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Investor Presentation


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Investor Presentation

  1. 1. Liberty Mines Inc. (TSX: LBE)Nickel Production and Exploration in TimminsChris Stewart, President & CEO January 2012
  2. 2. Forward-Looking StatementFORWARD-LOOKING INFORMATION AND STATEMENTSThis presentation contains “forward-looking information” and “forward-looking statements” within the meaning ofapplicable securities laws. This information and statements address future activities, events, plans, developments andprojections. 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 reflectassumptions, estimates, opinions and analysis made by management of Liberty in light of its experience, currentconditions, 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 causeLiberty’s actual results, performance and achievements to differ materially from those expressed or implied by theforward-looking information and statements and accordingly, undue reliance should not be placed thereon. Risks anduncertainties that may cause actual results to vary include but are not limited to the speculative nature of mineralexploration and development, including the uncertainty of reserve and resource estimates; operational and technicaldifficulties; the availability of suitable financing alternatives; fluctuations in nickel and other commodity prices; changesto 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 asother risks and uncertainties which are more fully described in our annual and quarterly Management’s Discussion andAnalysis and in other filings made by us with Canadian securities regulatory authorities and available No invitation to purchase securities is being made. Liberty disclaims any obligation to update or reviseany 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 Mill & Mine start-up and positive cash flow• Solid pipeline of exploration projects• Strategic relationship with Jilin Jien Nickel Industry Co.• Strong nickel market fundamentals 3 3
  4. 4. Our Assets• Redstone Mill and Nickel Concentrator – 2,000 ton/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 Foundation for re-launching Liberty 4
  5. 5. Liberty Mines – Property Locations 5
  6. 6. Upcoming Milestones & ObjectivesShort-term• Restart mining and milling operations Q1 2012• Expand exploration program Q1 2012• Generate positive operating cash flow Q2 2012Long-term• Expand Liberty beyond Shaw Dome area 2013-2014• Construct New Tailings Pond Facility 2014• Increase resources to provide 12+ years operating life 2015 New management team in place 6 6
  7. 7. Current Operational Status McWatters Mine 170,000 tonnes of broken ore underground 26,000 tonne surface stockpile On care & maintenance Redstone Mine On care & maintenance U/G exploration drilling underway Redstone Mill On schedule for completion of refurbishment work by Nov. 30/11 7 7
  8. 8. Expand Current Tailings Pond Facility Current Pond Upgrade •Meets environmental standards •3 year life Proposed New Pond •Construction in 2014 - 15+ year tailings pond facility 8 8
  9. 9. Vision for our operations Redstone Mill 2,000 tpd capacity Current Surface Ore Stockpile of Permitted @ 1,500 tpd now 26,000 TonnesAverage planned Mill rate per annum 2012 to 2014 1,372 tpdMcWatters Mine792,497 t @ 0.58% Ni Hart MineProduction Rate 1,546,000 t @ 1.40% Ni1,400 tpd to 500 tpd Production Ratethru to Q4/2013 250 tpd starting Q1/2013 500 tpd from Q4/2013 Redstone Mine 26,500 t @ 1.14% Ni Production Rate 200 tpd thru Q3/2012 Reserves 148,200 t Lower Zone 737,000 t @ 1.57%– High Potential & High Grade 9 9
  10. 10. Hart Mine Indicated - 1,546,000 tonnes @1.40% Ni Inferred 322,000 tonnes @1.40% Ni Blue Area is adisseminated Sulphide Zone– Potential to add significant tonnes to the current resource Ramp access from surface – easily adapted to access other ore lenses nearby 10 10
  11. 11. Potential New Ore Lense the East Approx. 300m to 11 11
  13. 13. Claims in the Shaw Dome Opportunities for new exploration 13 13
  14. 14. Exploration in the Shaw DomeCurrent Exploration Program 2011:•Focus is on the Hart East drillintersections (300m east of the mainHart deposit) – working on expandingthe size of the resource•In-house underground drilling on thelower Redstone deposit to moveresources from inferred to indicatedstatus•Croxall (MA05-01) – follow up drillingto twin historic holes•Groves – drill program complete for2011 14 14
  15. 15. Typical Deposit StructureNickel Ore gets trapped in embayments with sources of sulphur in footwall rocks Footwall rock – iron formation (Hart) or graphite (W4) 15 15
  16. 16. Groves Project• Followed up on historic resource (non 43-101) of 500,000 tonnes of 1.5% combined Cu/Ni.• Completed a 13 hole drill program totally 1,245 meters• Best drill hole intercept from GR- 11-05 which graded 1.69% Ni, 1.66% Cu and 0.73 G/T Au over drilled width of 15.50 meters• Refer to Liberty’s press release 10 km road access 16-11 issued on October 25, 2011 for more details on drill results 16 16
  17. 17. Board of Directors• Mr. 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 a Director of JJNICL.• Mr. John Pinsent, Lead Director - Founding partner in St. Arnaud Pinsent Steman Chartered Accountants. 10+ years of experience with Ernst & Young LLP. Significant mining industry experience.• Dr. Tao Li, Director - Specialist in geotechnical engineering and is the director and principal of an independent consulting company. 30+ years of mining and engineering experience (Mount Isa Mines, WMC Resources, Gold Fields and Newcrest Mining)• Mr. Kim Oishi, Director - 17 years of capital markets experience, serving as an officer and 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 17 17
  18. 18. Experienced Management Team• Chris Stewart, President & CEO – Professional engineer with 20+ years of mine development and mine operations experience. Track record in mining services and operations. Recently came from BHP Billiton where he was the Project Manager for a $400 Million shaft project. Former VP of Ops for Lake Shore Gold in Timmins.• William Woods, CFO – 25+ years of experience in corporate finance and accounting in the mining and transportation industries. Previously CFO for Valens Pharma Ltd. and VP of Finance for Northern Transportation Company Limited.• Peter Caldbick, VP Exploration – 28+ years of geological experience in the mining industry with the past 7 years spent specifically exploring the Shaw Dome in Timmins.• Brendan Zuidema, General Manager – 20+ years of experience in the mining industry. He has held various senior positions including Operations General Foreman at the Montcalm Mine, Mine Manager at Lake Shore Gold’s Timmins Mine and most recently Area Manager for Dumas Contracting in Timmins.• Keyvan Salehi, Director Technical Services & Corporate Strategy – Professional engineer with 10+ years of experience in the mining industry. Obtained MBA through Kellogg/Schulich program at York University. Previous positions include Chief Engineer for Lake Shore Gold at the Bell Creek Complex and Project Manager for DMC Mining on various projects around the Sudbury area.• Bryan Neeley, Environmental Manager – 15+ years of experience in environmental management including senior roles at Tembec, Xstrata and Lake Shore Gold.• Rock Bouchard, Health & Safety Manager – 24+ years of experience in the mining industry including with senior roles at Dumas and Lake Shore Gold in the Timmins camp. Mining and operational experts 18 18
  19. 19. Relationship with Jilin Jien• Largest Liberty shareholder (60% ownership)• Provided a credit facility of $20.0 million since June 2011• Fully supportive of the “new” Liberty Mines and the operating plan developed for moving the company forward Strategic partner 19 19
  20. 20. Market Data• Trading Symbol: LBE• Listing: TSX• Recent share price: $0.15• 52-Week Range $0.07 - $0.27• Shares outstanding 214.2 million• Market Capitalization $31.0 million• Fiscal year end Dec. 31 20 20
  21. 21. Investment Highlights• New senior leadership team with significant mining and operational experience• Only mill facility within the Shaw Dome Nickel region• Progressing towards McWatters mine start-up and positive cash flow• Solid pipeline of exploration projects• Strategic relationship with Jilin Jien Nickel Industry Co.• Strong nickel market fundamentals 21 21
  22. 22. Appendix 22
  23. 23. 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 23
  24. 24. Ore Sources 24 24
  25. 25. New Tailings Dam Design 25 25
  26. 26. Hart - 445 Level (Preliminary) 26 26