Feb 10, 2012 (ACCESSWIRE-TNW via COMTEX) -- Lomiko Metals CA:LMR -13.04% (pinksheets:LMRMF)(frankfurt:DH8B)(europe:ISIN)(wkn:A0Q9W7) is moving quickly into one of the fastest growing sectors of the metals industry.

On December 29, 2011, Lomiko announced:

The growing demand for electric cars, smart phones, and new devices and technologies using lithium, vanadium, cobalt, graphite and rare earth metals creates exploration and development opportunities in the future.

Just a few days later Lomiko announced the acquisition of a graphite project in Quebec.

The reaction, to say the least, was strong. Lomiko shares more than doubled in the days following the acquisition announcement.

A quick look at Lomiko's property's history and potential, the company's valuation, and the expected demand surge for graphite show why.

First, the graphite market is one of the most closely watched in the junior exploration industry right now because the near-term prospects and long-term growth potential are phenomenal.

Graphite is a critical element used in many components of electronics. As demand for phones, GPS, and other televisions has increased, so has graphite demand.

Graphite's future is even brighter as it will likely be used in many additional applications. One of the applications with the biggest growth potential is in graphene. Graphene is a sheet of carbon one atom thick. It has many benefits. In his book The Next Boom, Jack Plunkett says, "Graphene is strong, essentially transparent, and extremely conductive of electricity. It has tremendous potential in a wide variety of electronics such as powerful transistors."

The Boston Globe say's the "Sky's the limit...with grapheme."

All of this is has and will create more demand for graphite and keep the metal's steady growth streak moving steadily higher. Over the last decade global graphite demand has grown consistently. Total graphite consumed doubled from 600,000 tonnes in 2000 to 1.2 million tonnes in 2011.

The trend is expected to continue well into the future too. Many forecasts put demand growth at between 5% and 10% in the decades ahead.

Supply, meanwhile, has not kept up with demand. China controls approximately 70% of global graphite production. The country recently announced it was cutting exports as well.

The combination of rising demand and stagnant supply growth has been driving up graphite prices. The prices of all types of graphite have increased markedly in the past three years. High quality (large flake) graphite has nearly tripled since 2008. Industrial Minerals Magazine reports it went from a low of just over $1,000 a tonne to about $3,000 per tonne today.

That's where Lomiko has staked its opportunity in the graphite boom with its recently acquired Quatre Milles property, located about 175 kilometers northwest of Montreal.

It's not a greenfield exploration project though. The project consists of 1,600 hectares worth of claims and three historical graphite discoveries.

The claims were originally staked more than 20 years ago by Graphicor Resources, a graphite focused exploration company at the time including surface sampling and drilling.

The surface sampling from the project included a number of very high-grade graphite projects. The three surface samples collected and analyzed returned results of 14.16% graphite, 18.06% graphite, and 20.35% graphite.

The drilling confirmed there was a lot of graphite contained in the property. The 26-hole diamond drill program hit graphite in 23 of the holes. The program identified multiple graphite-bearing trends on the property and a minimum of three known graphite beds.

Many of the holes hit high-grade graphite too. The highlight hole pulled 8.07% graphite over 28.60 meters. The highest individual assay was reported in hole Q90-10 reporting 15.48% graphite over 0.50 meters.

It's important to note all of the results are historical and are not 43-101 compliant. But if Lomiko is able to duplicate the results, you'll know they've got something big in the graphite space.

Lomiko's next steps are to hire a consulting firm and establish exploration program.

Lomiko currently has a market value of $4.4 million (approx. 55 million shares outstanding at eight cents per share).

Learn more at www.lomiko.com

Written By: Andrew Mickey

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