Liberty Minerals Presentation - April 2012
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Transcript of Liberty Minerals Presentation - April 2012
Nickel Production and Exploration in TimminsChris Stewart, President & CEO
Q2/ 2012
TSX: LBE
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 www.sedar.com. 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.
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Investment Highlights
• New senior leadership team with significant mining and operational experience
• Only mill facility within the Shaw Dome Nickel region
• Progressing towards ramp-up 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
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
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Liberty Mines – Property Locations
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Timmins, ON
Upcoming Milestones & Objectives
Short-term Long-term
Q1 2012• Restart mining and milling operations
• Expand exploration program
2013-2014• Expand Liberty beyond the ShawDome area
Q2-Q3 2012• Generate positive operating cash flow
2014•Construction of a new Tailings Pond Facility
2012• Produce 4 million lbs of Nickel
• Increase ore resources
2015•Increase resources to provide 12+ years of operating life
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Current Operational Status
Redstone Mill• Production has restarted – ramping up to 1,500 tpd
• Major refurbishment work completed
• Commissioning work completed• 30,000 tonne surface stockpile
McWatters Mine• 15,000 tonnes to surface
• Ramping up to 1,500 tpd
• 155,000 tonnes of broken ore underground
• Blast hole drilling underway
Redstone Mine• On care & maintenance• U/G Exploration drilling program planned for 2012
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Expand Current Tailings Storage Facility (TSF)
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Current TSF Upgrade
• Meets environmental standards
• 3 year life
Proposed New TSF
• Construction in 2014 -> 15+ year tailings pond facility
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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
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
Current Surface Ore Stockpile of 30,000 Tonnes
McWatters Mine
792,497 t @ 0.58% Ni
Production Rate
1,500 tpd Q1/2012
McWatters Mine
792,497 t @ 0.58% Ni
Production Rate
1,500 tpd Q1/2012
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
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 Mill
2,000 tpd capacity
Permitted @ 1,500 tpd now
Redstone Mill
2,000 tpd capacity
Permitted @ 1,500 tpd now
Vision for our operations
Current Resources and Reserves
DepositResource / Reserve Category
TonnesGrade (Ni%)
Contained Ni (lbs)
Hart Resource Indicated 1,546,000 1.40% 47,716,860
Inferred 322,000 1.27% 9,015,585
McWatters Reserve
Proven &
Probable791,000 0.61% 10,637,526
Redstone Reserve
Proven &
Probable50,252 1.48% 1,644,248
Resource Inferred 737,000 1.57% 25,509,472
Grand Total 3,446,252 1.24% 94,523,692
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155,000 t broken
ore in the stope –
Blast hole drilling
underway
155,000 t broken
ore in the stope –
Blast hole drilling
underway
Shallow Mine –
Ramp to Surface
Shallow Mine –
Ramp to Surface
Infrastructure in place -
multiple draw points on
multiple levels
Infrastructure in place -
multiple draw points on
multiple levels
Surface Elev.
McWatters Mine
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Redstone Mine – Resource Drilling – At Depth Potential
1600m level
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Hart Mine
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Ramp access from
surface – easily adapted
to access other ore
lenses nearby
Ramp access from
surface – easily adapted
to access other ore
lenses nearby
Indicated - 1,546,000 tonnes @1.40% Ni
Inferred 322,000 tonnes @1.40% Ni
Indicated - 1,546,000 tonnes @1.40% Ni
Inferred 322,000 tonnes @1.40% Ni
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Hart – 445 Level (Preliminary)
Hart East - Potential New Ore Lense
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Approx. 300m to the East
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Hart Deposit & Hart East Potential
Gabbro D
ykeOpen
Open
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Opportunities for new exploration
Claims in the Shaw Dome
A6 Project – 2012 VTEM & Geochem Target
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Hart & Hart East Deposits
Redstone Mine & Mill
Croxall
McWatters Mine
Additional Drill Targets
Shaw Dome Area
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A6
Exploration Program 2012
Primary Focus Secondary Targets
Hart & Redstone Properties Croxall, Groves and McAra
Properties
•Deep drilling on Hart, Hart
East and Redstone to
increase resources
• New drilling on prospective
targets on Hart property
•Underground drilling to
confirm ore resources at
Redstone
•Complete further geophysics
work
•Identify additional drill targets
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Public markets and mining experience
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.
Board of Directors
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Mining and operational experts
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 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 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 in the Sudbury area.
Management team
• 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
Our Strategic Partner
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Trading Symbol: LBEListing: TSX
Recent share price: $0.1452-Week Range $0.07 - $0.22Shares outstanding 214.2 million
Market Capitalization $29.0 millionFiscal year end Dec. 31
Market Data
Investment Highlights
• New senior leadership team with significant mining and operational experience
• Only mill facility within the Shaw Dome Nickel region
• Restarted Mill and Mine operations in Q1/2012• Targeted nickel production of 4 million Lbs in 2012
• Solid pipeline of exploration projects
• Strategic relationship with Jilin Jien Nickel Industry Co.
• Strong nickel market fundamentals
25
Appendix
26
27
Nickel Ore gets
trapped in
embayments with
sources of sulphur in
footwall rocks
Nickel Ore gets
trapped in
embayments with
sources of sulphur in
footwall rocks
Footwall rock –
iron formation
(Hart) or
graphite (W4)
Footwall rock –
iron formation
(Hart) or
graphite (W4)
Typical Deposit Structure in the Shaw Dome
28
Ore Sources
*Source: RBC
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