Lomiko’s 100% owned La Loutre Property is located in the Laurentides administrative region (also known as the Laurentians) in the province of Québec, Canada. It is approximately 30 km west-southwest of the city of Mont-Tremblant (about 45 km by road). The nearest community is Duhamel, 5 km to the west.

The La Loutre Property consists of one contiguous block of forty-two (48) covering an area of 2,508.97 ha. The property was originally explored for base and precious metals by Soquem in 1989. Based on the results of a helicopter-borne electromagnetic (EM) survey, prospecting and reconnaissance geological mapping, their work identified several zones of parallel conductors each measuring as much as 2 kilometers long. Ground exploration followed in 1990, and according to historical reports, graphite is present in different lithologies on the property.

The geology is consistent with the Central Metasedimentary Belt of the Grenville Province and includes quartzofeldspathic rocks, quartzite, biotite gneiss, marble and locally pegmatitic quartzofeldspathic rocks. Graphite is locally present in quartzite and biotite gneiss and in shear zones where the graphite content usually ranges from 1-10% graphite on surface, including visible flakes, with the showings indicating an apparent strike length of approximately 5 kilometers, giving a large prospective area to explore for a graphite resource.

La Loutre property

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2016 NI 43-101 Technical Report and Mineral Resource Estimate

Using results from diamond drilling programs conducted in 2014 and 2015, in 2016 Lomiko and Canada Strategic Metals (which owned part of the property at the time) commissioned an NI 43-101 Technical Report and Mineral Resource Estimate for the La Loutre property, which was prepared by Bruno Turcotte, M.Sc., P.Geo., and Guilhem Servelle, M.Sc., P.Geo, both of InnovExplo under the supervision of Vincent Jourdain, Ph.D., Eng., Technical Director of InnovExplo Inc. The geological interpretation and the mineral resource estimate were provided by InnovExplo, while the information on metallurgical testing and its interpretation were provided by AGP Mining.

2016 Pit constrained* Mineral Resource Estimate (Indicated and Inferred resources) at different cut-off grades – La Loutre Property

Indicated Resource

Inferred Resource

The report indicated a pit-constrained estimate of 18.4 M Tonnes of 3.19% graphitic carbon (Cg) Indicated and 16.7 M Tonnes at 3.75% Cg Flake Graphite Inferred with a cut-off grade of 1.5% Cg.
The sensitivity table also features 4.1 M Tonnes of 6.5% Indicated and 6.2 M Tonnes at 6.1% Flake Graphite Inferred with a cut-off of 3%.

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
*Pit constrained results are presented undiluted within a Whittle-optimized pit shell, designed with a 30-m buffer around lakes.
Whittle parameters used (all amounts in Canadian dollars): Reference Mining cost=$3.75, milling cost=$9.40/t, G&A=$2.11/t, graphite price=$1,910/t, milling recovery=95%, wall slopes of 45 degrees in rock and 18 degrees in overburden.

La Loutre Property NI43-101 Technical Report, March 24,2016

Exploration Since 2016

Encouraged by the results of the Mineral Resource Estimate, which was calculated from results obtained in just one zone of the La Loutre property, known as the Graphene-Battery Zone, Lomiko continued to drill at La Loutre. Exploration drilling in a second zone, then known as the Refractory Zone and since renamed the EV Zone, commenced in 2016 and yielded results that included 110.8 metres of 14.56% Cg and 135.6 metres of 7.74% Cg, including 44.1 metres of 16.81% and 22.3 metres at 17.08% flake graphite. An additional drilling program in the EV Zone was conducted in 2019, in which a total of 21 holes for a total of 2,985 metres were completed. The results were very positive and included an intercept of 87.90 m of 7.14% Cg, including 21.00 m of 15.48% flake graphite and 116.9 m of 4.80% Cg, including 15.2 m of 18.04% flake graphite.

Preliminary Economic Assessment (PEA)

Based on the results of the 2016 Mineral Resource Estimate, InnovExplo and AGP Mining recommended advancing the La Loutre Property to the next phase: the preparation of a preliminary economic assessment (PEA).

In July 2021, Lomiko Metals announced positive results from the Preliminary Economic Assessment (PEA) for the La Loutre Project, which was prepared by Ausenco Engineering Canada.

The results estimated an after-tax Internal Rate of Return (IRR) of 21.5% and after-tax Net Present Value (NPV) of C$186M – strong results that support the advancement of the project to the next phase of development.

The PEA supports an open-pit project with production spanning 14.7 years at a US$916/tonne Cg sale price, with attractive cash costs and all-in sustaining costs (AISC), low CAPEX and low capital intensity. The first eight years will target production averaging 108 kt/a payable graphite concentrate, peaking at 112 kt/a in year four.

The La Loutre Project PEA indicates the property has the geological potential to extend the mine life beyond the initial 14.7 years presented in the PEA and the opportunity to expand the scale of production by increasing the mineral resource through ongoing exploration and drilling.

Lomiko’s goal is for La Loutre to be a cornerstone mine for its future growth in a mining-friendly jurisdiction. With a solid treasury to support its next steps, the Company plans to commence a Preliminary Feasibility Study (PFS) and Environmental Impact Studies while continuing to explore the geological potential of its La Loutre property.