|
Redstone Mine
The Redstone nickel mine is in commercial production at a target rate of 300 tonnes per day.
The pre-feasibility study released January 11, 2010 stated a resource
estimate at a cut-off grade of 0.51% nickel ("Ni") 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%
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.
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. It also contains a gravity circuit 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
The McWatters nickel mine, located 9.5 km to the east of the Redstone Mine, is in commercial production.
The mine consists of a small open pit to the 45m level to enable the crown pillar to be exploited
with underground sublevel caving.
A feasibility study dated 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
Permitting is nearing completion for Liberty’s third nickel mine at the Hart project,
located 7 km east of the Redstone site. Mine construction is planned for mid 2010 upon receipt of a filed Closure Plan. A NI 43-101 resource estimation
released on October 20, 2008 at a cut-off grade of 0.4% Ni stated an indicated resource of 1,688,538 tonnes
grading 1.32% Ni and 0.11% Cu; and an inferred resource of 377,394 tonnes grading
1.15% Ni and 0.08% Cu. The resource estimate included drilling only to the 460m level. As the Kambalda type mineralization is known to exist down to the 1150m level at Redstone,
additional deep drilling will attempt to extend the Hart resource at depth.
Shaw Dome Nickel Belt
A geophysical VTEM survey to further elucidate drill targets for the entire Shaw Dome
claims owned by Liberty was completed in 2008. Many targets have been identified and drilling will
be ongoing for the next several years. There is a high probability to make new discoveries in the
Shaw Dome Nickel Belt where the geology is similar to the Kambalda Nickel Belt in Australia.
Groves Nickel Copper PGM Project
An airborne VTEM survey was complete in 2008. In addition to the historically
known resource (see Groves Project), three outstanding targets have been located and an extensive
drill program will begin in 2010. Some historical drill cores reported 5 g/t of iridium, which
indicates the potential of the deposit as a source of this rare element.
Investment Highlights
-
Liberty currently has three nickel mines to feed its 2000 tonne per day nickel
concentrator: two in commercial production and a third to be brought into
pre-production in late 2010.
-
The Company has three major exploration areas consisting of contiguous mining
claims and leases with known mineralization and excellent potential for
additional discoveries.
-
Liberty's NI 43-101 nickel resource base is quickly growing.
-
Liberty is soon to be a mid tier producer of nickel with significant copper and PGM credits.
-
Liberty has the potential to develop a primary resource of cobalt.
-
Liberty Mines Inc. will soon be acknowledged in the financial community for its
substantial fast paced achievements and development of positive cash flow.
Market Data
Trading symbol LBE on the Toronto Stock Exchange
Shares Outstanding as of
10/02/2010 168,208,457
Warrants from Financings
nil
Stock
Options
4,314,999
Fully
diluted
168,208,457
Analyst Coverage
Analyst
Institution
Target/Recommendation
Pat Donnelly Salman
Partners Under review
|
|
Property Locations in Ontario, Canada
Liberty’s Mining Claims in the Shaw Dome
Nickel Belt
Floatation of Nickel in Concentrate at
the Redstone Mill
McAra Lake Cobalt Project
The cobalt deposit at McAra Lake consists of rich veins of cobaltite typically
grading up to 11% cobalt over 1m-1.5m with intersections of 19.46m averaging
1.1% cobalt. It also contains significant copper with intersections of
chalcopyrite containing 11.9% copper over 3.1m as well as varying credits of
nickel up to 1%.
The McAra Lake cobalt deposit offers Liberty the potential to develop a primary
resource of cobalt. The adjacent Ray Township properties have many surface pits
that may also develop similarly. A drill program is
scheduled to commence in 2010 to further develop these two contiguous
properties.
Management
Dr. Gary Nash BSc PhD (Physics), President and CEO
Bill Woods CMA, CFO
Jason Cyr, General Manager
Corey McLister, Environmental Coordinator
Barry Johnson, Safety Coordinator
Directors
Dr. Gary Nash BSc PhD (Physics)
Xu Guangping
John Pinsent BCom CA
Wu Shu
Wang Xingrui
Dr. Tao Li BE PhD (Mine Engineering)
Gil Bertrand
Head Office
311A 8925-51 Avenue
Edmonton, Alberta,T6E 5J3
Phone:780-485-2299 Fax: 780-485-22253
Redstone Mine Site
Box 5114 South Porcupine, Ontario, PON 1H0
Phone: 705-240-6450 Fax: 705-240-6451
|