Lomiko Metals LMR-V .045
Shares Outstanding… 66.4M Warrants… 10.8M @ .148 Options… 4.9M Fully Diluted… 82.2M Market Cap… $2.99 million Cash… ~$300k Discovers large zones of graphite similar to Bisset Creek
The results of Lomiko’s phase 1 drill program at Quatre Milles are in. In spite a share price that speaks to the contrary, everything initially believed about The Quatre Milles Graphite Project has been confirmed…AND THEN SOME.
Lomiko confirmed several near surface high grade zones on the property initially discovered by Graphicor in 1990. This is a high value combination of high grade and mineralization starting right at surface, it certainly confirmed everything we thought about Quatre Milles, that it had the potential to host a small to medium sized graphite operation and high grade deposit of around 5Mt-10Mt. Comparable at the upper end of that range would have been a project such as Flinders Resource’s Kringel, a 500tpd to 700tpd 8% mine slated for production by 2013/2014 at a rate of about 7,000 tonnes of graphite per year.
What came as a big surprise to most… in addition to the extensive high grade graphite zones found at surface extending over an impressive 1,100 meter strike length… Lomiko discovered that each hole contained broad zones of disseminated (Bisset Creek) style mineralization.
This is something that was completely unexpected and has materially changed the game for Lomiko and The Quatre Milles Graphite Project. QM will now be evaluated as a mining project with 5 to 10 times the scale of the original mine plan. The scope of Quatre Milles has gone from a 5Mt - 10Mt (6% to 8%) project to a 50Mt - 100Mt (2% to 3%) graphite project similar in tonnage and scale to Bisset Creek. What I don’t understand is why Lomiko, valued at a $3M market cap can still be trading at .045 with better results on the first 23 holes at Quatre Milles than Northern Graphite’s 2010 drill program at Bisset Creek. Yes, I said so far, better results than Bisset Creek.
We are not talking about just beating Bisset Creek’s results. We are talking about results that compare close to a factor of 2 to the Bisset Creek 2010 drill program. A 20% increase in average grade, zones that are almost double the size at Bisset Creek, and mineralization that starts right at surface.
For all you naysayers out there… Paul Gill stepped up to the plate and delivered when many packed it in and refused to even drill another hole after financing dried up this summer for every exploration company. Lomiko forged on with their program and delivered impressive results. The price Lomiko is trading at after phase 1 results is just downright silly. Lomiko’s peers are trading between $30M to $50M market caps while LMR-V trades at $3M.
Read the rest of my article on my website...