Business
Liberty Mines Announces Positive Preliminary Economic Assessment on its Hart Nickel Project
TSX:  LBE  TORONTO, Aug. 23, 2012 /CNW/ - Liberty Mines Inc. (TSX: LBE) (...
About this update from Electric Metals Usa Limited
[{"type":"text","content":"\n\n\n\n\n\nTSX:  LBE \n\n\nTORONTO, Aug. 23, 2012 /CNW/ - Liberty Mines Inc. (TSX: LBE) (\"Liberty\" or the \"Company\") today\n announced that a positive preliminary economic assessment has been\n completed for its Hart Project, a nickel deposit located in Timmins\n Ontario, and approximately five kilometers from the Company's Redstone\n mill.  The preliminary economic assessment was prepared by Stantec\n Consulting.  All dollar amounts are in Canadian currency.  A final\n version of the Preliminary Economic Assessment will be filed on SEDAR\n within 45 days as required.\n\n\nPreliminary Economic Assessment Study Highlights\n\n\nEstimated pre-tax Net Present Value (NPV) of $35.8 million using an 8%\n discount rate and a $10 per pound of nickel price.\n\n\nEstimated pre-tax NPV of $81.5 million using an 8% discount rate and a\n $12 per pound nickel price.\n\n\nLife of mine is 8 years.\n\n\nTotal life of mine production of 38,497,588 payable nickel pounds.\n\n\nTotal gross revenue is estimated at $429.3 million using a $10 per pound\n nickel price. The gross revenue includes fees generated from the\n production of copper and cobalt by-products).\n\n\nEstimated total capital costs (CAPEX) for the project is estimated at\n $105million.\n\n\nEstimated mining operating costs (OPEX) of $109.6 million, or an average\n of $64.43 per tonne.\n\n\nEstimated Internal Rate of Return (IRR) of approximately 23%.\n\n\nCut-off grade of 0.46% Nickel.\n\n\n\"We are very encouraged by the positive results of the Preliminary\n Economic Assessment and our prospects for the Hart Project,\" said Chris\n Stewart, President and CEO of Liberty Mines Inc.  \"The PEA suggests\n that the Hart Project has the potential to become economically viable,\n generate positive cash flow, and take advantage of the available\n capacity at our Redstone Mill.  Recent drill results, although\n preliminary at this time, also suggest that the deposit has the\n potential for mineralization expansion at depth and stronger\n economics.\"\n\n\nMr. Stewart added, \"With the only operating mill in the Shaw Dome\n Region, a large land package that includes the Hart East Deposit whose\n initial drill results demonstrated the potential for a significant\n mineralized zone, as well as the opportunity for property consolidation\n in the region, we b...