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Liberty mines investor presentation march 2012 final


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Liberty mines investor presentation march 2012 final

  1. 1. TSX: LBENickel Production and Exploration in Timmins Q1/ 2012Chris Stewart, President & CEO
  2. 2. Forward-Looking Statement This presentation contains “forward-looking information” and “forward-looking statements” within the meaning of applicable securities laws. This information and statements address future activities, events, plans, developments and projections. All statements, other than statements of historical fact, constitute forward-looking statements or forward-looking information. Such forward-looking information and statements are frequently identified by words such as “may”, “will”, “should”, “anticipate”, “plan”, “expect”, “believe”, “estimate”, “intend” and similar terminology and reflect assumptions, estimates, opinions and analysis made by management of Liberty in light of its experience, current conditions, expectations of future developments and other factors which it believes to be reasonable and relevant. Forward-looking information and statements involve known and unknown risks and uncertainties that may cause Liberty’s actual results, performance and achievements to differ materially from those expressed or implied by the forward-looking information and statements and accordingly, undue reliance should not be placed thereon. Risks and uncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties; the availability of suitable financing alternatives; fluctuations in nickel and other commodity prices; changes to and compliance with applicable laws and regulations, including environmental laws and obtaining requisite permits; political, economic and other risks arising from Liberty’s activities; fluctuations in foreign exchange rates; as well as other risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at No invitation to purchase securities is being made. Liberty disclaims any obligation to update or revise any forward-looking information or statements except as may be required by law. 2
  3. 3. Investment Highlights • New senior leadership team with significant mining and operational experience • Only mill facility within the Shaw Dome Nickel region • Progressing towards re-start of Mill & Mine operations and positive cash flow • Solid pipeline of exploration projects • Strategic relationship with Jilin Jien Nickel Industry Co. • Strong nickel market fundamentals 3
  4. 4. Our Assets• Redstone Mill and Nickel Concentrator – 2,000 tonnes per day capacity• McWatters Mine – 792,000 tonnes @ 0.58% Ni• Hart Deposit – 1,546,000 tonnes @1.40% Ni• Redstone Mine – 737,000 tonnes inferred @ 1.57%Ni• Groves Property – 500,000 tonnes historic @ 1.5% combined Ni/Cu (non 43-101 compliant)• Croxall Property – historic drill hole intercept verified in 2011 Foundation for re-launching Liberty 4
  5. 5. Liberty Mines – Property Locations Timmins, ON 5
  6. 6. Upcoming Milestones & ObjectivesShort-term Long-termQ1 2012 2013-2014• Restart mining and milling • ExpandLiberty beyond the Shaw operations Dome area• Expand exploration programQ2-Q3 2012 2014• Generate positive operating cash •Construction of a new Tailings Pond flow Facility2012 2015• Produce 4 million lbs of Nickel •Increase resources to provide 12+• Increase ore resources years of operating life 6
  7. 7. Current Operational StatusRedstone Mill • Major refurbishment work completed • Commissioning is in progress • Ready for production restart • 26,000 tonne surface stockpileMcWatters Mine • Ready for production restart • 175,000 tonnes of broken ore undergroundRedstone Mine • On care & maintenance • U/G Exploration drilling underway Preparing to re-start operations 7
  8. 8. Expand Current Tailings Storage Facility (TSF) Current TSF Upgrade • Meets environmental standards • 3 year life Proposed New TSF • Construction in 2014 -> 15+ year tailings pond facility 8
  9. 9. Vision for our operations Current Surface Ore Stockpile of Redstone Mill 26,000 Tonnes 2,000 tpd capacityPermitted @ 1,500 tpd nowMcWatters Mine792,497 t @ 0.58% NiProduction Rate1,500 tpd Q1/2102 Hart Mine 1,546,000 t @ 1.40% Ni Production Rate 250 tpd starting Q3/2013 ramping up to 750 tpd by 2017 Deposit is open at Depth Redstone Mine Lower Zone Resource 737,000 t Inferred @ 1.57%– High Potential & High Grade Deposit is open at Depth Production Rate 300 tpd from Q1/2014 9
  10. 10. McWatters Mine Surface Elev. Shallow Mine – Ramp to Surface 170,000 t broken ore in the stope – ready to start mining Infrastructure in place - multiple draw points on multiple levels 10
  11. 11. Redstone Mine – Deep Mining Potential Surface Potential Shaft from surface or Winze from 1500 Level Typical Redstone OreExisting Ramp fromSurface to 1600 Level1600 LEVEL INFERRED RESOURCE 737,000 TONNES @ 1.57% NI Below Conceptual Shaft the 1600 Level – Stations & Main Mining Remains open at Levels depth 11
  12. 12. Hart Mine Indicated - 1,546,000 tonnes @1.40% Ni Inferred 322,000 tonnes @1.40% Ni Blue Area is adisseminated SulphideZone – Potential to add significant tonnes to Ramp access from the current resource surface – easily adapted to access other ore lenses nearby 12
  13. 13. Hart – 445 Level (Preliminary) 13
  14. 14. Hart East – Potential New Ore Lense 300m 14
  15. 15. Claims in the Shaw Dome Opportunities for new exploration 15
  16. 16. Shaw Dome Area Additional Drill Targets Croxall Redstone Mine & Mill Hart & Hart East Deposits McWatters Mine 16
  17. 17. Exploration Program 2012Primary Focus Secondary TargetsHart & Redstone Properties Croxall, Groves and McAra Properties•Deep drilling on Hart, Hart •Complete further geophysics East and Redstone to work increase resources •Identify additional drill targets• New drilling on prospective targets on Hart property•Underground drilling to confirm ore resources at Redstone 17
  18. 18. Board of DirectorsMr. Wu Shu, Director & Chairman of the Board – CEO of Jilin Jien Nickel Industry Co.Previously President of Jilin Haorong Nonferrous Metal Group Co., Ltd. and CFO and aDirector of JJNICL.Mr. John Pinsent, Lead Director - Founding partner in St. Arnaud Pinsent StemanChartered Accountants. 10+ years of experience with Ernst & Young LLP. Significantmining industry experience.Dr. Tao Li, Director - Specialist in geotechnical engineering and is the director andprincipal of an independent consulting company. 30+ years of mining and engineeringexperience (Mount Isa Mines, WMC Resources, Gold Fields and Newcrest Mining)Mr. Kim Oishi, Director - 17 years of capital markets experience, serving as an officerand director of a number of public companies, and focused on China since 2004.Dr. Shu Zhang, Director - President & COO of Jien International Investment Ltd. (JIIL).He is a mining engineer with 38+ years of mining industry experience working in China,Australia and Canada. Public markets and mining experience 18
  19. 19. Management teamChris Stewart, President & CEO – Professional engineer with 20+ years of mine developmentand mine operations experience. Track record in mining services and operations. Recently camefrom BHP Billiton where he was the Project Manager for the two new shafts at the Jansen Project.Former VP of Ops for Lake Shore Gold in Timmins.William Woods, CFO – 25+ years of experience in corporate finance and accounting in themining and transportation industries. Previously CFO for Valens Pharma Ltd. and VP of Finance forNorthern Transportation Company Limited.Peter Caldbick, VP Exploration – 28+ years of geological experience in the mining industrywith the past 7 years spent specifically exploring the Shaw Dome in Timmins.Brendan Zuidema, General Manager – 20+ years of experience in the mining industry. Hehas held various senior positions including Operations General Foreman at the Montcalm Mine, MineManager at Lake Shore Gold’s Timmins Mine and most recently Area Manager for DumasContracting in Timmins.Keyvan Salehi, Director Technical Services & Corporate Strategy – Professionalengineer with 10+ years of experience in the mining industry. Obtained MBA throughKellogg/Schulich program at York University. Previous positions include Chief Engineer for LakeShore Gold at the Bell Creek Complex and Project Manager for DMC Mining on various projects inthe Sudbury area. Mining and operational experts 19
  20. 20. Our Strategic Partner • Largest Liberty shareholder – Currently @60% ownership • Current Debt with Jilin Jien – approx. CDN$71 Million • Fully supportive of the “new” Liberty Mines and the operating plan developed for moving the company forward • Discussions are currently underway to restructure the debt so it more closely aligns with Liberty’s 5 year business plan 20
  21. 21. Market Data Trading Symbol: LBE Listing: TSX Recent share price: $0.14 52-Week Range $0.07 - $0.27 Shares outstanding 214.2 million Market Capitalization $29.0 million Fiscal year end Dec. 31 21
  22. 22. Investment Highlights • New senior leadership team with significant mining and operational experience • Only mill facility within the Shaw Dome Nickel region • Progressing towards re-start of Mill & Mine operations and positive cash flow • Solid pipeline of exploration projects • Strategic relationship with Jilin Jien Nickel Industry Co. • Strong nickel market fundamentals 22
  23. 23. Appendix 23
  24. 24. Typical Deposit Structure in the Shaw Dome Nickel Ore gets trapped in embayments withsources of sulphur in footwall rocks Footwall rock – iron formation (Hart) or graphite (W4) 24
  25. 25. Groves ProjectHistoric resource (non 43-101)of 500,000 tonnes of 1.5%combined Cu/Ni.Completed a 13 hole drillprogram totally 1,245 meters in2011Best drill hole intercept fromGR-11-05 which graded 1.69%Ni, 1.66% Cu and 0.73 G/T Auover drilled width of 15.50metersRefer to Liberty’s press release16-11 issued on October 25, 10 km road access2011 for more details on drillresults 25
  26. 26. Croxall 2011 follow up drill hole - 25m east of the Mustang discovery returns with 0.92% Ni over 4.20m Mustang Minerals 2005 nickel discovery of 0.63% Ni over 3.34m 26
  27. 27. Ore Sources 27
  28. 28. Nickel market trends• Nickel demand is growing*: – 17.1% in 2010 – 8.4% in 2011 – 9.5% in 2012• China is main driver for growth• Nickel consumption is dominated by the stainless steel sector – accounts for more than half of the global consumption of nickel *Source: RBC