Liberty Mines Inc. (“Liberty or the Company”) is pleased to report the third quarter of 2010 (“Q3”) production results from its mining operations at the Redstone and McWatters nickel mines near Timmins Ontario. The Redstone nickel concentrator (“Mill”) processed 95,587 tonnes during the third quarter of 2010 (“Q3”); an increase of 69% over the 56,520 tonnes processed during the second quarter of 2010. As the McWatters open pit provided 49.5% of the ore milled during Q3, the average processed grade was 0.63% nickel (“Ni”), down 20% from the average grade of 0.79% Ni processed during Q2. However, the underground ore at McWatters graded 0.94% Ni, up 21% from the 0.78% reported in Q2; with a 3.5% increase in milled tonnes in Q3 over Q2. Mine production statistics during Q3 were as follows:
The upper zone at Redstone is scheduled to be mined out by the end of 2010. Deteriorating ground conditions in certain stopes became evident during the third quarter, which decreased production from the mine. Going forward, only the stopes that can be easily and safely mined will be exploited.
Once the mining of panel 2 on the 140m level is finished and a slot is completed from the 140L to pit bottom, sublevel caving of the main ore body can commence later this month.
The cut-and-fill panels at the 155m to 120m levels have now been 73% mined yielding 67,596 tonnes grading 1.15% Ni with 36,200 tonnes at 1.14% Ni remaining to be mined. The ore body in these panels was more blocky and discontinuous than expected. As a result, the grade was significantly lower than the 1.94% Ni over 92,041 tonnes estimated by SRK Consulting in the feasibility study dated December 2009. This has negatively impacted the expected revenue to be generated during 2010 to date from those panels.
The Closure Plan for the mine is expected to be submitted to the Ministry of Northern Development of Mines and Forestry shortly upon the completion of a background environmental study. Construction of the mine has now been scheduled for April 2011.
Overall metallurgical recovery was 82.1% with that of the McWatters underground ore being 87.5% and the open pit ore 76.7%. Tonnes processed in Q3 were as follows:
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.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain “forward looking statements”. All statements other than statements of historical fact included in this release, without limitation, statements regarding future plans and objectives of Liberty, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Liberty’s expectations are: exploration risks; commodity prices; regulatory approvals; receipt of mining permits and leases; and assumed startup and operating costs detailed herein and from time to time in the filings made by Liberty with securities regulators. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstances, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.