"The Company has not yet attained the status of a producing issuer defined in NI 43-101 as an issuer which has gross revenues of at least $30 million from the most recently completed fiscal year, and at least $90 million gross revenue in the aggregate over the last three fiscal years, as disclosed in the annual audited financial statements. Independent Qualified Persons are therefore required to construct the Company's technical reports until that status is attained. Part of the McWatters feasibility study was written by a Qualified Person who was an employee of the Company. To remedy this situation, Liberty has undertaken to have an updated technical report for the McWatters mine reviewed by independent Qualified Persons completed in approximately six months."

So how does or will this delay affect what was the proposed working schedule for the McWatters Mine? Is the feasiblity study any less after today's clarification of facts? The link below is the recent update.

http://app.quotemedia.com/quotetools...

Particularly,

"EDMONTON, ALBERTA--(Marketwire - Sept. 15, 2008) - Liberty Mines Inc. ("Liberty or the Corporation") (TSX:LBE) is pleased to announce that pre-production has commenced at the McWatters nickel mine from the 65m level. Development of the sills from the upper levels at 65m and 100m while the ramp is continued to the 130m level will provide 200-600 tonnes per day ("t/d") of pre-production ore with an average of 400 t/d during the fourth quarter ("Q4") of 2008. Production from the mine will increase up to 1400 t/d in Q1 2009. By early Q2 2009, production may be increased to 1600-1700 t/d as the ore body can be mined at a higher production rate using long hole stoping. Ore will be concentrated at Liberty's Redstone nickel concentrator, located 9.5 km west at the Redstone Mine site.

Blue, I have to agree with you on the fact that for this to be NI 43-101 compliant there are regulations and guides in place. These same strict requirements are what makes the operations and resources compliant so that the outside world/investment/institutional types can relate and go ahead as it meets a requirement one understands in the mining and investing world. It ends up being a pre-requisite as you know.

The crappy part is that there are many paragraphs in the clarification and each deals with something different in or about the operation, but most end with the same sentance regarding non-compliance to a NI 43-101 definition or verify classifications etc

Here's one example:

"The Company has not yet completed the work necessary to verify the classification of the resource and is not treating the resource figure as an NI43-101 defined resource verified by a Qualified Person at this time and therefore the resource figure should not be relied upon."

Does this put the brakes on the financing? Is the compliance issue an issue with the financing succeeding or going through? We do know that regulatory approval was "one of" the hurdles.

I would guess it's something for the money people to review and digest?