Liberty Mines (TSX:LBE), a nickel producer based in Ontario, Canada, reported today third quarter production results for its Redstone and McWatters mines near Timmins, Ontario.
For the third quarter of 2010, the Redstone nickel mine produced approximately 8,221 tonnes with a grade of 0.75% nickel. The company expects the upper zone of the mine to be mined out by the end of 2010.
For the same period, the open pit McWatters mine produced about 101,845 tonnes grading 0.34% nickel. The underground McWatters mine produced about 41,712 tonnes grading 0.94% nickel.
At the McWatters Mine, the cut-and-fill panels at the 155m to 120m levels have now been 73% mined, yielding 67,596 tonnes grading 1.15% nickel. There are 36,200 tonnes grading 1.14% nickel remaining.
The grades are lower than that estimated in the company’s 2009 feasibility study because the ore body in the panels were more blocky and discontinuous than expected, the company said.
The company also announced that the construction of its Hart mine is also slated to begin in April 2011.
According to the company’s 2008 resource study, the Hart mine has an indicated resource of 1.4 million tonnes grading 1.5% nickel and 0.1% copper. The mine’s inferred resource is estimated to be roughly 0.3 million tonnes grading 1.36% nickel and 0.09% copper.
The company’s share price has increased 2% intraday to trade at CAD$0.255 as of 11:05 am ET. At that price, the company’s market capitalization is roughly $43 million.