Lomiko Metals, a Surrey British Columbia based junior mining company, was recently the focus of a research report released earlier this week. The investment highlights included information regarding the 2012 drilling on the Quatre Milles graphite property, the acquisition of the Quatre Milles land package, soil sampling on the company’s Vines Lake property, additions to the Board of Advisors, and key financial information.
Quatre Milles Graphite Property
In January 2012, Lomiko Metals entered into an agreement to acquire a 100% interest in the Quatre Milles graphite property, located in south-western Quebec. The company commenced a two-phase drill program from August through September of 2012. Lomiko has completed the first phase and plans to complete the second phase in 2013. The initial results show moderate to high-grade graphite content is accessible. Although the findings are significant, metallurgical testing is required before the true flake size distribution and purity of graphite can be determined.
On May 14 2012, Lomiko announced the expansion of a binding agreement for a 100% interest in the 2,180 hectare Quatre Milles West property, for a total of approximately 3,780 hectares. The agreement states that Lomiko paid $3,000 upon signing the agreement and will issue 1.8 million shares. The vendors will retain a 2% Net Smelter Royalty, 1% of which may be acquired by Lomiko for $1 million. Similar to the initial study, a report commissioned by Lomiko in October 2012 recommended a two-phase exploration program on the newly expanded property. If both phases of exploration return positive results, the report recommends that a NI 43-101 resource estimate be completed for the property. Management indicated that the recommended exploration will occur in the next 12 months, dependent on access to financing.
Vines Lake Zinc Property
A geological mapping, rock, and soil sampling program on the Vines Lake property from July to October 2012 was conducted as a follow-up to the 2011 soil sampling program. The 2012 sampling was designed to fill in the areas from the 2011 story that returned anomalous soil values to provide an enhanced understanding. Results are expected in January 2013.
Additions to the Board of Advisors
Two new members were added to the Board of Advisors in the spring of 2012. Mr. Kumara Rachmalla was a Director of Holmer Gold Minds, taken over by Lake Shore Gold Corp., and a member of the Advisory Board for Augen Gold Mines. He brings comprehensive knowledge of the financial, planning, and building processes. He has also been an advisor to institutional investors in the natural resource sector. Mr. Dietmar Siebholz, previously an investment advisor and managing director of a real estate fund company, has been involved with monetary stability, precious metals, and commodities since 1993. Mr. Dietmar has liquidated his equity invested in real estate funds and devoted attention to these areas, including earning his PhD in economics.
At the close of the FY2012 (July 31, 2012), Lomiko had cash of $0.41 million and working capital of $0.47 million. Lomiko’s current cash position is $0.30 million. Management plans to pursue financing in 2013.
Financing initiatives, Phase II drilling on Quatre Milles, and a subsequent resource estimate are projected to be the main catalysts for an increase in share price in the next 6-12 months
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