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Liberty Options the Sothman Nickel Project from Xstrata
EDMONTON, Alberta. Liberty Mines Inc. (“Liberty or the Corporation”) is pleased to announce that it has completed an option agreement with Xstrata Nickel to earn up to a 100% interest in the Sothman nickel project located approximately 75 km south of Timmins Ontario. To earn a 100% interest in the Sothman project, Liberty must make a $500,000 exploration and development expenditure on the project by April 1, 2009; $750,000 in expenditures by December 31, 2009 and an additional expenditure of $750,000 by March 1, 2011 for a total of $2,000,000. The Corporation must also deliver a feasibility report to Xstrata along with a recommendation from Liberty’s Board of Directors on or before March 1, 2011 that it will put the Sothman project into commercial production. By December 31, 2011, commercial production must be achieved and a cash payment of $1,000,000 must be advanced to Xstrata. If the feasibility report shows an economically mineable resource of more than 4,000,000 tonnes, and Xstrata meets its financial obligations detailed within the option agreement, Xstrata has the back-in-right to earn a 50% interest in the project. The Xstrata option consists of 51 contiguous mining leases in Sothman, Kemp and Mond Townships. In addition, Liberty has staked an additional 24 claims (5408 hectares) surrounding these leases. The recently optioned leases, in addition to the 24 staked claims, form the Sothman property (the “Property”). The Property geology forms part of the Halliday assemblage, which consists of a wide range of volcanic rocks including komatiitic flows, similar to those hosting Liberty’s deposits in the Shaw Dome. Sulphur-rich sediments are also present in the lithological package, primarily in the form of graphitic horizons. The stratigraphic succession on the Property itself consists of calc-alkaline massive to pillowed andesites overlain by komatiitic flows, as well as mafic to intermediate volcanic rocks. This volcanic package strikes roughly east-west and dips steeply to the south. Nickel-sulphide mineralization occurs near or at the basal contact of the komatiitic layer along footwall embayments. To date, mineralization is restricted to the western margin of the ultramafic body, even though it has a strike length of over 4 km to the east. The deposit is comprised primarily of net-textured to heavily disseminated sulphides, ranging from 10% to 30% content by volume. Previous work on the property had been mainly undertaken by the former Falconbridge Limited. An historical (non National Instrument 43-101 compliant) mineral resource of 350,000 tons grading 0.89% Ni (0.5% Ni cut-off) or 190,000 tons at 1.24% Ni (1% Ni cut-off) (Falconbridge Nickel 1971) was reported. The average width of the deposit was 17.8 feet (5.43m) with the bulk of this tonnage to a vertical depth of only 500 feet (152m). There is a higher-grade core to parts of the deposit averaging >2% Ni with individual assays to 10% Ni and the deposit is wide open at depth. This resource is not National Instrument 43-101 compliant, and must not be relied upon. Overburden stripping work in 2001 was successful in exposing a classic Kambalda-style channel or embayment measuring approximately 20m along strike by up to 11m deep at the base of the host ultramafic flow. The channel contains net-textured and disseminated sulphides and is interpreted to be one of a number of such features along the strike length of the mineralized ultramafic. “The Sothman Properties become the third significant group of mining claims and leases assembled by Liberty for the exploration and development of nickel bearing ores with metal credits of cobalt, copper and platinum group metals. We are pleased to be offered the opportunity from Xstrata Nickel to explore its mining leases with the goal to provide either nickel in concentrate or direct feed to its facilities” said Gary Nash, Liberty’s President and CEO. “
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