Liberty Mines Inc.
Liberty Mines Inc. is a producer of nickel and is focused on the exploration,
development and production of nickel, copper, cobalt and platinum group metals
from its properties in Ontario, Canada. It owns and operates the Redstone nickel concentrator near Timmins Ontario.
Liberty has three major assemblies of contiguous mining
claims and leases in northern Ontario including:
- A 100% interest in the 12,000 ha Shaw Dome Nickel Belt located 25 km southeast
of Timmins containing three mines: the Redstone nickel mine in commercial production; the McWatters nickel mine
located 9.5 km east of the Redstone Mine soon to be in pre-production; and the Hart nickel mine
in the permitting stage. The 2000 tonne/day Redstone nickel concentrator is located at the Redstone Mine site;
- A 100% interest in the 6,400 ha Groves nickel copper platinum group metals (“PGM”) project 20 km
southeast of Gogama;
- A 100% interest in the 6,300 ha McAra Lake-Ray cobalt nickel copper project about 120 km south east of Timmins.
Redstone Mine
The pre-feasibility study for the Redstone Mine was released January 11, 2010. The mineral resource estimate at a
cut-off grade of 0.51% nickel ("Ni") consists of 599,000 tonnes in the Measured and Indicated categories grading 1.47% Ni and 0.02% copper ("Cu"); and 737,000
tonnes in the Inferred category grading 1.57% Ni and 0.03% Cu. The Proven and Probable Mineral Reserves were estimated at 259,900 tonnes with an average grade of
1.04% nickel ("Ni") using a nickel price of US$15,430 per tonne (US$7.00 per pound) and an exchange rate of $1.00 CDN = $0.90 US. There is a strong potential to
increase the Inferred Resources in the lower zone between 510m and 1150m; and to upgrade the current Inferred resources to the Indicated category with additional drilling.
The reserves would be positively increased and the life of mine extending accordingly.
Re-examination of drill data from 2007-2008 and earlier historical data revealed three mineralized zones roughly parallel to the footwall R-zone (massive pyrrhotite-pentlandite
mineralization that has been the main target in the mine). These zones are typical of the parallel shoots known in the Kambalda Nickel Belt of Australia, and are prime exploration targets.
Eleven boreholes drilled in 2007 from the 789m to 1155m levels have confirmed a large section of the “Inco Anomaly”
tested within the Redstone channel (see Redstone Project) is a nickel bearing orebody.
More drilling is required to test the entire extent of the geophysical anomaly below 1150m and further to the west at depth.
Some highlights of the deep drilling include:
- 3.45m of 3.9% Ni at the 675m level;
- 8.5m of 2.4% Ni at 789m below the surface; and
- 4.65m of 3.62% Ni encountered 1064m below the surface.
Redstone Nickel Concentrator
The 2000 tonne per day Redstone nickel concentrator was commissioned in July 2007. The mill contains a
sophisticated flotation circuit to effectively separate nickel sulphides from
the high magnesium hydroxide (talc) component typical of altered komatiite
nickel mineralization in the Shaw Dome Nickel Belt. It is fully automated including an online analyzer
which can isolate both light and heavy elements. A gravity circuit is being installed to
enhance the payable amounts for platinum, palladium and gold.
Liberty ships its nickel in concentrate to Xstrata Nickel’s smelter in Sudbury, Ontario.
McWatters Mine
Commercial production was declared in January 2010 at the McWatters nickel mine, located
approximately 9.5km to the east of the Redstone Mine. The feasibility study of December 18, 2009
estimated the Probable Mineral Reserves at 872,000 tonnes with an average grade of 0.70%
Ni using a nickel price of US$15,430 per tonne (US$7.00 per pound) and an exchange rate of $1.00 CDN = $0.90 US.
The life of mine for the McWatters project is two years at an average production rate of 1800 tonnes per day.
Hart Mine
Drilling commenced in March 2007 at the Hart nickel project which is located
about 6 km east of the Redstone Mine. The first phase of drilling was completed in May 2008 which defined
the bulk of the mineralization to the 500m level. The mineralized body has been defined with an
average strike length of approximately 265m that can be subdivided into two zones
based on sulphide content and mineralized zone width: the upper zone contained within the top
275m below surface, and the lower zone found below this elevation. A NI 43-101 resource calculation, which was released on Sedar October 20, 2008, stated an indicated resource
of 1,390,000 tonnes grading 1.50% Ni and 0.1% Cu and an inferred resource of 286,000 tonnes grading 1.36% Ni and 0.09% Cu.
These tonnages represent the largest NI 43-101 compliant resource in the Shaw Dome identified to date with an average grade of 1.5% Ni.
The resource calculation included drilling only to the 460m level. Drilling will commence as soon as possible to bring the inferred
resource into the indicated category. Mineralization is also known to exist down to the 550m level, so additonal deep drilling will attempt
to extend the resource at depth. The Hart deposit will become Liberty's third nickel mine; approval
for a mining lease and permitting of the project are nearing completion.
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