotten a lot bigger than we anticipated. So Phase 2 would define the outer limits, and Phase 3 would define some high-grade pockets within that deposit.
RW: Quatre Milles East is 1,600 hectares. How much of that has been explored?

PG: A very small portion. About 100 hectares.

RW: You’re going to need money for additional drilling.

PG: Yes, we will.


RW: How much cash do you have now?

PG: Right now we have about $300,000.

RW: How long will that last at your current rate of operations?

PG: We have a very small burn rate, so we could last without any further activity for at least six months.

RW: What do you have in mind for financing?

PG: We’re looking at a number of different options. Our goal is to get the information in front of investors and financiers, and we’re doing that now. Half the battle is that investors are not sure what these results mean. We have a couple of analysts looking into the results. I think that will help better define the opportunities for investors. So we may have to wait for that to come out before hitting the market.

RW: You’re pounding the pavement as well?

PG: Absolutely, yes. We have a large contingent of German shareholders, and I spoke in Munich to 100 of them. We’ve gone to Toronto and had meetings there as well. Now that we have results, we can show investors and financiers there is a tremendous opportunity here.

RW: When are you looking at an initial resource estimate?

PG: Probably March 2013 because we don’t even know what the outside limits of this deposit are. It’s become much bigger.

RW: What is happening at Quatre Milles West?

PG: Right now, we’re not doing anything because we feel it is a carbon copy of Quatre Milles East. There’s no need to work on it actively because Quatre Milles East is such a huge property.

RW: Is there anything you’d like to add?

PG: I think we have some good comparables out there. We’ve got Northern Graphite (V.NGC) which has done a feasibility study. It’s trading at $0.70 and has a $50-million market cap. They put out a bankable feasibility study based on 2% graphite, and they’ve done all the tests. This is good example of what can be done in the market with Quatre Milles East given the right funding.

At press time, Lomiko had 66.9 million shares trading at $0.035 for a market cap of $2.3 million.

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