Post by
doingthejob on Nov 10, 2010 5:05pm
NEWS, Can't Say You Weren't Told!
FSC / Press Release
Liberty Announces Change in Management and Reports Third Quarter 2010 Financial Results
Edmonton, Alberta CANADA, November 10, 2010 /FSC/ - Liberty MinesInc. (LBE - TSX), ("Liberty or the Company") wishes to announce thedeparture of Dr. Gary Nash, President & CEO and announces theappointment of Jay Richardson as interim CEO while the Companyundertakes a search for a new CEO. Dr. Nash has also resigned as adirector of the Company.
Liberty also wishes to report financial results for the thirdquarter ended September 30, 2010 ("Q3") from its mining operations atthe Redstone and McWatters nickel mines near Timmins Ontario. Alldollar amounts are expressed in Canadian dollars unless specifiedotherwise.
Third quarter highlights:
* The Redstone nickel concentrator ("Mill") processed 95,587 tonnesduring Q3; an increase of 69% over the 56,520 tonnes processed duringthe second quarter of 2010.
* Milling cost per tonne in Q3 was $17.57.
* Average metallurgical recovery was 82.1% (from an average headgrade of 0.63%) with 49.5% of the ore processed from the McWatters openpit.
* Metal sold to Xstrata was 955,688 pounds of nickel ("Ni"),47,817 lbs of copper, and 12,784 lbs of cobalt subject to finalsettlement.
* Cost to produce a pound of nickel in Q3 was US$6.89* from McWatters underground ore.
* Cash operating profit from mining operations was $486,377 before non-cash charges.
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Mine production statistics during Q3:
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Mine Tonnes Produced Grade Ni %
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Redstone 8,221 0.75
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McWatters Underground 41,712 0.94
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McWatters Open Pit 76,170 0.34
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Mill processing statistics during Q3:
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Mine Wet Grade Dry
Tonnes Ni % Tonnes
Milled Milled
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Redstone 5,803 0.75 5,715.4
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McWatters Underground 42,427 0.94 41,916.3
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McWatters Open Pit 47,357 0.34 46,705.2
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* This non-GAAP statistic includes mining, milling,transportation, smelting, refining, price participation and marketingcosts but excludes mine depletion and operating asset amortizationcharges. The average head grade processed in Q3 was 20.3% lower than inthe second quarter of 2010 which increased the cost to produce a poundof nickel.
As explained in the October 12, 2010 press release, the minedgrade of the underground panels at McWatters was significantly lessthan the reserve grade. Consequently, the anticipated cost to produce apound of nickel during the last half of 2010 near US$4.50 cannot beachieved. However, ore grades from development of the 65m, 85m, 120mand 140m levels were mainly consistent with the estimated reservegrades from those sections of the mine. Development from those levelsenables approximately 550,000 tonnes of ore grading 0.70%-0.74% Ni tobe mined by sublevel caving, which represents about 85% of theunderground deposit. Based on that range of head grades, the cost toproduce a pound of nickel is estimated to be approximately US$5.50provided the Mill processes around 40,000 tonnes of ore per month.
Outlook
Sublevel caving is about to being at McWatters with a reserve gradeof 2-2 1/2 times the open pit ore grade milled during Q3. The pounds ofnickel in concentrate from the Mill and the ensuing gross smelterrevenue should increase proportionately.
Financial Results
Revenue including final settlement adjustments was $8.9 million and$23.8 million for the three and nine months ended September 30, 2010compared to
.72 million and
.72 million for the same periods of2009. Cash operating profit for the three and nine months endedSeptember 30, 2010 was
.5 million and $2.4 compared to a cashoperating loss of $2.1 million and $7.3 million during the same periodslast year. Net losses for the three and nine months ended September 30,2010 were $2.7 and 10.1 million compared to $2.7 and $7.8 million forthe same period of 2009.
Net working capital for the nine months ended September 30, 2010was a deficiency of $39.3 million compared to $30.6 million as atDecember 31, 2009.
Liberty had capital expenditures of
.8 million and $2.7 millionduring the three and nine months ended September 30, 2010. The majorityof the expenditures related to the additional equipment required tobring the McWatters mine into full production. Mine developmentexpenditures of
.2 and $3.6 million for the three and nine monthsended September 30, 2010 related to the continued development of theMcWatters mine. Expenditures related to the development of theMcWatters open pit was $72,193 during Q3 and year to date is $571,531.
Liberty Mines financial statements for the third quarter endedSeptember 30, 2010 are available at www.libertymines.com andwww.sedar.com. These financial statements should be read inconjunction with the notes and management's discussion and analysisavailable at the same websites.
About Liberty Mines Inc.
Liberty Mines Inc. is a producer of nickel and is focused on theexploration, development and production of nickel, copper, cobalt andplatinum group metals from its properties in Ontario, Canada. It ownsand operates the Redstone nickel concentrator near Timmins Ontario.
CAUTIONARY STATEMENT
No stock exchange, securities commission or other regulatoryauthority has approved or disapproved the information contained herein.This News Release includes certain "forward looking statements". Allstatements other than statements of historical fact included in thisrelease, without limitation, statements regarding future plans andobjectives of Liberty, are forward looking statements that involvevarious risks and uncertainties. There can be no assurance that suchstatements will prove to be accurate and actual results and futureevents could differ materially from those anticipated in suchstatements. Important factors that could cause actual results to differmaterially from Liberty's expectations are: exploration risks;commodity prices; regulatory approvals; receipt of mining permits andleases; equipment failures and shortage of supplies; and assumedstartup and operating costs detailed herein and from time to time inthe filings made by Liberty with securities regulators. Forward-lookingstatements speak only as of the date on which they are made. TheCompany undertakes no obligation to publicly update any such statementor reflect new information or the occurrence of future events orcircumstances, except where required by securities regulations.Accordingly, readers should not place undue reliance on forward-lookingstatements.
For further information please contact:
Bill Woods, CFO
Phone (780)485-2299
e-mail: BWoods@libertymines.com
Source: Liberty Mines Inc. (TSX: LBE) https:// www.libertymines.com
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