Liberty Mines Files NI 43-101 Technical Report for the Preliminary Economic Assessment on its Hart Nickel Project

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[{"type":"text","content":"\n\n\n\n\n\nTSX:  LBE\n\n\nTORONTO, Oct. 4, 2012 /CNW/ - Liberty Mines Inc. (TSX: LBE) (\"Liberty\"\n or the \"Company\") today announced that it has filed on SEDAR a National\n Instrument 43-101 compliant technical report on the results of the\n Preliminary Economic Assessment (PEA) completed for its Hart Project, a\n nickel deposit located in Timmins Ontario, and approximately five\n kilometers from the Company's Redstone mill.  The PEA was prepared by\n Stantec Inc.\n\n\nHighlights of the Hart Project Preliminary Economic Assessment: \nAs previously disclosed by Liberty Mine on August 23, 2012, highlights\n of the PEA include:\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 $105 million.\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\nHart Project Description\nThe Hart Project will be a stand-alone underground mine used for the\n extraction of nickel ore, and will share synergies with Liberty's\n existing assets and facilities.  Underground production will be done\n primarily via long-hole mining and transported to surface using diesel\n trucks.  The Hart Mine is expected to produce an average of 750 tonnes\n of nickel ore per day throughout its 8 year life of mine. The PEA\n assumes that construction of the mine will begin in 2013 and will reach\n a steady rate of production by 2017.\n\n\nCautionary Note concerning Resource Estimates used in this PEA\nLiberty cautions that the PEA referred to in this announcement is\n preliminary in nature and includes inferred mineral resources are\n considered too speculative geologically to have the economic\n considerations applied to them that would en...

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