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  • Bigger Flakes, Higher Prices — Paul Gill Talks About Lomiko's Quebec Graphite Projects LMR.v 0 comments
    Sep 26, 2012 7:59 AM | about stocks: TRRXF, MUX, GALXF, RDNAF, OROCF, LITHF, TLTHF, FMC, ROC, LITIQ, REE, F, TM, GM, NSANF, DOW, AONEQ, JCI, IBM, BASFY, FCX, RIO, BHP, TCK, SSNLF, TSLA, CAR, VALE, BYDDY, POT, ALLRF, MOS, SOIL, IPI, NPTH, PPRTF-OLD

    (click to enlarge)

    Visible large flake graphite was identified in multiple drill holes from this campaign.

    (click to enlarge)

     

    Lomiko Completes Drilling at Quatre Milles East Flake Graphite Property an Quebec LMR.v

     

    Lomiko Intercepts Large Flake Graphite During Drilling at Quatre Milles East Property in Quebec LMR.v


    "Now it is really getting interesting with Lomiko Metals Graphite drilling results anticipation: "visible identification of large flake graphite in multiple holes at the Quatre Milles Flake Graphite Property in Quebec."

     

    Video: Lomiko Metals: Graphite - The Long Term Bull Market Player LMR.v


    "With all fireworks happening in Junior mining sector now Lomiko is waiting on the sidelines, but the ongoing drilling program can change it all in heartbeat. CEO Paul Gill is constantly buying Lomiko Metals shares and it looks like he is putting his name solidly on the company success - we like it, this is the way to build the business.

    Time is to study him, his story and his company - Lomiko Metals. QE3.0 will push all assets higher, but after first excitement with Gold and Oil going Up structural problems of Energy Transition will bring Lithium and Graphite to the traders' screens again. Paul's motto is "Buy low, build high" - we like it! The results will show how high can can build it."

    Financial Post:

    Bigger flakes, higher prices - Paul Gill talks about Lomiko's Quebec graphite projects

    By Kevin Michael Grace

    Lomiko Metals Inc (V.LMR) announced September 20 that has completed its summer drill program on its Quatre Milles East Flake Graphite Property in Quebec. Twenty-three holes totaling 1,600 metres were drilled, and the presence of large-flake graphite was identified in multiple holes.

    The drilling replicated previous exploration on the property by Graphicor Resources Inc in 1992. Although Lomiko holds the data derived from these historic drill results, the drillcores are not available to compile a NI 43-101 resource estimate.

    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 September 18.

    RW: What pleases you most about your drill campaign?

    PG: We were able to drill into an area which has previously been drilled and has grades and intercepts similar to a proven mine in the area [Timcal Canada's Lac-des-Îles Mine]. The intercepts are near surface and amenable to an open pit, and the location is amenable to a mining operation.

    RW: When will your drill results be released?

    PG: We anticipate results in the middle of October.

    RW: What's your next step after that?

    PG: We need to finance Phase 2 and confirm that it's the correct step to take because it's contingent upon results. Phase 2 will be another 50 holes. These will bring definition to the target area and probably come up with a resource. Usually, juniors have a discovery phase. We didn't have to go through that. Next is the resource stage, and I think that's when the next value jump happens. Well, there is going to be one now when people recognize that we will be confirming some of the historic results on Quatre Milles.

    RW: You said in May that you were looking toward developing a resource estimate by December.

    PG: We'd like to stay on that course. But we'd have to get funding and do another round of drilling in November for that to happen. If there will be a significant move in the market, we could have warrants exercised or we would put financing together. We would then have approximately a $1 million to $1.5 million.

    RW: How much cash do you have now?

    PG: About $550,000.

    RW: What is your current burn rate?[pullquote] "We feel that we're among the top six or seven graphite companies that will be able to add value through exploration"-Paul Gill[/pullquote]

    PG: There is $307,000 that's going towards the Quatre Milles Phase 1 and another $100,000 for Vines Lake. Those are all-in expenses. Our only other expenditures are administrative, and that's about $20,000 a month.

    RW: What's the significance of finding large-flake graphite at Quatre Milles?

    PG: Something that's been confirmed with Northern Graphite (V.NGC) is that the flake size is more desirable if it's larger simply because you can make different elements with it. Electric-vehicle manufacturers are looking for a spherical-granular structure for the graphite they use in their batteries. The greater the size of the flake, the higher the price.

    The next biggest issue is recovery. The type of host rock that's here, part of the reason we took it is because the metallurgist, Michel Robert, actually staked this land. The type of marble in this area allows for the graphite flakes to pop out easily, and the recovery rate is quite high, so your strip ratio goes down.

    RW: Assuming you have the resource, how would you compare the difficulty and expense of bringing a graphite project to production compared to a gold, silver or copper mine?

    PG: There is an issue around the expertise in this field. You have to have specific expertise mining this particular product. For gold, silver or copper projects, it's a very straightforward situation, and there are many geologists and mining engineers familiar with the situation. What's key to graphite is you need a mining engineer and metallurgist and a geologist and chemist that will be on site and can advice how to make the project the best possible project. And in regards to actually introducing the project to the financiers that's another challenge because the end users of the product are relying on and have relationships with about a maximum of 20 different companies that market different variations of graphite. We've had contact with several different groups among those 20. So we're encouraged by that, and we're in the right location with the right product.

    RW: About six months ago, there was a tremendous amount of excitement about graphite stocks. Prices increased tremendously, and then was a big falloff. Why did this happen?

    PG: I think the falloff followed the price of graphite itself. The price of graphite peaked in the spring of 2012 and so did graphite stocks. Every market has to correct. You've seen graphite move up from $500 a tonne to $2,000 per tonne, and it's settling in now at this level. I think the next big increase will be when the applications and products now being patented get to the development stage.

    It's actually a healthy correction and a fortuitous one for those of us that already received financing because we're way ahead of the game. There are many projects that were announced but didn't receive financing and couldn't proceed. We feel that we're among the top six or seven graphite companies that will be able to add value through exploration

    Read more articles like this at resourceswire.com

    All information on this website is: (a) for informational purposes only; (b) not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, investment advice or sponsorship of any entity or security; and (c) not necessarily reflective of the views or policy of the Financial Post. Prior to making any investment decision, it is strongly recommended that you seek advice from a qualified investment advisor. The Financial Post does not provide or guarantee any financial, legal, tax or accounting advice or advice regarding the suitability, profitability, or potential value of any particular investment, security or information source, especially as it relates to mining companies. For further details, please see Section 22 of http://www2.canada.com/aboutus/termsofservice.html."

    Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advise on this blog and there is no solicitation to buy or sell any particular company

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