The story quoting Nash is below. There is no doubt he was quoted as saying this and

it was published in the paper. As far as I know, there is nothing to say that he was misquoted

other than an anonymous board member saying he was told so in a private conversation with Nash

himself.

So the fact is we have 2 sources, the Sudbury Star and an anonymous poster. People are free

to believe either one. But there is no need for namecalling and personal attacks. Stick to facts.

Cheers,

Bluenoser

Time to get back into the nickel business -- (comment on this story)

MINING: Liberty Nickel is now mining at its Redstone and McWatters Mines

Posted By HAROLD CARMICHAEL THE SUDBURY STAR

Updated 2 months ago

Now is the time to get back into the nickel business, says the president and chief executive officer of a junior nickel miner with operations in Timmins and Gogama.

"We make money at $7 (U. S. per pound) nickel," Gary Nash of Liberty Nickel said Monday. "We make good money at $8 nickel and very good money at $9 and so forth. Above $10 would be excellent, (but) I don't think it will go above $10. The Chinese have too much pig iron (a form of nickel)."

Liberty Nickel is now mining at its Redstone and McWatters Mines, producing 300 and up to 500 tonnes of ore a day respectively. McWatters, which is in the development stage and has now reached 150 metres of depth, is producing nickel. Ore from the two sites is treated at an on-site concentrator and shipped to Xstrata Nickel's Falconbridge smelter in Greater Sudbury for processing.

In the event of a labour dispute involving Mine Mill Local 598/CAW next month, he said Liberty Nickel could ship its concentrate to China for smelting. That's because its majority owner is the Jilin Jien Nickel Industry Company in Panshi City.

Nash said the Vale Inco strike "helps (nickel prices) in the short term. It's taken a little bit of nickel out of the market."

Nash said the company's cost of production is close to $7 US per pound. Nickel was selling for $8.31 US per pound on the London Metal Exchange on Friday.

Liberty Nickel plans to open a third nickel mine -- Hart -- by mid-2010. That mine will be staffed by McWatters Mine employees, but could require an additional 15 employees.

"It's about 4.5 years of mine life," he said. "But we have only drilled about one-third of the project. It has 737,000 (tonnes of ore) inferred and 600,000 measured. It's good grade ore at 1.5% nickel."

Nash said it's hard to understand why nickel prices are in the $8-9 US range while inventories of the metal in the London Metal Exchange warehouses are at record levels.

"That is totally against the laws of economics, the law of supply and demand," he said. "You have 160,000 tonnes sitting in the LME warehouses, but there's 114,000 sitting in one warehouse in Rotterdam. Why is that metal just sitting there when the American steel producers are paying a premium up to 90 cents a pound to get nickel for their (stainless) steel?"

David Constable, vice-president- investor relations of FNX Mining, which operates the McCreedy West and Podolsky mines and the Levack Footwall deposit in Greater Sudbury, isn't concerned about what happens with nickel in 2010 because FNX is focused on copper.