Liberty Mines revives Timmins-area producers: new life returning to McWatters, Hart, Redstone Mines.

• Author: Stewart, Nick
• Position: TIMMINS

As the price of nickel slowly continues to edge upwards, so too do the fortunes of Liberty Mines Inc., which has once again been brought to life.

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The McWatters Mine has officially been brought into commercial production, beginning as a 500-tonne-per-day operation and scaling up to a 2,000-tonne-per-day operation by April.

"The nickel price has got to the range where we can make some significant money," says Gary Nash, president and CEO, Liberty Mines.

"You're either in business or you're not, so you can't hide behind the rock forever, and basically, this works for us. We can keep our costs in a very respectable area, watch things carefully, and we'll be okay."

Nearly 80 jobs have been created at McWatters, where mining costs range between $3.00 and $3.50 per pound of nickel.

Grades at the mine average one per cent overall, though values rise as the work goes deeper. From the 140-metre level, grades have a weighted average of nearly 2.5 per cent. Blasthole stoping will largely be used to mine at McWatters, though cut-and-fill methods will be used to reach the 150-metre level.

"It's as cheap as you can get," says Nash.

Work had already begun at the site prior to the operation's shutdown in October 2008, with the ramp having reached the 100-metre level. This will be completed to the 140-metre level, along with the drift and the ventilation raise.

Costs for this work will reach $4.5 million, and Nash says a small round of financing will be completed in the near future to help facilitate it.

"It's going to be very, very welcome to have some cash come back, that's for darn sure."

Also receiving a similar treatment is the Hart property, which stands as another potential low-cost operation. Construction and development is due in the spring.

Mining will begin by the early fall with up to 700-tonnes-per day. That number may grow once the 200-metre level is reached, where grades of 1.5 per cent and above are located.

The future potential of Liberty's...