Lomiko Metals Inc. announced an update on the optimization studies of the concentrator flowsheet design and the development of graphite value-add processes. Lomiko completed a pre-feasibility level flotation flowsheet optimization program that culminated in a flowsheet for the Company's Pre-Feasibility Study at La Loutre. The samples submitted for metallurgical testing were selected by InnovExplo in Val-d'Or, Quebec.

Three different types of composites were generated, namely mine plan, domain, and grade composites. The mine plan composites represented the first several years of expected mine operations and were blended in the appropriate ratio into a Master composite containing material from the EV Zone. This Master composite was employed in the flowsheet optimization program and produced consistent high-grade flotation concentrates.

The total weight of the samples was approximately 640kg. The flowsheet optimization program was carried out by SGS Lakefield Inc. (SGS) using the above samples and the final report was completed by Metpro Management Inc. At the end of the optimization program, this Master composite containing only material from the EV Zone was subjected to a locked-cycle flotation test ("LCT"). The LCT simulates the metallurgical performance of a continuous plant operation.

The LCT produced a combined concentrate grade of 98.6% C(g) at a closed-circuit graphite recovery of 94.7%. The robustness of the flowsheet was verified in open-circuit tests with twelve variability composites, which represented different phases in the mine plan, domains, and head grades. The average concentrate grade of the 15 variability flotation tests, which included three repeat tests, was 97.8% C(t) with a low relative standard variation of 1.08%.

Taking into account the standard deviation, the lowest value of 95.2% C(t) is considered an outlier. All other tests produced consistently high grades between 96.4% C(t) and 99.5% C(t). The open-circuit graphite recovery displayed more variance with graphite recoveries between 78.0% and 92.6% with an average value of 86.8%.

Open-circuit tests treat intermediate tailings streams as final tailings and, therefore, overstate losses that would be incurred during closed-circuit operation. In a commercial plant the circuit is closed and the intermediate tailings are cycled back to the previous flotation stage. This allows any graphite particles lost to the intermediate tailings to be recovered into the flotation concentrate.

Hence, overall graphite recoveries are expected to increase noticeably during closed circuit operation as demonstrated by the LCT. The robustness of the proposed flowsheet and conditions is further underlined by the fact that these very consistent metallurgical results were achieved for head grades ranging from as low as 1.39% C(g) to as high as 9.86% C(g). This range of head grade variation frequently requires significant adjustments to the process conditions, which was not required for the La Loutre mineralization since all tests employed identical flotation conditions.

Repeat tests conducted on three composites displayed very low test-to-test variance with regards to final concentrate grade and open circuit recovery. In the LCT test, the final concentrates of the EV master composite LCT were submitted for a size fraction analysis and the weighted combined concentrate grade and size distribution. A total of 24% of the concentrate mass reported to the +80 mesh size fractions at a grade of 98.6% C(t).

12.7% of the mass reported to the -325 mesh product at a very high grade of 99.0% C(t). The EV zone is scheduled to be mined first and accounts for two-thirds of the graphite production as outlined in the July 2021 Preliminary Economic Assessment. The high flotation concentrate grades facilitate different marketing or process options.

The study indicates it may be possible to sell the high-grade concentrates into specialty markets that require a 98-99% C(t) concentrate grade.