Lomiko Metals (TSXV: LMR; US-OTC; LMRMF) has released a preliminary economic assessment (PEA) for its 100%-owned La Loutre graphite project in southeastern Quebec, about 120 km northwest of Montreal.
The PEA envisions an open-pit mine with an average annual production of 97,400 tonnes of graphite concentrate over a 14.7-year mine life for a total life-of-mine output of 1.4 million tonnes of graphite concentrate. All-in sustaining costs are expected to average US$406 per tonne of graphite concentrate over the mine’s life.
Initial capital costs were estimated at $236.1 million, with $37.7 million budgeted for sustaining capital over the mine life. The study estimated the after-tax net present value using an 8% discount rate at $185.6 million, based on a graphite concentrate price of US$916 per tonne, and an after-tax internal rate of return of 21.5%. Initial capex could be paid back in just over four years.
The early-stage study was based on 23.2 million measured and indicated tonnes grading 4.51% graphite for 1.04 million tonnes contained graphite and inferred resources of 46.8 million tonnes grading 4.01% graphite for 1.9 million tonnes of graphite.