Both the companies will assess the property for a resource and if required, a pre-economic assessment (PEA) will be done, upon completion of the existing program.
The initial focus will be on intersections that start within 15m of the surface. Lomiko Metals said viable near surface mineralization reduces the amount of waste rock that requires to be moved, lowering entire cost of the project and environmental impact.
According to the comapnies, the recent PEA studies in the graphite industry suggest that capital expenditures of $100m or more is needed to develop a project.
They also added that, in order to make the project sustainable in a volatile market there is a need of sustained prices of more than $2500 per tonne.
Lomiko Metals CEO A. Paul Gill said: "Approximately 10,000 metres of drilling are planned at La Loutre. Drilling should reach a vertical depth of no more than 150 meters, the "rule-of-thumb" physical depth limit of a standard open pit.
"Our goal is to become a low-cost producer of graphite in Quebec. A good example of an open pit mining operation established on this principal is the Imerys Carbon and Graphite Mine located nearby."
