Ms. Belinda Labatte
LOMIKO ANNOUNCES DEFINITIVE AGREEMENT FOR ACQUISITION OF THE CARMIN NATURAL FLAKE GRAPHITE PROPERTY IN SOUTHERN QUEBEC
Lomiko Metals Inc. has entered into an agreement with SOQUEM and a private owner to acquire 100 per cent of 17 mineral claims forming the Carmin project, subject to customary closing conditions expected to be completed within the next three to four weeks. These claims cover 678 hectares (6,780 square kilometres). The agreement was signed on March 2, 2023.
The property is located 40 kilometres west of Mont Tremblant and situated northeast and contiguous to the La Loutre property, where Lomiko has mineral rights. The property is accessible by road and forest road from Lac-des-Plages and the northern end of the claims is partially contiguous to the Papineau-Labelle Wildlife Reserve. Lomiko commits to not exploring or developing within one kilometre of park boundaries. The La Loutre and Carmin project sites are located within the Kitigan Zibi Anishinabeg (KZA) First Nation's territory and the KZA First Nation is part of the Algonquin Nation. KZA territory is situated within the Outaouais and Laurentides regions.
Belinda Labatte, chief executive officer and director of Lomiko, stated: "Our team is developing a regional and responsible approach to natural flake graphite development via organic growth of its La Loutre project, its six regional claims and this new claim acquisition. The Carmin property has the potential to add significant mineral resources and mineral reserves to La Loutre's existing resource base. This can positively impact La Loutre project economics, and, importantly, it provides for additional responsible site planning in the region. We also welcome SOQUEM as a shareholder of Lomiko and look forward to working with SOQUEM in the long term. The regional geophysical surveys being anticipated to be carried out in the region in 2023 mark significant opportunities and actions towards creating a regional approach to developing natural flake graphite that, if developed, can feed into the North American electric vehicle supply chain."
Carmin property and historical works
All work including the mineral resource and mineral reserve estimates are considered to be historic. The property consists of the Carmin deposit, which consists of three previously identified mineral occurrences identified as sites A, B and C -- where the main mineral occurrence is identified as Site A. The historical estimate was completed by SOQUEM in December, 1990, using sections and polygonal methods accounting for the blocks between sections 975N and 1425N using 2.6-tonne-per-cubic-metre density. The property has been worked on since the late 1980s and early 1990s when a prefeasibility study was published. This historical prefeasibility study was not completed in compliance with current CIM (Canadian Institute of Mining, Metallurgy and Petroleum) guidelines and National Instrument 43-101 reporting requirements.
The historical mineral resource estimate is based on Site A and the 91 boreholes drilled for a total of 5,688 metres, with the average hole depth of 62.5 metres. The historical mineral resource estimate for Site B is based on 27 holes for a total of 2,937 metres and average hole depth of 108.8 metres.
The original historical estimate contemplated certain assumptions where the mineral resources are stated as proven and probable resources for sites A and B. This historical prefeasibility study was not completed in compliance with current CIM guidelines and NI 43-101 reporting requirements.
Historical mineral resource estimate summary:
- Site A -- total in place 1.55 million tonnes at 10.0 per cent Cg (graphitic carbon):
Proven -- 1.47 million tonnes at 10.29 per cent Cg (holes drilled at 25-metre spacing); likely measured;
Probable -- 73,000 tonnes at 4.10 per cent Cg;
In situ graphite content -- 155,000 tonnes;
- Site B -- in place:
Proven -- 123,000 tonnes at 13.1 per cent Cg;
Probable -- 39,000 tonnes at 13.1 per cent Cg;
- Site C -- undetermined mineral resources.
Lomiko has not done sufficient work to classify the historical estimate as a current resource; however, the company believes the original results can be relied upon to determine a subsequent exploration drill program, with the objective of updating the historical estimate using NI 43-101 guidelines. The company is not treating the historical estimate as a current resource (historical estimate -- a non-verified estimate prepared prior to the issuer's interest in the property).
A historical prefeasibility study was completed in March, 1991, by SNC-Lavalin Inc. This historical prefeasibility study was not completed in compliance with current CIM guidelines and NI 43-101 reporting requirements. The study considered only Site A and outlines:
Exploitable reserves -- 1,013,000 tonnes at 8.75 per cent Cg, diluted using 15-per-cent dilution at 1 per cent Cg;
Cut-off content -- 3 per cent Cg;
Strip ratio (waste to ore) -- 2:1;
Plant production of 87,200 tonnes or 15,000 tons of concentrate per year; mine life of six years.
The historical metallurgical test results completed as part of this study by Centre de Recherches Minerales (CRM) in December, 1990, for SOQUEM indicated the following:
Overall recovery -- 85 per cent;
Concentrates grading 95 per cent Cg:
Plus-48 mesh -- 16.5 per cent;
- Minus-48 to plus-100 mesh -- 28.5 per cent;
Minus-100 mesh -- 55 per cent.
Definitive agreement terms
Lomiko will acquire SOQUEM's interest in all mineral rights forming part of the property in consideration of: (i) $50,000 payable in cash to SOQUEM in a single payment on the closing date; (ii) the issuance to SOQUEM of 1.25 million shares; and (iii) the granting to SOQUEM of a royalty of 0.75 per cent on net smelter revenues (NSR) on the property. However, Lomiko retains the exclusive and irrevocable right and option to redeem one-third of the royalty, thus reducing the royalty to 0.50 per cent on NSR, for a total amount of $250,000 payable in cash to SOQUEM.
Lomiko will acquire a private owner interest in the mineral rights forming part of the property in consideration of: (i) the issuance to the private owner of 1.25 million shares; and (ii) the granting to the private owner of a 0.75-per-cent royalty on the NSR on the property. However, Lomiko retains the exclusive and irrevocable right and option to redeem one-third of the royalty, thereby reducing the royalty to 0.50 per cent on NSR, for a total amount of $250,000 payable in cash to the private owner.
The transaction is subject to customary closing conditions including the approval of the TSX Venture Exchange. The shares issuable by Lomiko under this transaction will be subject to a regulatory hold period of four months and one day following the closing date. Lomiko is not paying any finders' fees in order to acquire the property.
Lomiko intends to review existing data and continue with work required to update the historical mineral resource and issue an NI 43-101 compliant technical report in 2023, subject to available financing. It may also conduct metallurgical testing of the prospect to confirm historical results.
In addition and as mentioned in its press release dated Feb. 21, 2023, Lomiko plans to advance exploration on its six graphite minerals properties, acquired in the spring of 2022 in the Grenville metasedimentary graphite belt. The objective of the Carmin acquisition and the regional exploration is to develop a sustainable, responsible-approach and resilient strategic stockpile of natural flake graphite that can feed into the graphite market at large and the regional market for electric vehicle battery manufacturing.
Qualified person for technical content at Carmin
The technical information in this press release has been prepared and approved by Gordana Slepcev, PEng, who is the company's chief operating officer and registered professional engineer in the province of Ontario, a qualified person as defined by NI 43-101 guidelines.
About Lomiko Metals Inc.
The company holds mineral interests in its La Loutre graphite development in Southern Quebec. The La Loutre project site is located 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 kilometres northwest of Montreal, the property consists of one large, continuous block with 76 mineral claims totalling 4,528 hectares (45.3 square kilometres).
The property is underlain by rocks belonging to the Grenville province of the Precambrian Canadian Shield. The Grenville province was formed under conditions that were very favourable for the development of coarse-grained, flake-type graphite mineralization from organic-rich material during high-temperature metamorphism.
Lomiko Metals published a July 29, 2021, preliminary economic estimate (PEA), which indicated the project had a 15-year mine life producing per year 100,000 tonnes of graphite concentrate at 95 per cent Cg, or a total of 1.5 million tonnes of graphite concentrate. This report was prepared as an NI 43-101 technical report for Lomiko Metals by Ausenco Engineering Canada Inc., Hemmera Envirochem Inc., Moose Mountain Technical Services and Metpro Management Inc. (collectively the report authors).
In addition to La Loutre, Lomiko is working with Critical Elements Lithium Corp. toward earning its 70-per-cent stake in the Bourier project as per the option agreement announced on April 27, 2021. The Bourier project site is located near Nemaska Lithium and Critical Elements southeast 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 square kilometres), in Canada's lithium triangle near the James Bay region of Quebec that has historically housed lithium deposits and mineralization trends.
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