3 Timmins area men aim to develop 2 open pit mines

[Red Squirrel]

This is not bad. We already have one of the deepest open pit mine in the world going at 7 900' deep, now there's plans for 2 more!

Three Timmins area men aim to develop two open pit mines
By Gregory Reynolds

Tuesday, September 16, 2003 - 07:00

Local News - A successful proxy battle has put three local men in control of a junior mining company with the potential to develop two open pit nickel mines in Timmins.

Geologist Eduard Ludwig of Timmins became president of Liberty Mineral Exploration Inc. on Sept. 8 in Toronto after shareholders dumped the management team.

Along with Ludwig, two independent directors were elected, Steve Anderson of Timmins and his partner, Donald McKinnon Jr. of Smooth Rock Falls.

Moving quickly, the new board of directors acquired a former nickel producer off Stringer Road 22 km south of South Porcupine in Eldorado Township.

Inco Ltd. is currently working on the property, known as the Redstone Project, under an option to earn a 70 per cent interest.

The other prospect is the McWatters Property in adjoining Langmuir Township with nickel, platinum and palladium values.

“There is a potential for an open pit operation and we will be looking into that potential,” Ludwig said. “Our hope for the company is that we will have two operating open pit nickel mines.”

Liberty acquired the Redstone Project in exchange for 2.8 million shares valued at 12.5 cents each for a total of $355,000.

The project covers 63 leased claims and Inco’s option calls for it to pay $520,000 over four years.

The seller of the property to Liberty, Timmins Metal Corp., is 27.5 per cent owned by Ludwig.

The company said the share purchase disclosed Monday had been approved by its independent directors.

Liberty Mineral, a gold and nickel explorer focused on the Timmins region, where its head office is now located, also announced a private placement of up to 1.2 million flow-though shares at 12.5 cents each, for gross proceeds of $150,000.

The money is to fund exploration on the McWatters nickel, platinum and palladium property.

Phase 1 will consist of the following:

• detailed grid cutting around the entire McWatters mineralized zone, including some periphery work;

• detailed geophysics which includes magnetic, induced polarization (IP), UTEM and down hole surveys;

• and -re-drilling of the original McWatters zone, initially for a total of 5,000 feet.

Phase 2 will depend on results and financing, said Ludwig.

The Redstone Project has been in production twice in the last 14 years but both times closed down because of low nickel prices and financial difficulties encountered by the owners.

The ore body was discovered in the late 1970s by BHP Utah Mining which optioned the property to Timmins Nickel Limited in 1989.

Timmins Nickel proceeded to develop and mine the property 1990-92.

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