Lomiko Metals Inc. is pleased to announce positive results from the Preliminary Economic Assessment (“PEA”) on its 100 percent-owned La Loutre Project in south-eastern Quebec. The PEA was completed by Ausenco Engineering Canada Inc. (“Ausenco”) in accordance with National Instrument 43-101 (“NI 43-101”). Lomiko now aims to initiate a Preliminary Feasibility Study (PFS) to advance its La Loutre Project towards production as part of a staged 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):
The Lomiko team is pleased to present the results of a PEA on its La Loutre Project, clearly demonstrating its potential for the Corporation to become a major North American graphite producer, with a positive after-tax Internal Rate of Return (“IRR”) of 21.5% and after-tax Net Present Value (“NPV”) of C$186M. The PEA supports an open pit project with production spanning 14.7 years with robust economics at a US$916/tonne Cg sale price, with very attractive cash costs and 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 4.
“La Loutre has shown it has the potential to become a highly profitable graphite mine in one of the most prolific producing regions in Canada. The La Loutre PEA was produced by the Ausenco team, one of the most experienced and reputable engineering firms working on mining projects in Canada. With further drill programs, we will continue to add to and upgrade resources as we seek to move the project forward towards production,” said A Paul Gill, President, CEO and director, Lomiko.
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